Is it better to pay my household employee's share of FICA and Medicare tax, or is it better to withhold it from their pay? Let's say the goal is to provide my employee with $20 per hour take-take home pay (pre their income tax). Here are two scenarios:

#1. Payroll tax is deducted
A. Hourly wage: $21.66
B. FICA/Medicare tax (7.65% of A): $ 1.66 (withheld)
C. Hourly take-take home pay (A-B): $20.00
D. My Schedule H payment (2 x B): $ 3.32
E. My total hourly cost (A+D/2) $23.32
F. My employee's taxable income (A): $21.66

#2. I pay their share:
A. Hourly wage: $20.00
B. FICA/Medicare tax (7.65% of A): $ 1.53 (not withheld)
C. My Schedule H payment (2 x B): $ 3.06
D. My total hourly cost (A+C): $23.06
E. My employee's taxable income (A+B): $21.53

So all employers should always pay their employee's share of FICA/Medicare tax. If I'm wrong, please explain!

Many thanks,

CBK