What to do before hiring a household employee

Before making an offer for work in your home, write down the job you actually need and who will direct it. That makes it easier to discuss pay, records, and employer responsibilities with the worker and any payroll or tax adviser. The IRS and the Department of Labor address different parts of household employment; state and local requirements need a separate check for where the work happens. IRS Publication 926; DOL Fact Sheet 79.

1. Define the role

List the duties, work location, expected schedule, reporting relationship, and any travel or overnight work. Separate essential duties from occasional requests. Decide who will approve schedule changes and how the worker will record actual time. A clear description helps you and the candidate decide whether the position fits; it also gives an adviser the facts needed to assess the arrangement.

2. Identify the employer relationship

The IRS focuses on who controls what work is done and how it is done when assessing whether someone working in or around a private home is a household employee. An agency's involvement or a contract label does not answer every case. If two households share a worker or an agency supplies them, clarify each party's role before payroll starts. Read the household employee basics and the IRS Household Employer's Tax Guide.

3. Agree on pay and a timekeeping method

Discuss the pay rate or method, expected hours, pay frequency, and how extra hours will be approved and recorded. The Department of Labor explains federal wage-and-hour coverage for domestic service in a private home and records required of covered employers. State or local rules may differ. Use the recordkeeping guide to plan a weekly pay trail. DOL Fact Sheets 79 and 79C.

4. Assign the setup tasks

Make a short list of who will handle work-eligibility verification where required, employer registration, wage reporting, payroll tax calculations, year-end forms, and secure record storage. The IRS guide covers federal household-employer tax steps; the current Form I-9 guide explains that separate process for regular household employees. Check the state and locality where work occurs before assuming that a federal checklist is complete. IRS Publication 926.

5. Decide what help you need

A payroll provider may handle some setup and filing steps, but its scope varies. Ask who registers the employer, who reviews time entries, what taxes and forms the service handles, and how records can be exported. Use our payroll provider questions to compare written answers before signing up.

Next step: Put the agreed duties, schedule, pay method, and responsibilities in writing, then use the payroll starting checklist for the information needed to set up payroll.

Information only: This is a planning sequence, not a complete hiring or compliance checklist. It does not determine worker classification or provide legal or tax advice. Check current federal, state, and local rules for your arrangement. Source review: October 18, 2026; no specialist sign-off.