Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: cshang Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: hiring a family member Date: 8/7/2000 7:47 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

A while ago I got a email about the tax issues for
hiring and paying family members. My mother is staying
with me now and I am considering paying her for some
household work. She has not worked in U.S. long enough
to get Medicare or Social Security benefit. How much
do I need to pay her to allow her work at my home be
credited for future social security or medicare
benefit? Is there any legal problem in this? How
should I set this up with IRS or other agencies?

Thanks.
Print the post Back To Top
Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 38532 of 121592
Subject: Re: hiring a family member Date: 8/8/2000 7:47 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
My mother is staying with me now and I am considering paying her for some household work. She has not worked in U.S. long enough to get Medicare or Social Security benefit. How much do I need to pay her to allow her work at my home be credited for future social security or medicare benefit? Is there any legal problem in this? How should I set this up with IRS or other agencies?

First things first. I assume that your mother is not a U.S. citizen. (If I'm wrong, skip this paragraph.) Step one is to make sure that her status allows employment. The INS is the place to check on this, if you're not sure.

The minimum dollar amounts for Social Security coverage change each year. You can get information from their website: http://www.ssa.gov. I'm not sure about the limits on Medicare coverage, but there may be information there also.

IRS Publication 926 has the information you would need as an employer of household help. You might also need to get in touch with state unemployment tax people and deal with workers' compensation coverage. These things depend on state law.

Remember that wages paid to a household employee are not deductible on your return.

TMF ExRO
Phil Marti


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement