Housekeeper payroll: pay your cleaner legally

You hired a housekeeper or house cleaner. If you control how the work is done, that common-law relationship generally makes you a household employer. Wage thresholds determine which taxes and forms apply; they do not determine employee status.

Don't panic. It's simpler than it sounds, and this guide walks you through every step. (For a quick overview, see our housekeeper taxes landing page.)

Do I Need to Run Payroll for My Housekeeper?

Here's the quick test: Do you pay a single housekeeper $3,000 or more in a calendar year?

If yes and no family exemption applies, Social Security and Medicare generally apply from the first dollar. Separately check FUTA's aggregate quarterly test and state rules.

That $3,000 threshold (for 2026) is lower than you might think. A housekeeper who comes once a week at $75/visit crosses $3,000 in about 10 months—that's $3,900/year.

The key question isn't how much you pay—it's whether they're an employee or contractor.

Employee vs. Contractor: The Housekeeper Edition

This is where most families get confused. Your house cleaner is almost certainly your employee if:

• You set the schedule ("Come every Tuesday at 9am")
• You provide supplies (cleaning products, vacuum, mop)
• You direct the work ("Please clean the bathrooms first, then kitchen")
• They work only for you (or primarily for you)

Your house cleaner might be an independent contractor if:

• They set their own schedule and serve multiple clients
• They bring their own supplies and equipment
• They control how the work is done (you say "clean the house," they decide how)
• They operate as a business (have their own LLC, insurance, marketing)

Most house cleaners who come on a regular schedule are employees under IRS rules, even if you both think of them as "independent." For a deeper dive, read our employee vs. contractor guide.

Why it matters: If they're an employee and you don't withhold taxes, you're both liable for the unpaid taxes, plus potential penalties. It's cheaper and safer to just set up payroll.

What Taxes Do You Owe?

Once a nonexempt housekeeper crosses the $3,000 FICA threshold, Social Security and Medicare generally apply. FUTA and state unemployment apply only under their separate tests:

Employer taxes (you pay these)

Employee taxes (you withhold from their pay)

Your total employer cost: Roughly 8–10% of wages, depending on your state's unemployment rate.

A real example

Say you pay your housekeeper $75/week in California ($3,900/year):

That's about $8.74/week in employer taxes on top of the $75/week wage. Use our nanny tax calculator to get an exact number for your state.

How to Set Up Housekeeper Payroll: Step by Step

1. Get an EIN

You need an Employer Identification Number from the IRS. It's free and takes 5 minutes online at irs.gov/ein. Read our EIN guide for a walkthrough.

2. Have your housekeeper fill out a W-4

The W-4 form tells you how much federal income tax to withhold from each paycheck; that income-tax withholding is generally voluntary for household employees. Social Security and Medicare are different: once covered, the employee share should be withheld, and if it is not, Publication 926 makes you responsible for paying both shares.

3. Check your state requirements

Each state has different rules for household employers. Some require state income tax withholding, disability insurance, or paid family leave. Find your state's requirements →

4. Run payroll each pay period

Calculate gross pay, withhold employee taxes, and keep records. A payroll service like NannyKeeper automates all the math.

5. Make quarterly tax payments

Four times a year, submit estimated tax payments to the IRS (and your state if required). Deadlines: January 15, April 15, June 15, September 15.

6. File year-end documents

By January 31, or the next business day: Give your housekeeper a W-2. By April 15: File Schedule H with your Form 1040.

What If I've Been Paying Under the Table?

It's more common than you'd think. Here's the good news: you can start doing it right today.

1. Start withholding now — going forward is what matters most
2. Consider filing amended returns if you owe back taxes
3. Set up a payroll service to make it easy going forward
4. Don't panic — voluntary compliance is always better than getting caught

The IRS is more forgiving when you come to them than when they come to you.

The Bottom Line

If a nonexempt housekeeper reaches $3,000, FICA generally applies; FUTA, state registration, and other programs use separate tests. Tracking from the first payment keeps those decisions visible.

With NannyKeeper, you can start tracking payments for free—no credit card required. We'll tell you when you're approaching the threshold and make it easy to start payroll when you're ready.

Try the free calculator →

FAQ

Do I need to pay taxes for a housekeeper who comes once a week?

At $3,000 or more in 2026, Social Security and Medicare generally apply to a nonexempt housekeeper. FUTA and state obligations use separate tests, so track payments from the first dollar.

Is my house cleaner an employee or independent contractor?

If you control when they come, provide supplies, and direct how the work is done, they're likely your employee under IRS rules. Most regular house cleaners are classified as employees, even if they also clean other homes. See our full classification guide.

What's the penalty for not paying housekeeper taxes?

Penalties include the full amount of unpaid taxes plus interest, a failure-to-file penalty (up to 25% of unpaid taxes), and potentially a failure-to-pay penalty. In serious cases, the IRS can levy additional fines.

Can I just give my housekeeper a 1099 instead?

Only if they're truly an independent contractor (they set their own schedule, bring their own supplies, control how the work is done, and operate as a business). Misclassifying an employee as a contractor can result in back taxes and penalties.