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Can anyone tell me what exactly I have to consider for hiring an assistant in MD? She'd be part time and for state, guidelines, I don't think I have to withhold because of the amount she makes. For federal, is it based on amount or is it a given percent? Thanks!
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state taxes
You will need to pay Maryland state unemployment taxes (check the state department of labor). You will probably need to pay Maryland minimum wage (check labor department). You may need to purchase workers compensation insurance (check state workers comp office). You may or may not need to withhold state income taxes. There may be other state payroll taxes.
You will have to withhold 7.65% of her wages for federal Social Security/Medicare taxes. You will need to pay the same amount out of your own pocket and send both amounts in quarterly (Form 941). The the total amount you pay in the year for wages is less than $4,000 you can file and annual Form 944, rather than quarterly 941s. You will probably need to withhold federal income taxes (give your employee a Form W-4 to fiil out and then determine if you have to withhold based on this). You may have to pay federal unemployment taxes (.6% of wages) if you pay anyone in 20 different weeks of the year, or pay anyone a total of $1,500 in any quarter of the year.
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