STATE - The state requirements below vary, state to state, generally each state requires some form of the following items:
New Employee:
• Reports all new hires within ~10-20 days of hiring. 
• Compete a state W-4

State Income Tax:
Not required to be withheld from your employee's paycheck, this should be mutually agreed between you and your employee. However, your employee will be issued a W-2 at the end of the year as such it could require a substantial tax payment from the employee based on their own tax situation.

State Unemployment Tax:
Unemployment tax in most states is required when you pay wages greater than $1000 in any calendar quarter.  You, the employer pay for this tax. This tax is assessed typically on the first $7- 10,000 of wages paid per worker in the calendar year. The rate is typically around 6-7%

Workers' Compensation (and Auto) Insurance:
Both of these items are outside our service however you should consider Workers' Compensation Insurance. We Strongly encourage calling your insurance agent about obtaining this coverage, typically it's a rider on your homeowners insurance. Also, if your employee is gong to be driving your vehicle or driving your child around in their car you may want to discuss this with your insurance agent. Remember that they are your employee so if they get into an accident some lawyers may come after you as the employer. Also, remember that if you pay "under-the-table" this will not eliminate this potential liability.

State Reporting Numbers:
Employers will need to obtain an employer ID some states will require two; one for income tax witheld and a state Unemployment number too.

State Taxes to be filed:
The employer files quarterly payroll tax returns.

Nanny Tax for Federal / IRS / Social Security:

New Employee: 
• Complete and retain an I-9 form.
• Complete and retain a W-4 form

Federal Income Tax:
Not required to be withheld from your employees pay check. However, your employee will be issued a W-2 at the end of the year as such, it could require a substantial tax payment from the employee based on their own tax situation.

Social security and Medicare taxes:
Also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. You are required to withhold 6.2% of an employee's wages for social security taxes and to pay a matching amount. For Medicare tax you will withhold 1.45% of an employee's wages and pay a matching amount for Medicare tax. All-in-all this totals 15.30% or 7.65% paid by you, the employer and 7.65% withheld by you from the employee (or not withheld and paid by you the employer).

Federal Unemployment Tax:
As an employer also pay Federal Unemployment Taxes (FUTA) at a rate of 6.2 %, on the first $7,000 in wages. However, you can take a credit of up to 5.4% for the State Unemployment tax that you have paid. Therefore if you take the maximum credit your FUTA rate will be 0.8%.

Federal Reporting Number:
File for and obtain a Federal Employer Identification Number (FEIN) on form SS-4

Filing Taxes:
• Prepare and provide employee with W-2, before January 31st
• File W-3 with Social Security.
• Prepare Quarterly tax payment coupon to eliminate the potential penalty for under payment of you personal income tax and Report on schedule H on your 1040 the Federal income tax that you withheld, FICA taxes you withheld and owe and Federal Unemployment Tax that you owe.

Remember:
HouseHoldPayDay.com will prepare the necessary documents to obtain all reporting numbers, complete the tax filings, providing a state of art payroll software, along with provide expert guidance and help through the process.   All at our reasonable price. See our rates and a detail list of services.