October 2020
Many people are unclear whether the people working in their homes should be considered household employees for tax purposes. For example: if you have a nanny and a landscaper working at your home, would one or both be considered a household employee by the IRS? And why should it matter?
A worker is deemed to be a household employee if they perform services in and around your home and you control not only what work is done, but also how it is done. It doesn’t matter whether you pay them hourly, daily, weekly or by the job. It also doesn’t matter if their schedule is full-time or part-time, or if you hire them from an agency, an association or on your own.
