What type of forms do I need to have a part time housekeeper/personal assitant fill out? I want to make sure I report what I need to report to the IRS.
Is it better to have this person as an "employee" or an independant contact worker?
2007-10-19 07:31:54 · 2 answers · asked by ladyellei 6 in Business & Finance ➔ Taxes ➔ United States
This person will be cleaning my house part time and running errands. I guess I will make them an employee. Just trying to do the right thing.
http://www.irs.gov/taxtopics/tc756.html
2007-10-19 07:55:33 · update #1
You do not need an employer ID number. What you have is a household employee. Think "Nanny Tax." It is reported on Form 1040 Schedule H (as in Household.) The tax is due if the employee earns over $1,500 in a year. This allows you to skate on the occasional babysitter or once a month house cleaner.
2007-10-19 08:41:08 · answer #1 · answered by Anonymous · 1⤊ 1⤋
If this person works in your home under your direction, they are an "employee".....period.
You would have to apply for a employer's ID number, withhold taxes and pay unemployment taxes.
The IRS has taken a pretty hard line on this over the past few years. Even in cases where the worker agreed to be an Independent Contractor, the IRS has said that they are employees.
Go to IRS.gov and search for for "Household Employee".
2007-10-19 14:48:45 · answer #2 · answered by Wayne Z 7 · 2⤊ 2⤋