If you have a household employee, you may need to pay state and federal
employment taxes. Which forms do you need to file for your household
employees? Is your maid, housekeeper, or babysitter covered by the
rules? This Guide provides the answers to these and other questions.
For information on federal requirements: Federal Requirements
While many people disregard the need to pay taxes on household employees, they do so at the risk of stiff tax penalties.
As you can see, these rules are quite complex, even for such a relatively minor employee, and a mistake can bring on tax headaches. Therefore, professional tax guidance is highly recommended.
A basic familiarity with these rules, as discussed in this Financial Guide, will make it easier to work with your tax advisor, saving time, reducing tax costs and avoiding tax penalties and interest charges.
Do You Need To Pay Employment Taxes?
At the state level, employers have no tax liability. If you and your employee have chosen to withhold taxes, then you will be required to maintain and submit that employees state taxes. For more information on this, see the
section below Withholding Taxes
Registering with the State
In order to be properly registered with the state of Georgia, so that you can submit unemployment and employee withholding taxes, you must file for a Department of Labor Number.
The Department of Labor number is the states version of the federal Employee Identification Number, and can only be requested after you have received your EIN. All employers should apply for their DOL number within 10 days of employing personnel.
Once you have your EIN, which can be filed for at the IRS website for EINs, you need to fill out a DOL-1 and submit it to the state.
It generally takes 2-3 weeks to receive your number.
State Unemployment Taxes
Do I need to pay state unemployment taxes
Household employers who pay employees at least $1,000 in any calender quarter are required to pay state unemployment taxes.
How much will I have to pay in state unemployment taxes?
In Georgia, you will generally pay 2.7% on the first $8,500 in wages paid to your employee
How do I pay my state unemployment taxes?
You should pay Georgia unemployment taxes quarterly with form DOL-4.
Find more information on Georgia unemployment taxes at the Georgia Department of Labor FAQ
Withholding Taxes
If you and your employee have agreed to withhold state taxes, you should have them fill out a federal W-4 or a state form G-4 to obtain their exemptions status. Use this information to decide their proper withholding amount, which can be found in the 2010 Georgia Employer's Withholding Guide.
This amount should be withheld from each paycheck, and submitted to the state quarterly with form G-7.
Annually, household employers should submit form G-1003 with a copy of employees W-2. No payment should be remitted with this form.
For all Georgia withholding tax information, consult the 2010 Employer's Withholding Guide.
