Who are the people spewing "misinformation" about ICs?

[Anonymous]

OP here. So much excellent insight here. Thank you, everyone.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ha! my housekeeper tells me what to do. The only time I ever tell her what to do is when she comes while we're on vacation, I'll have her clean the porch or something because she needs to be paid (but the house is clean).

Ha, ha. Growing up, our family housekeeper had us pretty well- trained.

Lol. My friend hired an elite British trained nanny. She constantly complained that you couldn't tell the nanny anything, because she had spent years studying all things children. Funny what can happen when you hire a professional.

[Anonymous]

Anonymous wrote:Our housecleaner comes when we are not at home, brings her own supplies and cleans as she wants. We only set her a goal: to make the house clean, and it's up to her how she achieves that. I have no time to buy the supplies for her and follow her around the house with instructions. I do genuinely believe that she is an IC.

However, I'm currently considered an IC myself and keep wondering how it is possible. I'm an accountant, and a consulting firm has hired me as an IC to serve their client. I always work from the client site, 40 hours a week, follow their established business hours, use their workspace, their laptop, have their e-mail address and do exactly what they tell me to do. How am I considered an IC and a cleaning lady who follows her own schedule, uses her supplies and helpers is an employee? Shouldn't it be the other way around?

Yes, someone please explain this confusion...

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our housecleaner comes when we are not at home, brings her own supplies and cleans as she wants. We only set her a goal: to make the house clean, and it's up to her how she achieves that. I have no time to buy the supplies for her and follow her around the house with instructions. I do genuinely believe that she is an IC.

However, I'm currently considered an IC myself and keep wondering how it is possible. I'm an accountant, and a consulting firm has hired me as an IC to serve their client. I always work from the client site, 40 hours a week, follow their established business hours, use their workspace, their laptop, have their e-mail address and do exactly what they tell me to do. How am I considered an IC and a cleaning lady who follows her own schedule, uses her supplies and helpers is an employee? Shouldn't it be the other way around?

Yes, someone please explain this confusion...

I doubt IRS would try to explain this, either.
Makes zero sense to anyone.

[Anonymous]

So hypothetically if I wanted to hire a housekeeper a few hours a week what would I pay her and the Govt in taxes and pay if she is seemed an employee? How would one go about doing a W-2 on their own? What I deduct money from her pay weekly or would she pay the taxes? Say it was based on $100 per week.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Np here. All I can tell you is that I am a pathologically honest and risk averse attorney. I looked into this issue very carefully when I hired our cleaners and I concluded that they are not employees. I for one am not worried and I worry about this stuff far more than the average person.

What's your take on the "people don't realize they have to pay payroll taxes on individual housecleaners" thread? For some person to post that kind of of subject line, it seems that she had a clear motive. A domestic payroll service company drumming up business, maybe?

You don't need a payroll service, that would be crazy. I dont think anyone has suggested that. You file the household employee taxes with your personal taxes once a year. I create the W-2 on the IRS website. State unemployment taxes have to be done quarterly but again are electronic. All told each one of those things takes 5 minutes.

This. I'm an attorney, reviewed the guidance and determined where our housekeeper came the same day every week and used our supplies she's a household employee.

On top of that, our paying payroll taxes and unemployment doesn't add much in the grand scheme but means she will receive better social security benefits when she retires and could receive unemployment should we no longer be able to employ her. She's been with us for years--it's the right thing to do.

As an aside, what's weird about the IRS guidance is that nannies are listed under household employees but "people providing child care services in your home" are listed as not household employees. How does that make any sense?

I did not find that quote in 926. Did you mean this: "A worker who performs child care services for you in his or her home generally isn't your employee." This refers to a home daycare (i.e., child care provided in the child care provider's home).

[Anonymous]

This thread is ancient, but the current IRS guide on household employees is pretty good. I recommend reviewing that, as it answers many questions. For 19:56, the W-2 and withholding are pretty easy but you may not even meet the threshold for that if you just have someone coming in a few hours a week. And if you opt to use a cleaning service or company, it's not a household employee situation anyway.