What taxes does my domestic (elder care giver, home health aide, housekeeper, maid) pay?
Your household employee (home health aide, housekeeper, maid, etc.) contributes to or pays: • Social Security & Medicare Taxes (7.65% of Gross Wages Collected and Remitted by Employer) • Employee Disability/Unemployment Taxes where required. • Federal/State Income Taxes The employer is solely responsible for the remittance of the Social Security and Medicare taxes. You and your household employer cannot legally agree that she will “take care of the taxes.” Even if the employer fails to collect this tax from the employee via periodic payroll deductions, the employer remains responsible to remit or pay the tax to the IRS. The household employee CANNOT remit their share of Social Security and Medicare tax independent of the employer. This has some uniquely important implications in an eldercare situation. We have helped many spouses and adult children of the individual receiving the care deal with the consequences of failing to pay these employment taxes. Eventually the caregiver will be
