I wonder if anyone can help me with a question on SUTA taxes. Taxpayer lives in DE and employes a part-time Nanny that lives in PA. He has paid Fed WH taxes regularly, but it was determined he has never paid FUTA or SUTA taxes. Which state is owed the SUTA tax? The amount paid is about $19,000 a year. My SW would not allow e-filing unless a box was checked "yes" indicating the SUTA taxes had been paid by 4/15/2013?
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You might have the wrong software. LOLOriginally posted by Zee View Post
However, suta is owed to the state in which employee actually worked.ChEAr$,
Harlan Lunsford, EA n LA -
Thank you
Thanks for the answer. The TP hasn't paid SUTA or FUTA for about 3 years and has never received a letter from the state or federal. I wonder if the federal & state aren't sharing much of this information, although I'm sure they have the capability. The Nanny is employed so both the H&W can work.Comment
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Are you sure he hasn't paid FUTA? It's included in the calculation on the Schedule H. But he's going to have a problem at some point. The Federal credit against FUTA is based on the SUTA having been paid. Since that isn't the case, at some point he will probably get a bill from IRS for the remainder because the state won't verify payment of the SUTA. Then when he pays the state (plus P&I), the Federal credit will still be reduced by a 10% penalty for his not having paid the state on time..Last edited by JohnH; 04-12-2013, 12:48 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Woe is me!
I prepared the tax return as a favor (free), so I don't want to get involved. I suppose if he registers with the state as an employer, they'll be looking for back SUTA taxes (he's been doing this about 3 years).
But, thanks for the information. When I told him about the situation, he said "maybe I should use a payroll service". That might be a good alternative, but kinda expensive for a one person payroll paid every two weeks.Comment
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