If this is an issue in the household where you work, you had better get some good professional advice. We recommend GTM.com and HomePay at care.com.

Tax time can be particularly taxing for families who pay an in-home caregiver or housekeeper.If the worker is considered an employee — rather than an independent contractor — you, as the employer, are responsible for paying payroll taxes and reporting the details to the Internal Revenue Service. They’re often called “nanny taxes” but they can apply to other workers, like caregivers for elderly people, too.

How can you tell if a worker is your employee? Some people focus, incorrectly, on the worker’s title, or whether they are full time or part time, said Laura Weiland, president of the Nanny Tax Company, in Park Ridge, Ill.: “In their heads, they say, ‘I just have a babysitter; she’s not a nanny.’” Continue reading the main story Related Coverage

via Contract Worker or Employee? Tax Liability Rests on the Difference – NYTimes.com.