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Eric
Do I have to withhold taxes for a household employee's yearly bonus?
I have a nanny that I pay directly and she's our only household employee. I withhold all applicable taxes from her paycheck (Fed, state, SS, & Med) and also pay my share of SS and Med. I want to give her a yearly bonus in cash, less than $1000. Do I have to withhold taxes and report that as regular income? Or since it's a gift, can I treat it like a gift which wouldn't require any withholding?
6 AnswersUnited States9 years ago