We are hiring a babysitter that is under 18 and a full time student under normal circumstances. Is she exempt from FICA and unemployment taxes?

ANSWER

Expert Thomas Graham iii's Answer:

In this case your babysitter would be exempt from FICA and unemployment taxes.  The IRS designates an individual under 18 who works part time as a “household” employee.  This status grants them exemption from owing Social Security or Medicare taxes.  The individual would still be subject to normal Federal and State income taxes however. (IRS Publication 926)

Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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