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

Forum Index » Money and Finances

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

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]We've never done so, and it never occurred to me that we were supposed to.  She has her own business, whether she's set up as an LLC or is just self-employed I don't know, and works for 8 or 9 different employers at any given time.  Other than via DCUM I never before have heard that individuals who offer these kinds of services wouldn't do their own taxes.[/quote]

They do their own taxes (meaning you don't have to withhold their share, but you have to pay the employer's share).  But when someone works in your home (housecleaner, nanny) as an individual (not with a company, like merry maids), you have to pay employment taxes (SS, unemployment) if you pay her more than the threshold amount in the given year.  The other employers have to do the same.  It's sort of like she works part-time for you and for other employers.

Only if she is set up as an LLC and has her own company does this reality change.  But this is rarely the case, and the onus is on you to ask if she is set up that way (as well as if she is legally allowed to work here).

Again, an individual is *different* than a company.  A company is licensed and bonded and has a different tax arrangement.  But if she is not set up as a company and everyone is just assuming she's an independent contractor, you are in the wrong.  Housekeepers and nannies who are not incorporated and not working for a company are *NOT* independent contractors.  If you have them working in your home, you are the employer, and you are responsible for filing the paperwork and taxes as an employer.

Ask an accountant.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics