HOME > VISITORS > EMPLOYING A G-5 DOMESTIC

Unique Rules Applying to G-4/G-5

Courtesy of Home/Work Solutions, Inc.

HomeWork Solutions provides payroll and tax services to employer's with domestics working in the U.S. on a G-5 Visa. There are some wage and reporting requirements for this employment situation that differ from the standard US 'Nanny Tax' rules.

Unique Federal/State Employment Rules

• The staff member with the G-4 visa is the G-5's sponsor. The G-5 may ONLY work for this person, must be paid for a minimum of 35 hours work per week for every week the G-5 is present in the U.S. and able to work, and must report the dismissal of the G-5 to the sponsoring organization.
  
  
• The employers, who have G-4 Visas, generally are not required to pay U.S. income taxes on their wages. Non-wage U.S. generated income (rental income, dividends and interest on U.S. investments, etc.) IS subject to U.S. income taxation.
  
  
• The wages paid to G-5 domestic sponsored by the G-4 staff member is subject to US taxation (income and Social Security/Medicare). The G-4 sponsor is required to report and remit all U.S. employment taxes.
  
  
• The G-4 Employer MUST obtain EITHER a Social Security Number [from the Social Security Administration] or an Individual Taxpayer Identification Number [from the Internal Revenue Service] before they can register with the U.S. government as an employer.
  
  
• The G-4 Employer who IS NOT required to file a US Income Tax Return may pay all of the Federal Employment Taxes on an annual basis, no later than April 15 following the close of the calendar year. Most states require quarterly wage reporting and collect unemployment taxes on a quarterly basis.