Companion Sitter Placement Service Exclusion
IRC §3506
Excludes placement agencies from being treated as employers for payroll tax purposes if they act as intermediaries between sitters and clients and do not handle wage payments directly.
Eligibility
Must be in the business of putting sitters (childcare, elderly, or disabled care) in touch with clients, must not pay or receive the sitter's wages, and must be compensated on a fee basis.
Frequently Asked Questions
Who is eligible for the Companion Sitter Placement Service Exclusion?
Must be in the business of putting sitters (childcare, elderly, or disabled care) in touch with clients, must not pay or receive the sitter's wages, and must be compensated on a fee basis.
How does the Companion Sitter Placement Service Exclusion work?
Excludes placement agencies from being treated as employers for payroll tax purposes if they act as intermediaries between sitters and clients and do not handle wage payments directly.
What law authorizes the Companion Sitter Placement Service Exclusion?
The Companion Sitter Placement Service Exclusion is authorized under IRC §3506 of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §3506
Source: Internal Revenue Code, Title 26, United States Code
Legal Sources
US Code (Official) — 26 USC §3506 → Cornell Law Institute — 26 USC §3506 → Search IRS.gov for IRC §3506 → Treasury Regulations (26 CFR) →Discovered by: discovery_engine_v1
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