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Hiring Temporary Help: Do I Owe Taxes?

Planning to hire a temporary employee to work in or around your home? Maybe it’s a summer nanny, a groundskeeper for the summer, or a private chef that will work through the end of the year. No matter what type of temporary employee you have working with you this year, it is important to understand what tax responsibilities come with that. 

If you hire a temporary employee and pay them at least $2,400 in 2022, then you are required to withhold and pay the proper amount of taxes. That includes Medicare, Social Security, too. Don’t be persuaded to pay your employee ‘off the books’. They are official employees, not contractors, and they must be paid accordingly. If the IRS discovers you have not paid your employee legally, you could be subjected to paying steep fines or fees. It is important to note that this does not apply to employees under age 18 or wages paid to a spouse.

When you are looking to hire an employee, it is also important to set up a work agreement – even if they only plan on being there temporarily. Work agreements ensure that all details of the job are outlined clearly for both parties. Duties, pay details and schedule, time off, sick policy, and any other important job-related items are outlined in writing here. This helps avoid confusion in the event of a dispute or other issue. Be sure both you and the employee sign the work agreement on or before the first day of employment. 

Our team at Household Staffing is experienced in placing experienced temporary or permanent help in your home. Just let us know what qualities and expertise you are looking for. We will get a job description written and the search will begin. We have more than two decades of experience matching employees and employers and can get a qualified person in your home in just three to 10 days. Call us today to get the process started!

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