Keeping IRS Records of your Household Employees As a Household Employer, you must keep all your records on your household employee's income and employment taxes, including Social Security, Medicare, federal unemployment taxes, federal income tax withholding, and advance payment of earned income credit, for at least 4 years after the due date of the return or after the tax is paid, whichever is later. Information you Should Maintain as a Household Employer Your employer identification number; (EIN) Copies of returns you have filed; Dates and amounts of any deposits or payments you made; Each household employee's name, address, and Social [...]

The Nanny Tax Law Origins Until 1994, if you paid a nanny, babysitter, gardener, or any other household employee more than $50 in any calendar quarter, you were obligated to withhold FICA contributions from that person's wages and to remit those taxes, together with your share of FICA tax, to the IRS. You were required to do this every three months on a quarterly basis using IRS Form 942, the Household Employer's equivalent of the business employer's Form 941. At the end of the year, you were required to file a final Form 942 as well as a separate [...]

Social Security and Medicare Taxes for Household Employees The Income Test for Social Security and Medicare Taxes Remains at $2,700 for 2024. You do not have to withhold or report Social Security or Medicare taxes for household employees that you pay less than $2,700 this year. The FUTA annual threshold remains the same at $1,000. Babysitter Exception Caregivers to whom you pay $2,700 or more, but who are age 17 or younger, are not considered household employees for whom you must withhold and pay FICA taxes unless providing household services is that person's principal occupation. If the caregiver is [...]

Household Employer Tax Forms The following is a listing of IRS Publications, Forms and Notices that contain information you may need as a Household Employer: Publications 15 (Circular E) Employer's Tax Guide 505 Tax withholding and Estimated Tax 926 Household Employers Tax Guide Forms (and Instructions) SS-4 Application for Employer Identification Number SS-5 Application for a Social Security Card W-2 Wage and Tax Statement W-3 Transmittal of Income and Tax Statements W-4 Employee's Withholding Allowance Certificate W-10 Dependent Care Provider's Identification and Certification 2441 Child and Dependent Care Expenses Schedules Schedule H Household Employment Taxes Notices 1036 Early Release [...]