918.Special Provision for Reporting Wages Paid to Domestics

918.1Are there special provisions for domestic employees for reporting wages?

For Social Security tax reporting purposes only, your cash wages paid for domestic service in the private home of your employer may be rounded to the nearest dollar. This simplifies computation of the Social Security tax. For example, you are paid daily and your cash pay is $22.50, your payment is considered $23 for reporting purposes. Similarly, a payment amounting to $22.49 is reduced to $22. Also rounding to the nearest dollar is permitted if you are paid on a weekly, semimonthly, or monthly basis.

918.2Does the rounding method need to be applied consistently?

Yes. If you use the rounding method of reporting for any pay period in a calendar quarter, you must use it consistently throughout the calendar quarter.

Last Revised: Jul. 7, 2004