House Cleaning is an Industry in the US

Overview

Where to Hire House Cleaning Services

Professional Cleaning Companies

• Examples: Merry Maids, Maid Brigade, Molly Maid – national chains with local branches.
• How to Hire: Visit company websites (e.g., www.merrymaids.com) for online booking, call for quotes, or use referral services like Angi www.angi.com.
• Availability: Nationwide, with urban areas (e.g., New York, Los Angeles) offering more options.

Direct Online Platforms

• Examples: LawnStarter www.lawnstarter.com, TaskRabbit www.taskrabbit.com, HomeAdvisor www.homeadvisor.com.
• How to Hire: Sign up online, enter location and needs, review profiles/ratings, and book directly. Payment is often processed through the platform.
• Availability: Covers most states, though rural areas may have fewer providers.

Independent Cleaners

• How to Hire: Found via word-of-mouth, local ads (e.g., Craigslist), or community boards. Negotiate directly with the individual.
• Availability: Common in both urban and rural areas, depending on local networks.

South African Consideration

• Newcomers may find online platforms familiar (e.g., SweepSouth in South Africa), but should verify credentials and request multilingual support if needed.

How Much to Expect to Pay

• National Average: $173 per visit for a standard cleaning (Angi, 2025), with hourly rates of $25–$80.
• By Home Size:
  • 1-bedroom apartment: $100–$150/visit.
  • 3-bedroom house (2,000 sq ft): $150–$250/visit.
• Frequency Discounts: Weekly ($80–$150) vs. biweekly ($90–$200) or one-time ($118–$236).
• Additional Services: Deep cleaning ($200–$400), carpet cleaning ($100–$300), or move-out cleaning ($300–$600).
• State Variations: Higher in urban/high-cost states (e.g., California $200–$400) vs. rural/low-cost states (e.g., Mississippi $100–$200).
• South African Contrast: Higher than South Africa’s R200–R500/visit (~$11–$27 USD), reflecting U.S. labor and insurance costs.

Legal Structure for Private Hires

• Independent Contractor (Self-Employed):
  • Definition: Cleaner works for multiple clients, sets their own schedule, and provides supplies. Paid per job, not controlled by the hirer on how to clean.
  • Legal Implication: Hirer is not responsible for taxes or benefits; cleaner files their own taxes (e.g., Form 1099-MISC if paid $600+ annually).
  • Risk: If IRS deems the cleaner an employee (e.g., hirer sets schedule, provides supplies, pays >$2,800/year in 2025), hirer must withhold taxes (Social Security, Medicare) and may face penalties.
• Employee:
  • Definition: Cleaner works exclusively for one hirer, follows set hours/duties, and uses hirer’s supplies. Treated as a household employee.
  • Legal Implication: Hirer must withhold payroll taxes (7.65% employee share, plus 7.65% employer share), pay unemployment taxes (FUTA, 6% on first $7,000), and verify work eligibility (e.g., Social Security card). Requires IRS Form W-2 and state filings.
  • Risk: Non-compliance (e.g., cash payments without reporting) can lead to IRS audits and fines.
• Cleaning Company:
  • Definition: Hirer contracts with a business (e.g., Merry Maids), which employs cleaners and handles taxes/benefits.
  • Legal Implication: No tax or insurance liability for the hirer; company manages compliance.
• South African Contrast: U.S. classification is stricter than South Africa’s informal hires, where domestic workers are often paid cash without tax reporting.

Rates Expected for Private Hires

• Independent Contractors:
  • Hourly: $25–$50, depending on experience and region (e.g., $30 in Texas, $45 in California).
  • Per Visit: $100–$200 for a 3-bedroom home, negotiable based on frequency.
  • Factors: Lower in rural areas, higher in urban/high-demand markets.
• Employees:
  • Hourly: $15–$25 (minimum wage + benefits), plus employer taxes (15.3% FICA) and insurance (~$100–$200/month).
  • Total Cost: $18–$30/hour effective rate, including overhead.
• Cleaning Companies:
  • Per Visit: $150–$300, with premiums for insured/bonded services.
  • Hourly Equivalent: $40–$80, reflecting company overhead.
• South African Consideration: U.S. rates are 2–3 times higher than South Africa’s R20–R50/hour (~$1–$3 USD), reflecting professionalization and legal requirements.

Tax Registrations and Statutory Requirements for Private Hires

For Hirers (Employing a Cleaner)

• Tax Registrations:
  • Employer Identification Number (EIN): Required if hiring an employee; obtained free via IRS website www.irs.gov.
  • State Tax ID: Some states require registration for payroll taxes (e.g., California EDD).
  • No Registration: Not needed for independent contractors or companies, but hirer must issue Form 1099-NEC for payments >$600/year.
• Statutory Requirements:
  • Payroll Taxes: Withhold 7.65% (Social Security, Medicare) from employee wages, match with 7.65%, and pay quarterly (Form 941). FUTA (6% on first $7,000) due annually.
  • Unemployment Insurance: Register with state workforce agency; rates vary (e.g., 1–5% of wages in Texas).
  • Workers’ Compensation: Mandatory in most states for employees; costs $0.50–$2.50/$100 payroll, depending on risk.
  • I-9 Verification: Confirm work eligibility with Form I-9 and E-Verify for federal contractors.
  • Sales Tax: Some states (e.g., Hawaii) require cleaners to charge sales tax (e.g., 4–7% on services), but hirer isn’t responsible unless employing.
• Penalties: Failure to comply (e.g., no tax withholding) can incur fines ($50–$500 per violation) or back taxes plus interest.

For Cleaners (Self-Employed)

• Tax Registrations:
  • EIN: Optional for sole proprietors; required if forming an LLC or hiring staff.
  • Self-Employment Tax: Register with IRS, paying 15.3% (Social Security, Medicare) quarterly (Form 1040-ES).
• Statutory Requirements:
  • Business License: Required in some cities (e.g., $50–$200 in Los Angeles); check local government.
  • Insurance: Public liability ($300–$1,000/year) and professional indemnity recommended, though not mandatory.
  • Sales Tax Permit: Needed in tax-applicable states (e.g., Texas Comptroller) to collect and remit sales tax.
  • Record-Keeping: Maintain receipts and mileage logs for deductions (e.g., cleaning supplies, travel).
• South African Contrast: U.S. requirements are more formalized than South Africa’s minimal regulations for domestic workers, necessitating professional advice.

Tips for South African Newcomers

• Hiring: Start with online platforms for convenience, verifying reviews, or use associations for reliability.
• Budgeting: Expect $100–$300/visit, plus potential employer costs ($200–$500/year) if hiring an employee.
• Legal Awareness: Consult IRS Publication 926 or a tax professional to classify hires correctly, avoiding South Africa’s informal pitfalls.
• Support: Contact ORR (1-800-354-0365) or 211 for assistance with registrations or disputes.
• Negotiation: Request quotes and clarify tax responsibilities upfront, a U.S. norm.

Conclusion