Guest post from Nanny Parent Connection member Becki Brack who is a Partner and Certified Public Accountant at Growing Numbers Accounting and Bookkeeping. Thanks Becki for compiling this list of frequently asked nanny pay questions. You’re the best!
#1: Is a nanny or babysitter an employee?
According to the IRS, yes, a person is an employee if you are telling them what they will do and how they will do it. It doesn’t matter whether the work is full time or part time, or whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Since nannies or babysitters are told what to do with the children and how to do it (parenting styles, schedules, etc.), a child care worker is considered an employee as opposed to an independent contractor. That distinction is the difference between providing a W-2 or Form 1099 at year end and changes who is responsible for the employment taxes.
The IRS Publication 926 – Household Employers Tax Guide, provides examples of who a household employee is which includes babysitters, domestic workers and nannies.
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