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Bob employs a maid intermittently to clean his house. He pays her $1,040 during the current year. What is the proper tax treatment of the
Bob employs a maid intermittently to clean his house. He pays her $1,040 during the current year. What is the proper tax treatment of the Social Security and Medicare tax for the maid? a. The $1,040 is subject to the Medicare tax, but not the Social Security tax. b. Bob is not required to pay or withhold Social Security and Medicare taxes on the $1,040. c. Bob is required to withhold Social Security and Medicare taxes on the entire $1,040. d. $500 is subject to the Social Security and Medicare tax
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