Understanding Your Role When Hiring a Household Worker

When you hire someone to work in your home, whether it’s a nanny, housekeeper, or caregiver, someone must legally be the employer. In most cases, that someone is you.

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As we wrap up 2025, many families are taking stock of the year and planning ahead for the holiday season. For household employers, this is an ideal time to recognize the important role your nanny, senior caregiver, or other in-home employee plays in your daily life.

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If you're hiring a nanny, senior caregiver, housekeeper, or any other in-home employee, understanding your responsibilities as a household employer is key to staying compliant with federal employment laws. Two terms you’re likely to encounter in the hiring process are Form I-9 and E-Verify.

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Whether you're employing a nanny, senior caregiver, or housekeeper, understanding when your employee is on the clock—and legally entitled to be paid—is an essential part of running a compliant household payroll.

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A new federal tax law passed this summer, and it includes a provision that could include tax savings for household employees—but only if you know the detail. The One Big Beautiful Bill Act (OBBBA) includes a “No Tax on Overtime” rule, and although it doesn't directly change household payroll practices, it does impact tax reporting and employee tax credits.

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The 2025 Open Enrollment Period for health insurance is nearly here — and it’s an important time to check your coverage.

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Hiring someone to work in your home—whether it’s a nanny caring for your children, a caregiver supporting an elderly parent, or a housekeeper helping manage your household—means stepping into the role of a household employer. Along with that role comes the responsibility of handling payroll correctly, including understanding what you’re allowed to deduct from your employee’s paycheck.

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If you're a household employer in California, there’s a new requirement on the horizon you’ll want to be aware of: the CalSavers Retirement Savings Program. While no immediate action is needed, this is something you’ll want on your radar—especially as the deadline approaches.

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Did you employ a nanny or other household worker in 2024 and pay them $2,700 or more in wages? If so, congratulations—you’re officially a household employer with tax filing obligations in the eyes of the IRS! That means you will need to report your employees’ wages and pay employment taxes when you file your federal income tax return.

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Surprisingly (or maybe not…), the Internal Revenue Code doesn’t provide a neat little list of exactly what can and can’t be deducted as a business expense. Instead, it gives us this broad guideline:

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