Q.Do I need an EIN if I pay a full-time nanny or housekeeper?
A.If you pay someone to come to your home to do housework, babysit, or care for a family member, you may be a household employer. As a household employer you may be required to have an employer identification number (EIN) and to pay payroll taxes, sometimes called the nanny tax.
For the IRS, if you have a household employee you may also be subject to: (a) Social security and Medicare taxes; (b) Federal unemployment tax; and (c) Federal income tax withholding. For more information contact your accountant, or see IRS Publication 926 and IRS Form 1040, Schedule H.
For California residents, a household employer must also register with the EDD after paying $750 in cash wages to an employee in any calendar quarter. The DE-1 HW Registration Form can be found at: http://www.edd.ca.gov/de1hw.pdf. For more information on California household employees, see DE-8829 Household Employers Guide and Information Sheet: Household Employment.
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