Payroll Service For Small Businesses - Generally, yes. However, compensation paid to a domestic worker is exempt from Social Security taxes if (1) the payment is in a medium other than cash; (2) the payment is for the employer's portion of Social Security or state unemployment tax; or (3) the cash remuneration paid to the employee in any calendar year is less than the applicable dollar threshold ($1,700 for 2011 and $1,800 for 2012). Compensation paid to a domestic worker is subject to FUTA unless the payment is for the employee's portion of Social Security or state unemployment tax, or if the employer paid wages of less than $1,000 for such service in any calendar quarter in the current or preceding calendar year.
Domestic service performed in the private home of an employer is not subject to income tax withholding. Considering a Tax Professional? For no obligation free consultation contact us today!
651-621-5777
No comments:
Post a Comment