Meals and lodging for household employee

[Dangelin]

I need to include an amount for Meals and Lodging for a household employee for California State taxes only. Per IRS Publication 926, this amount is exempt from Federal taxes if provided to the employee in the home for your convenience (meals), or as a condition of employment (lodging).

For the state taxes, this amount should NOT be included in PIT wages, but needs to be included in Subject wages for the DE 6 report.

What is the best way to enter this so that it accumulates in the quarterly and annual reports? ( I read the posts on housing allowance for a pastor by Marie). I tried entering it as a deduction, exempt from taxes, but it is still being deducted from the gross salary. I suspect I need to add it back somewhere as a negative amount.

Thanks in advance for your help.

[Paul Mayer]

We do not have a way to handle that situation. I cannot even think of a way to trick the software into managing it. The best way would be to track it on the side and when preparing your DE 6 for make sure you report it as the instructions tell you to.

Their is a special payroll package called NannyPay but I'm not sure they would handle that situation either. http://www.nannypay.com/

Sorry.