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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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How are earnings of nonemployees doing domestic work in homes

Resolved Question:

How are earnings of nonemployees doing domestic work in homes reported?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Is this someone you hired through an agency that you pay the agency directly for the services, or does this person work directly for you?



Customer: replied 7 years ago.
payed directly by home owner
Expert:  Merlo replied 7 years ago.

I apologize, I needed to ask a couple of more questions and posted to soon.


You say this person is not your employee. Exactly what type of services does she provide for you and to what degree do you control the work she does?


Here is what the IRS says about a household employee:


You have a household employee if you hired someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done, but how it is done. If the worker is your employee, it does not matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job.


Does your worker fit the description of a household employee?


Just to give you an example here -- if you hired someone to clean your house and she comes once a week, works her own schedule, provides her own cleaning supplies and even possilby hires her own helpers, then this person is not an employee.


If the person you hired is a babysitter, she more than likely fits the description of an employee because you would obviously control the work she does and the way she does it.





Edited by Merlo on 2/1/2010 at 2:15 AM EST
Customer: replied 7 years ago.
the help fits the description of a nonemoloyee
Expert:  Merlo replied 7 years ago.



I apologize for the delay in responding, but by the time you posted this additional information last night, I had already left the forum.


If this person fits the description of a non-employee, then there is nothing you need to do as far as reporting their earnings or sending in any forms. People who are working for you as independent contractors are responsible for reporting their own income. The only time that you need to report the earnings of an independent contractor is if you are operating a business and a contractor performs services for your business. In those cases you report their earnings on a 1099 form. But 1099 forms are not submitted by individuals who pay someone else for personal services.


If this person was actually your employee, then you would need to withhold SS and Medicare taxes from their checks and report their earnings, but this is not required for people who fit the description of non-employees.


If this was helpful please press the Accept button. Positive feedback is also appreciated.


Thank youCustomer




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