Working as a domestic employee means you’re entitled to a legal, written record of your employment. You should not be paid cash under the table. Household employees are not independent contractors and need to have proper taxes withheld.
So, when accepting a new position as a domestic employee, make sure you are paid on the books. Here’s why having a W-4 as a household employee matters.
W-4 Details to Know
The W-4 is officially called the “Employee’s Withholding Certificate” and it tells your employer how much federal income tax to withhold from each paycheck. It is important to have your taxes accurately withheld, so you aren’t hit with a large, unexpected tax bill during tax season.
When you receive your W-4, you’ll need to enter your personal information including your social security number, address, and your filing status (single, married filing jointly, or head of household). If you work multiple jobs, you will need to indicate that on your W-4.
Note: for 2025, standard deductions have changed. If you don’t show that you work multiple jobs, you could risk getting a large tax bill later.
If you have dependents, you may be eligible for credits.
For example, if your total income is under $200,000 or $400,000 for joint filers, you can claim $2,000 per qualifying child under age 17 and $500 for other dependents.
There is also an area for other optional adjustments, which include other side gig income, itemized deductions, or extra withholding if you want more tax withheld per paycheck.
Once you complete the form, be sure you sign your W-4. If you don’t, it is invalid.
Common W-4 Mistakes
Be careful not to mistakenly mark yourself as exempt on your form. Only employees who had zero tax liability last year and are expected to have zero this year should claim exemption. Learn more on the exemption here.
Next, be sure to review your W-4 yearly. Marriage, kids, and tax laws are all subject to change and reviewing your W-4 annually ensures you have everything reported properly. Not sure how to estimate your withholdings? The IRS tax withholding estimator can help.
Reasons to Insist on Fair and Legal Pay
As a domestic employee, it’s crucial that you are paid a livable wage with correct employment taxes withheld. This provides you with a verifiable income, allowing you to purchase or rent a home, vehicle, or apartment. Legal pay also allows you to receive government benefits such as unemployment, social security, medical leave, or disability.
Get Started Today
Ready to start your career as a domestic employee? Whether you’re seeking a nanny role, a job as a private chef, personal assistant, household manager, or to be part of a private yacht staff, we have a variety of roles that fit your skillset and expertise. We place employees in homes across the country that prioritize fair and legal pay.
For household employers, we understand that managing and understanding the various parts of payroll and taxes for employees can be complicated and time-consuming. Our partnership with payroll agencies that specialize in household staffing ensure you and your employee are set up properly from day one. That gives you the peace of mind you need when hiring your team of in-home staff.
You can trust our nearly three decades in the staffing industry, where we have placed thousands of highly trained and specialized individuals in homes and offices around the country.
Contact us today to get started on the hiring and interview process. We look forward to working with you!
