The IRS, Taxes and differences between W2 and 1099
According to the IRS, Nannies and other domestic staff are domestic employees. Please note the differences between an employee and an independent contractor.
Employee (W2): The employee is told by the employer (or family) what will be done and how it will be done.
Independent Contractor (1099): An independent contractor controls or directs the result of the work that needs to be done. This means working for yourself. Many independent contractors have a specific skill.
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