Download - Household Employee or Independent Worker?
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Household Employee or
Independent Worker?
Special Report From: EasySmallBusinessHR.com
Is the nanny you just hired an independent employee or a
household employee?
It can be a confusing distinction, so check out these FAQ's about
IRS household employee rules.
What is a household employee?
Household employees are those you hire to do household work and
you are that worker’s employer, which means you control what
work is done and how it is done.
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What types of employees might be considered household workers?
Babysitters & nannies
Caretakers
Cleaning and domestic workers
Drivers
Housekeepers & maids
Health aides & private nurses
Yard workers
Is the person considered a household worker if they were hired
through an agency?
Yes. According to IRS household employee rules, if you hired the
worker through an agency or through a list provided by an agency,
he or she is considered a household employee.
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My nanny only works for me part-time—is she considered a
household employee?
Yes. Hiring guidelines dictate that it doesn’t matter if the work is
full-time or part-time. It also does not make a difference how you
pay the worker, whether it’s by the job or on an hourly, daily, or
weekly basis.
Who is not considered a household employee?
A worker is not your employee if he or she controls how the work
is done. Also called self-employed workers, these are people who
provide their own tools and offer their services to the public as part
of an independent business (such as a landscaping service). The
worker is also not a household employee if an agency provides the
worker and controls what work is completed and how it is done.
For example, a babysitter who provides childcare in his or her own
home is generally not a household employee, according to the IRS
guidelines.
Household employees or independent workers? Know the
difference.
Don’t invite the IRS into your life by disregarding the difference
between household employees and independent workers. Get peace
of mind by making the right determination.