W-2 for domestic employee

[Anonymous]

Being new to paying a full-time nanny in 2012, I went with what she told me and that is she pays all of her taxes, without checking with my accountant I paid her our agreed upon salary in full. I assumed that i would provide her a w-2 at the end of the year reporting zero witholdings. Now that I am preparing the w-2, I am reading some articles on the internet, it appears I was to withold fica. I did not withhold this but our agreement was she would pay all of her taxes. How do I correct for this or am I now liable for her portion of the fica? Can I provider her a w-2 with zero collected for social security and medicare and let her file a form 8919 uncollected tax and medicare wage?

[Anonymous]

Anonymous wrote:Being new to paying a full-time nanny in 2012, I went with what she told me and that is she pays all of her taxes, without checking with my accountant I paid her our agreed upon salary in full. I assumed that i would provide her a w-2 at the end of the year reporting zero witholdings. Now that I am preparing the w-2, I am reading some articles on the internet, it appears I was to withold fica. I did not withhold this but our agreement was she would pay all of her taxes. How do I correct for this or am I now liable for her portion of the fica? Can I provider her a w-2 with zero collected for social security and medicare and let her file a form 8919 uncollected tax and medicare wage?

have you been paying state taxes / unemployment?

[Anonymous]

OP didn't pay anything.

OP, you are the employer, so you are responsible for your part of your employee's payroll taxes. She is responsible for her income taxes.

Yes, you are delinquent and you need to write a check to cover all those costs. You may still be in trouble for not paying them quarterly.

[Anonymous]

Anonymous wrote:OP didn't pay anything.

OP, you are the employer, so you are responsible for your part of your employee's payroll taxes. She is responsible for her income taxes.

Yes, you are delinquent and you need to write a check to cover all those costs. You may still be in trouble for not paying them quarterly.

+1

OP, didn't you speak with an accountant about the tax issue before you hired the nanny?

[Anonymous]

State and unemployment to state can be paid 1x a year, the late filing date is feb 1 (in VA). So depending on where you live not delinquent for state.

Federal you can pay with the schedule H at the April deadline for domestic employee (if not domestic you need to pay quarterly, but we are discussing domestic here).

[Anonymous]

Anonymous wrote:State and unemployment to state can be paid 1x a year, the late filing date is feb 1 (in VA). So depending on where you live not delinquent for state.

Federal you can pay with the schedule H at the April deadline for domestic employee (if not domestic you need to pay quarterly, but we are discussing domestic here).

It is Feb 28th in VA not Feb 1st for payment of tax for the preceeding year, check out the link to the VA tax department. http://www.tax.virginia.gov/site.cfm?alias=HouseholdEmployer

[Anonymous]

Good news bad news:

Good: The poster above is correct, you did not miss any deadlines, you file on the schedule H for 2012 in April of this year for domestic employees (http://www.irs.gov/pub/irs-pdf/f1040sh.pdf)

Bad: Since you are required to remit your portion and the nannies portion, if you did not collect the nannies portion you will need to pay her portion as you are the liable party come April for submitting both your portion and her portion (unless she is willing to pay it).

[Anonymous]

OP here, thank you for your information and links. She has been with us for 5 weeks now (we changed our mind at the last minute over Thanksgiving) and are still trying to get our hands around how this works. It does not look like we are out too much but I will need to clarify with her that deductions will be taken going forward.....we will see how that goes.