Paying Domestic Help Free Of Taxes Just Got Trickier
New IRS rules mean high-net-worth clients may not be properly accounting for Social Security or workers comp when paying their domestic help—especially if they use certain payment methods.
Tax Changes Could Spell Trouble For Clients Who Pay Domestic Staff
New IRS rules require reporting income for some transactions of just $600 or more, down from a much higher previous threshold. Wealthy clients who routinely pay domestic help and other workers could get tripped up in tax reporting.