Household employment recordkeeping basics

A reliable household payroll record answers two questions: what happened during each workweek and payday, and how were the amounts on tax forms calculated? The IRS and the Department of Labor describe different federal recordkeeping duties. State and local rules may add more. Use this guide to organize records, then check the rules for the place where the employee works. IRS Publication 926; DOL Fact Sheet 79C.

Start with one record for each workweek

For a domestic service worker covered by federal minimum wage or overtime rules, the Department of Labor says the employer must keep hours worked each workday and total hours worked each workweek, along with identifying and pay information. A worker can submit their own time record, but the employer remains responsible for keeping accurate records. Record actual hours when they differ from an expected schedule. This matters for live-in arrangements too. DOL Fact Sheet 79C.

A practical weekly file can include the dates, start and end times, breaks, total hours, pay rate or agreed pay method, gross pay, deductions, reimbursements, and proof of payment. The exact legal requirements depend on the arrangement and jurisdiction; do not treat this example as a complete state-specific list.

Keep the tax trail alongside the pay trail

The IRS says to retain copies of Schedule H or other employment tax returns filed, related Forms W-2, W-3, and W-4, and records supporting what was reported. Its guide recommends recording cash and noncash wages and relevant withheld taxes on each payday. Keep the employee's identifying information needed for required wage forms. IRS Publication 926, “What Records Must You Keep?”.

If a payroll service prepares forms or pays taxes, ask how to export your time records, pay history, filings, and payment confirmations. Keep access to those records if you change providers. See our questions for a household payroll provider.

Set separate retention reminders

The IRS says to keep employment tax records at least four years after the later of the return's due date or the date the taxes were paid. For employers subject to the federal domestic-service wage rules, the Department of Labor says payroll records must be kept at least three years, while records used to compute pay, such as time cards and schedules, should be kept two years. These are separate federal minimum periods; a state rule, dispute, or other obligation may require longer retention. IRS Publication 926; DOL Fact Sheet 79C.

A simple setup before the next payday

1. Choose one place to record actual work hours and corrections by workweek.
2. Save each pay calculation and payment confirmation with that week's record.
3. Store tax forms and filing receipts in a separate, secure folder by tax year.
4. Record who can retrieve the files, including after a payroll provider change.
5. Check state and local record, pay-stub, and retention rules for the work location.

For earlier steps, use the Household Employment Center and payroll starting checklist.

Information only: This page summarizes federal starting points. It does not determine coverage, replace state or local rules, or provide legal or tax advice. Source review: October 18, 2026; no specialist sign-off.