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You are probably a household employee, which means your grandfather would need to issue you a W-2. See the rules below. If this isn't you, you would enter it on Schedule C, as a self-employed person, and pay the taxes yourself sincome there is no withholding.
Here is
a quick breakdown: If you paid your household employee $2,000
or more in 2018, you should withhold and pay Social Security and Medicare on
all of her wages. If you paid your H.E. $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.)
You must file Form W-2 for each household employee to whom you paid $2,000 or more of cash wages in 2018 that are subject to social security and Medicare taxes. To find out if the wages are subject to these taxes, see the instructions for Schedule H, lines 1, 3, and 5. Even if the wages aren't subject to these taxes, if you withheld federal income tax from the wages of any household employee, you must file Form W-2 for that employee.
If you file one or more Forms W-2, you must also file Form W-3.
Do You Have a Household Employee?
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 what work 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.
Household work is work done in or around your home. Some examples of workers who do household work are:
Babysitters,
Caretakers,
House cleaning workers,
Domestic workers,
Drivers,
Health aides,
Housekeepers,
Maids,
Nannies,
Private nurses, and
Yard workers.
You are probably a household employee, which means your grandfather would need to issue you a W-2. See the rules below. If this isn't you, you would enter it on Schedule C, as a self-employed person, and pay the taxes yourself sincome there is no withholding.
Here is
a quick breakdown: If you paid your household employee $2,000
or more in 2018, you should withhold and pay Social Security and Medicare on
all of her wages. If you paid your H.E. $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.)
You must file Form W-2 for each household employee to whom you paid $2,000 or more of cash wages in 2018 that are subject to social security and Medicare taxes. To find out if the wages are subject to these taxes, see the instructions for Schedule H, lines 1, 3, and 5. Even if the wages aren't subject to these taxes, if you withheld federal income tax from the wages of any household employee, you must file Form W-2 for that employee.
If you file one or more Forms W-2, you must also file Form W-3.
Do You Have a Household Employee?
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 what work 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.
Household work is work done in or around your home. Some examples of workers who do household work are:
Babysitters,
Caretakers,
House cleaning workers,
Domestic workers,
Drivers,
Health aides,
Housekeepers,
Maids,
Nannies,
Private nurses, and
Yard workers.
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