I have a client who has a foreign citizen living in their house as an au pair. This foreign individual is here on a J-1 visa and I presume a student. This foreign individual provides household services to my client (cleaning, household work, babysitting, etc) and my client pays the foreign individual for these services.
The client did NOT issue a W-2 to the foreign individual and I presume did not withhold and remit any kind of taxes during 2020. I believe an au pair fits squarely into the household employee classification and payroll should have been run and needs to be run.
I have no idea how W-2 income of this nature would affect the foreign individual's visa.
Has anyone dealt with a similar situation? Any thoughts on the above?
Please assume wages of more than $2,200 were paid during 2020 and more than $1,000 was paid during at least one quarter of 2020.