Employment tax refers to the taxes that employers must pay based on the wages they pay to their employees. These taxes include federal income tax withholding, Social Security and Medicare taxes (FICA), federal unemployment tax (FUTA) and, for self-employed individuals, self-employment tax.
Household workers are individuals employed to perform domestic work in a private residence, such as nannies, housekeepers, and caretakers. Notably, federal income tax withholding is not required on payments made to household workers, but Social Security taxes must be paid.
Social Security credits determine a person's eligibility for Social Security programs. Credits are earned by working in a covered job and by paying Social Security taxes.
