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Household Employer Legalities

Are you considering hiring a nanny, personal assistant, housekeeper, or private chef? As the holidays approach, having an extra hand around your home regularly is incredibly helpful. Once you have found the right person to hire, you become a household employer. That means you’ll need to set up your employee’s payroll schedule and plan for tax withholdings. As an employer, you have legal responsibilities. Here’s what to keep in mind.

Don’t pay your employee off the books

Hiring an employee to work in your home means you need to have a legal, written record of their employment with you. You need to withhold proper taxes for them and if you don’t, you could be subject to hefty fines or fees for tax evasion. We recognize that it can feel overwhelming to know where to start with your employee’s taxes and payroll. That’s why we partner with several payroll companies that specialize in household employee work. Contact us for more details.

File the right paperwork

There are legal responsibilities as a household employer and specific paperwork will need to be filed. First, you will need to get an employer identification number from the IRS. You will also need to ensure that your new employee is legally authorized to work in the United States. When it comes to filing payroll, make sure to withhold the proper amount of taxes, including portions for Medicare and Social Security. If you’re not sure how to do this accurately, contact our household payroll partners to help get the process started for you.

Your employee is not an independent contractor

Many people are not aware that their employees are not independent contractors. Independent contractors have no restrictions on their employment and get to set their own hours and job duties. If you expect your employee to work specific dates and times and have a specific set of job duties that they need to complete daily, they are an employee and need to be paid as one.

If you have never been a household employer before, there are some things that you might find confusing. That’s where our experts at Household Staffing can help! We will not only help match the right employee for your home, but we will also help answer the questions you have about what it takes to be an employer. We’ll connect you with our tax and payroll partners, too, so you can ensure that both you and your employee are tax compliant all year long.

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