1-800-NANITAX (800-626-4829) Enroll Now Log In
HWS client care specialists field inquiries about worker classification - whether a household worker is an employee or an independent contractor - all the time. Families call questioning whether they can treat their household employee as an independent contractor, provide them a 1099 Form instead of a W-2, and avoid the entire issue of payroll taxes.
Topics: worker misclassification independent contractor, 1099 v w-2, nanny independent contractor, household independent contractor
The IRS is increasing its focus on improperly classified domestic workers, including those hired to as senior home care professionals.
An adult 18 years of age or older who works in your private home and to whom you pay more than $1900 in cash wages (as of 2014) per year is subject to payroll tax obligations. Distinguishing between an independent contractor and an employee is crucial to remaining in compliance with IRS regulations.
Topics: worker misclassification, worker misclassification independent contractor, 1099 v w-2, household independent contractor, senior home care, senior home-care workers