As the parent of the child I receive childcare assistance from the department of health and human services. I have a caregiver that provides childcare in my home. I have to issue a w2. I did not withhold any taxes. Do I have to pay Medicare and ssi taxes as an employer out of my pocket? Does my caregiver have to pay these as well? Are there any other taxes that o have to pay? I’m low income and on assistance.
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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.
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.
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