How do I comply with tax and employment laws when hiring a full time housekeeper?

My father-in-law needs to hire a full time housekeeper and he wants to know if there is a resource out there that can help him comply with all IRS tax laws and department of labor laws. Also, he's like to know if he needs insurance or any other things he should be concerned about. Thanks for the advice!

How do I comply with tax and employment laws when hiring a full time housekeeper?
IRS Schedule H Instructions describe Household Employment Taxes:





http://www.irs.gov/instructions/i1040sh/...





Usually the person hired as you describe would be an employee, so your father would have to do as instructed on Schedule H. If your father hires someone from a service, he would just pay that service, no 1099 would be issued. It is unlikely that a full-time housekeeper would be considered an independent contractor/sole proprietor.





If your father needs a full-time employee to help him because of a medical condition, some of those expenses may be deductible as medical expenses. Read about medical expenses here (see Nursing Care, Home Care):





http://www.irs.gov/publications/p502/ar0...
Reply:The Dept of Labor has an Employment Law Guide complete with Laws, Regulations, and Technical Assistance Services at http://www.dol.gov/compliance/guide/inde...





Please note that individual states may also require employment taxes be withheld. I suggest that you search you local state's website for details.
Reply:two options. First and simplist is to ask the housekeeper to get a business lisence (about $10.00) and he can pay the business directly and the worker can claim self employment.





Otherwise, he will have to issue a 1099 and probably withhold taxes.





Go to irs.gov for informaiton on federal, then go to your state's treasury website for information. It will all be on these sites.
Reply:Check out the irs.gov website, here is a link to everything you might need to know about hiring household employees, and answers to all your questions.





http://www.irs.gov/businesses/small/arti...





If it sounds like to much consider finding a self employed housekeeper that is responsable for her own self employment taxes, or a small cleaning service that is insured %26amp; bonded. For that I would recomend checking craigslist.org , under household services, or services in your area.