By Vonda Van Til, Social Security Public Affairs Specialist

Do you plan to pay a cleaning person, cook, gardener, babysitter, or other household worker at least $2,300 in 2021?  This amount includes any cash you pay for your household employee’s transportation, meals, and housing.  If you will pay at least $2,300 to one person, you have some additional financial responsibilities.

When you pay at least $2,300 in wages to a household worker, you must do all of the following:

• Deduct Social Security and Medicare taxes from those wages.
• Pay these taxes to the Internal Revenue Service.
• Report the wages to Social Security.

For every $2,300 in wages, most household employees earn credits toward Social Security benefits and Medicare coverage.  Generally, people need 10 years of work to qualify for:

• Retirement benefits (as early as age 62).
• Disability benefits for the worker and the worker’s dependents.
• Survivors benefits for the worker’s family.
• Medicare benefits.

You can learn more about reporting household worker income by reading Household Workers at www.ssa.gov/pubs/EN-05-10021.pdf.

Vonda Van Til is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 3045 Knapp NE, Grand Rapids MI 49525 or via email at vonda.vantil@ssa.gov.