Question

Sam pays his son, Joshua (19), $800 per month to maintain the lawn and garden at...

Sam pays his son, Joshua (19), $800 per month to maintain the lawn and garden at the family residence. Is Sam subject to the household employment tax rules for Joshua? Why or why not?

Homework Answers

Answer #1

The social security and Medicare wage threshold for household employees is $2,000 for 2017. This means that if you pay a household employee cash wages of less than $2,000 in 2017, you do not have to report and pay social security and Medicare taxes on that employee's 2017 wages. Also if the household employee was spouse, child under the age of 21 or parent, an individual need not have to file a schedule H and pay social security, medicare or federal unemployment taxes.

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