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Title 26 — Internal Revenue CodeRelease 119-73not60

§3506 Individuals Providing Companion Sitting Placement Services

Title 26 › Subtitle Subtitle C— Employment Taxes › Chapter 25— GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES › § 3506

Last updated Apr 5, 2026|Official source

Summary

A business that finds and connects sitters with people who want to hire them is not the sitter’s employer, and the sitter is not that business’s employee, if the business does not pay or take the sitter’s wages and instead is paid by a fee from the sitter or the person who hires them. Sitters = people who give personal care, companionship, or household help to children or to elderly or disabled people. The Secretary must make any rules needed to carry out this rule.

Full Legal Text

Title 26, §3506

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this subtitle, a person engaged in the trade or business of putting sitters in touch with individuals who wish to employ them shall not be treated as the employer of such sitters (and such sitters shall not be treated as employees of such person) if such person does not pay or receive the salary or wages of the sitters and is compensated by the sitters or the persons who employ them on a fee basis.
(b)For purposes of this section, the term “sitters” means individuals who furnish personal attendance, companionship, or household care services to children or to individuals who are elderly or disabled.
(c)The Secretary shall prescribe such regulations as may be necessary to carry out the purpose of this section.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 95–171, § 10(c), Nov. 12, 1977, 91 Stat. 1356, provided that: “The

Amendments

made by this section [enacting this section] shall apply to remuneration received after
December 31, 1974.” Unemployment Compensation or Social Security Benefits Based on Services Performed Before
November 12, 1977, Unaffected Pub. L. 95–171, § 10(d), Nov. 12, 1977, 91 Stat. 1356, provided that: “The

Amendments

made by this section [enacting this section] shall not be construed as affecting (1) any individual’s right to receive unemployment compensation based on services performed before the date of the enactment of this Act [Nov. 12, 1977], or (2) any individual’s eligibility for social security benefits to the extent based on services performed before that date.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 3506

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60