How to Hire a Housekeeper: Tax and Legal Requirements

To hire a housekeeper the right way, treat the person as your household employee from day one: define the job in writing, verify their identity and work authorization on Form I-9, run a compliant background check, pay at least minimum wage (with overtime for non-live-in workers), and handle Social Security, Medicare, and unemployment taxes once your payments cross the federal thresholds. Skipping any of these steps is where homeowners get into trouble, and the fixes after the fact cost far more than doing it correctly the first time.

Start With the Job, Not the Candidate

Write down what you actually need done before you start interviewing. Standard housekeeping covers surface cleaning, vacuuming, mopping, and sanitizing bathrooms and kitchens. Laundry, closet organizing, interior windows, and seasonal deep-cleans are common add-ons that cost more. Putting priorities on paper prevents the slow drift of expectations that sours most housekeeper relationships.

Frequency drives the budget. Weekly or bi-weekly visits work for most families; larger homes or households with young children and pets often need more. In 2026, hourly rates typically fall between $25 and $60 depending on region, and a routine cleaning of an average-sized home often runs $200 to $400 per visit on a flat-fee basis. Deep cleans generally cost 50 to 100 percent more than a standard visit. Recurring service usually lowers the per-visit price compared to one-time bookings.

The schedule you pick also determines whether you’ll cross the tax-reporting thresholds covered below, so estimate your annual spend before you start looking.

Employee or Contractor

Most housekeepers are employees under federal law, not independent contractors. The IRS test is whether you control not only what work is done but how it is done.¹ If you set the schedule, pick the rooms, and provide the supplies, that’s an employee relationship — regardless of whether the work is full-time, part-time, or arranged through an agency.

Labeling a housekeeper an “independent contractor” to skip payroll taxes is the most common household-employment mistake, and it backfires. If the IRS reclassifies the worker, you owe back taxes plus penalties and interest. A housekeeper is only genuinely a contractor when they run their own cleaning business, set their own methods, bring their own equipment, serve multiple clients, and invoice per job.²

Vetting Candidates

References and Work History

Contact at least three recent employers. Ask concrete questions: how long did the person work for them, what tasks did they handle, and were there issues with punctuality, thoroughness, or trust. Previous employers of household staff tend to speak more candidly than corporate references because they were the ones giving a stranger access to their home. A pattern of short-term positions, or reluctance to provide references, deserves weight.

Background Checks Under the FCRA

A background check on someone who will be alone in your home is reasonable, but the federal process is strict. The Fair Credit Reporting Act requires a clear written disclosure — on a standalone document — stating that you intend to obtain a background report, and written authorization from the candidate before you order it.³ Don’t fold the disclosure into an application form or bundle it with a liability waiver; that violates the statute.

If you decide not to hire someone based on the report, you must follow the adverse action process: give them a copy of the report, the name and contact information of the reporting agency, and notice of their right to dispute inaccurate information. Denying a candidate without this notice creates FCRA liability.

Employment Eligibility — Form I-9

Federal law requires every employer, including a household employer, to complete Form I-9 for each new hire.⁴ The employee completes Section 1 no later than their first day of work. You then have three business days from the start date to inspect the employee’s original identity and work-authorization documents and complete Section 2.⁵

The employee chooses which acceptable documents to present — either one List A document such as a U.S. passport or permanent resident card, or one List B identity document plus one List C work-authorization document.⁶ You cannot demand a specific document. If you photocopy documents, you must do so for every hire consistently, regardless of national origin or citizenship status.⁷ The form itself is not filed with the government but must be kept for three years after the hire date or one year after employment ends, whichever is later.⁸

Making the Hire

Structured interviews beat gut-feel ones. Walk the candidate through your home’s layout, cleaning priorities, and household rules (pets, alarm codes, off-limits areas), then listen to how they respond. Someone who asks clarifying questions is usually a better fit than someone who agrees with everything.

A paid trial day is worth the money. Have the candidate work a full session at the agreed rate while you observe technique, efficiency, and attention to detail. If it doesn’t work out, pay them for the day and move on.

Once you’ve chosen someone, extend a written offer covering the pay rate, schedule, specific duties, and any benefits like paid holidays or sick leave. Some jurisdictions now require written agreements for domestic workers, and even where they aren’t mandated, a clear written agreement prevents disputes. Include practical details: how you’ll handle scheduling changes, where supplies live, and what to do if the housekeeper needs to miss a day.

Your Tax Obligations

Get an EIN First

Apply for an Employer Identification Number as soon as you hire. You can do it online at IRS.gov and receive one immediately, or submit Form SS-4 by fax or mail.⁹ You cannot substitute your Social Security number, and you’ll need the EIN when you file Schedule H and issue the W-2.

Social Security and Medicare (FICA)

If you pay a household employee $3,000 or more in cash wages during 2026, all of those wages are subject to Social Security and Medicare taxes.¹ The combined FICA rate is 15.3%, split evenly: 7.65% from you and 7.65% withheld from your employee (6.2% Social Security plus 1.45% Medicare on each side). Social Security tax applies on wages up to $184,500 in 2026; Medicare has no cap.¹⁰ The threshold is per employee: two housekeepers each paid $2,500 don’t trigger the obligation for either one.

Federal Unemployment Tax (FUTA)

If you pay household employees a combined $1,000 or more in any calendar quarter of 2025 or 2026, you owe federal unemployment tax on the first $7,000 of wages paid to each employee.¹¹ The nominal rate is 6%, but a credit of up to 5.4% for state unemployment contributions typically drops the effective rate to 0.6%. FUTA is paid entirely by you and cannot be deducted from the employee’s wages.¹

State Unemployment Insurance

Most states require household employers to register for state unemployment insurance once wages pass a state-specific threshold. Rates and thresholds vary. If you owe FUTA, you almost certainly need to register at the state level — and paying the state tax is what generates the credit that reduces the federal rate. Check your state labor department for specifics.

Federal Income Tax Withholding

You are not required to withhold federal income tax from a household employee’s wages. If the employee asks you to withhold and you agree, put the agreement in writing, have the employee complete Form W-4, and use the standard tables. Either party can end the arrangement with written notice.¹

Schedule H and the W-2

Report household employment taxes annually by attaching Schedule H to your personal Form 1040 (or 1040-SR, 1040-NR, or 1041). The deadline for 2026 taxes is April 15, 2027.¹ If you don’t otherwise have to file a return, file Schedule H on its own.¹²

You also must issue a W-2 to your employee and file it with the Social Security Administration by February 1, 2027, for the 2026 tax year.¹³ If the employee stops working before year-end, you can issue the W-2 right after the final payment.

Estimated Payments and Late-Payment Penalties

Because household taxes aren’t withheld through a payroll company, they can produce a large April bill. Avoid an underpayment penalty by either increasing withholding at your own day job or making quarterly estimated payments. For 2026, estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027.¹

Miss the payment and the IRS imposes 0.5% of the unpaid amount for each month or partial month the balance is outstanding, up to a 25% cap, plus interest.¹⁴

Wage and Hour Rules

Household employees are covered by the Fair Labor Standards Act. You must pay at least the federal minimum wage of $7.25 per hour, but many states set a higher floor; pay whichever is greater.¹⁵ A non-live-in housekeeper is entitled to overtime at one and a half times the regular rate for hours beyond 40 in a workweek.¹⁶

Live-in housekeepers are treated differently: they are exempt from overtime but still must receive at least minimum wage for all hours worked. You and a live-in employee can agree to exclude sleeping time, meal periods, and other blocks of genuine free time from hours worked. If any off-duty period is interrupted by a call to duty, that interruption counts as work time and must be paid.¹⁶

Many states and some cities have adopted domestic worker protections that go beyond the FLSA — mandatory rest breaks, paid sick leave, advance notice of termination, or a required written contract. Check your state’s labor department.

Insurance and Liability

If your housekeeper is injured on the job, your exposure can be significant. Many states require workers’ compensation insurance for domestic employees who work above a certain number of hours per week; 40 hours is a common trigger, but some states set lower thresholds or cover all domestic workers. Check your state’s workers’ compensation board.

Your homeowners policy may include some coverage for domestic worker injuries through a personal liability endorsement, but don’t assume so. Standard policies often exclude regular household employees or cap coverage well below what a serious injury would cost. Call your insurer, ask specifically about domestic employee coverage, and add a workers’ comp endorsement or separate policy if you need one. The premium is modest compared to a six-figure injury claim.

Keep Records From Day One

Track every payment, every hour worked, and every tax deposit in one place — a spreadsheet is fine. Hold onto the signed I-9, the employment agreement, any W-4, and the background-check authorization. Retain pay records for at least four years to cover both IRS and Department of Labor windows. Homeowners with clean records resolve audits quickly; those who paid cash without documentation are the ones writing large checks to the IRS.

1
Internal Revenue Service. Publication 926, Household Employer’s Tax Guide
2
Internal Revenue Service. Independent Contractor (Self-Employed) or Employee?
3
Office of the Law Revision Counsel. 15 U.S. Code 1681b – Permissible Purposes of Consumer Reports
4
U.S. Citizenship and Immigration Services. I-9, Employment Eligibility Verification
5
U.S. Citizenship and Immigration Services. Handbook for Employers M-274 – 2.0 Who Must Complete Form I-9
6
U.S. Citizenship and Immigration Services. Handbook for Employers M-274 – 13.0 Acceptable Documents for Verifying Employment Authorization and Identity
7
U.S. Citizenship and Immigration Services. Handbook for Employers M-274 – 4.1 Retaining Copies of Documents Your Employee Presents
8
U.S. Citizenship and Immigration Services. Handbook for Employers M-274 – 10.0 Retaining Form I-9
9
Internal Revenue Service. 2025 Instructions for Schedule H (Form 1040)
10
Social Security Administration. Contribution and Benefit Base
11
Internal Revenue Service. Topic No. 756, Employment Taxes for Household Employees
12
Internal Revenue Service. Instructions for Schedule H (2025)
13
Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3
14
Office of the Law Revision Counsel. 26 U.S. Code 6651 – Failure to File Tax Return or to Pay Tax
15
U.S. Department of Labor. State Minimum Wage Laws
16
eCFR. Part 552 Application of the Fair Labor Standards Act to Domestic Service