I plead guilty to not withholding SS from what I pay my household help. She has indicated that she wants cash now and does not want to wait for SS in 20 years. Makes it easier on me also, as I'm not sure that I would put up with all of the w/h and sending money to SS etc in a rather small amount. I doubt that she files with the IRS.
Anyone here decuct SS from their household help compensation? How about income tax (W-2)? Has the IRS ever come after a non-politilal person (regular Joe) for this violation of IRS rules/regs?
Principally, the IRS is looking to collect Social Security and Medicare taxes on wages paid to your household help. The rate is 7.65 percent for the employer, and you must withhold 7.65 percent from payments to the employee (for a total of 15.3 percent). If you choose, you can pay the 7.65 percent that is supposed to be withheld from the employee, but you would count this as additional wages to the employee when you issue her a Form W-2 at the end of the year.
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