Title 26 — Internal Revenue CodeRelease 119-73
§3506 Individuals Providing Companion Sitting Placement Services
Title 26 › Subtitle Subtitle C— Employment Taxes › Chapter 25— GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES › § 3506
Summary
A business that matches sitters with people who want to hire them is not treated as the sitters' employer for federal employment tax purposes, as long as it does not pay or collect the sitters' wages and is instead paid a fee by the sitters or the families who hire them. Sitters are people who provide companionship, personal attendance, or household care to children, the elderly, or people with disabilities.
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 6, 2026
Release point: 119-73