| It might come as a surprise to learn that you’re technically an employer if you pay someone to watch your kids or to clean your home. If a household worker is classified as your employee, you will owe tax, often referred to as the “nanny” tax. IRS guidelines for what makes a household worker an employee are pretty simple – if you control what work is performed and how they do it, they are employees. However, if the worker is an employee of an agency, the agency pays the tax, and if the worker is classified as an independent contractor, he/she is responsible for the tax. Keep reading to find out what is involved if you have a household employee and need to pay the nanny tax. |
https://www.thebalance.com/preparing-to-pay-the-nanny-tax-3544887