Originally Posted by ATK:
Thanks so much for the link! Just so I understand 100%
You must fill out Form I-9 (Employment Eligibility Verification) to verify that your employee is eligible to work in the U.S. You don't file this form with the IRS; instead keep it in your files.- So I fill this out and I DONT send it in to the IRS I just keep it on me incase
Yes
You must have your employee fill out IRS Form W-4 (Employee's Withholding Allowance Certificate) to determine how much you must withhold in federal income taxes from the employee's pay. You don't file this form with the IRS; instead use it with IRS Publication 15 (Circular E) Employer's Tax Guide to look up how much to withhold- I understand this and she would be married not head of household (I believe her husband claims kids on taxes) so Id assume she would be a 0 on withholdings. BUT since this is so random I may use her one day one month and then skip a month and the next use her 2 days in a month. Do I look at the monthly, daily, or weekly charts? Most of them say she would have $0 withholdings to maybe $3.
Look at the monthly chart. Yes, the withholding can be very low.
You must withhold Social Security and Medicare taxes from your employee's paycheck. As an employer you must withhold 7.65% out of the employee's pay. In addition, you must contribute an another 7.65% of the employee's pay out of your pocket. For example, if your employee earns $100 in a week, you must withhold $7.65 and pay in another $7.65 (total: $15.30). If you pay less than $4,000 in wages for the year, file the annual IRS Form 944 (Employer's Annual Federal Tax Return). If you pay more than $4,000 file the quarterly IRS Form 941 (Employer's Quarterly Federal Tax Return)- So in this if she makes $70 one day that means I withhold $5.35 from her payment she receives from me AND then I save an additional $5.35 that I set aside from anything else I profited that day? Also I will FOR SURE be paying her less than $4,000 a year. Does this form just get filed with my taxes that my tax person would do?
You only withhold taxes on the days you pay her. In your example, you are correct on how much to withhold and pay. Since you will pay her less than $4,000 in a year, you don't need to send the money to the IRS until the end of the year with Form 944. By the way, I got the IRS to create this annual form, to avoid having to file quarterly for small employers.
If you pay an employee $1,500 or more in any calendar quarter or had any employee work for you in 20 different weeks during the year, you must pay federal unemployment taxes (FUTA). The tax is 0.6% of your employee's pay and comes out of your pocket. File the annual IRS Form 940 (Employer's Annual Federal Unemployment Tax Return).- If she makes less than $1,500 do I not need to worry about this part?
Correct, as long as she also worked fewer that 20 weeks.
Im having a hard time find Virginia documents for state witholding
Contact your state department of revenue.