How to Manage Household Payroll On Your Own

How to Manage Household Payroll On Your Own

Managing payroll for household employees like nannies or housekeepers can feel overwhelming, but it’s essential to ensure compliance with tax and labor laws. If you pay someone $2,800/year or more, or $1,000/quarter, you're considered a household employer, and these 12 steps outline how to do it legally. From verifying work authorization (Form I-9) and setting up an Employer Identification Number (EIN) to registering with your state, securing workers’ compensation, and withholding taxes, this guide walks you through the process.

Each step, including quarterly filings, year-end W-2s, and adherence to the Domestic Worker’s Bill of Rights, ensures you protect both your household and your employee. Tools like Nest Payroll can help streamline these requirements, making household payroll management easier than ever.