Employment taxes

PLCHTOWN · ‎June 3, 2019

why his my schedule H showing that I'm paying 12.4% of social security tax for my nanny employment taxes (the employee and employer responsibility)? Shouldn't I only be paying 6.2%? I've provided my employee a W2.

JaimeG · ‎June 3, 2019

Yes, you are paying 6.2% as your share of the employer portion. The remaining 6.2% is the amount should be withheld from the Nanny's pay as her contribution to Social Security. For Example:

Nanny's Paycheck is $100.00 Gross and for simplicity she has 0 for Federal Withholding
You pay the SSA $6.20 out of your pocket and the Nanny pays $6.20 out of her Gross Pay
You pay the Medicare $1.45 out of your pocket and the Nanny pays $1.45 out of her Gross Pay
The Nanny's Net Pay is $92.35 but this paycheck cost you $100.00 of Gross Pay and $7.65 of your share of the FICA withholding, for a Total Cost of $107.65.

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JaimeG · ‎June 3, 2019

Yes, you are paying 6.2% as your share of the employer portion. The remaining 6.2% is the amount should be withheld from the Nanny's pay as her contribution to Social Security. For Example:

Nanny's Paycheck is $100.00 Gross and for simplicity she has 0 for Federal Withholding
You pay the SSA $6.20 out of your pocket and the Nanny pays $6.20 out of her Gross Pay
You pay the Medicare $1.45 out of your pocket and the Nanny pays $1.45 out of her Gross Pay
The Nanny's Net Pay is $92.35 but this paycheck cost you $100.00 of Gross Pay and $7.65 of your share of the FICA withholding, for a Total Cost of $107.65.