The Internal Revenue Service notes that for tax year 2014, an employee can be paid up to $1,900 in a calendar year before the employer and employee are responsible for paying taxes on the amount. After the $1,900 threshold is reached both employer and employee are responsible for taxes.
The employer and employee are both responsible for a portion of the taxes on the amount paid to the employee. The IRS reports that an employer may choose to pay the total amount of taxes due. The employer can also request that an employee work on a self-employment basis in which case the employee is responsible for all tax amounts due on income. An employee cannot be considered self-employed if the employer provides equipment, direction and determines the time that the employee works. This rule usually applies to household workers and independent contractors.
The Huston Chronicle reports that this rule does not always apply to every situation, as most businesses must report and take taxes from an employees earnings. The Huston Chronicle states that "Federal law requires employers to withhold federal payroll taxes from employees’ pay. This includes federal income tax, and FICA taxes, such as Social Security and Medicare." There is no minimum earning requirement based on this criteria.