03 Dec Paying the babysitter
If you have a nanny or a cleaning service, the annual threshold amount for having to report and pay employment taxes is $1,600 for 2008 and $1,700 for 2009. If your yearly payments to any one domestic employee exceed these amounts, you have to report withheld income and social security taxes on your individual tax return and you will need an employer identification number (EIN). This dollar amount applies separately to each employee so you do not have to combine all payments when calculating whether or not you owe employment taxes.
