Are You a Household Employee?

When you work in someone’s home—whether as a nanny, caregiver, housekeeper, or gardener—you may wonder how the IRS classifies your role. Understanding whether you are a household employee or an independent contractor is crucial because it directly affects your tax responsibilities and your employer’s obligations.

What Defines a Household Employee?

According to the IRS, you are considered a household employee if:

• The person who hired you controls not only what work is done but also how it is done.
• You perform services in or around a private home, such as childcare, cleaning, or yard work.
• It doesn’t matter if you work full-time or part-time, or if you were hired through an agency.
• Payment method (hourly, weekly, or per job) does not change your classification.

Example: If you babysit regularly and follow the employer’s instructions on how to care for the child, you are a household employee.

Common Roles That Qualify

• Nannies and babysitters
• Housekeepers and maids
• Gardeners and yard workers
• Caregivers, nurses, or health aides working in the home
• Cooks or personal chefs

Household Employee vs. Independent Contractor

The distinction matters:

• Household employees receive a W-2 form, and employers must withhold Social Security, Medicare, and sometimes federal/state income taxes.
• Independent contractors (like plumbers or repair technicians) control how they perform their work and typically provide services to multiple clients. They receive a 1099 form instead.

Why This Matters

• For employees: Proper classification ensures you get credit for Social Security and Medicare contributions.
• For employers: Misclassifying workers can lead to penalties, back taxes, and compliance issues.

If you need guidance that is tailored specifically to your unique situation, we encourage you to connect directly with Pro Advisor Support. Their experienced team specializes in assisting clergy and church organizations with complex tax, payroll, bookkeeping, and HR matters. Whether you have detailed questions about compliance, deductions, or planning strategies, they can provide expert advice and walk you through the next steps with clarity and confidence.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421.0101

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com