Publication 926

Publication 926

A form published by the IRS explaining tax issues related to employers of household employees.
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The IRS takes the position that a person hired to perform household work is a household employee of the person to whom the service is rendered ("homeowner") if the latter can "control not only what work is done, but how it is done" (IRS Publication 926, 2015, p.
If such control is established, then the homeowner is considered the employer of the household worker regardless of whether 1) the work is full time or part time, 2) the worker was hired through an agency or from a list provided by an agency or association, or 3) the worker is paid on an hourly, daily, or weekly basis, or by the job (IRS Publication 926, p.
The IRS presumes that the following categories of workers are necessarily household employees because, allegedly, homeowners typically control their work (see IRS Publication 926, p.
The presumption can be successfully challenged if, for example, the homeowner can establish that the worker is employed by an agency (IRS Publication 926, p.
This notion is reinforced by IRS Publication 926, which states that "if only the worker can control how the work is done, the worker is not your employee but is self-employed" (p.
The only exceptions are if the household employee is 1) the homeowner's spouse, 2) the homeowner's parent, 3) the homeowner's child under the age of 21, or 4) an employee younger than age 18 at any time during the year (IRS Publication 926, p.
IRS Publication 926, Household Employer's Tax Guide, provides examples of people who may be classified as employees, including health aides and private nurses, and a checklist of things you may need to do when you hire an employee.
IRS Publication 926, Employment Taxes for Household Employers, indicates that the facts of each case need to be considered (using the 20 factors used to help determine who is an employer).
Also, Publication 926, "Employment Taxes for Household Employers," and Publication 553, "Highlights of 1994 Tax Changes," will provide more details on how employees can file for their refunds.
The fourth-quarter 942 Package and Publication 926 will contain special instructions for preparing these Form W-2s.
As directed by IRS Publication 926, families have FICA reporting obligations if they pay an individual $ 1,900 or more in a calendar year.