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Payroll Recordkeeping Requirements for Employers

Posted by HomeWork Solutions on 7/5/23 1:45 AM
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Like all employers, household employers are required to keep specific payroll records for their employees. In addition to initial hire documents, such as W-4s and I-9 paperwork, there are ongoing records that you should keep as well.

Written Work Agreement

Upon initial hire, craft a carefully written work agreement that includes details on the employee’s wages, hours, job description, and benefit details. Having a written work agreement serves as documentation that protects your family as well as your employee and is actually required in many jurisdictions.


Paystub laws were enacted to prevent wage theft by employers.  They ensure employers accurately pay their employees for all hours worked, and reflect deductions allowed by law, such as the employee’s taxes.  Many states levy significant fines upon employers who fail to provide employees paystubs which meet state guidelines.

Paystubs also protect you as an employer.  If there is a dispute between you and your employee about pay or hours worked, paystubs showing hours paid can be used to show you have paid correctly.

Fringe Benefit Records

Fringe benefits are benefits that go beyond your employee’s salary, such as paid time off, contributions to a retirement plan, tuition assistance, or commuter/transportation benefits. If you offer these – even those required by law – you must keep a record of them, with a description of the dates and amounts you have paid. Some fringe benefits, such as health insurance reimbursements, must be accounted for on the employee’s W-2 as well.


Whether it’s a cash bonus, a gift card to a local restaurant or retail store, or something else, keep track of any bonuses you give to your employee throughout the year. Also remember that your employee’s bonus is considered to be taxable income, and it must be reported, and taxes paid on it. Many families don't realize that even the dollar value of a gift card must be reported as income. Since you're an employer, a bonus doesn't qualify as a gift.

Our experts at HomeWork Solutions understand the complexities that come with household payroll. Enrolling in our comprehensive payroll services ensures each paycheck and tax filing is accurate, so you don’t have to worry. Contact our experienced team today at 1-800-626-4829 or info@homeworksolutions.com.

Topics: senior care, nanny, agency, senior, CPA

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