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][quote=Anonymous][quote=Anonymous]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!!!!![/quote]

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.

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What nonsense are you talking about? There 's nothing that I see in IRS law about an IC having to be an LLC.
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Does my IC house painter have to be an LLC to? He doesn't speak English all that well.[/quote]

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!![/quote]

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. [/quote]

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