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Subject Author Date
2007 FICA wage threshold for household workers? nomail1983 01-10-2007
Posted by nomail1983 on January 10, 2007, 9:37 pm
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 What is the 2007 FICA wage threshhold for household workers?

I can only find the 2005 IRS Pub 926 online with the 2006
threshold ($1500).

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Posted by Phil Marti on January 12, 2007, 2:47 am
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> What is the 2007 FICA wage threshhold for household workers?
>
> I can only find the 2005 IRS Pub 926 online with the 2006
> threshold ($1500).

Unchanged at $1,500


--
Phil Marti
Clarksburg, MD

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Posted by HW \"Skip\" Weldon on January 13, 2007, 1:53 am
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>> What is the 2007 FICA wage threshhold for household workers?

> Unchanged at $1,500

Whenever I think about this it bothers me. Here's a typical
question I field frequently:

"We have a person who cleans our house once a week for two
hours. For the year we pay her more than $1500. We
consider her self-employed because she does the same thing
for other families and do not withhold or pay FICA.

On the other hand she does use our vacuum, cleaning supplies
and so forth. (She decides what to buy, and when, and we
reimburse her.) We don't tell her what to do, but
occasionally ask that she damp mop a room, double check
ceiling corners for spider webs, etc. Otherwise she has
discretion on when and whether to perform specific
functions.

I realize we could hire an agency to do this and avoid the
issue, but we like this person."

Has this typical family got a problem?

-HW "Skip" Weldon
Columbia, SC

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on January 15, 2007, 1:47 am
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> "We have a person who cleans our house once a week for two
> hours. For the year we pay her more than $1500. We
> consider her self-employed because she does the same thing
> for other families and do not withhold or pay FICA.
>
> On the other hand she does use our vacuum, cleaning supplies
> and so forth. (She decides what to buy, and when, and we
> reimburse her.) We don't tell her what to do, but
> occasionally ask that she damp mop a room, double check
> ceiling corners for spider webs, etc. Otherwise she has
> discretion on when and whether to perform specific
> functions.
>
> I realize we could hire an agency to do this and avoid the
> issue, but we like this person."
>
> Has this typical family got a problem?

It's a complex analysis and does not depend on any one
factor. So the fact that she uses the family's vacuum,
etc., is not determinative.

Telling her to make sure the corners are cleared of spider
webs, etc., is telling her the results to accomplish, not
necessarily how to accomplish them. So that may not be a
problem, either.

My suggestion would be to have her register a fictitious
name (e.g. ABC Cleaning Service), and get business cards.
Even put a listing under the name in the phone book. While
that's not part of a strictly legal analysis, that's the
kind of thing the non-lawyers who look at these things often
find convincing.

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Phil Marti on January 15, 2007, 2:07 am
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> Whenever I think about this it bothers me. Here's a typical
> question I field frequently:
>
> "We have a person who cleans our house once a week for two
> hours. For the year we pay her more than $1500. We
> consider her self-employed because she does the same thing
> for other families and do not withhold or pay FICA.
>
> On the other hand she does use our vacuum, cleaning supplies
> and so forth. (She decides what to buy, and when, and we
> reimburse her.) We don't tell her what to do, but
> occasionally ask that she damp mop a room, double check
> ceiling corners for spider webs, etc. Otherwise she has
> discretion on when and whether to perform specific
> functions.
>
> I realize we could hire an agency to do this and avoid the
> issue, but we like this person."
>
> Has this typical family got a problem?

They do if they get caught. The housekeeper is clearly an
employee IMO.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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