Household Employee Paid by County

[Jesse]

Often taxpayers in the area are hired by the county as household employees for different seniors and sometimes childcare. They are paid by County Social Services with the wages reported on a W-2 no FICA/Medicare withheld and less than $1,000 in most cases.

Sometimes the taxpayer will receive several W-2's from the county with the various name of each different household listed on each separate W-2.

For 2011 the taxpayer will be working in one household and receiving approx $250/month so it will be greater than the $1,700 threshold. Since the county handles the pay am I safe to assume the county should start withholding FICA/Medicare once this threshold is reached and should also pay the employer's portion?

[ChEAr$]

Often taxpayers in the area are hired by the county as household employees for different seniors and sometimes childcare. They are paid by County Social Services with the wages reported on a W-2 no FICA/Medicare withheld and less than $1,000 in most cases.

Sometimes the taxpayer will receive several W-2's from the county with the various name of each different household listed on each separate W-2.

For 2011 the taxpayer will be working in one household and receiving approx $250/month so it will be greater than the $1,700 threshold. Since the county handles the pay am I safe to assume the county should start withholding FICA/Medicare once this threshold is reached and should also pay the employer's portion?

Unless the county payroll gurus have thoroughly researched the issue, which I and you woul doubt (!) I must agree with you. Only a payor issues a W2 form, and is therefore liable for correct withholding and reporting.

[gkaiseril]

Maybe the county has opted out of FICA and Medicare. Many would issue 1099-Misc for non-employee.

[ChEAr$]

Maybe the county has opted out of FICA and Medicare. Many would issue 1099-Misc for non-employee.

But why would the county issue multiple W2's to one person?

[Jesse]

They are indeed household employees. I don't know how one qualifies for the paid services but County Social Services does pick up the tab. They go to homes and do laundry, cleaning, cooking, run them on errands, etc...usually once a month and pay is minimal. The taxpayer then receives a separate W-2 for each different home the taxpayer worked at.