It depends whether or not she is a Household Employee. If she is, you may need to issue a Form W-2.
You have a household
employee if you hired someone to do household work and that worker is your
employee. The worker is your employee if you can control not only whatwork is done, but
how it is done. If the worker is your employee, it does not matter whether the
work is full time or part time or that you hired the worker through an agency
or from a list provided by an agency or association. It also does not matter whether
you pay the worker on an hourly, daily, or weekly basis, or by the job.
Example.
You pay Betty Shore
to babysit your child and do light
housework 4 days a week in your home. Betty follows your
specific instructions about household and child care duties.
You provide the household equipment and supplies that
Betty needs to do her work. Betty is your household employee.
Here is a quick breakdown: If
you paid your nanny $2,000 or more in 2017, 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 2017, you must pay
the federal unemployment tax, or FUTA. (You may also
owe state unemployment taxes.)
Generally, for 2016 and 2017,
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.
Household work.
Household work is
work done in or around your home. Some examples of workers who do household
work are:
https://www.homeworksolutions.com/wp-content/uploads/2014/11/p926.pdf>
