Reply to Who are the people spewing "misinformation" about ICs?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]

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?[/quote]

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. [/quote]

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?  [/quote]

But look at pub 926. It is not just whether they use your supplies, but whether they "offer services to the general public in an independent business." My cleaner, who probably cleans 20 other houses a week with her crew if not more, is offering services to the general public. The fact that I generally instruct her on what to do sometimes makes no difference. I am purchasing a service from her, so we can discuss and agree on the service. Eg if I tell the lawn care service where to mow, they are not therefor employees.[/quote]

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