Questions to ask a household payroll provider
A payroll provider can help administer parts of household employment, but a family should understand exactly what the service includes and what remains with the employer. The IRS's Household Employer's Tax Guide provides the federal tax framework, while the Department of Labor describes recordkeeping expectations for covered domestic-service employment. IRS Publication 926; DOL Fact Sheet 79C.
Ask about setup
- What information do you need from the family and worker to start?
- Do you help identify required federal, state, and local registrations, or do you expect the family to complete them?
- Who evaluates worker classification and work authorization, and is that service included in the quoted fee?
- How do you handle an arrangement involving an agency, a nanny share, or more than one household?
Ask about each pay period
- How are hours entered, checked, corrected, and approved?
- Which pay statements and records can the family and worker access later?
- How are schedule changes, additional hours, reimbursements, and corrections handled?
- Can the family export hours worked each day and week, wages paid, and corrected records if it changes providers?
The DOL states that the employer is responsible for maintaining required wage and hour records for covered domestic-service workers, even when the worker submits time records. Ask the provider how its exports support that responsibility. DOL Fact Sheet 79C.
Ask about reporting and support
- Which tax calculations, filings, forms, and payment steps are included in the quoted fee?
- Who monitors changes in the worker's location or applicable rules?
- What happens if the family changes providers or needs historical records?
- When a question requires legal or tax advice, who is qualified to answer it?
Compare written answers alongside total cost and support hours. Avoid assuming that two services include the same tasks because both call themselves “household payroll.”
Related HHP resources: Nanny Payroll Comparison and Join Honest House Promise.
Information only: These questions are a provider interview aid, not an endorsement, rating, or legal or tax advice. Confirm current services in writing and consult a qualified professional about your arrangement. Source review: October 18, 2026; no specialist sign-off.