Are you a contractor or a household employee?

If a family hired you directly, you've probably wondered whether you're a "1099 contractor" or a "W-2 employee." It matters — it changes who pays which taxes — and the answer is not whichever word is more convenient.

Control is the deciding factor

The IRS looks at who controls how the work is done, not the label on your agreement. If the family sets your hours, tells you how to do the tasks, and provides the setting and supplies, the IRS generally treats you as a household employee — even when you were hired privately and even if you both call it "contract" work.

Why it matters to your wallet

• As a household employee (W-2): the family withholds and pays part of your Social Security and Medicare taxes; you may qualify for unemployment protections.
• As an independent contractor (1099): you owe self-employment tax on the full amount and handle your own withholding — see our self-employment tax guide.

What to do with this

You don't have to become a tax expert. But you can:

1. Read IRS Topic 756 and Publication 926 (linked below) — they're written for exactly this situation.
2. Keep your own records of hours and pay regardless of classification.
3. If real money is at stake, talk to a tax professional before filing.

This is general information, organized and cited from the IRS — not tax advice. Your situation is your own; when in doubt, get professional help.