Reply to is nanny a statutory employee?

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[quote=Anonymous][quote=Anonymous]The IRS is not very clear on whether babysitters or housekeepers are statutory employees but yes, they may qualify as such.

When you are babysitter or a housekeeper, you are not an employee in a sense as someone who goes to the office with full benefits, complete with all the withholding taxes - federal, state and local. You do not fill out a W-4 upon hiring as required of regular employees.

You are not an independent contractor either because you do as you are told. Your boss has a say on how things should be done.

Thus, you are a statutory employee.[/quote]

A babysitter is occasional, but they still fit the test for employee (scope and place of work, provision of supplies, schedule and ability to send someone else), and if any family employing the sitter meets the threshold, the family has to give a W-2.  Nannies are even less ambiguous, as they not only fit the test for an employee, they will almost always exceed the threshold for filing.  Someone working out of their own home, providing their own supplies is either an independent contractor or running their own business.  Many NCS can be classed as temporary employees, but they are still employees unless the test says otherwise.

Housekeepers may be either.  Some housekeepers set their own hours and can send someone else to do the job, provide their on supplies and determine what needs to be done and when; if so, they are independent contractors.  If not, they are employees.

I had a family give me a 1099 last year.  Their argument was that I brought many of my own supplies with me and that I was out of their home with the kids more than I was in.  I filed an SS-8, and I spoke extensively with someone at the IRS.  According to the information I found on my own, was sent by the IRS representative and what I was told, nannies are always employees.  SOME may be statutory employees, but very few, and if the box is checked, both the nanny and employer are more likely to be audited.  I wish you luck OP, but I would contact the IRS asap.[/quote]

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