Nanny Taxes in Ohio

Hello, I will be hiring a full-time nanny. How much Ohio unemployment tax, and Federal unemployment tax, do I have to pay on the nanny's wages?

That would depend in part on how much you are paying her.

http://jfs.ohio.gov/ouc/uctax/wagebase.stm


http://www.irs.gov/pub/irs-pdf/p15.pdf

I thought the % would be the same? I will be paying her $10/hour.

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Quoting cec1290

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I thought the % would be the same? I will be paying her $10/hour.

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Ohio: 2.7% on the first 9000.00 of wages for the year. That is the new employer rate. The rates change annually based on the number of unemployment claims made against your account. It could go lower, it could go higher.

Federal: 6% on the first 7000.00 of wages for the year.

So, if federal unemployment tax is 6% on the first 7000.00 of wages for the year, I will pay $420 for the year?

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Quoting cec1290

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So, if federal unemployment tax is 6% on the first 7000.00 of wages for the year, I will pay $420 for the year?

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Correct.

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Quoting llworking

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Ohio: 2.7% on the first 9000.00 of wages for the year. That is the new employer rate. The rates change annually based on the number of unemployment claims made against your account. It could go lower, it could go higher.

Federal: 6% on the first 7000.00 of wages for the year.

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I am confused... on Sittercity.com it says:

The FUTA tax amounts to 0.6% of FUTA wages. "FUTA wages" are capped at the first $7,000 of your nanny's cash wages during the year. The FUTA tax comes entirely from your own funds. No withholding allowed.

So is FUTA 6% or 0.6% of the wages?

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Quoting cec1290

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I am confused... on Sittercity.com it says:

The FUTA tax amounts to 0.6% of FUTA wages. "FUTA wages" are capped at the first $7,000 of your nanny's cash wages during the year. The FUTA tax comes entirely from your own funds. No withholding allowed.

So is FUTA 6% or 0.6% of the wages?

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Its definitely 6%

http://taxmap.ntis.gov/taxmap/pubs/p15-013.htm

Oh, I see. Thanks for the link. It says "Generally, you can take a credit against your FUTA tax for amounts you paid into state unemployment funds. The credit may be as much as 5.4% of FUTA taxable wages. If you are entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%." How do I know if I can take this credit?

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Quoting cec1290

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Oh, I see. Thanks for the link. It says "Generally, you can take a credit against your FUTA tax for amounts you paid into state unemployment funds. The credit may be as much as 5.4% of FUTA taxable wages. If you are entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%." How do I know if I can take this credit?

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You won't know until you fill out your FUTA (940) federal return at the end of the year. For someone in your position, with one employee making 10.00 per hour, you are going to be paying FUTA tax one time per year after the end of the year.

However, in your case, since your maximum state rate is 2.7%, (at least for 2015) you will not get the maximum credit.