How to handle taxes for my house keeper - W-2 or 1099?

This is a common question! What determines whether someone is an employee (W-2) vs. independent contractor (1099) isn't just about regularity, but about control. Since your housekeeper brings her own supplies and sets her own schedule, she's likely an independent contractor. For household workers, you generally need to issue a 1099-NEC if you pay someone $600+ in a year for services as an independent contractor. At $150 every two weeks for 8 months, you're at about $2,400, so you would need to issue one. You'll need her SSN or Tax ID number, and you'll need to file the 1099-NEC by January 31, 2026 for 2025 services. The "nanny tax" (household employment taxes) would only apply if she was your employee, which doesn't sound like the case based on what you described.

I was in your exact same position last year and was completely confused about the W-2 vs 1099 situation for my house cleaner. I spent hours trying to figure out IRS publications and got nowhere. Then I found this AI tool called taxr.ai (https://taxr.ai) that helped me figure out the whole household employee vs. contractor situation in minutes. I just uploaded a screenshot of my payment history and explained my situation, and it gave me a clear answer about whether I needed to file a 1099-NEC or W-2. It also provided instructions on exactly how to handle it properly. Saved me so much stress and probably prevented an audit headache!

So I was really skeptical about using AI for tax advice (as you can see from my comment above), but I finally tried taxr.ai when I was desperate trying to figure out if my dog walker was a household employee or contractor. I was genuinely surprised - it asked me really specific questions about who controlled the work schedule, who provided supplies, whether they worked for other people, etc. Then it gave me a clear determination with IRS citations explaining why my dog walker was a contractor, not an employee. It even generated the right forms I needed for my records. Honestly wish I'd known about this sooner before I spent hours on the IRS website getting more confused with each publication I read.

If you need to contact the IRS to get clarification on household employee rules, good luck getting through. I spent THREE DAYS trying to reach someone about this exact issue last year. Finally found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through the household employee vs. contractor test and confirmed I was handling my housekeeper's taxes correctly. Such a relief after days of getting disconnected or waiting on hold.

Alright, I need to eat my words from my skeptical comment above. After battling the IRS phone system for 4 days trying to get household employee guidance, I broke down and tried Claimyr out of desperation. I got a call back in about 25 minutes saying I was being connected to an agent. I was honestly shocked. Got through to someone in the household employment tax department who confirmed my housekeeper IS an employee since I provide cleaning supplies and set specific cleaning tasks. This literally saved me hours of frustration and possibly an audit. I'm still surprised it worked, but now I'm telling everyone about it.

One thing I haven't seen mentioned - if your housekeeper is determined to be an employee rather than contractor, you might need to pay FICA taxes (Social Security and Medicare). For 2025, that's 7.65% that you pay as the employer PLUS 7.65% that you withhold from their wages. You also might need to pay federal and state unemployment taxes. This is why many people avoid properly classifying household help - it's expensive and complicated! But the penalties for misclassification can be much worse.

Just wanna throw out there - a lot of housekeepers prefer cash without paperwork. If you start doing 1099s, she might raise her rates or find other clients. Not saying you shouldn't follow tax laws, but be prepared that there could be a business impact.

Great question! I went through this exact situation last year. Based on what you've described - she brings her own supplies, sets her own schedule, and works independently - she sounds like an independent contractor rather than an employee. Since you've paid her $2,400 over 8 months ($150 × 2 × 8), you'll need to issue her a 1099-NEC because it's over the $600 threshold. You'll need her SSN or Tax ID number, and the form is due by January 31st for the previous tax year. The key factors the IRS looks at are: who controls when/how the work is done, who provides equipment/supplies, and whether they work for multiple clients. Your situation checks the contractor boxes. Just make sure to keep good records of payments and get her tax info before year-end!

I actually had this exact situation with my housekeeper last year and learned the hard way that the IRS looks at multiple factors beyond just supplies and scheduling. Even though my housekeeper brought her own supplies, the IRS agent I spoke with explained that since I was directing specific tasks (like "clean the bathrooms first, then kitchen") and she only worked for me regularly, she was actually classified as an employee. The determining factors aren't just about supplies - it's really about the degree of control you have over the work. If you're telling her what to clean, when to clean it, or how to do specific tasks, that leans toward employee status. If she's truly independent (you just say "clean the house" and she decides everything else), then contractor makes sense. I ended up having to file Schedule H and pay the household employment taxes retroactively. It was a pain, but better than dealing with penalties later. I'd recommend really carefully going through the IRS 20-factor test or getting professional advice before deciding, because the consequences of getting it wrong can be expensive.

I've been dealing with a similar situation with my cleaning lady for the past two years. What really helped me figure it out was focusing on the "control" aspect that others have mentioned. The IRS basically asks: do you control what work is done, when it's done, and how it's done? In my case, I realized I was definitely controlling WHAT (specific cleaning tasks) and WHEN (I preferred certain days), but my cleaner controlled HOW (her methods, her products, her routine). Since you mentioned she sets her own schedule and brings supplies, that's leaning contractor. But if you're giving her specific instructions about what to clean or how you want things done, that could push it toward employee status. One practical tip: I started keeping a simple log of our interactions. If most of your communication is just "see you Thursday" vs "please make sure to vacuum the stairs and dust the ceiling fans," that can help clarify the relationship. The documentation also helps if you ever need to justify your classification to the IRS. At $2,400/year, you're definitely over the 1099 threshold, so you'll need her tax ID either way. I'd suggest having that conversation soon since year-end is coming up fast!