How payroll providers support household employers

A household payroll provider can make paydays and reporting easier, but the service's exact tasks depend on its contract. Ask what it will do, prepare for you to do, and leave entirely with you. The IRS says that an employer generally remains responsible for required tax returns, deposits, and payments even when a third party performs those tasks. IRS Publication 926, “Outsourcing payroll duties”.

Turn a sales description into a task list

Ask each provider to explain its role at these points:

1. Setup: Who obtains employer identification and state accounts, enters worker details, and checks that the account is ready before the first payroll?
2. Every payday: Who enters hours, calculates gross and net pay, reviews deductions, approves payment, and corrects a mistake?
3. During the year: Which federal and state returns and payments does the provider file or make, and which notices must you forward?
4. At year-end or separation: Who prepares wage statements, reconciles prior payments, and gives you copies of completed filings?
5. After a provider change: Can you export time, pay, tax, and filing records in a usable format?

These are comparison questions, not a list of features every provider offers. Ask for the actual service agreement and current fee schedule before deciding. Our provider question list is designed to capture the answers side by side.

Keep an employer review step

The IRS's household employer guide covers federal wage and tax records. The Department of Labor says a covered domestic-service employer remains responsible for required wage-and-hour records even if the worker supplies time entries. A sensible handoff is to review actual hours and the proposed payroll before approving it, then save the pay report and filing confirmation where you can retrieve them. IRS Publication 926; DOL Fact Sheet 79C.

Check the work location

The IRS directs household employers to check state unemployment tax and other state employment requirements. Ask the provider which states and localities its service covers for your particular worker, including any state registrations or filings you must complete yourself. The payroll comparison overview can help frame the conversation, but confirm a provider's current scope directly with it. IRS Publication 926.

Information only: This guide does not endorse or rate any provider and does not transfer employer obligations to a service. Features and fees change; use the current agreement and qualified advice for your arrangement. Source review: October 18, 2026; no specialist sign-off.