Referral Agencies minimize the consumer’s costs while maximizing the domestic’s income and reducing the underground economy. It’s a win-win-win! Referral Agencies attract domestics who choose to work through an Agency in order to increase their income and receive a 1099 at year-end. Without Referral Agencies, these domestics would more likely work as “private” workers and contribute to the underground economy. Moreover, the domestics are responsible for their work, ensuring there is greater accountability for the services provided. Customers tell us the quality of independent domestics is significantly higher than those of “employed” workers.
Spotless Maids Referral Agency is not the employer of the Independent Domestic Worker it referred to you.
The Domestic Worker may be your employee or an independent contractor depending on the relationship you have with him or her.
If you direct and control the manner and means by which the domestic worker performs his or her work you may have employer responsibilities, including employment taxes and worker’s compensation, under state and federal law.
For additional information contact your local Employment Development Department, and Franchise Tax Board, and the Internal Revenue Service.