IRS Publication 926

AAA

DEFINITION of 'IRS Publication 926'

A document published by the Internal Revenue Service (IRS) that provides information for individuals who employ a household employee. Examples of household employees include maids, nannies, yard workers, drivers and caretakers. Employers of household employees may have to pay state and federal employment taxes, including Social Security, Medicare and unemployment.

INVESTOPEDIA EXPLAINS 'IRS Publication 926'

The IRS indicates that a household worker is considered an employee if that individual is told what work is to be done, and how it should be done. If the worker meets those standards then he or she is considered an employee, even if not employed full-time or hired from an agency, and even if that employee is not paid on a standard schedule.


It is unlawful to employ someone if he or she is not legally authorized to work in the United States. When hiring a household employee, the taxpayer must complete Form I-9 from the U.S. Citizenship and Immigration Services.

RELATED TERMS
  1. Employer Identification Number ...

    A unique identification number that is assigned to a business ...
  2. Federal Unemployment Tax Act - ...

    The original legislation that allows the federal government to ...
  3. Alien

    Any person who is not a citizen of the country in which he or ...
  4. W-2 Form

    The form that an employer must send to an employee and the IRS ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Medicare

    A U.S. federal health program that subsidizes people who meet ...
Related Articles
  1. The Economics Of Labor Mobility
    Economics

    The Economics Of Labor Mobility

  2. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  3. The Unemployment Rate: Get Real
    Economics

    The Unemployment Rate: Get Real

  4. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center