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. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  4. W-2 Form

    The form that an employer must send to an employee and the IRS ...
  5. Alien

    Any person who is not a citizen of the country in which he or ...
  6. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
RELATED FAQS
  1. Are gross sales and taxable gross sales the same thing?

    The terms gross sales and taxable gross sales are not the same thing, and the difference can mean a huge difference in the ... Read Full Answer >>
  2. What are the benefits of research and development for a company?

    Some advantages of research and development are clear, such as the possibility for increased productivity or new product ... Read Full Answer >>
  3. What is the history of the sustainable growth rate?

    The sustainable growth rate (SGR) can refer to different things. The two most common references are to the Medicare SGR or ... Read Full Answer >>
  4. What is the difference between a regressive tax and proportional tax?

    There are generally three major ways that U.S. taxpayers pay taxes: regressive tax, progressive tax and proportional tax. Proportional ... Read Full Answer >>
  5. Does location matter for taxes when calculating gross sales?

    Tax policies regarding gross sales differ by state and region. Some city jurisdictions, counties and states require a percentage ... Read Full Answer >>
  6. Are progressive taxes ever more unfair that flat taxes?

    Progressive taxes assign a different tax rate to different taxpayers. Affluent taxpayers pay the highest income tax rates ... Read Full Answer >>
Related Articles
  1. Taxes

    Before You Visit Your Tax Preparer: Do This

    The earlier you start preparing your tax records and documents, the more likely you are to have a smooth tax return experience – and all the tax benefits you're due.
  2. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  3. Economics

    The Unemployment Rate: Get Real

    Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate.
  4. Taxes

    Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.
  5. Taxes

    Small Business Tax Obligations: Payroll Taxes

    Don't leave it up to your accountant - owners are ultimately responsible for fulfilling tax obligations.
  6. Economics

    What are Pork-Barrel Politics?

    Pork-barrel politics is a form of patronage whereby politicians favor their constituents in exchange for benefits such as campaign donations and votes.
  7. Economics

    Assessing The Pros & Cons of Immigration Reform

    Many of the arguments for and against immigration reform focus on the economic impact of the legislation, including its effect on job growth and wages.
  8. Economics

    Why Lobbying Is Legal And Important In the U.S.

    Political lobbying is again at a heightened spend level, and again being criticized; making it important to remember lobbying's legality and importance.
  9. Economics

    How Lack Of Leadership Is Making Things Worse In Europe

    Lack of effective leadership is impeding the resolution of economic crisis in Europe.
  10. Taxes

    Top 4 Ways to Invest Tax Free

    When you're ready to invest, start by looking at these 4 tax-advantaged ways to build your portfolio and your future.

You May Also Like

Hot Definitions
  1. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  2. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
  3. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  4. International Financial Reporting Standards - IFRS

    A set of international accounting standards stating how particular types of transactions and other events should be reported ...
  5. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
  6. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
Trading Center