Just like nannies and senior caregivers, housekeepers, personal assistants, estate managers and other domestic workers are generally considered to be household employees by the IRS. This is because the family, not the employee, is in control of the details of the working relationship. As such, families hiring these employees to work in and around their home have the same tax requirements as those with childcare or eldercare needs.
It can be difficult to determine who is a household employee, so we recommend learning more about how Employee vs. Independent Contractor status is determined before proceeding with payroll and tax plans for your new hire.
HomePay is happy to help you with this process, so please give us a call at (888) 273-3356 for a free consultation. You can also visit our Resource Center for more information on budgeting, tax and labor law, and to download important forms for your employee.