Household employment

If you are a household worker--for example, a cleaning person, cook, gardener, or baby sitter--and you earn $1,600 or more in cash wages during 2008 from one employer, that employer must deduct Social Security and Medicare taxes from your wages. The employer will report your earnings to Social Security after the end of the year.

If you earn less than $1,600 in 2008 from that employer, the earnings are not covered and are not reported.

If you will earn less than $1,700 in 2009 from that employer, the earnings will not be covered and will not be reported.

Earnings for household workers (such as baby sitters) who are under age 18 are exempt from Social Security and Medicare taxes unless household work is the young person's primary occupation.