Question

about the nany's tax?

what would you ask and what would you tell someone to do if they had been paying for a household employee, but had not filed a scheduke H with their tax return ?

Answer 1

1) The nanny pays 45 percent for Medicare and 6.2 percent of wages for Social Security, thus a total of 7.65 percent need to be withheld from their pay. The employer can choose to pay it themselves and not withhold

2) Schedule H helps in the computation of how much employment tax you owe, which is based on the total wage amount that us paid out to household employees. If the taxpayer has a household employee, he may be required to withhold and pay Medicare and social security taxes, pay federal unemployment tax, or both.

Taxpayer must be withholding Medicare tax at 1.45% and an additional Medicare Tax at 0.9% from wages payments to household employee in a calendar year in excess of $200,000. Moreover the taxpayer also needs to pay state employment taxes. When the household employee is paid and taxpayer is required to withhold and pay employment taxes and the tax payer along with their tax return had not filed a schedule H, taxpayer generally would be liable for the employment taxes that taxpayer should've withheld and paid. The penalties and interest may also be charged. Moreover a penalty can be imposed when the taxpayer don't give Forms W-2 to their employees or file Copy A by the due dates of the forms with the SSA.