Does your client have a household employee? If the client has a housekeeper, nanny or estate manager, the answer is probably yes.
A household employee is hired by a family to perform duties in or around their home. Privately hired senior caregivers and companions can also be considered household workers. If the household employee earns $2,200 or more in 2020, then he or she has nanny tax obligations.
What happens when your client hires a family member for a job? If the employee is a spouse, a child under the age of 21 or a parent, you don’t have to worry about withholding or paying nanny taxes.
Find more considerations for determining whether your client has a household employee here.