1099 Form Late. Haven't sent Form 1009 to my child's babysitter for $6,100. Should I send it now (March 30)? What if I don't send it at all?

[SweetieJean]

Did babysitter do this in your home?

[J_Robles]

No, mostly in her home (about 90% of the time).

[Coleen3 · Accepted solution]

You do not issue a Form 1099-Misc. You are not a business. She may actually be an employee.

Here is a quick breakdown: If you paid your nanny $2,000 or more in 2018, you should withhold and pay Social Security and Medicare on all of her wages. If you paid your nanny $1,000 or more in a quarter in 2018, you must pay the federal unemployment tax, or FUTA. (You may also owe state unemployment taxes.)

Generally, for 2018 an employer needs to pay Social Security and Medicare taxes for “cash wages” of $2,000 or more paid to any one employee. Cash wages refer to checks, money orders and the like. They don’t include “the value of food, lodging, clothing, transit passes and other noncash items you give your household employee.” But cash given to an employee in place of those items counts as cash wage.

Don’t count wages paid to your spouse or your child under 21, the IRS says. Wages paid to your parent typically don’t apply, either, although there are exceptions.

Don’t count wages paid to an employee under 18 at any time during the year, unless providing household services is “the employee’s principal occupation,” the IRS says.