The Independent Contractor MYTH

The IRS has left little room for doubt when it comes to household workers like maids, nannies & au pairs. If you pay more than $30 a week they are employees, not contractors. As an Employer, you are vulnerable to fines, penalties and interest on top of having to turn in the full tax burden including Social Security, Medicare, FUTA & SUTA.

If you’re unsure whether or not an independent maid should be classified as an employee or contractor, fill out IRS Form SS-8 with her & mail it to the IRS. Be prepared to watch her run away.

Paying Under the Table…

Did you know that anyone could anonymously turn you in to the IRS with IRS Form 211 for paying a maid under the table? It’s part of the IRS Whistle Blower Reward program where the IRS pays up to 30%, of the collected proceeds to the informant.

Is Your Maid Legal to Work in the USA?

When you hire a household employee to work for you, you and the employee must complete the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. No later than the first day of work, the employee must complete the employee section of the form by providing certain required information and attesting to his or her current work eligibility status in the United States.  You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. Please read IRS Publication 926 very carefully, or just delegate your HR Duties to You’ve Got MAIDS®.