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Categorized | Tax Time

Workers in your home and Social Security taxes

By Vonda Van Til, Social Security Public Affairs Specialist 

Do you plan to pay a cleaning person, cook, gardener, babysitter, or other household worker at least $2,400 in 2022?  If you will pay at least $2,400 to one person during the year, which may include transportation, meals, and housing, you have additional financial responsibilities to consider.  

When you pay at least $2,400 in wages to a household worker, you 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. 

Accurate reporting is important as employees earn credits toward Social Security benefits and Medicare coverage.  You can currently earn Social Security or Medicare credit for every $1,510 in wages that are reported.  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. 

You can learn more about reporting household worker income by reading Household Workers www.ssa.gov/pubs/EN-05-10021.pdf

Vonda Van Til is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 3045 Knapp NE, Grand Rapids MI 49525 or via email at vonda.vantil@ssa.gov.  

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