New Hire Checklist for Household Employers

New Hire Checklist

Use this checklist to ensure you complete all required steps when hiring a nanny, caregiver, or other household employee. Print this page or save it as a PDF for your records.

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Before the First Day

Federal Registration

• Obtain Employer Identification Number (EIN)

  • Apply online at IRS.gov
  • Print and save EIN confirmation letter
  • Estimated time: 10 minutes

• Register with Social Security Administration

  • Create Business Services Online account at SSA.gov/employer
  • Needed for W-2 e-filing
  • Estimated time: 15 minutes

State Registration

• Register for state income tax withholding (if applicable)

  • Visit your state's department of revenue website
  • Obtain state employer account number
  • Note: Skip if your state has no income tax

• Register for State Unemployment Insurance (SUI)

  • Required if you pay $1,000+ in cash wages in any calendar quarter
  • Register with state labor department or workforce agency
  • Receive SUI tax rate assignment

• Obtain workers' compensation insurance (if required)

  • Check if your state mandates coverage for household employers
  • Get quotes from licensed insurers
  • Purchase policy before employee starts work

Employee Paperwork

• Collect employee's personal information

  • Full legal name
  • Social Security number
  • Date of birth
  • Home address
  • Phone number and email

• Verify work authorization (Form I-9)

  • Employee completes Section 1 on or before first day
  • Review acceptable documents (List A, or List B + List C)
  • Complete Section 2 within 3 business days of start date
  • Keep Form I-9 in your records (do NOT file with any agency)

• Obtain federal tax withholding information (Form W-4)

  • Employee completes current year Form W-4
  • Review for completeness
  • Keep original in payroll file

• Obtain state tax withholding certificate (if applicable)

  • Form varies by state (e.g., CA DE-4, NY IT-2104)
  • Employee completes and signs
  • Keep with payroll records

Employment Agreement

• Create written employment agreement (recommended)

  • Job title and duties
  • Start date
  • Work schedule (days and hours)
  • Wage rate and pay frequency
  • Paid time off policy
  • Termination notice requirements
  • Both parties sign and date

• Provide employee handbook (optional but recommended)

  • House rules and expectations
  • Sick leave and vacation policies
  • Confidentiality and social media policies
  • Emergency procedures

Payroll Setup

• Choose payroll method

  • Manual payroll (spreadsheet + tax tables)
  • Payroll software (like NannyLedger)
  • Full-service payroll provider

• Establish pay schedule

  • Decide frequency: weekly, bi-weekly, semi-monthly, or monthly
  • Set regular payday (e.g., every other Friday)
  • Communicate schedule to employee

• Set up payment method

  • Direct deposit (bank account and routing number)
  • Paper check (order check stock)
  • Paycard (prepaid debit card)

• Create payroll records system

  • Set up filing system (physical or digital)
  • Create payroll register template
  • Establish record retention policy (minimum 4 years)

Within 20 Days of Hire

State Reporting

• Report new hire to state agency
  • Required in all states
  • Deadline: Within 20 days of start date (varies slightly by state)
  • Submit via state's new hire reporting website
  • Include: Employee name, SSN, address, start date, employer name, EIN

Before the First Paycheck

Payroll Calculations

• Calculate gross pay

  • Hourly: hours worked × hourly rate
  • Salaried: annual salary ÷ pay periods per year

• Determine federal tax withholding

  • Social Security: 6.2% (employee share)
  • Medicare: 1.45% (employee share)
  • Federal income tax: Based on Form W-4 (may be $0)

• Determine state tax withholding (if applicable)

  • State income tax: Based on state withholding certificate
  • State disability insurance: CA, HI, NJ, NY, RI, PR only

• Calculate net pay

  • Gross pay - total withholding = net pay

First Paycheck

• Prepare pay stub

  • Pay period dates
  • Gross wages
  • Itemized deductions
  • Net pay
  • Year-to-date totals

• Process payment

  • Direct deposit (submit ACH file)
  • Print and sign check
  • Load funds to paycard

• Provide pay stub to employee

  • Required in most states
  • Can be paper or electronic

Ongoing Compliance

Quarterly Tasks

• File state unemployment insurance wage report

  • Due ~30 days after quarter ends (deadlines vary by state)
  • Report total wages paid
  • Pay SUI tax owed

• Review payroll records

  • Verify all pay stubs issued
  • Check for tax calculation errors
  • Update any changed employee information

Annual Tasks

• Prepare Form W-2 for employee

  • Due to employee by January 31
  • Shows annual wages and tax withholding
  • Provide Copies B, C, and 2

• File Form W-2 and W-3 with Social Security Administration

  • Due by January 31
  • E-file via Business Services Online (recommended)
  • Or mail paper forms to SSA

• File Schedule H with personal tax return

  • Due April 15 (or October 15 if you file an extension)
  • Reports household employment taxes
  • Attached to Form 1040

• Renew workers' compensation policy (if applicable)

  • Review coverage amounts
  • Shop for better rates if desired
  • Ensure no lapse in coverage

• Reconcile state unemployment account

  • Verify all quarterly reports filed
  • Check for rate changes
  • Update payroll system with new rate

Resources

• IRS Publication 926: Household Employer's Tax Guide
• Form I-9: Employment Eligibility Verification (USCIS)
• Form W-4: Employee's Withholding Certificate (IRS)
• State labor departments: DOL State Directory
• State new hire reporting: HHS Directory

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Disclaimer: This checklist provides general guidance only. Consult a tax professional or attorney for advice specific to your situation and state.