For Wages Paid in 2009
Change to social security and Medicare wage threshold.(p1)
The social security and Medicare wage threshold is $1,700 for 2009. This means that if you pay a household employee cash wages of less than $1,700 in 2009, you do not have to report and pay social security and Medicare taxes on that employee's 2009 wages. For more information, see Social security and Medicare wages on page 4.taxmap/pubs/p926-000.htm#en_us_publink1000144335
Increased exclusion amount for transit passes.(p1)
The American Recovery and Reinvestment Act of 2009 increased the exclusion amount for transit passes to $230. For more information, see Wages not counted beginning on page 4. taxmap/pubs/p926-000.htm#en_us_publink100086719
Photographs of missing children.(p2)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
The information in this publication applies to you only if you have a household employee. If you have a household employee in 2009, you may need to pay state and federal employment taxes for 2009. You generally must add your federal employment taxes to the income tax that you will report on your 2009 federal income tax return.
This publication will help you decide whether you have a household employee and, if you do, whether you need to pay federal employment taxes (social security tax, Medicare tax, federal unemployment tax, and federal income tax withholding). It explains how to figure, pay, and report these taxes for your household employee. It also explains what records you need to keep.
This publication also tells you where to find out whether you need to pay state unemployment tax for your household employee.taxmap/pubs/p926-000.htm#en_us_publink100086720
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Internal Revenue Service
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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. taxmap/pubs/p926-000.htm#en_us_publink100086723
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. taxmap/pubs/p926-000.htm#en_us_publink100086724
Household work is work done in or around your home. Some examples of workers who do household work are:
- Cleaning people
- Domestic workers
- Health aides
- Private nurses
- Yard workers
If only the worker can control how the work is done, the worker is not your employee but is self-employed. A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business.
A worker who performs child care services for you in his or her home generally is not your employee.
If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. taxmap/pubs/p926-000.htm#en_us_publink100086726
You made an agreement with John Peters to care for your lawn. John runs a lawn care business and offers his services to the general public. He provides his own tools and supplies, and he hires and pays any helpers he needs. Neither John nor his helpers are your household employees. taxmap/pubs/p926-000.htm#en_us_publink100086727
More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide.