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  #5  
Old 01-26-2007, 08:42 AM
JD
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Posts: n/a
Default Re: 2007 FICA wage threshold for household workers?

- quote -

> > > 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?


This is a common law issue and varies from state to state.

how ever the following will be very helpful..
1) does she have a business license?
2) does she provide the same services to other clients?
3) do you have a WRITTEN CONTRACT with her?
4) to what degree do you control manner and method of their
performance

The fact that she uses your supplies is not helpful.

There is a list of about 20 factors that need to be
considered when making this decision....

Jerry Doblie
Jerry Doblie, CPA; MS Tax
14045 Sunnyside Ave N
Seattle, WA 98133
206-365-0143


<< ================================================== ===== > << 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. > << ================================================== ===== >
  #4  
Old 01-15-2007, 06:07 AM
Arthur Kamlet
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Posts: n/a
Default Re: 2007 FICA wage threshold for household workers?

HW \"Skip\" Weldon <skip5700removethis[at]hotmail.com> wrote:
- quote -

> > > 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?


The fact that family supplies the tools of the trade works
against them.

Are any of them expecting to be nominated as a Supreme Court
Justice?

--
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << 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. > << ================================================== ===== >
  #3  
Old 01-15-2007, 06:07 AM
Phil Marti
Guest
 
Posts: n/a
Default Re: 2007 FICA wage threshold for household workers?

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

> 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. > << ================================================== ===== >
  #2  
Old 01-15-2007, 05:47 AM
Stuart A. Bronstein
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Posts: n/a
Default Re: 2007 FICA wage threshold for household workers?

"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

> "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. > << ================================================== ===== >
  #1  
Old 01-13-2007, 05:53 AM
HW \Skip\ Weldon
Guest
 
Posts: n/a
Default Re: 2007 FICA wage threshold for household workers?

- quote -

> > 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. > << ================================================== ===== >
 
Old 01-12-2007, 06:47 AM
Phil Marti
Guest
 
Posts: n/a
Default Re: 2007 FICA wage threshold for household workers?

<nomail1983[at]hotmail.com> wrote:

- quote -

> 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

<< ================================================== ===== > << 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. > << ================================================== ===== >
  #-1  
Old 01-11-2007, 01:37 AM
nomail1983@hotmail.com
Guest
 
Posts: n/a
Default 2007 FICA wage threshold for household workers?

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).

<< ================================================== ===== > << 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. > << ================================================== ===== >
 

Tags
2007, fica, household, threshold, wage, workers
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