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by sbrother 779 days ago
I can see doing this for a nanny, but surely no one is jumping through all these hoops for ad-hoc, hourly babysitting? Any of the random highschoolers or college kids I've used would look at me like I was crazy if I tried to set them up on payroll lol.
2 comments

Yes, most people don't comply with the law in this regard.

Which tells you volumes about the practicality of said law.

It depends on if your yearly payments to them exceed some threshold. There may be more to it than that, of course. Don’t listen to me, I’m the idiot who couldn’t figure it out.
Per care.com[1], the threshold is $2700 per year:

For all intents and purposes, a babysitter is looked at just like a nanny in that if they must adhere to the schedule you set and come to your home to take care of your kids based on the rules you set, the IRS will most likely view this as an employment relationship. And taxes can sneak up on you quickly. If the babysitter earns just $15 per hour and works even 10 hours per week, you’ll cross the $2,700 tax withholding threshold in a little over four months.

[1] https://www.care.com/hp/do-you-need-to-pay-taxes-for-your-pa...

I have a housekeeper who only comes in once a month and (I learn) is fairly inexpensive though it doesn’t seem that way. Weekly it would be way over the threshold. I assume my lawn guy whose basic work is under that threshold —and has a business—doesn’t count either although he does other jobs as well for me and others. But that’s true of contractors generally. So I assume one just does what most people do in common situations.

And at some point you just pay cash.

Gotcha, thanks for the explanation. Sounds like too much hassle to DIY for sure, I guess their classification logic makes sense.