Should I Give My Agency’s FEIN to My Clients?              What Nanny Agencies Need to Know During Tax Season

Every tax season, we hear a familiar question from nanny placement and household staffing agencies:

"Should I give my FEIN (Federal Employer Identification Number) to a client who asks for it?"

It’s a valid concern—one that blends tax compliance with data protection. The short answer? Sometimes, yes—but always with care.

Here’s what you need to know to confidently handle these requests and support your families without putting your agency’s information at unnecessary risk.

Why Families Ask for Your EIN

Most often, families reach out during tax time while:

• Working with a tax professional
• Completing a tax organizer
• Submitting claims for a Dependent Care FSA (Flexible Spending Account) through their employer

They’re trying to capture every eligible child care expense. While nanny wages and payroll taxes usually take center stage (and exceed most allowable limits for tax credits), some families want to include your agency's recruitment or placement fee as part of their qualifying child care expenses.

When It’s Appropriate to Share Your FEIN

There are two main situations when providing your EIN might be appropriate:

1. For Tax Credit or FSA Reimbursement Claims

If a family wants to report your recruitment fee as a qualifying dependent care expense—whether for a tax credit or through an FSA reimbursement—they may need your:

• Legal business name
• EIN (Federal Employer Identification Number)
• Itemized invoice showing what they paid

2. When the Agency Was the Employer

In cases where your agency staffed a short-term or temporary caregiver (such as backup or hotel care) and employed the caregiver directly, the EIN is required because the agency was the care provider—not just a recruiter.

Best Practices: How to Share Your EIN Safely

If you decide the request is appropriate, protect your agency’s information with a few simple steps:

Provide a written, itemized statement that includes:

• The amount the family paid
• The services rendered
• Your legal business name
• Your EIN

Avoid giving your EIN verbally
A written statement ensures accuracy, avoids misunderstandings, and helps prevent misuse of your EIN for unrelated expenses.

Keep a copy for your records
It’s good practice to maintain documentation for what was shared and when.

A Note for Families

If you’re reading this as a parent and wondering whether your agency’s fees qualify for tax credits or FSA claims, it’s best to check with your tax advisor. Most families will find that nanny wages and employer taxes already exceed the allowable credit limits, making agency fees a non-issue—but every situation is different.

When in Doubt, Call Us

HomeWork Solutions has supported families and agencies since 1993 with expert guidance on household payroll and tax compliance. We're always here to help you navigate these unfamiliar situations—without the stress.

Give us a call at (800) 626-4829 or email us at Sales@HomeWorkSolutions.com.