people don't realize they have to pay payroll taxes on individual housecleaners

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our housekeeper is self-employed. She cleans at least a dozen other houses. There are online questionaires you can fill out to find out if you have to pay taxes.

If you are the sole employer, then you may be on the hook.

Exactly. We don't pay taxes on our cleaner for this reason - she is not my employee.

That is NOT the definition of an independent contractor vs a household employee. She can easily have more than one job, one of which is as your household employee housecleaner. The number of employers has no bearing on whether she is an household employee or not. If she uses your household supplies and/or you issue her instructions on what to do, when to show up, or how to clean, then she is a household employee. If you hire her as a service, she provides the supplies, and she provides a fixed set of services without your instructions or special requests addressed, then she may be an independent contractor.

[Anonymous]

Anonymous wrote:....seriously? there's a reason my housekeeper accepts cash - she DOES NOT WANT TO PAY TAXES.

You and others like you are a huge problem in this country. Thanks a lot for having tax evaders work for you.

We clean our own home: Problem solved.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our housekeeper is self-employed. She cleans at least a dozen other houses. There are online questionaires you can fill out to find out if you have to pay taxes.

If you are the sole employer, then you may be on the hook.

Exactly. We don't pay taxes on our cleaner for this reason - she is not my employee.

That is NOT the definition of an independent contractor vs a household employee. She can easily have more than one job, one of which is as your household employee housecleaner. The number of employers has no bearing on whether she is an household employee or not. If she uses your household supplies and/or you issue her instructions on what to do, when to show up, or how to clean, then she is a household employee. If you hire her as a service, she provides the supplies, and she provides a fixed set of services without your instructions or special requests addressed, then she may be an independent contractor.

Are these rules supposed to be as murky as they sound? Really.

[Anonymous]

pay the housekeeper cash. NEVER write a check.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our housekeeper is self-employed. She cleans at least a dozen other houses. There are online questionaires you can fill out to find out if you have to pay taxes.

If you are the sole employer, then you may be on the hook.

Exactly. We don't pay taxes on our cleaner for this reason - she is not my employee.

That is NOT the definition of an independent contractor vs a household employee. She can easily have more than one job, one of which is as your household employee housecleaner. The number of employers has no bearing on whether she is an household employee or not. If she uses your household supplies and/or you issue her instructions on what to do, when to show up, or how to clean, then she is a household employee. If you hire her as a service, she provides the supplies, and she provides a fixed set of services without your instructions or special requests addressed, then she may be an independent contractor.

This, plus she hires her own help. I don't pay the other two cleaning ladies that come with her. She does. Look at the IRS guidelines. They are clearer than what you read on DCUM.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Low income people often DO know that they have leverage over employers if they are paid under the table. I'm the PP from the previous thread whose friend got taken the cleaners when her fired housekeeper filed for unemployment. It was clear the housecleaner knew exactly how to exact revenge for the firing. It wouldn't be out of the relm of possibility in this area for a disgruntled, under the table employee to resort to blackmail if a relationship went sour.

After watching what my friend went through, I would never ever ever pay someone under the table. Not worth it!!!!!

I second that last part. I would also never let someone work in my house until after I have established (a) if they are an LLC/company and (b) if they are bonded and insured. You set yourself for a lot of risk and liability.

What nonsense are you talking about? There 's nothing that I see in IRS law about an IC having to be an LLC.
.

Does my IC house painter have to be an LLC to? He doesn't speak English all that well.

Is he someone a company sent over? Are you paying him more than $1800 in a given year? If yes to one and/or no to the second, you don't even have to worry about it.

the question isn't whether the IC is an LLC. The question is whether the person is *TRULY* an IC, as opposed to domestic help, for which you have to pay payroll taxes. One way to confirm they're an IC is if they have established their own company. That's where the LLC thing comes into play.

Geesh, do you people not having reading comprehension skills!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I don't think this is true. I work as a personal assistant and make about $12000 a year from one family. They issue me a 1099 at the end of the year and I have to pay all taxes, both employee side and employer side, as an independent contractor. I am not an LLC. We get our taxes done by a very reputable accountant and my husband is a lawyer who would never run the risk of breaking the rules over something like this. A housecleaner who comes in once a week or once every two weeks and works for a number of different families can definitely be an independent contractor without being an LLC. If you issue her a 1099 at the end of the year, the IRS will know that she has to pay taxes on that income and it won't be under the table.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our housekeeper is self-employed. She cleans at least a dozen other houses. There are online questionaires you can fill out to find out if you have to pay taxes.

If you are the sole employer, then you may be on the hook.

Exactly. We don't pay taxes on our cleaner for this reason - she is not my employee.

That is NOT the definition of an independent contractor vs a household employee. She can easily have more than one job, one of which is as your household employee housecleaner. The number of employers has no bearing on whether she is an household employee or not. If she uses your household supplies and/or you issue her instructions on what to do, when to show up, or how to clean, then she is a household employee. If you hire her as a service, she provides the supplies, and she provides a fixed set of services without your instructions or special requests addressed, then she may be an independent contractor.

PP again who works as a PA. My employer gives me all sorts of specific requests, that is the nature of my job. The point is that our employment agreement with each other is that I am an independent contractor and he doesn't pay payroll taxes. Therefore, he issues me a 1099. Someone has to pay the taxes, but a person can work as an independent contractor and provide household help without being an LLC. There is nothing magical about incorporating as a business. A cleaning person can choose to turn down work if she doesn't want to work for families who won't pay employer side taxes, but if she is willing to do the paperwork as an IC, it is not against the law to do so. My accountant has no problem with my arrangement since I pay all taxes owed.

[Anonymous]

"Does my IC house painter have to be an LLC to? He doesn't speak English all that well."

...Why so many in this area continue to use illegals is astounding to me. And sad.

[Anonymous]

I think even if someone would be an independent contractor under most definitions, it they are a housekeeper special rules apply - and you have to pay taxes legally. so just pay in cash.

[Anonymous]

Anonymous wrote:I don't think, from reading one of the threads on here recently, that people realize that even if their individual housekeeper only comes once a week, they *still* likely have to pay payroll taxes (SS, unemployment, et cetera) if they pay the person more than $1800 in 2012 (don't know what it is for 2013).

http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/payroll-taxes-cleaning-lady/


If you have an individual who cleans your house (not a company that you use), do you pay payroll and SS taxes?

Yes. We use a payroll service. She even has direct deposit from us. In DC you may need workers' comp insurance for our housecleaner, too. We do (and have it).

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think, from reading one of the threads on here recently, that people realize that even if their individual housekeeper only comes once a week, they *still* likely have to pay payroll taxes (SS, unemployment, et cetera) if they pay the person more than $1800 in 2012 (don't know what it is for 2013).

http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/payroll-taxes-cleaning-lady/


If you have an individual who cleans your house (not a company that you use), do you pay payroll and SS taxes?

Yes. We use a payroll service. She even has direct deposit from us. In DC you may need workers' comp insurance for our housecleaner, too. We do (and have it).

Who told you that? Your payroll service?

[Anonymous]

Are payroll service companies getting a bad rap or did this thread back fire?
The subject line of this thread is somewhat misleading, to say the least, but it certainly should boost business.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes. We use a payroll service. She even has direct deposit from us. In DC you may need workers' comp insurance for our housecleaner, too. We do (and have it).

Who told you that? Your payroll service?

No. My insurance agent. I didn't believe him, so then I looked up the law for myself. It's pretty scary. Technically even some occasional babysitters are covered.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes. We use a payroll service. She even has direct deposit from us. In DC you may need workers' comp insurance for our housecleaner, too. We do (and have it).

Who told you that? Your payroll service?

No. My insurance agent. I didn't believe him, so then I looked up the law for myself. It's pretty scary. Technically even some occasional babysitters are covered.

Oh stop. There's nothing "pretty scary" about the law. What on earth are you talking about?

[Anonymous]

Fear mongering.