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Financial Planning / Tax Strategies
|Subject: Re: Household Employee?||Date: 8/27/2012 5:18 PM|
|Author: TMFPMarti||Number: 116555 of 122842|
Are household employees normally issued W-2?
Yes, assuming that there is an employer/employee relationship. Stop one is Form SS-8, which has the 20 common law questions figuring in this "facts and circumstances" determination. (This form doesn't have to be filed anywhere, it's just a decision aid.)
The situation you describe sounds like employer/employee. The employer's requirements are in Pub 926. Don't forget that there's also a requirement to establish that the worker is legal to work. At the Federal level income tax withholding must be voluntary by both parties.
A word of warning. MIL may find that the worker isn't willing to work on the books. Better to find out before the worker starts stealing from MIL as well as the gummint.
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