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Subject:  Household Employee? Date:  8/27/2012  4:57 PM
Author:  vkg Number:  116554 of 129777

MIL is hiring a part time aide. The aide will be working about 30 hours a month. I wasn't involved in the intial interviews. The one selected isn't working for an agency. It has been very difficult to get my MIL to accept that she needs help and find someone that she will let into the house. Dealing with tax issues will be much simpler.

I should have sent questions for the interview, but that is history. Now, I just need to understand what needs to be done.

Are household employees normally issued W-2? It looks like for federal FICA, FUTA and Medicare are handled with the employers tax return. California would require withholding of SDI. If based only on this income, state and federal tax withholding should be very low. A W4 would be needed to obtain her SSN and withholding information.

My MIL is not her only client.

If she has setup a business does it change the reporting?
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