I have googled this issue but I am still not sure I am doing everything that I am supposed to do. Can someone let me know if I am missing something?
I am hiring a nanny at $15 an hour working 40 hours per week. I have applied and received a Federal and Virginia Employer ID Number. I am going to withhold 4.2% for Social Security (increasing to 6.2% in 2012) and 1.45% for Medicare from her pay check. I will be paying and additional employer share of 6.2% and 1.45% when I file my 2011 tax return.
I can't figure out what I am supposed to do about the Federal unemployment insurance (0.8% on the first $7000). Do I also withhold that from her paycheck or do I pay that. Also, what are the Virginia requirements? I can't figure that out at all. If there is a cheat sheet on the web somewhere that would be helpful TIA.