We know the stress and uncertainty created by complicated tax and labor laws.
Use the tools and information here to clear up the confusion.
Taxes to be Paid by Household Employers. Household employers can
expect to PAY employer payroll taxes of approximately 9-11% of their employee’s
gross wages (Good News! Tax breaks can save you as much or more than the taxes).
Specifically, the employer taxes are:
The employer’s half of Social Security & Medicare (“FICA”). The rate is 7.65% of
employee’s gross wages.
State Unemployment Tax Assessment (“SUTA”). The rate varies by state.
Federal Unemployment Tax Assessment (“FUTA”). The rate is 0.6% of first $7,000 of
employee’s gross wages and, therefore, caps at $42/year.
Other state taxes (many states have a small additional tax in order to fund initiatives
such as workforce development/training)
These taxes must be reported and remitted to the IRS and the state on a quarterly
For an estimate of your employer tax costs and your employer tax breaks, call us
or use our free Employer Budget Calculator.
Taxes to be Withheld by Household Employers. Household employers
are required to WITHHOLD taxes from their employee’s paycheck. Specifically, those
The employee’s half of FICA (7.65% of gross wages)
Federal Income Tax * (withholding rate based on employee elections on Form
State Income Tax * (withholding rate based on employee elections on state
Form W-4 where applicable)
Other state taxes (some states levy additional taxes to pay for things like Disability
* Income taxes are not required to be withheld, however, we highly recommend it so your employee is not subject to under payment penalties.
For an estimate of your employee’s take-home pay, give us a quick call or use our
free Employee Paycheck Calculator.
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