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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This is why many people have housekeepers come every other week.[/quote]

I don't think that makes a difference.  It's not the frequency; it's how much you pay them in a given year.  So if it lowers the total amount spent to under the $1800 threshold, then okay.  But otherwise, you still have to pay the taxes.[/quote]Yeah, I thought we weren't having her come often enough to have to pay taxes but I realized recently that we are paying her more than the threshold - so I appreciate being educated about this.[/quote]

I think a lot of people make that mistake, the housecleaners as well.  It is a widespread problem.  And I have a feeling the IRS is going to start coming down harder on that kind of thing.  It's also a problem with certain low-income benefits.   There's a lot of under-the-table paying going on, and it enables people to qualify for benefits they might not otherwise qualify for.

The problem is that you're complicit as well.

The best thing to do is ask the individual hard questions about whether she/he is incorporated.  It's always always a good idea to ask they have insurance.  That's another thing people don't realize -- liability for people working in your house.[/quote]

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