A while ago I got a email about the tax issues forhiring and paying family members. My mother is stayingwith me now and I am considering paying her for somehousehold work. She has not worked in U.S. long enoughto get Medicare or Social Security benefit. How muchdo I need to pay her to allow her work at my home becredited for future social security or medicarebenefit? Is there any legal problem in this? Howshould I set this up with IRS or other agencies?Thanks.
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 ExROPhil Marti