ninasgramma:  She is your employee. You issue her a W-2. You were not required to withhold income tax. Attach Schedule H to your tax return to figure the Social Security and Medicare tax you owe.
2009-01-19 09:14:15

Bob F:  Yes, a W-2. Since she did it in your home, you need to provide her a W-2, and file Schedule H which will do the computation for her income tax and soc security tax and medicare tax and futa.
2009-01-19 09:14:59

DEBORAH F:  If you controlled the time and methods and provided the supplies, then the person was your employee. You need to give him/her a W-2, and add a Schedule H to your income tax return to cover his FICA and Medicare taxes. Here's the link to the IRS instructions: http://www.irs.gov/instructions/i1040sh/ar01.html
2009-01-19 09:21:34

Jss:  An employee gets W2 and an independent contractor gets 1099-misc. How you will treat the 1099-Misc income, read: http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html
2009-01-19 09:35:26

Richard K:  Since she worked in your home, she is your household employee and will be issued a W-2. You will need to obtain an employer identifcation number (EIN) to issue her a W-2. You can apply and get one https://sa2.www4.irs.gov/modiein/individual/index.jsp. No withholding of income tax is needed. As the other responders point out, you will pay her social security and medicare by filling out schedule H and attaching it to your return. You may also have some state payroll or federal unemployment tax to pay depending upon your laws of your state and the maximum amount you paid her in any calendar quarter. Also, it should be noted that the amount of wages to report on the w-2 and the schedule H is not the amount of cash you actually paid her, but is increased by her share of social security, medicare, and state payroll taxes that you are paying on her behalf. This way after deducting these taxes from her total wages, the amount you actually paid her matches your checks. Richard K This advice is prepared baasaed upon the law in effect at the time it was written as applied to the facts provided by you. See my profile for more information.
2009-01-19 10:46:23

Judy1:  Since she works in your home, she is a household employee and you should have been taking out taxes from all of her paychecks, and paying employer taxes, all along. and she should get a W-2.. You might want to see a CPA or enrolled agent on how to straighten this out now if you haven't been doing all this. It's not uncommon, but IS NOT LEGAL, for household employees to be paid without deductions, then file a tax return for the income as self employment income. That way they end up paying some of the taxes that you should have paid. When you hear about a nominee for some government post having "a nanny problem" that's usually what they did.
2009-01-19 11:51:21