Consider taxes before you hire household help
Abstract: When you hire someone to work in your home, you become an employer. Thus, you have specific tax obligations, such as withholding and paying Social Security and Medicare (FICA) taxes and possibly federal and state unemployment insurance. So before you say, “You’re hired,” make sure you understand your tax obligations — and the penalties for not meeting them. This includes knowing who qualifies as an employee, what taxes are owed, and how to pay them.