How to hire household help for the long term
A housekeeper, nanny or home caregiver who works for you every week is usually your employee, not a vendor. Treating the hire that way from the start, with a clear role, careful vetting and written terms, prevents most of the misunderstandings and tax surprises families run into.
Define the job before you advertise it
Write down what you need done, when, and what a good week looks like. A nanny who also cooks and does the children’s laundry is a different hire from one who only provides child care, and a caregiver who helps with bathing and medication reminders needs different experience from a companion who drives to appointments.
Settle the schedule and pay range before you talk to anyone. Ask agencies and other families about local rates, and remember that your state or city minimum wage may be higher than the federal one.
- Core duties, ranked by importance, and tasks you will not ask for.
- Days, hours and how much flexibility you need from week to week.
- Hourly rate, overtime rate and pay schedule.
- Must-have qualifications, such as a clean driving record or CPR training.
- Anything a candidate should know up front, such as pets, a smoke-free home or cameras in common areas.
Where to find candidates
Placement agencies recruit and screen candidates for a fee, often with a replacement guarantee if the hire leaves early. Ask who the employer will be. A home care agency usually employs the caregiver and runs payroll, while a placement agency or registry introduces the worker and leaves you as the employer.
Referrals from friends, neighbors, schools and faith communities tend to surface people with a known track record. Online platforms widen the pool quickly but leave the screening to you, and a profile badge saying a person was checked may cover far less than you assume.
Interviews and paid trial days
Start with a short phone screen on availability, pay and the basics, then meet the strongest candidates in person. Ask about real past situations: the last time a child spiked a fever, a client refused help or a cleaning routine had to change.
Before deciding, schedule one or two trial days with the candidate working while you are home, and pay the agreed rate. A trial day generally counts as paid work under wage laws, and it shows how the person handles your children, your parent or your home when plans change.
- Why did you leave your last two positions?
- Which duties would you not be comfortable taking on?
- How do you prefer to raise a problem or hear feedback?
- What would you do if you could not reach me in an emergency?
Background checks and references
A background screening company is a consumer reporting agency under the Fair Credit Reporting Act. Before it runs a check, you must give the candidate a written disclosure in a stand-alone document and get their written consent. If the report leads you not to hire, first give the candidate a copy of it and a summary of their rights so they can dispute errors. If the job includes driving, ask for a motor vehicle record too.
References often tell you more than a database. Call at least two families the candidate worked for directly, ask for specific examples, and end with the question that matters most: would you hire this person again?
Put the arrangement in writing
A written work agreement protects both sides and gives you something to revisit when duties drift. Keep it plain, sign it before the first day and give the worker a copy. Some states require written notice of pay rates and paydays regardless.
- Duties, with a note that changes will be discussed, not assumed.
- Regular hours, guaranteed hours and what happens when your family travels.
- Hourly pay, overtime, payday and how pay is delivered.
- Paid holidays, vacation and sick time.
- House rules on guests, phones, driving and sharing photos of your family.
- Notice periods and any severance if either side ends the arrangement.
Employee or independent contractor
The IRS generally treats a household worker as your employee when you can control what work is done and how it is done, whether the job is full time or part time. A nanny who follows your schedule and house rules is almost always an employee, and paying in cash or issuing a 1099 does not change that.
The picture differs when someone runs an independent business. A cleaning company that sends its own staff, brings its own supplies and sets its own methods is typically not your employee, and neither is a caregiver employed and directed by an agency.
Your duties as a household employer
Once a household employee’s cash wages for the year reach a threshold the IRS adjusts annually, you owe Social Security and Medicare taxes, generally 7.65 percent from you and 7.65 percent withheld from the worker. This is the so-called nanny tax. Federal unemployment tax also applies if you pay household employees $1,000 or more in cash wages in any calendar quarter of this year or last.
Federal law requires minimum wage and overtime after 40 hours a week for most domestic workers, with exceptions such as casual babysitters. Live-in workers employed directly by a household are exempt from the federal overtime rule, but state law may still require it. New York’s Domestic Workers’ Bill of Rights, the first of its kind, entitles domestic workers to overtime after 40 hours a week, or 44 for live-in workers, plus a weekly day of rest and paid days off. Several other states have passed similar laws.
- Complete Form I-9 to confirm the worker can legally work in the United States.
- Get an employer identification number and register for state unemployment insurance if required.
- Withhold and pay Social Security and Medicare taxes, and report them on Schedule H with your Form 1040.
- Give the worker a Form W-2 by the end of January and file a copy with the Social Security Administration.
- Check whether your state requires workers’ compensation or disability coverage for household employees.