Do you plan to pay a cleaning person, cook, gardener, babysitter, or other household worker at least $2,300 in 2021? This amount includes any cash paid for household employee’s transportation, meals, and housing. If one pays at least $2,300 to one person, there are some additional financial responsibilities.

When one pays at least $2,300 in wages to a household worker, they must do all of the following:

• Deduct Social Security and Medicare taxes from those wages.

• Pay these taxes to the Internal Revenue Service.

• Report the wages to Social Security.

For every $2,300 in wages, most household employees earn credits toward Social Security benefits and Medicare coverage.

Generally, people need 10 years of work to qualify for:

• Retirement benefits (as early as age 62).

• Disability benefits for the worker and the worker’s dependents.

• Survivors benefits for the worker’s family.

• Medicare benefits.

One can learn more about reporting household worker income by reading Household Workers at

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