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#5
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| - quote - > > > What is the 2007 FICA wage threshhold for household workers?
This is a common law issue and varies from state to state.> > 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? 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. > << ================================================== ===== > |
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#4
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| HW \"Skip\" Weldon <skip5700removethis[at]hotmail.com> wrote: - quote - > > > What is the 2007 FICA wage threshhold for household workers?
The fact that family supplies the tools of the trade works> > 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? 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. > << ================================================== ===== > |
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#3
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| "HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote: - quote - > Whenever I think about this it bothers me. Here's a typical
They do if they get caught. The housekeeper is clearly an> 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? 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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#2
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| "HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote: - quote - > "We have a person who cleans our house once a week for two
It's a complex analysis and does not depend on any one> 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? 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. > << ================================================== ===== > |
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#1
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| - quote - > > What is the 2007 FICA wage threshhold for household workers?
Whenever I think about this it bothers me. Here's a typical> Unchanged at $1,500 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. > << ================================================== ===== > |
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| <nomail1983[at]hotmail.com> wrote: - quote - > What is the 2007 FICA wage threshhold for household workers?
Unchanged at $1,500> I can only find the 2005 IRS Pub 926 online with the 2006 > threshold ($1500). -- 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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#-1
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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). << ================================================== ===== > << 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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