Household Employees

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Household Employees

March 9, 2016

Household Employees

Do you have a nanny, an in-home health aide, or a nurse not hired through an agency? If so, you should consider whether these individuals are household employees as defined by the IRS.

If you hire someone to perform work inside your home and control not only what work is done, but how it is done, then you may have a household employee.

As a household employer, there are several documentation and filing requirements you must meet that individuals are often not aware of:

  • You must complete and retain Form I-9 by the first¬†day of employment
  • You may need to withhold and pay Social Security and Medicare taxes, in addition to federal and state unemployment taxes
  • You should annually prepare a Form W-2 for the employee and not a Form 1099-Misc
  • You must obtain an employer identification number
  • You will need to file Schedule H with your federal income tax return

If these criteria apply to you, you can obtain more detailed information by reading Publication 926 issued by the IRS, or by calling Martin, Hood, Friese and Associates today!