002.02 SOCIAL SECURITY TAX WITHHOLDING.

In some situations, the Department withholds Social Security taxes from in-home provider payments. Individual in-home service providers are considered employees of the client for whom they provide service. The Department, upon receiving a document that appoints the client as agent for the provider, acts on behalf of these clients to withhold mandatory taxes from the provider and pay the client’s matching tax share to the Internal Revenue Services. The Department does not withhold federal or state income tax or federal unemployment insurance tax from any provider payment.