Household Employees
What Is Household Employees?
Household employees are workers hired by individuals or families to perform services in a private home. These services may include childcare, housekeeping, gardening, or caregiving.
Household employees are typically paid directly by the household rather than by a business.
Why It Matters
Household employers may have tax responsibilities when hiring household employees. This can include paying employment taxes and reporting wages to tax authorities.
Understanding these requirements helps households comply with labor and tax laws.
How Household Employees Works
Household employees perform services under the direction of the homeowner or family who hires them.
Examples of household employees may include:
- nannies
- housekeepers
- caregivers
- private cooks
- gardeners
When certain wage thresholds are met, household employers may need to pay Social Security and Medicare taxes on wages.
Example
A family that hires a nanny to care for their children and pays regular wages may have tax obligations related to employing a household employee.
Household Employees vs Independent Contractors
Household employees work under the direction of the employer.
Independent contractors control how and when their work is performed.
FAQs About Household Employees
Are household employees considered employees for tax purposes?
Yes. In many cases they are treated as employees under tax laws.
Do households pay payroll taxes for household employees?
Yes, if wages exceed certain thresholds.
Are household employees issued tax forms?
They may receive a W-2 form if tax reporting requirements apply.
Related Terms
