Yes, you will need to pay Medicare and social security taxes (FICA Taxes) if you paid your employee $2700 or more during the year or more than $1000 in any quarter in 2024. Here are steps for reporting the income and to pay the FICA taxes.
- Log into Turbo Tax
- Go to Other Tax Situations
- Additional Tax Payments
- Nanny and Employee Tax.
Once the section is complete, you will be charged for the FICA Taxes that you are required to report. You are not required to withhold federal income taxes. Since you did not withhold FICA taxes during the year, you must pay for all FICA taxes, even if the caregiver's share of the taxes because you should have withheld these during the year.
Just remember though, this doesn't need complete this section if the caregiver's income was less than $2700 for the year or if they were paid less than $1000 per quarter.
One last note. As you complete the Nanny and employee Tax section, you will need to apply for an EIN. There is a section that addresses that while you complete the section for Nanny and Employee taxes. I would suggest you wait until IRS issues your EIN before issuing the W2 to the caregiver.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
