Hiring a Nanny or Caregiver? What Form I-9 and E-Verify Mean for You

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.

While both are related to verifying that your employee is legally allowed to work in the United States, they are not the same. Knowing the difference can help you avoid penalties and ensure you're handling the hiring process legally and professionally.

What Is Form I-9?

Form I-9: Employment Eligibility Verification is a federal document required by the U.S. Citizenship and Immigration Services (USCIS). Every employer—including household employers—must complete and retain a Form I-9 for each person they hire to work in the U.S.

This includes part-time, full-time, temporary, or live-in domestic workers.

Here's what you need to know:

• Your employee fills out Section 1 of the form on or before their first day of work. This section asks for their personal information and immigration status.
• You complete Section 2 within three business days of the employee's start date. This section requires you to examine original documents provided by your employee that verify both identity and work authorization (e.g., a passport, or a driver’s license + Social Security card).

Important: You don’t send this form to any government agency. Instead, you’re required to keep it on file for three years after the date of hire or one year after employment ends—whichever is later.

What Is E-Verify?

E-Verify is an online system managed by the Department of Homeland Security (DHS) and the Social Security Administration (SSA). It allows employers to electronically verify that the information on an employee’s Form I-9 matches federal records.

In most cases, household employers are not required to use E-Verify, but may choose to do so. A few states have specific requirements for certain types of employment.

If you use E-Verify, here’s what you should know:

• You must first complete Form I-9 with the employee.
• You’ll need to register your household as an employer in the E-Verify system.
• Once enrolled, you are required to use E-Verify for every new hire.

Prefer not to manage E-Verify yourself? HomeWork Solutions can handle that for you. Just request this service at the time of your enrollment. We’ll run the check on your behalf accurately and securely—so you don’t have to navigate the system alone.

Why Employers Confuse Form I-9 and E-Verify

While these two systems are fundamentally different, they’re often discussed together—especially in conversations about hiring and employment eligibility. That overlap can cause confusion, particularly for first-time household employers.

Here’s the bottom line:

• Form I-9 is mandatory for all U.S. employers.
• E-Verify is optional for household employers unless your state requires it.

They are connected, though—you can’t use E-Verify without a completed Form I-9.

Side-by-Side Comparison

Form I-9 Is Just One Step in the Process

Completing Form I-9 is essential—but it's only one piece of the legal requirements for household employers. From registering with tax agencies to managing payroll and year-end tax forms, staying compliant involves multiple moving parts.

At HomeWork Solutions, we take care of it all, so you don’t have to worry about the details.

Here’s what we handle for you:

• Obtain all required tax ID numbers – federal, state, and local
• Set up federal and state unemployment insurance accounts
• Run payroll, including:
  • Built-in time tracking at no extra charge
  • Accurate tax withholding
  • Secure direct deposit for your employee
  • Paystubs and recordkeeping
• File all required household employment taxes – quarterly and annually
• Prepare year-end tax documents, including:
  • Schedule H for your personal tax return
  • Form W-2 for your employee
  • Electronic filing with the IRS and Social Security Administration

We make household employment compliance simple, stress-free, and accurate—so you can focus on building a positive relationship with your employee, not navigating tax forms and agency rules.

Why This Matters

Even if your household employee is a U.S. citizen and you pay them directly, you are still required to complete a Form I-9 and follow the proper legal steps. Skipping these requirements—even unintentionally—can lead to fines, audits, or issues down the road.

Handling household employment the right way shows your employee that you respect their role and take your responsibilities seriously. And with professional support, it doesn’t have to be stressful or complicated.

Let HomeWork Solutions Make It Easy

Since 1993, HomeWork Solutions has specialized in household payroll and tax compliance. We work directly with families hiring in-home employees—and we know exactly what it takes to do it right.

Have questions about Form I-9, E-Verify, or getting started with household payroll?
Call 1-800-626-4829 or schedule a complimentary consultation online. We’re happy to help.