Yes, an au pair is a household employee for tax purposes. The IRS treats au pair wages as household employment income because the host family controls the work, the schedule, and the conditions under which childcare is provided, and the U.S. Department of Labor confirmed in 1994 that the weekly stipend qualifies as wages paid within an employer-employee relationship. The practical wrinkle is that most au pairs are nonresident aliens on J-1 visas, which exempts them from Social Security and Medicare taxes for the duration of the program. So the classification applies, but the tax bill it usually produces is smaller than for a nanny or housekeeper.
Why the IRS Calls an Au Pair a Household Employee
The IRS classifies someone as a household employee when they perform work in or around a private residence and the person paying them controls not just what work gets done, but how it gets done. Full-time or part-time doesn’t matter. Hourly, daily, or weekly pay doesn’t matter. If the homeowner sets the schedule and directs the duties, the worker is an employee.
Au pairs fit cleanly. Host families provide room and board, pay a weekly stipend, assign childcare duties, and set the daily schedule. The IRS states directly that au pair wages are “essentially in the nature of household employment,” regardless of the cultural exchange purpose behind the J-1 visa.
The J-1 Exemption From Social Security and Medicare
Under federal law, services performed by a nonresident alien temporarily present in the United States on a J-1 visa are excluded from FICA taxes, as long as the work is authorized and carried out for the purpose the visa was issued. The IRS classifies au pairs as “teachers or trainees” for this exemption.
A J-1 au pair generally cannot count days of U.S. presence toward the substantial presence test for their first two calendar years. They remain nonresident aliens throughout a standard program and qualify for the FICA exemption the entire time. Host families typically do not need to withhold or pay Social Security and Medicare taxes on au pair wages.
The exemption ends if the au pair becomes a resident alien for tax purposes. That can happen through a program extension or a change in visa status. Once the exemption drops, the ordinary household employment rules apply, and both the family and the au pair owe their respective shares of FICA.
What the Host Family Still Owes
Federal Income Tax Withholding Is Optional
Au pair wages are subject to federal income tax, but host families are not required to withhold it. The IRS suggests two paths: the au pair can make quarterly estimated payments using Form 1040-ES(NR), or the au pair and host family can agree to voluntary withholding by filing a Form W-4. When withholding is agreed to, the family reports and pays over the tax on Schedule H.
FUTA Kicks In at $1,000 a Quarter
Federal unemployment tax applies if a family pays cash wages totaling $1,000 or more in any calendar quarter to household employees. The rate is 6.0% on the first $7,000 of wages per employee, though credits for state unemployment taxes paid can reduce the effective federal rate to as low as 0.6%.
FICA When the Au Pair Becomes a Resident Alien
For the uncommon case where an au pair has become a resident alien, the standard household employment thresholds apply. For 2026, cash wages of $3,000 or more in a calendar year trigger Social Security and Medicare withholding. The combined rate is 15.3% of wages, split evenly at 7.65% each for the employer and the employee. Social Security tax applies to wages up to $184,500. Medicare tax has no cap.
EIN, W-2, and Schedule H
Host families need an Employer Identification Number from the IRS to report household employment taxes. They must give the au pair a Form W-2 by January 31 of the following year, reporting wages paid and any taxes withheld.
Household employment taxes are reported on Schedule H, attached to the family’s Form 1040 when they file their annual return. The deadline is typically April 15. Families who are not otherwise required to file a return must still file Schedule H on its own if they have household employment tax obligations.
What the Au Pair Files
An au pair must file a U.S. tax return to report the stipend. Most au pairs are nonresident aliens and file Form 1040-NR. Nonresident aliens generally cannot claim the standard deduction, so most au pairs will owe federal income tax on their earnings. If the family isn’t withholding voluntarily, quarterly estimated payments on Form 1040-ES(NR) are the way to stay current with the IRS rather than facing a lump sum at filing.
Recordkeeping the Classification Requires
Federal law requires household employers to maintain payroll records for each employee. For au pairs, that means tracking the employee’s full name, Social Security number, address, total hours worked each week, total cash wages paid each week, and any amounts claimed for room and board. Records must be kept for at least three years.
Because au pairs live in the home, more applies. The employer must keep a copy of any written employment agreement and maintain a record of the exact number of hours the au pair works. No particular format is required. The family can ask the au pair to track their own hours and submit the record, but the legal obligation to keep accurate records sits with the host family.
The Room and Board Credit
The weekly stipend is calculated based on 45 hours of childcare at the federal minimum wage, minus a credit for the room and board the host family provides. For live-in domestic workers, employers can credit up to $54.38 per week toward wages for lodging, calculated as 7.5 times the federal minimum hourly wage of $7.25. The credit cannot exceed the reasonable cost of the lodging actually provided, and the employer must keep accurate records of those costs. Live-in domestic service workers, including au pairs, are exempt from federal overtime requirements, but they must still receive at least the federal minimum wage for every hour worked. Some states set higher minimum wages or their own overtime rules for domestic workers, so the federal floor is not always the final word.