Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Wrong to the employee part. Unlike a nanny cleaners would not be W-2 employees. I guess you could file a 1099 but meh.
'Fraid not. We give our cleaning person a W-2 every year, and pay the MD unemployment taxes every quarter. Unless you are using a service, or your cleaning person is truly anindependent contractor (submits a bill for services, brings own supplies, etc.). Sounds like you are getting some bad tax advice somewhere.
I spent a lot of time researching this and the bottom line is that if you use housekeeper not affiliated with a service, you have to pay taxes, social security, unemployment, etc (and make sure you have an I-9 filled out as well). The independent contractor exception is very narrow and basically never applies. If you have an independent housekeeper and you aren't paying taxes, you are definitely running the risk of an IRS investigation. I was surprised to find out (from an IRS agent), however, that if your housekeeper brings an assistant and pays him/her directly, you have no tax, I-9, etc obligations to the assistant.
We pay our housekeeper $155/week plus taxes (including her share of social security) for our 2000 square foot house, but we're paying a premium for living in Georgetown (service providers always charge more here) and she's phenomenonally good - does laundry, organizes our closets, does handyman-type repairs. I use Intuit Payroll online to figure out the taxes, it costs $20/month and is relatively easy to use.