Anonymous
Post 03/20/2013 14:20     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:....seriously? there's a reason my housekeeper accepts cash - she DOES NOT WANT TO PAY TAXES. So why should I worry about HER social security payments?

give me a large break.


Because if she's a household employee as qualified by the IRS, then you are responsible for EMPLOYER taxes, including FICA (7.65%) and SUTA/FUTA. It's her responsibility if she dodges employee taxes. It's your responsibility to know and pay any employer taxes as mandated by law. Ignorance is no excuse and if audited or caught, you will still have to pay back taxes, penalties and interest. Do yourself a favor. Read up and figure out if you owe, then pay if you do.
Anonymous
Post 03/20/2013 13:38     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.


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


The IRS guidance on the issue says *specifically* that it *DOESN"T* matter if she is employed by more than one person.

I'm sure the IRS will give two hoots when you show them your online questionnaire.

If a person works two jobs, does that mean that neither employer has to pay payroll taxes?

It all depends on whether or not the person is employed by a company (and that company pays the payroll taxes) or whether the person is set up as a company, as opposed to just an individual cleaning houses. And then beyond that, if you end up paying over the threshold.

It comes under the IRS guidance for DOMESTIC HELP.

Here we go again. I
thought we all understood that, you DO NOT have to be "set up as a company" to be an IC.

Why did the 'off topic' thread
"Who are the people spewing "misinformation" about ICs?"
get moved over to 'money and finances', but this thread didn't? Isn't this a 'money and finances' topic to? Please explain.

Anonymous
Post 03/20/2013 11:29     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.


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


The IRS guidance on the issue says *specifically* that it *DOESN"T* matter if she is employed by more than one person.

I'm sure the IRS will give two hoots when you show them your online questionnaire.

If a person works two jobs, does that mean that neither employer has to pay payroll taxes?

It all depends on whether or not the person is employed by a company (and that company pays the payroll taxes) or whether the person is set up as a company, as opposed to just an individual cleaning houses. And then beyond that, if you end up paying over the threshold.

It comes under the IRS guidance for DOMESTIC HELP.

Here we go again. I thought we all understood that, you DO NOT have to be "set up as a company" to be an IC.
Anonymous
Post 03/20/2013 10:49     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:
Anonymous wrote: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.


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


The IRS guidance on the issue says *specifically* that it *DOESN"T* matter if she is employed by more than one person.

I'm sure the IRS will give two hoots when you show them your online questionnaire.

If a person works two jobs, does that mean that neither employer has to pay payroll taxes?

It all depends on whether or not the person is employed by a company (and that company pays the payroll taxes) or whether the person is set up as a company, as opposed to just an individual cleaning houses. And then beyond that, if you end up paying over the threshold.

It comes under the IRS guidance for DOMESTIC HELP.
Anonymous
Post 03/20/2013 10:46     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:....seriously? there's a reason my housekeeper accepts cash - she DOES NOT WANT TO PAY TAXES. So why should I worry about HER social security payments?

give me a large break.


Because if you fire her and things get tense, she can report you. You will be fined. She will likely get off easily. The IRS always comes down harder on the employer, not the employee.

Or if you get into a dispute with a neighbor or a friend or a relative who suspects you're paying your maid under the table, guess what? Just one phone call.

Anonymous
Post 03/20/2013 10:41     Subject: Re:people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:Went to IRS Pub 926 and it still doesn't clarify -- At first it says that individuals whose work you control are your employees like care providers, house cleaners and lawn services. But then it says...

"Workers who are not your employees. If only the worker can control how the work is done, the worker is not your employee but is self-employed. A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. A worker who performs child care services for you in his or her home generally is not your employee. If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee.
Example. You made an agreement with John Peters to care for your lawn. John runs a lawn care business and offers his services to the general public. He provides his own tools and supplies, and he hires and pays any helpers he needs. Neither John nor his helpers are your household employees."


It is entirely reasonable that a lawn service comes and goes without being subject to your direction.

But is there anyone who cannot tell their housekeeper how to clean the house? Even if you don't routinely give them directions, the fact that you CAN give them directions is enough under IRS rules http://www.irs.gov/pub/irs-pdf/p15a.pdf



Anonymous
Post 03/20/2013 10:20     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:solved i will pay her 80 a cleaning twice a month and tip the rest.


Tips are income. That did not solve your problem.
Anonymous
Post 03/20/2013 10:19     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:....seriously? there's a reason my housekeeper accepts cash - she DOES NOT WANT TO PAY TAXES. So why should I worry about HER social security payments?

give me a large break.


Because it is YOUR legal responsibility, and if you get caught it is YOUR butt. You get caught if the IRS catches her and investigates the sources of her income.

Anonymous
Post 03/20/2013 10:00     Subject: Re:people don't realize they have to pay payroll taxes on individual housecleaners
This is why I have our cleaning folks come once a month. Occasionally we will have them come a few extra times, around the holidays or before we are entertaining, but on average they don't come more than 16 times per year, so we are under the $1,800. I thought about every other week but I don't want to deal with the tax issue.
Anonymous
Post 03/20/2013 07:24     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote: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.


Exactly. We don't pay taxes on our cleaner for this reason - she is not my employee.
Anonymous
Post 03/20/2013 06:14     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
....seriously? there's a reason my housekeeper accepts cash - she DOES NOT WANT TO PAY TAXES. So why should I worry about HER social security payments?

give me a large break.
Anonymous
Post 03/20/2013 04:16     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:I don't think, from reading one of the threads on here recently, that people realize that even if their individual housekeeper only comes once a week, they *still* likely have to pay payroll taxes (SS, unemployment, et cetera) if they pay the person more than $1800 in 2012 (don't know what it is for 2013).

http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/payroll-taxes-cleaning-lady/


If you have an individual who cleans your house (not a company that you use), do you pay payroll and SS taxes?


Here's the post.
Anonymous
Post 03/19/2013 16:28     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
16:14 is full of crap.
The list to determine IC/employee status is lengthy.
The IRS makes the final determination, not you, 16:14.
Anonymous
Post 03/19/2013 16:14     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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!!!!!


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.



What nonsense are you talking about? There 's nothing that I see in IRS law about an IC having to be an LLC.
.


Does my IC house painter have to be an LLC to? He doesn't speak English all that well.


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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Anonymous
Post 03/19/2013 16:06     Subject: people don't realize they have to pay payroll taxes on individual housecleaners
solved i will pay her 80 a cleaning twice a month and tip the rest.