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]Our housekeeper is self-employed. She cleans at least a dozen other houses. There are online questionaires you can fill out to find out if you have to pay taxes.

If you are the sole employer, then you may be on the hook.[/quote]

Exactly. We don't pay taxes on our cleaner for this reason - she is not my employee.[/quote]

That is NOT the definition of an independent contractor vs a household employee.  She can easily have more than one job, one of which is as your household employee housecleaner.  The number of employers has no bearing on whether she is an household employee or not.  If she uses your household supplies and/or you issue her instructions on what to do, when to show up, or how to clean, then she is a household employee.  If you hire her as a service, she provides the supplies, and she provides a fixed set of services without your instructions or special requests addressed, then she may be an independent contractor.[/quote]

PP again who works as a PA.  My employer gives me all sorts of specific requests, that is the nature of my job.  The point is that our employment agreement with each other is that I am an independent contractor and he doesn't pay payroll taxes.  Therefore, he issues me a 1099.  Someone has to pay the taxes, but a person can work as an independent contractor and provide household help without being an LLC.  There is nothing magical about incorporating as a business.  A cleaning person can choose to turn down work if she doesn't want to work for families who won't pay employer side taxes, but if she is willing to do the paperwork as an IC, it is not against the law to do so.  My accountant has no problem with my arrangement since I pay all taxes owed. [/quote]

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