Hello @jimmitro,
The IRS and the Department of Labor have strict rules that individuals and businesses must follow when determining whether or not someone who works for them is an employee or an independent contractor. It is not something that you can decide arbitrarily to avoid paying employment taxes.
Generally, when you hire a nanny, they will be considered a household employee and depending on how much you pay them, you will be subject to employment tax obligations such as withholding and remitting Federal Income Tax, FICA taxes, and Unemployment taxes. You should review this Topic No. 762 from the IRS to guide you in making the correct determination. Classifying someone as an independent contractor when they should be an employee should not be done simply to evade an obligation to pay employment taxes.
Also consider the following from the IRS:
Hiring Household Employees
Publication 926 (2023), Household Employer's Tax Guide
Warm regards,
Tyler H.
Enrolled Agent (EA)
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