Discussion:Household Employer in Nevada
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Household Employer in Nevada
Discussion Forum Index --> Tax Questions --> Household Employer in Nevada
IheartTaxes (talk|edits) said: | 30 January 2008 |
| Here is the situation: I am preparing a tax return for a household employer in Nevada. Meaning they employ a maid/nanny at their house. The employer paid the employees $30,000 in the year and did not withhold the employees share of SS and Med. The employer instead paid the SS and Med at the end of the year. $4,590 total (EE 2,295, ER 2,295)
I know that the employees have to include the amount that the employer paid for them in their Fica wages but not in their SS or Med wages. So their Fica wages would be $32,295 and their SS and Med wages would be $30,000. I also know that the employers payments does not count toward their FUTA wages. But I'm trying to fill out their quarterly returns for the state, mainly the "Employers quarterly contribution and wage report" and I'm wondering if the amount I should report on line 3 Total gross wages, should be the $32,295 or the $30,000. Does anyone have any experience with household employers? Can anyone help me with this? Thanks | |
IheartTaxes (talk|edits) said: | 30 January 2008 |
| Is there anyone out there that has experience with this kind of situation? | |
| 30 January 2008 | |
| FICA wages are the same thing as SS and Medicare Wages. You would gross up the amount paid for EE's Share of Fica and that is what is reported. | |
IheartTaxes (talk|edits) said: | 31 January 2008 |
| Oh I feel dumb. I meant wages that are subject to income tax are $30,000 but the fica wages would be $32,295. | |
| 31 January 2008 | |
| No you would gross up and all three wages would be the same . | |
TheTinCook (talk|edits) said: | 31 January 2008 |
| You know what's relly weird?
The Household Employmers Guide, Pub 926, on page 5, claims that you only need to gross it up for income tax, but not for FICA. I haven't found anything to back it up, but I haven't had time to research it thourghly. | |
| 2 February 2008 | |
| I've been filing these for years. You gross up the income tax number but NOT the amounts subject to FICA. If you grossed them up too, that would increase the FICA tax which would again increase the income tax, and so on ad infinitum ....
Just follow the Household Employers Guide and you'll be fine. | |
