Link: ABC7 News Online - Tax Tips 2005: Part 3.
Don't get caught by the "Nanny Tax" It makes for headlines when a presidential appointee goes down in flames for failing to pay payroll taxes for a nanny or other household employee. The fact is, these same rules apply to other taxpayers, too. In general, the JK Lasser Income Tax guide points out that individuals paying a household employee $1,400 or more in 2004 must pay Social Security and Medicare taxes, just like every other employer. That's the so-called FICA withholding
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