household employee or independent worker?

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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.

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Page 2: Household Employee or Independent Worker?

Easy Small Business HR 1

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.

Page 3: Household Employee or Independent Worker?

Easy Small Business HR 2

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.

Page 4: Household Employee or Independent Worker?

Easy Small Business HR 3

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.

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Easy Small Business HR 4