The tax and compliance issues around household employees are complex and confusing -- and are likely to trip your clients up, says Care.com HomePay's Tom Breedlove.
When a client hires a nanny, housekeeper, or senior caregiver, they have to navigate a host of tricky issues such as taxes and employment and labor laws. Whether the IRS considers a worker an independent contractor or employee has a major impact on clients’ tax reporting responsibilities, whether they need to pay overtime, and how they set up payroll.