Is it illegal to hire someone for a day who is not an illegal alien, and pay them cash?
Can you give me a web site(s) that discuss the legal and tax aspects of this issue? THANKS
Answer:
Who is a domestic or household employer?
An employer of domestic services can be a:
* Private household
* Local college club
* Local chapter of a college fraternity or sorority
Domestic work includes the services of cooks, waiters, waitresses, butlers, housekeepers, governesses, governors, maids, valets, baby-sitters, janitors, laundresses, furnacepersons, caretakers, home health care workers, handypersons, gardeners, chauffeurs, crews of private yachts, and pilots of private airplanes for family use.
A domestic employer becomes subject to state employment taxes as follows:
* When cash wages of $750 or more are paid in a calendar quarter, the employer must withhold State Disability Insurance (SDI) and report the wages.
* When cash wages of $1,000 or more are paid in a quarter, the employer must also pay Unemployment Insurance (UI) and Employment Training Tax (ETT) and report the wages.
* Personal Income Tax (PIT) withholding is not required on domestic services. However, the employer and employee may voluntarily agree to have PIT withheld.
* Once a domestic employer meets the limits of cash wages, all cash and non-cash payments such as the value of meals and lodging must be reported as wages.
* Forms normally used to report wages and contributions are a Quarterly Wage and Withholding Report (DE 6), a Payroll Tax Deposit (DE 88/DE 88ALL), and an Annual Reconciliation Statement (DE 7).
i think he should have singed a receipt
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