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Taxation of the Wages of a Domestic Employee

 
 
gollum
 
Reply Mon 15 May, 2017 09:21 am
I employ a woman to do cleaning in my apartment once every two weeks. I pay her in cash without deducting any taxes.

Am I committing a crime? Have other employers of household help been civilly or criminally sued for failure to pay taxes?

Could the woman at some point file with Social Security requesting payment based on the work she did for me?
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tibbleinparadise
 
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Reply Mon 15 May, 2017 11:36 am
@gollum,
If they are not classified as an employee then their status is an "independent contractor". This means THEY have the burden of responsibility to claim the income and file/pay any appropriate taxes.

Now to maintain the independent contractor status you can't treat them like employees. No fixed hourly schedules, minimal supervision, no perks or benefits, etc. In your case you hire them for the job (let's say you want the place cleaned on Tuesdays and Saturdays), they agree, show up, do the job, and leave. Kinda like if you hired rotorooter to come unclog the toilet.
gollum
 
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Reply Mon 15 May, 2017 12:17 pm
@tibbleinparadise,
tibbleinparadise-

Thank you.
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