Weekly housekeeping service. Do I have to pay taxes?

[Anonymous]

If I hire someone to come once a week to clean my house would I have to pay employer taxes or would she be considered an independent contractor? From what I understand, if the housekeeping service is offered by a business then I would not owe taxes. If it is by a person, then I would. For those of you who have housecleaning services performed by someone who is not part of a company, how much on average do you owe each year in taxes? I understand that many people pay their house keepers under the table but that isn't an option for me. Thanks!

[Anonymous]

This is the nanny forum. You already have a post about this on the parenting forum.

[Anonymous]

For a regular housekeeper, the safest course, by far, is to withhold taxes and issue a W-2. Some people do make the argument that a housekeeper can receive a 1099, based on who supplies the equipment, sets the schedule, manages specifics about how work is done, etc. Either way you need to be very clear before employing that pay will be reported.

[Anonymous]

OP here - no I did not. I posted here because under nanny forums, there are two specific forum dealing with housekeeping services. However since I am not offering housekeeping services or looking for a housekeeping service I did not post on those forums. Since housekeeping has nothing to do with parenting, I don't see why I should post on that forum. If someone can tell me which forum I should post in that would be great. Thank you.

[Anonymous]

OP again. Thank you.

[Anonymous]

Oh, and I forgot to answer the other part of your question. If you pay via a 1099, you owe nothing. If you pay via a W-2, you owe about 10% total (give or take) between FICA and unemployment.

[Anonymous]

Anonymous wrote:Oh, and I forgot to answer the other part of your question. If you pay via a 1099, you owe nothing. If you pay via a W-2, you owe about 10% total (give or take) between FICA and unemployment.

Good grief. You present it as though she can choose. There is a right and a wrong way. More than likely, if you are hiring an individual, not a cleaning service, she is an hourly household employee, and you'd need to pay employer taxes. If you set up the job and its requirements, the schedule, etc. she is your employee.