A starting checklist for household payroll

Payroll setup is easier when the working arrangement is clear first. The IRS's Household Employer's Tax Guide includes a household employer checklist and explains federal employment tax reporting. The Department of Labor describes the wage and hour records that covered domestic-service employers must keep. Use this page to organize the conversation with a payroll or tax professional, not as a substitute for that advice. IRS Publication 926; DOL Fact Sheet 79C.

Before work begins

Describe the job. Record duties, work location, expected schedule, and who will direct the work.
Determine the employer relationship. The IRS focuses on who controls what work is done and how. If an agency or more than one household is involved, establish who handles wages and payroll reporting. Use the IRS guide and obtain qualified advice for the specific arrangement. IRS Publication 926.
Agree on pay and timekeeping. Decide how hours will be captured and how schedule changes will be recorded. The DOL says covered employers remain responsible for keeping required records even if workers submit their own time entries. DOL Fact Sheet 79C.
Ask about eligibility, registration, and reporting. Review the IRS household employer checklist for work authorization, federal tax questions, employer identification, and year-end reporting. Ask which state and local registrations or requirements apply. The steps depend on the arrangement and the applicable tax rules. IRS Publication 926.
Set a review routine. Confirm who checks hours, approves payroll, stores records, and answers questions when duties or schedules change.

Keep the records useful

The DOL's recordkeeping fact sheet identifies information about the worker, hours worked, and wages that covered employers need to preserve. A timekeeping method should make those facts easy to reconstruct, not merely produce a payment total. DOL Fact Sheet 79C.

Related HHP resources: Nanny Payroll Comparison and Agency Packet.

Information only: This starting list is not a complete compliance checklist or legal or tax advice. Requirements can vary by state, locality, and arrangement. Check current rules and consult a qualified professional. Source review: October 18, 2026; no specialist sign-off.