You must make and keep for a period of at least 3 years a record of the name, address, and occupation of each of employees the rate of pay and the amount paid each pay period to each employee and the hours worked each day and each work week by the employee. Pay upon separation is due on the next scheduled pay date. Ohio allows all household workers to be paid daily, weekly, bi-weekly or semi-monthly, but does not allow monthly pay cycles. The federal government establishes and updates a maximum rate for non-taxable mileage reimbursement each year. If you do not specify in your work agreement or contract with your employee, you are required to pay accrued vacation leave upon separation from employment. Ohio does not mandate any paid time off for non-exempt workers. Overtime or premium pay is not required for hours worked in excess of 8 per day or on weekends or holidays. Live-in domestics, again excluding companions, must be paid their hourly wage for all hours worked, without an overtime differential. Overtime PayĪll live-out workers are to be paid an overtime differential of 1.5 times the hourly wage for hours over 40 in a 7 day week. Ohio defers to the FLSA, which requires that all domestics, excluding companions, be paid at no less than the greater of the state or federal minimum wage. Income Taxesįederal and state income taxes are ultimately the responsibility of the household employee however, best practice is to deduct these taxes from your full time employee’s wages to help them avoid owing large sums when they file their annual income tax returns. You will make contributions to the IRS and Ohio to fund unemployment and worker re-training programs. You may choose to either collect your employee’s taxes via payroll deductions or fund these taxes yourself. The household employer is responsible for the payment of all Social Security and Medicare taxes to the IRS. Your employee is due a W-2 form in January. Employee wages are reported to the Social Security Administration. Your state may require quarterly unemployment tax filings, as well as reports and remittance of state income taxes withheld, if applicable. Federal employment taxes are reconciled with the household employer’s annual Federal Income tax return. You have both Federal and State tax filing responsibilities. You are responsible for federal employment taxes when you pay household workers as little as $1,000 in a calendar quarter or when you pay any individual employee age 18 or over $2,600 in a calendar year. Failure to properly classify the worker and make the appropriate employment tax filings and payments is considered tax fraud by the IRS. Generally, these workers are your employees, not independent contractors. ![]() ![]() ![]() You become a household employer when you hire an individual to perform duties and provide services under your direction in your private home. HomeWork Solutions is a nationally recognized “household payroll” service company, providing household employers nationwide with trusted and time saving payroll and payroll tax solutions. Payroll tax compliance for your new employee does not need to be terrifying, time consuming or expensive.
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