| If you have a household worker, you may be | | | | Among the circumstances that must be |
| subject to paying the Nanny Tax. The Nanny Tax | | | | considered in determining if someone is a |
| is a nickname; the actual tax is the household | | | | household employee or not are the amount of |
| employment tax. It can include gardeners, nurses, | | | | control and direction you have over the hired |
| caregivers, cleaning personnel, etc. This is the tax | | | | person. Generally, if you have the ability to tell a |
| that so many politicians and bureaucrats seem | | | | hired person what to do and how to do it, that |
| forgetful to pay. | | | | person is your employee. Supplying tools and |
| Not everyone who has a job in a person's home | | | | equipment and having a place for the hired person |
| fits the designation of a household employee. For | | | | to work, along with the authority to discharge |
| example, you might have a gardener who works | | | | that person are factors relating to control. |
| at your home, but is considered an independent | | | | Let's say that you hire Lori to clean your home |
| contractor because he operates his own business. | | | | and care for your young daughter while you and |
| Because the gardener supplies his own tools and | | | | your spouse are at work. You give Lori |
| comes to your place of residence to work, he is | | | | instructions on how to perform various duties |
| not considered a household employee and you are | | | | during the day and supply her with the tools and |
| not subject to paying household employment | | | | equipment to do the cleaning and care for the |
| taxes on the gardener's earnings. | | | | child at your home. Under these simple |
| Also, you may employ the services of an agency | | | | circumstances, Lori is a household employee and |
| to provide temporary help around your house. If | | | | you may be responsible for withholding and |
| the same gardener did not work for himself, but | | | | certain other employment taxes for her. It does |
| was brought in by the agency, he would still not | | | | not matter if Lori works full time or part time, if |
| be considered a household employee and you still | | | | she is paid per hour, per day, per week, or per |
| would not pay taxes on the gardener's earnings. | | | | job performed. Because of the circumstances |
| The gardener would be considered an employee | | | | involved, she is subject to household employment |
| of the agency, and they would be responsible for | | | | taxes and you must pay them. |
| paying his employment taxes. | | | | |