Section 473-3-014 - SOCIAL SECURITY TAX WITHHOLDING In some situations, the Department withholds Social Security taxes from provider payments. Individual in-home service providers of adult day care, homemaker services, and chore service providers who are not affiliated with an agency or who are not self-employed are considered employees of the recipient from whom they provide services. For in-home service providers who are not affiliated with an agency, the Department acts on behalf of those recipients to withhold mandatory Social Security taxes and pay the recipient's matching tax share to the Internal Revenue Service.
014.01EARNINGS TAXED FOR SOCIAL SECURITY. Providers are subject to Social Security tax payment for each calendar quarter in which they are paid $ 50.00 or more for services provided to one recipient. The $ 50.00 is for one recipient, not a total received for two or more recipients. The Department withholds the tax from all payments to providers. If a provider's earnings do not reach $ 50.00 per quarter, the amount withhold for that quarter is refunded.014.02SELF-EMPLOYED PROVIDERS. Individuals who file Social Security taxes on their own behalf are considered self-employed. They are identified by a Federal Identification number rather than a Social Security number. 014.03SOCIAL SECURITY TAX RATES. The Department remits to the Internal Revenue Service an amount equal to the current Social Security tax rate for specified in-home services. Half of this amount is withheld from the provider as the employee's share; the other half is provided by the Department on behalf of the recipient employer.014.04.OTHER TAXES. The Department does not withhold federal or state income tax or federal unemployment tax from any provider payment.473 Neb. Admin. Code, ch. 3, § 014
Adopted effective 7/11/2021