Taxation of Household Employees: Registering, Reporting, Remitting, and Minimizing Taxes

A live 110-minute CPE webinar with interactive Q&A

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Tuesday, November 1, 2022

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, October 7, 2022

or call 1-800-926-7926

This webinar will discuss remittance and reporting requirements for household employees. Our panel of individual income tax experts will explore reporting rules, including registration, withholding, and unemployment rules, as well as offer ways to minimize these taxes and simplify the tax reporting process.

Description

Often referred to as the Nanny Tax, the tax on household employees applies to more than child care providers. In 2022, an individual who pays a household worker $2,400 or more during the year must collect and remit federal withholding, Social Security, and Medicare taxes.

There are also federal and state unemployment taxes payable by the employer and most likely state withholding considerations. Each tax obligation carries its reporting form, due date(s), and tax rates. The complexity of the tax reporting requirements is enormous compared to the often small amount of wages paid.

Household employers can choose to pay the employee's share of Social Security taxes, creating a somewhat tricky calculation. As with all employees, W-2s must be prepared, and employers are required to collect I-9s, W-4s, and state withholding certificates. This burden leaves some taxpayers, and their tax preparers, considering outsourcing these reporting and payment obligations.Tax professionals working with individuals must thoroughly understand the tax duties of employing household workers to properly advise and make recommendations to these taxpayers.

Listen as our panel of household reporting experts explains who is and is not subject to household taxes and how best to satisfy the numerous corresponding reporting and payment obligations that come with employing household workers.

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Outline

  1. Household employment taxes: introduction
  2. Who is and is not subject to these taxes?
    1. Types of workers
    2. Reporting thresholds
  3. Related and required forms
    1. I-9 Employment Eligibility Verification
    2. W-4 Employee Withholding Certificate
    3. State withholding
    4. SS-8 Request for Determination
  4. Federal and state tax liability
  5. Preparing Schedule H, Form 1040
  6. Penalties for noncompliance
  7. Venmo and cash app payment caveats
  8. Using a service provider
  9. Steps to minimize liability

Benefits

The panel will review these and other critical issues:

  • Consequences of not reporting household employees' obligations
  • Preparing Schedule H, Form 1040
  • Caveats of Venmo, PayPal, and Cash App payments to household employees
  • Federal and state registration requirements

Faculty

Devitt, Ashley
Ashley Devitt
Attorney
FORVIS

Ms. Devitt is a member of the Houston tax team at FORVIS. She has experience providing federal and state tax...  |  Read More

Goodfriend, Robert
Robert Goodfriend, CPA

Managing Director
FORVIS

Mr. Goodfriend has more than 30 years of experience providing services to individual clients, closely held businesses,...  |  Read More

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