|We believe that you have a "Right to Know" that there are three viable business types within the marketplace in the State of California for the consumer to obtain the services of a housecleaner.
One is not necessarily better than the other. Each business model is viable in its own right and serves a need in the community.
I. The Basics
What does cleaning a house consist of?
Cleaning a house consists of services directed to the cleaning of the physical structure and contents of the house, apartment, office or dwelling, such as but not limited to vacuuming, dusting, mopping, cleaning floors, bedrooms, bathrooms, living rooms, kitchens, windows, blinds, appliances, dishes, inside and outside cobwebs, porches, garages and changing bed linens.
What is not included in cleaning a house?
Services directed to the physical care of the human or animal occupants of the house, apartment, office or dwelling.
II. The Three Types of Business Models
The three viable business types within the marketplace to obtain the services of a housecleaner are as follows:
- Direct Sourcing: Defined as looking in newspapers, flyers and asking friends, associates or family for a lead or recommendation of a housecleaner.
- Referral Agency: The Agency screens and registers Independent Professional Housecleaners from within the community. The agency lists the specific cleaning services they offer their clients, the times and dates that they are available and the prices that they charge. The Agency acts as an Agent to procure job leads for the Professional Service person seeking to enlarge their client base.
- Employer based business: is defined as a company who implicitly directs and controls the manner and means by which the housecleaner conducts his/her work. The employer may supply training, uniforms, transportation and policies or rules of conduct.
III. The Consumer
As a consumer you are not obligated to accept one type of business over another. Depending upon your choice, you may have obligations in each case as follows:
- Direct Sourcing: The consumer is responsible for reporting to the appropriate State & Federal Regulatory body. Consumer is responsible when they directly employ the housecleaner to pay all tax obligations to the appropriate State & Federal Regulatory body.
- Referral Agency: The agency is responsible for reporting to the appropriate State & Federal Regulatory body. The consumer is responsible for determining if the housecleaner referred to their job lead is being hired to become their direct employee or is an Independent Business Person.
- Employer-Based Business: The employer-based business is responsible for reporting and paying all tax obligations to the appropriate State & Federal Regulatory Body. The consumer is responsible for determining if the employer-based business is in current compliance with all its State and Federal taxing obligations.
In the event that the referral agency you have chosen accepts payment for your transaction in the business name of the agency this is not to be misconstrued as payment to an employer. Funds for the payment of taxes are paid directly by the Independent Housecleaner to the appropriate State or Federal Regulatory body. To insured compliance of tax payments a 1099 form is filed by the Agency to the appropriate State or Federal Regulatory body.
As clarified above and in closing we reiterate that Brenda's Cleaning Personnel, Inc. is not the employer of the domestic worker 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 workers' compensation, under state and federal law. For additional information contact your local Employment Development Department and the Internal Revenue Service.
Thank you for considering a Referral Agency for your housecleaning needs, we appreciate your business and offer this Customer Education Statement voluntarily to the community.