Before You Hire
By Ted Langford Last checked Nov 9, 2026
Here are five things worth knowing before you pay someone to work at your house. Each one links to the IRS or the official federal rule text. We read each source on Nov 9, 2026. Your state may add rules of its own, and any rule can change, so go by the official source.
Taxes when you pay a helper
Check 1: A regular helper may be your employee
The IRS says household employees include "housekeepers, maids, babysitters, gardeners, and others who perform household work in or around your private residence as your employee." A worker counts as yours if you control both what work is done and how it's done. (IRS Tax Topic 756: Employment taxes for household employees, reviewed or updated September 24, 2026.)
Check 2: Repair businesses are usually not your employees
The same IRS page says: "Repairmen, plumbers, contractors and other business people who provide their services as independent contractors are not your employees." (IRS Tax Topic 756)
Check 3: The 2026 dollar line
IRS Publication 926 says Social Security and Medicare taxes apply when you pay one household worker $3,000 or more in cash wages in 2026. If an agency provides the worker and controls what work is done and how it is done, the worker isn't your employee. Hiring through an agency doesn't change things if you are the one who controls the work. (IRS Publication 926 (2026), Household Employer's Tax Guide, reviewed or updated April 30, 2026.) The IRS also notes that this dollar line can change from one year to the next. (IRS Tax Topic 756)
Your right to change your mind
Check 4: Some purchases made at home can be canceled
A federal rule, the Cooling-Off Period for Sales Made at Homes or at Certain Other Locations (often called the Cooling-Off Rule), covers many purchases of $25 or more made in person at your home. For a covered purchase, you can cancel any time before midnight on the third business day after you buy. The business must give you a cancel notice in writing. Read the rule itself at eCFR: 16 CFR Part 429.
Check 5: A repair visit you asked for works differently
The rule leaves out a visit you set up yourself to repair or maintain your things. But if the worker then talks you into extra goods or services beyond the needed parts, the rule says "those additional goods or services would not fall within this exclusion." That means the extras may still be covered by the three-day right. (eCFR: 16 CFR 429.0)
True or false? A quick round
No score, no prize. You'll see True or False in plain letters, with the reason beside it.
- A gardener you hire and direct each week can count as your household employee.
True. The IRS lists gardeners among household employees when you control the work. (IRS Tax Topic 756)
- A plumbing company you call for a leak is your employee.
False. Independent contractors are not your employees. (IRS Tax Topic 756)
- For 2026, the Social Security and Medicare tax line for one household worker is $3,000 in cash wages.
True. (IRS Publication 926)
- Anything you buy at your front door can be canceled within three business days.
False. The rule has limits and exceptions, such as many repairs you asked for. (eCFR: 16 CFR Part 429)
This page is general information, not tax or legal advice. For your own taxes, check with the IRS or a tax professional.