“ DO I also need a state tax ID? “---->As described below it depends; For your state tax ID, start with your state's web site. In some cases, even individuals need an EIN. As you are a household employer who has people working for you as employees and not as contractors, you are also required to have an EIN. You are considered a household employer if you employ one or more babysitters, nannies, housekeepers, drivers, gardeners, care takers and/or private nurses. There is no limit to how many EINs you may obtain.
“I did not withhold any state income tax and I don't think she made enough to even file state income tax returns.”----->in order for the H/H EE, to be liable for the FICA Taxes ,(fed/state) taxes , the H/H EE MUST receive $1,700 or more in cash wages from you in the year, 2011 UNLESS she is under the age of 18(UNLESS her principal occupation is H/H employment.). However, in the case of CA, as a H/H employer , you do not have to withhold state or personal income tax from H/H EE’s wages. You can STILL withhold the tax if both you and the employee agree to it.ALSO, you are not required to withhold Federal income tax from wages you pay to a household employee. However, if your employee asks you to withhold Federal income tax and you agree, you will need Form W-4.You need to find out if you need to pay state taxes, such as unemployment or workers' compensation. Check with your state taxation office for rules. |