Is a cleaning person an Independent Contractor or Employee?

[Anonymous]

We are getting a new person to clean our house. In the past, we used small businesses where they had a team of people and we paid the company. This new person is solo so it changes the dynamics a little bit.

Does anyone withhold SS & FICA for their cleaning person? This person will come every other week and will definitely over the course of the year earn more than the minimum amount for withholding. (I believe it is $1800).

I would prefer not to have to withhold - but will do what is legal. IF anyone has guidance on how to structure the relationship so that the person is an independent contractor, we would appreciate it.

Thanks!

[Anonymous]

Have her bring her own supplies and choose when to do her work, eg, agree on a day but she can come anytime while you are out. Also, she's an independent contractor if she has multiple clients.

[Anonymous]

In all honesty, I haven't confirmed this, but I think the answer is contractor. Our cleaning lady comes once a week, but she also cleans half a dozen other homes and apartments. She essentially owns her own business and is her own sole employee. Therefore, we pay the fee she charges, but I don't consider her my employee (and knock on wood, the IRS hasn't ever seen it that way in the last few years either).

Obviously this would be different if she were your full-time housekeeper.

[Anonymous]

anyone who works for the gov't / potential political appointee want to chime in?

[Anonymous]

Talk to a tax accountant or google but since you're not a do it yourself person here is your answer- amazing .. it took me a few seconds! The internet is really cool (not just posting on boards).

http://www.4nannytaxes.com/faq/PayrollTaxesCleaningLady.cfm

[Anonymous]

We have always treated our solo cleaning people as household employees.

[Anonymous]

The law is really clear that she is an employee, not a contractor, regardless of whether she brings her own supplies.

[Anonymous]

Anonymous wrote:Talk to a tax accountant or google but since you're not a do it yourself person here is your answer- amazing .. it took me a few seconds! The internet is really cool (not just posting on boards).

http://www.4nannytaxes.com/faq/PayrollTaxesCleaningLady.cfm

Thanks for this - I was not using the right search terms

[Anonymous]

Anonymous wrote:Talk to a tax accountant or google but since you're not a do it yourself person here is your answer- amazing .. it took me a few seconds! The internet is really cool (not just posting on boards).

http://www.4nannytaxes.com/faq/PayrollTaxesCleaningLady.cfm

Snarky much

[Anonymous]

Anonymous wrote:The law is really clear that she is an employee, not a contractor, regardless of whether she brings her own supplies.

Which part of the law makes your case?

[Anonymous]

"The law is really clear that she is an employee, not a contractor, regardless of whether she brings her own supplies. "

Nope, not an employee.

You want to make sure to pay her a fee not an hourly rate for cleaning the house, which is frankly how most housekeepers charge anyway. For example, you would pay her $125 to clean the house regardless of whether she takes 2 hours or 4 hours. She brings her own supplies. She has other clients. You also do not have a work contract. She can choose at any time to stop servicing your house and you can choose at anytime to cancel the weekly or monthly service. This is no diiferent from the guy you hire to cut your grass or do landscaping or hiring a painter.

[Anonymous]

What house cleaner do you allow to come "anytime"? No one is allowed to come to do anything in my house "anytime". After all, we live here, most of the time. You make no sense 13:14.

[Anonymous]

So a woman who works as a sole proprietor of her own cleaning business might have to collect 20 different W-2 forms from different clients, as well as have 20 different people do withholdings for her? Doesn't sound very reasonable to me. But then I guess the tax code is never reasonable.

[Anonymous]

The law is unclear. there are a number of factors the IRS use to determine whether they classify as employee or independent contractor:

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

e.g. do you direct how they do the job, or just specify the job that must be done.

[Anonymous]

The law is very clear that when it comes to a nanny or cleaning lady you DON'T look at the normal factors one would in determining whether someone is classified as an employee or independent contractor. There is an IRS brochure on the subject.