The insurance company's determination doesn't have any sway over IRS rules. It's what they consider to be an employee that counts for tax purposes. They may be basing it on the child care services below.
Do You Have a
Household Employee?
You have a household
employee if you hired someone to do household work and that worker is your
employee. The worker is your employee if you can control not only what work is done, but
how it is done. If the worker is your employee, it does not matter whether the
work is full time or part time or that you hired the worker through an agency
or from a list provided by an agency or association. It also does not matter whether
you pay the worker on an hourly, daily, or weekly basis, or by the job.
Example.
You pay Betty Shore
to babysit your child and do light housework 4 days a week in your home. Betty
follows your specific instructions about household and child care duties. You
provide the household equipment and supplies that Betty needs to do her work.
Betty is your household employee.
Household work.
Household work is
work done in or around your home. Some examples of workers who do household
work are:
Babysitters,
Caretakers,
House cleaning
workers,
Domestic workers,
Drivers,
Health aides,
Housekeepers,
Maids,
Nannies,
Private nurses, and
Yard workers.
Workers who are not your employees.
If only the worker
can control how the work is done, the worker is not your employee but is
self-employed. A self-employed
worker usually
provides his or her own tools and offers services to the
general public in an independent business.
A worker who
performs child care services for you in his or her home
generally is not your employee.
If an agency
provides the worker and controls what work is done and how
it is done, the worker is not your employee.
Example.
You made an
agreement with John Peters to care for your
lawn. John runs a lawn care business and offers his services
to the general public. He provides hisown tools and
supplies, and he hires and pays any helpers he needs.
Neither John nor his helpers are your household employees.
