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When:
January 01, 2002

Who it Affects:
For taxpayers who employ household help.
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2002 Tax Law Changes
Higher reporting level for household workers

If you pay a household employee cash wages of $1,300 a year or less, you do not have to report and pay Social Security and Medicare taxes. Your state, however, may require filing at different wage levels. Check with your state's tax department.
Related Tax Article(s): Grow up and pay 'nanny tax' if you owe it