Sandra Fay •
When a person hires another to perform various duties in or around their home, they are often considered to be a household employee. This could be for nanny services, a health aide or senior caregiver, a gardener, housekeeper, a personal assistant and yes, even a chef. In many cases, this person is considered to be an employee (W-2) rather than an independent contractor (Form 1099). You need to make sure that you are classifying the individual correctly or you could be subject to taxes and significant penalties.
When a person hires another to perform various duties in or around their home, they are often considered to be a household employee. This could be for nanny services, a health aide or senior caregiver, a gardener, housekeeper, a personal assistant and yes, even a chef. In many cases, this person is considered to be an employee (W-2) rather than an independent contractor (Form 1099). You need to make sure that you are classifying the individual correctly or you could be subject to taxes and significant penalties.