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Old 07-13-2015, 07:41 PM
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Receiving a 1099 Form for house cleaning service.

Hello everyone, can someone help me with couple question I have about my wife's ex-boss sending her 1099 form.
She used to clean his house for the past 5 years when he was still married to his ex-wife and never said anything about it until now. They recently divorced and she is still cleaning his ex-wife house, and yesterday he just sent my wife a message saying that his ex-wife does not requires her services anymore, that he is sending his own house cleaning lady to do the cleaning for her. When my wife contacted his ex-wife telling what was going on, she said that he was crazy, that he don't control who cleans her house and that my wife can still come as usual. So my wife went and cleaned her house today, so now he sent another message (as a threatening message) telling her that he needs to file and send her a 1099 form.

She used to clean his house and get paid by check, but as a job on the side. She does not have a company or filled any kind of paper with him. It was all a verbal contract. Also it has been 2 years since she got hers papers (green card and social security).

Can he really do it?
If so, how does that work? Does she have to pay taxes for the past 5 years?
Does she only getting her social security 2 years ago, makes her only pay for the 2 years that she have it?
Does he need a type of contract or not to do this?
Is there any problem for filling this late?

I just would like to know what's going to happen now and how this is going to play out.

Thank you in advance.



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Old 07-14-2015, 04:41 AM
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Can he really do it?======>> I guess it depends; your wife is his employee if he can control not only what work is done, but how it is done. If your wife is his employee, it does not matter whether the work is full time or part time or that he hired your wife through an agency or from a list provided by an agency or association. It also does not matter whether he pays your wife on an hourly, daily, or weekly basis, or by the job. Then, he must issue your wife a W2; if he Pays cash wages of $1,900 or more in 2014 to your wife who is a household employee, then he withholds and pays social security and Medicare taxes of 7.65%.Also if he Pays total cash wages of $1K or more in any calendar quarter of 2013 or 2014 to your wife that is a household employee, then,he must pay federal unemployment tax, 6% of cash wages up to $7K a year.I mean if he has a household employee, he may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both.

If only your wife can control how the work is done, she is not his employee but is self-employed. A self-employed worker usually provides her own tools and offers services to the general public in an independent business.
If an agency provides the worker and controls what work is done and how it is done, the worker is not his employee. In this case, your wife as a contractor, needs to file her Sch C/SE since her employer does not withhold any tax from her 1099.

If so, how does that work? Does she have to pay taxes for the past 5 years? ======>>it depends; aslongas she was an employee, then yes both your wife and he MUST pay all social taxes, penalties , and even interest to IRS . It is critical that he correctly determines whether your wife providing services is a W2 employee or independent contractor.As said, he is a business owner hiring or contracting with your wife to provide services, he must determine whether your wife providing services is an employee or independent contractor; IRS can not determine if she is a W2 employee or a 1099 contractor until they receive a form SS-8. If it is still unclear whether your wife is an employee or an independent contractor, Form SS-8 can be filed with the IRS. The form may be filed by either the business or your wife. The IRS will review the facts and circumstances and officially determine her status.Generally, he must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee aslongas your wife is his W2 employee. But He does not generally have to withhold or pay any taxes on payments to independent contractor if she is a contactor.


Does she only getting her social security 2 years ago, makes her only pay for the 2 years that she have it? =====>>>>>>>It does not matter when she receives her SSN from INS. She needs to know if she a W2 employee or an independent contractor.



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Old 07-14-2015, 04:45 AM
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Does he need a type of contract or not to do this? ======>>>>>> A contract isn't legally required, but it is a good idea. Drawing one up engages he and his nanny in a conversation about the ground rules of the arrangement, and sets them down clearly and concisely.






Is there any problem for filling this late? ==========>>>>>>>>As said above;



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Old 07-16-2015, 06:09 AM
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Make things more clear by consulting an advocate. He may give you best suggestion that comes in your favor..

Thanks for sharing...



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