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lfg1
03-29-2008, 07:59 PM
I am a household employer with a single employee.
According to the IRS, if I choose to pay my employee's share of FICA/Medicare, I do not have to ramp-up/include the amount I am paying on her behalf to taxable wages. From the IRS:

Not withholding the employee's share. If you prefer to pay your employee's social security and Medicare taxes from your own funds, do not withhold them from your employee's wages. The social security and Medicare taxes you pay to cover your employee's share must be included in the employee's wages for income tax purposes. However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages.

Example.

You hire a household employee (who is an unrelated individual over age 18) to care for your child and agree to pay cash wages of $100 every Friday. You expect to pay your employee $1,600 or more for the year. You decide to pay your employee's share of social security and Medicare taxes from your own funds. You pay your employee $100 every Friday without withholding any social security or Medicare taxes.

For social security and Medicare tax purposes, your employee's wages each payday are $100. For each wage payment, you will pay $15.30 when you pay the taxes. This is $7.65 ($6.20 for social security tax + $1.45 for Medicare tax) to cover your employee's share plus a matching $7.65 for your share. For income tax purposes, your employee's wages each payday are $107.65 ($100 + the $7.65 you will pay to cover your employee's share of social security and Medicare taxes).

So if paying $450 per week net, the gross pay would be $450 for calculation of employer's tax liability. But Employees taxable wage should be $484.43.

Sound right to you? How can I utilize PayWindow accordingly?

-Larry

Paul Mayer
03-29-2008, 10:30 PM
Actually there is a package that is specific for your needs, it is called NannyPay and you can see it here:

http://www.essentia-soft.com/

PayWindow actually calculates the taxes and withholds them from the employee wages. Then at the end of year reports the taxes withheld on the W2 form.

huntMT
02-05-2018, 04:42 PM
I have the same situation as an agricultural employer where we pay the employee's portion of FICA and MCare. Is there an option to toggle the Employee portion of FICA & MCare to employer paid?

Paul Mayer
02-05-2018, 06:14 PM
I have the same situation as an agricultural employer where we pay the employee's portion of FICA and MCare. Is there an option to toggle the Employee portion of FICA & MCare to employer paid?

We only support agricultural workers where the employer withholds the FICA and Medicare, not for those that elect to pay the employees FICA and Medicare out of their own pocket. The only option we have is to set the employee as exempt from FICA and Medicare. And if that were set, you would not get the calculations from PayWindow.

huntMT
02-05-2018, 07:01 PM
Paul,

Thanks for the info. Really like your program.