I know that the US has a free economy, which means no closed professions etc. If yopu don't hire someone as an employee and you don't have a business, but you want to make a private deal between two individuals. For example you find someone who will walk your dog or someone who will babysit or someone who will teach your kids a foreign language, but is not a professional. It may be the neighbour's daughter or a foreign person whom you want your kids to learn her native language from. Is it legal? And if so, is tax due? And how is it paid?