Household payroll made easy

If you hire someone to work in or around your home (like a nanny, housekeeper, or senior caregiver) and you control how and when the work is done, the IRS probably considers you a household employer. That means you have payroll and tax responsibilities just like any other employer.

If you pay a household employee over a certain amount per year, you're responsible for withholding and paying Social Security and Medicare taxes. This is often called the "nanny tax" even if your household worker isn’t a nanny. You may also need to pay state unemployment insurance or other local payroll taxes. It all depends on where you live.

If you're setting the schedule, providing the tools, and directing the work, the person you hire is likely considered an employee. That means you may be responsible for withholding and paying taxes, and you will need to provide them with a W-2, not a 1099.

Yes. You’ll need an Employer Identification Number (EIN) to file taxes and make required payments. But don’t worry…it’s free and relatively easy to get one through the IRS website.

Keep track of wages paid, hours worked, tax forms, and any tax filings. It’s a good idea to save copies of employment contracts and any communications with tax agencies too. Keeping everything organized helps at tax time (and in case you ever get audited).

Household payroll can get complicated, so it’s worth finding a payroll provider or tax pro who knows the ins and outs of nanny tax laws. SurePayroll is built for household employers. Our service helps you handle the calculations, filings, and deadlines.

Schedule H is a tax form you file with your federal income tax return if you pay a household employee above a certain threshold. It reports the federal employment taxes you owe. You can learn more about it on the IRS website. And you might want to consider letting a payroll provider like SurePayroll take care of it for you (so it’s generated automatically).