How to tell whether someone is a household employee

Hiring someone to work in your home may make you a household employer. The worker's job title or the way you found them does not settle that question. The IRS's Household Employer's Tax Guide explains how to determine whether a worker is your household employee and what federal employment tax questions follow. The Department of Labor's domestic-service guidance addresses wage and hour coverage for work in a private home. These are related but distinct questions. IRS Publication 926; DOL Fact Sheet 79.

Start with the working relationship

The IRS asks whether you can control both what work is done and how it is done. The answer does not turn on whether the job is full time or part time, whether you found the worker through an agency, or whether pay is hourly or by the job. Write down who directs the work and supplies what the worker needs. A contract label such as “independent contractor” is not a substitute for assessing the actual arrangement. If an agency supplies and directs the worker, review the IRS's separate guidance for that situation before deciding who has the tax responsibilities. IRS Publication 926.

What counts as domestic service?

The Department of Labor describes domestic service as household work in or about a private home. Its examples include nannies, housekeepers, cooks, and gardeners. Whether federal wage and hour rules apply to a particular arrangement is a separate question from the IRS tax classification; the job title alone does not settle it. DOL Fact Sheet 79.

A practical next step

Before the first shift, record the proposed duties, schedule, pay arrangement, and the party responsible for payroll. Take that summary to a qualified household payroll or tax professional, especially if the arrangement involves an agency, multiple households, live-in work, or changing duties. Review the current federal guidance and the rules of the state and locality where the work occurs.

Related HHP resources: Nanny Payroll Comparison and Join Honest House Promise.

Information only: This guide does not determine any worker's classification or provide legal or tax advice. Check the current rules where the work occurs and consult a qualified professional about your arrangement. Source review: October 18, 2026; no specialist sign-off.