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Thinking about this some more, it seems that the "household employee" designation is intended for someone who does not have a specialized business and who spends a significant amount of time in your home. Someone is an "employee" of a company if their pay is not directly tied to delivery of a product/service and their responsibilities may change as the needs of the company change. An independent contractor (IC) generally establishes a contract with a company for specific deliverables in exchange for pay. The IC has a specialized business, provides his own supplies and materials and may offer his products/services to other companies. Pay & contract must generally be changed before the IC would take on new responsibilities and/or offer new products/services to the company.

Thinking of our household as a company, our cleaning lady would be classified as an independent contractor. She offers the service to others. She brings her own supplies. We have a verbal contract of specific services in exchange for pay. I think the "household employee" designation is for someone who, if your hosehold were thought of as a company/workplace, would be considered an employee.

Does this make sense? Any gaping holes in my logic?


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