You get an Employer Identification Number (EIN) as a household employer by completing IRS Form SS-4 — either online, by phone, by fax, or by mail. The fastest method is the IRS online application, which issues your EIN in minutes and costs nothing.
Under IRS Publication 926, any individual who pays a household employee $3,000 or more in cash wages during 2026 must withhold and pay Social Security and Medicare taxes — and you need an EIN to report those taxes on Schedule H. Failing to get one triggers penalties, delays your tax filing, and could put you on the IRS’s radar for back taxes. According to the IRS, roughly 2.4 million households in the United States employ at least one domestic worker, yet a significant number never register as employers or obtain an EIN.
Here is what you will learn in this article:
- 🔑 Exactly how to apply for an EIN using all four IRS-approved methods — and which one gets you a number the same day
- 💰 The specific dollar thresholds that trigger your obligation to pay FICA taxes, FUTA taxes, and file Schedule H
- 📋 A complete line-by-line walkthrough of Form SS-4, with every checkbox and field explained for household employers
- ⚠️ The most common mistakes that lead to penalties, rejected filings, and IRS notices — and how to avoid each one
- 🏛️ State-by-state registration requirements you must complete after getting your federal EIN, including California, New York, and Texas
What Is an EIN and Why Do Household Employers Need One?
An EIN is a nine-digit number (formatted like 12-3456789) that the IRS assigns to employers for tax filing and reporting purposes. Think of it as a Social Security number, but for your role as an employer rather than as an individual taxpayer. The IRS uses it to track employment tax obligations tied to the wages you pay.
As a household employer, you cannot use your personal Social Security number to file employment tax returns. The IRS requires a separate EIN so it can distinguish your personal income tax activity from your employer tax activity. Without an EIN, you cannot file Schedule H with your Form 1040, you cannot issue a W-2 to your employee, and you cannot remit FICA or FUTA taxes.
This matters because the consequences are real. The IRS can assess penalties for failure to file, failure to pay, and failure to furnish correct W-2 forms. Interest accrues on unpaid taxes from the original due date. In serious cases, the IRS can pursue back taxes plus a 100% penalty under the Trust Fund Recovery Penalty for willful failure to collect and pay over employment taxes.
Who Qualifies as a Household Employer?
You become a household employer the moment you hire someone to perform work in or around your private home and you control not just what work gets done, but how it gets done. That control test is the key distinction under IRS rules. If you direct the worker’s methods, schedule, and tools, that person is your employee — regardless of whether the job is full time, part time, or temporary.
Common household employees include nannies, babysitters (who work on a regular basis), housekeepers, private cooks, gardeners you directly supervise, in-home caregivers, and personal drivers. The IRS Publication 926 specifically lists these roles as household work when performed in your private residence.
Who Is Not Your Employee
A worker who controls their own methods is self-employed, not your employee. If you hire a lawn care company that brings its own equipment, hires its own crew, and decides how to do the job, those workers are independent contractors. The same applies if you hire through an agency that controls the work — the agency is the employer, not you.
A babysitter who watches your children in their own home is also not your household employee. This distinction catches many families off guard. The work must happen in or around your private residence for the household employer rules to apply.
The Dollar Thresholds That Trigger Your EIN Requirement
Not every household employer needs to pay employment taxes. Two specific federal thresholds under Publication 926 determine your obligations:
FICA Threshold (Social Security and Medicare)
If you pay any single household employee cash wages of $3,000 or more in 2026, you must withhold and pay Social Security and Medicare taxes on all wages paid to that employee — not just the amount over $3,000. The Social Security tax rate is 6.2% each for you and your employee. The Medicare tax rate is 1.45% each. Combined, both parties pay 15.3% of wages.
The Social Security wage base for 2026 is $184,500. There is no wage base limit for Medicare. If your employee earns more than $200,000, you must also withhold an additional 0.9% Medicare tax from wages exceeding that amount — but there is no employer match on the extra 0.9%.
FUTA Threshold (Federal Unemployment Tax)
If you pay total cash wages of $1,000 or more in any calendar quarter of 2025 or 2026 to all household employees combined, you owe FUTA tax. The FUTA rate is 6.0% on the first $7,000 of each employee’s annual wages. Most employers receive a 5.4% credit for paying state unemployment taxes on time, reducing the effective FUTA rate to just 0.6%. That comes out to a maximum of $42 per employee per year.
A calendar quarter means January through March, April through June, July through September, or October through December. If you cross the $1,000 mark in any single quarter, FUTA applies.
What About Federal Income Tax?
Federal income tax withholding for household employees is optional. You are not required to withhold it. You should withhold only if your employee submits a Form W-4 requesting withholding and you agree to do it.
Four Ways to Apply for an EIN
The IRS provides four methods to apply. Each has different turnaround times, requirements, and limitations.
Method 1: Online Application (Recommended)
The IRS online EIN application is the fastest and easiest method. It is free, and you receive your EIN immediately upon approval. You do not need to mail or fax anything.
Key rules for the online application:
- You must complete it in one session — you cannot save and return later.
- The session expires after 15 minutes of inactivity, forcing you to start over.
- You can apply for only one EIN per responsible party per day.
- Your principal place of business must be in the United States or a U.S. territory.
- You need the responsible party’s Social Security number or ITIN.
The tool is available Monday through Friday from 6:00 a.m. to 1:00 a.m. (Eastern), Saturday from 6:00 a.m. to 9:00 p.m. (Eastern), and Sunday from 6:00 p.m. to midnight (Eastern). Print your confirmation letter immediately — it serves as your official EIN assignment notice.
Method 2: Fax Application
Complete Form SS-4 on paper and fax it to 855-641-6935 if your principal business is in the U.S. The IRS will fax your EIN back within four business days. If you include a return fax number on Form SS-4, the IRS sends the EIN directly to that number.
This method works well when the online tool is unavailable or when you prefer a paper record of your submission.
Method 3: Mail Application
Complete Form SS-4 and mail it to the IRS at the address listed in the form instructions. For applicants with a principal place of business in any of the 50 states or the District of Columbia, the mailing address is:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Allow four to five weeks for processing. This is the slowest method and creates the highest risk of missing deadlines.
Method 4: Phone Application (International Applicants)
If your principal place of business is outside the United States, call 267-941-1099 (not a toll-free number). An IRS representative will process your application over the phone. Hours are Monday through Friday, 6:00 a.m. to 11:00 p.m. (Eastern). Domestic applicants should use the online tool instead.
| Application Method | Turnaround Time | Best For |
|---|---|---|
| Online | Immediate | U.S.-based household employers who want the EIN now |
| Fax | 4 business days | Applicants who prefer paper submission |
| 4–5 weeks | Those with no urgency or internet access | |
| Phone | Same day | International applicants only |
Form SS-4: Line-by-Line Walkthrough for Household Employers
Form SS-4 is the official application for an EIN. Even if you apply online, the system asks the same questions that appear on the paper form. Understanding each field prevents errors and rejected applications.
Line 1: Legal Name of Entity
Enter your full legal name exactly as it appears on your Social Security card. Use your first name, middle initial, and last name. Do not use nicknames, abbreviations, or a business name. As a household employer, you are applying as an individual — not a business entity.
Line 2: Trade Name
Leave this blank. Household employers do not have a trade name or “doing business as” name.
Lines 3 and 4a–4b: Mailing Address and Street Address
Enter the mailing address where you want to receive IRS correspondence. If your street address is different from your mailing address, enter the street address on Line 4a. These should be your home address.
Line 7a–7b: Responsible Party
Enter your own name and SSN. The responsible party is the individual who controls and manages the entity. For a household employer, that is you. The IRS requires one identifiable human being — not a business name or trust — as the responsible party.
Line 9a: Type of Entity
This is where many household employers make a critical error. Check the box labeled “Other” and write “Household employer” in the space provided. Then enter your Social Security number. Do not check “Sole proprietor,” “Partnership,” “Corporation,” or any other entity type. Checking the wrong box may route your account into the wrong IRS filing system and trigger requests for business tax returns you do not owe.
If you are a trust that qualifies as a household employer, do not apply for a separate EIN — use the trust’s existing EIN.
Line 10: Reason for Applying
Check “Hired employees” as the reason. This is straightforward. Do not select “Started new business” or “Banking purpose only.”
Line 12: First Date Wages Were Paid
Enter the date you first paid (or will first pay) wages to your household employee. This date determines when the IRS expects you to begin withholding and paying employment taxes.
Line 13: Highest Number of Employees Expected
Enter the number of household employees you expect to have during the next 12 months. For most families, this is “1.” Enter this number in the “Household” row — not the “Agricultural” or “Other” rows.
Lines 14–16: Business Activity and Principal Product
Write “Private household” for Line 14. For Line 15, enter “N/A” or “Household services.” For Line 16 (product or service), enter “Household employment.”
Line 17: Reason for Application (if previously had EIN)
If you have never had an EIN, enter “N/A.” If you previously had an EIN for another purpose (such as a sole proprietorship), enter that number.
Line 18: Third-Party Designee
If you authorize someone else (like an accountant or payroll service) to receive the EIN and answer questions about the application, complete this section. Otherwise, leave it blank.
Three Real-World Scenarios
Scenario 1: First-Time Parent Hiring a Nanny
Maria lives in Denver, Colorado. She hires a full-time nanny named Jake to care for her two children starting in February 2026. She agrees to pay Jake $600 per week in cash wages.
| Step Maria Takes | What Happens |
|---|---|
| Maria pays Jake $600/week, totaling $28,800/year | Exceeds the $3,000 FICA threshold — all wages are subject to Social Security and Medicare taxes |
| Maria applies for an EIN online at IRS.gov | Receives EIN immediately; prints confirmation letter |
| Maria withholds 7.65% from each paycheck ($45.90/week) | Covers Jake’s share of FICA; Maria also owes her 7.65% share ($45.90/week) |
| Maria pays $1,000+ in Q1 wages | Triggers FUTA obligation — Maria owes 0.6% on Jake’s first $7,000 in wages ($42 total) |
| Maria files Schedule H with her Form 1040 by April 15, 2027 | Reports all employment taxes; uses her EIN on the form |
| Maria issues Jake a W-2 by February 1, 2027 | Reports total wages, Social Security and Medicare taxes withheld |
Maria’s total employer cost beyond Jake’s salary: approximately $2,245 in employer-side FICA plus $42 in FUTA. She should also check Colorado’s unemployment insurance requirements and register with the state if required.
Scenario 2: Adult Child Hiring a Caregiver for an Elderly Parent
David lives in Austin, Texas. He hires Rosa as a part-time home health aide to care for his 78-year-old father, who lives independently in his own home in San Antonio. David pays Rosa $400 per week.
| Step David Takes | What Happens |
|---|---|
| David pays Rosa $400/week, totaling $20,800/year | Exceeds $3,000 FICA threshold — all wages are taxable |
| David notes Rosa works in his father’s home, not his own | The IRS still treats this as household employment because Rosa works in a private home and David controls the work |
| David applies for an EIN via fax using Form SS-4 | Receives EIN within 4 business days |
| David registers with the Texas Workforce Commission | Texas requires employers to report new hires and pay state unemployment tax if wages exceed $1,000 in a quarter |
| David files Schedule H and issues Rosa a W-2 | Uses his EIN; reports all FICA and FUTA obligations |
A key nuance: the household does not have to be David’s home — it must be a private home where the work occurs. David controls Rosa’s duties, schedule, and methods, making him the employer. Texas has no state income tax, but it does require unemployment insurance registration through the Texas Workforce Commission.
Scenario 3: Homeowner Hiring a Housekeeper Below the Threshold
Lisa lives in Phoenix, Arizona. She hires Tom to clean her house every Saturday for $150 per visit. Tom works 40 Saturdays per year, earning $6,000 total.
| Step Lisa Takes | What Happens |
|---|---|
| Lisa pays Tom $6,000/year | Exceeds $3,000 FICA threshold — all wages subject to FICA |
| Lisa pays $450/month (Q1 total = $1,350) | Exceeds the $1,000 FUTA quarterly threshold — FUTA applies |
| Lisa applies for an EIN online | Receives EIN immediately |
| Lisa withholds 7.65% from each payment ($11.48/visit) | Covers Tom’s FICA share; Lisa owes matching $11.48/visit |
| Lisa files Schedule H | Reports all employment taxes using her EIN |
Now change the facts: Suppose Lisa only pays Tom $50 per Saturday, totaling $2,000 for the year. Because $2,000 is below the $3,000 FICA threshold, Lisa owes no Social Security or Medicare taxes. She also pays less than $1,000 per quarter, so FUTA does not apply. Lisa does not need an EIN in this situation.
The Nanny Tax: How Your EIN Connects to Schedule H
The term “nanny tax” refers to the federal employment taxes that household employers must pay when wages exceed the annual threshold. Your EIN is the linchpin of this entire system. Without it, you cannot file Schedule H, and without Schedule H, you cannot report or pay your nanny taxes.
Schedule H at a Glance
Schedule H attaches to your Form 1040 and reports three categories of taxes: Social Security and Medicare taxes (employer and employee shares), FUTA tax, and any federal income tax you agreed to withhold. You file it once per year with your personal income tax return — not quarterly like a business.
You must file Schedule H if you paid any one household employee $3,000 or more in cash wages during the year, or if you withheld federal income tax at your employee’s request (regardless of the amount paid). The form walks you through calculating both the employee’s share and your share of FICA, plus your FUTA tax.
Estimated Tax Payments
Because household employment taxes are reported annually on Schedule H, you may owe a large lump sum at tax time. The IRS recommends adjusting your own W-4 withholding at your regular job to cover this extra liability, or making quarterly estimated tax payments using Form 1040-ES. Failure to pay enough throughout the year can result in an estimated tax penalty.
W-2 Filing
By February 1, 2027, you must issue your employee a Form W-2 showing the total wages paid and taxes withheld during 2026. You also send Copy A of the W-2, along with Form W-3, to the Social Security Administration. Your EIN goes in Box “b” of the W-2 — the employer identification field.
If you do not furnish W-2 forms on time, the IRS can impose penalties of $60 to $310 per form depending on how late you file, up to annual maximums that reach into the millions for large employers.
State Registration Requirements After Getting Your Federal EIN
Your federal EIN is just one piece of the puzzle. Most states also require household employers to register for state employment taxes. Here are the most common requirements:
California
California has some of the strictest rules. You must register with the Employment Development Department (EDD) when you pay cash wages of $750 or more in a calendar quarter to household workers. You can register online through e-Services for Business or by mailing Form DE 1HW. California requires four separate payroll taxes: Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax (PIT) withholding.
Mail registration takes 10 to 14 days. Online registration is faster. You will need your federal EIN to complete the state registration.
New York
New York requires household employers to register with the Department of Labor for unemployment insurance when wages reach $500 in a calendar quarter. New York also requires workers’ compensation and disability benefits insurance for household employees. You must obtain a separate state employer registration number.
Texas
Texas has no state income tax, so you do not withhold state income taxes. However, Texas requires registration with the Texas Workforce Commission for state unemployment taxes when you pay $1,000 or more in wages during any calendar quarter. You must report new hires within 20 days.
Other States
Each state has its own thresholds and registration timelines. Contact your state unemployment tax agency through the U.S. Department of Labor’s directory. Some states, like Florida and Nevada, have no state income tax but do require unemployment insurance registration. A handful of states — like New Jersey, Hawaii, and Rhode Island — also require temporary disability insurance.
Mistakes to Avoid
These are the most common — and most costly — errors that household employers make:
1. Using your Social Security number instead of an EIN. You cannot report household employment taxes with your SSN alone. The IRS requires an EIN on Schedule H and Form W-2. Filing without one triggers processing delays and potential penalty notices.
2. Misclassifying your employee as an independent contractor. Paying a nanny or caregiver on a 1099 instead of a W-2 violates IRS rules when you control how the work is done. The IRS can reclassify the worker, assess back taxes, and charge penalties plus interest. The employee can also file Form SS-8 to request an IRS determination.
3. Checking the wrong entity type on Form SS-4. Selecting “Sole proprietor” instead of “Other — Household employer” routes your EIN into the business filing system. You may then receive notices demanding quarterly 941 returns you do not owe.
4. Missing the FICA threshold mid-year. Many employers pay below $3,000 for the first several months, then cross the threshold later. Once total wages hit $3,000, all wages for the entire year become taxable — not just the excess over $3,000. If you did not withhold earlier in the year, you owe the full amount and must catch up.
5. Forgetting state registration. Getting a federal EIN does not register you with your state. Many states have separate thresholds, forms, and deadlines. Failing to register can result in state-level penalties and loss of your FUTA credit.
6. Not issuing a W-2. Even if you paid all taxes correctly, failing to issue a W-2 by the deadline exposes you to IRS penalties and harms your employee’s ability to file their own tax return or claim benefits.
7. Confusing an EIN with an ITIN. An Individual Taxpayer Identification Number (ITIN) is for individuals who need to file taxes but do not qualify for a Social Security number. An EIN is for employers. They serve completely different purposes, and you cannot use one in place of the other.
Do’s and Don’ts for Household Employers
Do’s
- Do apply for your EIN before you issue the first paycheck. You need the number to set up proper withholding from day one. Playing catch-up later creates accounting headaches and potential penalties.
- Do keep a copy of your EIN confirmation letter. The IRS issues this letter (CP 575) only once. If you lose it, you must call the IRS Business & Specialty Tax Line at 800-829-4933 to retrieve your number.
- Do complete Form I-9 on your employee’s first day. Federal law under the Immigration and Nationality Act requires every employer to verify work eligibility. You keep the form in your own records — do not send it to the IRS.
- Do withhold FICA taxes from every paycheck once you expect to cross the $3,000 threshold. Waiting until year-end to calculate taxes creates a mess. Consistent withholding avoids a large lump-sum hit for your employee.
- Do adjust your own W-4 or make estimated payments. Since household employment taxes are due annually on your Form 1040, increase your personal withholding or send quarterly estimated payments to avoid the underpayment penalty.
Don’ts
- Don’t pay for an EIN through a third-party website. The IRS never charges a fee. Many websites charge $50 to $300 to do what you can do yourself for free in minutes. The legitimate application is at IRS.gov/EIN.
- Don’t wait until tax season to get your EIN. If you wait until March or April, you risk delays in filing your return and issuing your employee’s W-2 on time.
- Don’t ignore FUTA because the amount seems small. At $42 per employee, FUTA feels trivial — but skipping it means losing the 5.4% credit, which increases your rate to the full 6.0%. The IRS also charges penalties for not paying FUTA.
- Don’t assume part-time workers are exempt. Even a part-time housekeeper or babysitter can cross the $3,000 threshold. The IRS does not distinguish between full-time and part-time employees for FICA purposes.
- Don’t pay your household employee under the table. Unreported wages expose you to penalties, interest, and potential criminal liability. Your employee also loses Social Security credits and cannot claim unemployment benefits.
Pros and Cons of Registering as a Household Employer
Pros
- Legal compliance. You avoid IRS penalties, interest, and the stress of a potential audit. The peace of mind alone is worth the effort.
- Your employee earns Social Security credits. Reported wages build your employee’s Social Security retirement and disability benefits. This matters to caregivers, nannies, and housekeepers who rely on Social Security.
- Access to the dependent care tax credit. If you pay someone to care for your child under age 13 so you can work, you may claim the Child and Dependent Care Credit on your tax return. You must report the caregiver’s information, which requires being a registered employer.
- Employee loyalty and retention. Workers who receive proper tax documentation, unemployment eligibility, and Social Security credits are more likely to stay. This reduces turnover and training costs.
- Protection in disputes. Proper documentation protects you if a worker files a claim for unpaid wages, unemployment benefits, or workers’ compensation. Having an EIN and tax records proves the employment relationship.
Cons
- Added administrative work. You must track wages, withhold taxes, file Schedule H, issue W-2 forms, and register with your state. This takes time or costs money if you hire a payroll service.
- Increased cost. Your employer share of FICA (7.65%) and FUTA (0.6%) adds roughly 8.25% to your wage costs before considering state taxes.
- State compliance complexity. Every state has different thresholds, forms, and deadlines. Multi-state situations (such as a vacation home with a caretaker in another state) add more layers.
- No option to undo. Once you have an EIN, it is permanent. You can close the account by writing to the IRS, but the number itself is never reused or canceled. If your circumstances change, you may still receive IRS notices.
- Potential liability for mistakes. Errors in withholding, reporting, or filing can generate IRS penalty notices. Even innocent mistakes require time and effort to resolve.
Key Entities and Their Roles
Understanding who does what keeps the process clear:
- IRS (Internal Revenue Service). Assigns your EIN, collects federal employment taxes, processes Schedule H and Form W-2, and enforces compliance through penalties and audits.
- SSA (Social Security Administration). Receives Copy A of your employee’s W-2 and Form W-3. Credits your employee’s earnings record for future Social Security benefits. Use the SSA’s Business Services Online to file W-2s electronically.
- USCIS (U.S. Citizenship and Immigration Services). Administers Form I-9, which verifies your employee’s identity and work eligibility. You keep the form — the IRS and USCIS do not collect it unless an audit occurs.
- State unemployment tax agencies. Each state manages its own unemployment insurance program. You register separately with your state, pay state unemployment taxes, and file state-level returns. The U.S. Department of Labor maintains a directory of state agencies.
- Payroll service providers. Companies like SurePayroll, NannyPay, and HomeWork Solutions specialize in household payroll. They handle calculations, filings, and W-2 generation for a monthly fee.
What If You Already Employ Someone and Never Got an EIN?
If you already pay a household employee and realize you never obtained an EIN, act now. Apply online immediately. The IRS does not penalize you for getting an EIN “late” — the penalty comes from failing to file and pay taxes on time.
Once you have your EIN, calculate the FICA taxes you should have withheld and paid from the beginning of the employment. You can file Schedule H for any missed years by filing amended returns (Form 1040-X). The IRS may assess penalties and interest on the unpaid taxes, but voluntary correction is treated more favorably than discovery during an audit.
If the current year has not ended, begin withholding from the next paycheck. You may need to absorb the employee’s unpaid share of FICA for past paychecks, since retroactively deducting from an employee’s future pay can violate state wage laws.
Sole Proprietors With an Existing Business EIN
If you already run a sole proprietorship and have a business EIN, the rules differ. You do not need a second EIN for household employment. Instead, report your household employee’s FICA and FUTA taxes on your existing business employment tax forms — Forms 941 (or 944) and 940 — using your business EIN.
This option only applies to sole proprietors. If you operate an LLC, S-Corp, or C-Corp, those entities cannot file household employment taxes. You must get a separate personal EIN as a household employer.
Records You Must Keep
The IRS expects household employers to maintain records for at least four years after the due date of the return or the date the tax was paid, whichever is later. Keep the following:
- Your employee’s name, address, and Social Security number
- Dates of employment
- Total cash wages paid each year
- Amounts of Social Security, Medicare, FUTA, and income taxes withheld or paid
- Copies of all W-2 forms issued
- Your EIN confirmation letter (CP 575)
- Copies of filed Schedule H forms and Form 1040 returns
If the IRS ever audits your household employment taxes, these records are your defense. Without them, the IRS can estimate your liability — and their estimates rarely favor the taxpayer.
FAQs
Can I apply for an EIN as a household employer if I don’t have a Social Security number?
Yes. You can use an Individual Taxpayer Identification Number (ITIN) instead of an SSN when applying for an EIN through Form SS-4 online, by fax, or by mail.
Do I need a new EIN every year for the same household employee?
No. Your EIN is permanent and carries over year to year. Use the same EIN for all future filings, W-2 forms, and Schedule H submissions for as long as you have household employees.
Can I use my employer’s EIN from my day job for my household employee?
No. Your day job EIN belongs to your employer. You need a separate, personal EIN specifically assigned to you as a household employer through Form SS-4.
Does my household employee need their own EIN?
No. Your employee uses their Social Security number for tax purposes. The EIN belongs to you as the employer, not to the employee.
Is the online EIN application really free?
Yes. The IRS charges nothing. Any website asking for payment to obtain an EIN on your behalf is a third-party service, not the IRS itself.
Can I get an EIN on a weekend?
Yes. The IRS online tool is available on Saturdays from 6:00 a.m. to 9:00 p.m. Eastern and Sundays from 6:00 p.m. to midnight Eastern.
Do I need an EIN if I pay my nanny less than $3,000 in 2026?
No. If total cash wages to any single employee stay below $3,000 and you pay less than $1,000 in any quarter, you have no federal employment tax obligation and no need for an EIN.
Can I close my EIN account if I stop employing household workers?
Yes. Send a letter to the IRS requesting account closure. Include your EIN, name, address, and reason for closing. The EIN itself is never deleted or reassigned — it simply becomes inactive.
What happens if I lose my EIN confirmation letter?
No replacement letter is issued. Call the IRS Business & Specialty Tax Line at 800-829-4933 to retrieve your EIN. You can also find it on previously filed Schedule H or W-2 forms.
Does hiring a household employee through a payroll service eliminate the need for an EIN?
No. You still need your own EIN. The payroll service files returns and issues W-2 forms under your EIN as the employer of record.
Can undocumented workers trigger the nanny tax?
Yes. The tax obligation is based on wages paid, not the employee’s immigration status. However, hiring someone you know cannot legally work in the U.S. violates federal law under the Immigration and Nationality Act.
Do I owe nanny taxes if my babysitter is under 18?
No. Wages paid to an employee under 18 are exempt from FICA unless household work is their principal occupation. If the worker is a student, household work is not considered their principal occupation.
Can my spouse be my household employee?
No. Wages paid to your spouse are exempt from Social Security, Medicare, and FUTA taxes under IRS Publication 926. The same exemption applies to your children under 21 and your parents (with limited exceptions).
Is there a penalty for applying for an EIN but never using it?
No. The IRS does not penalize you for obtaining an EIN and never filing employment tax returns under it. However, if you should have filed and did not, penalties apply for failure to file — not for having the EIN.
Related reading
- Do Trusts Really Have EIN Numbers? – Don’t Make This Mistake + FAQs
- Can an Unincorporated Association Get an EIN? + FAQs
- Does a Single-Member LLC Need an EIN? (w/Examples) + FAQs
- Do Household Employers File Form 940? (w/Examples) + FAQs
- How to Fill Out IRS Form 1040 – Schedule H + FAQs
- How to Fill Out IRS Form SS-4 (w/Examples) + FAQs
- How to Fill Out IRS Form 8300 (w/Examples) + FAQs