Household Employer Getting Started Guide
The four most important things to do when you hire a household employee. Use this alongside Nest Payroll to make sure you're set up cleanly from day one.
If you've just hired a nanny, caregiver, housekeeper, or other household worker, there are four things to take care of in the first week. Nest Payroll handles everything tax-related (EIN, state registrations, filings, W-2s, Schedule H) — these four steps cover the rest.
Have your employee complete the I-9 form
Federal law requires every employee to fill out an I-9 within three business days of starting work. You don't submit this anywhere — just keep it in your records in case of audit.
Have your employee complete the W-4 form
The W-4 sets your employee's federal income tax withholding. Once they fill it out, enter their elections (filing status and any adjustments) into their profile in the Nest Payroll app. You can change these throughout the year if your employee requests it.
You don't submit the W-4 anywhere either — keep it filed alongside the I-9.
Confirm your workers' compensation coverage
Workers' comp protects you if your employee gets injured or sick on the job. Rules vary significantly by state — some require coverage for any household employee, others only above certain hour or wage thresholds, others not at all.
Start by calling the company that handles your homeowner's or renter's insurance. Many policies include some household-employee coverage; others require you to add a rider.
Create a written work agreement
A written agreement prevents most of the disputes that lead to early terminations. Some states (California, New York, Massachusetts, DC) legally require a written wage notice — but even where not required, it's strongly recommended.
We've built a free contract builder you can fill out and download as a PDF. It covers compensation, hours, duties, paid time off, house rules, termination terms, and more — with editable sections you can customize for your situation.
→ Build your free contract (downloadable PDF)
This template is for a nanny but easy to adapt for housekeepers, caregivers, or other household roles. Hand In Hand, a non-profit that supports domestic employers, also offers free sample contracts and guidebooks.
Need more detail?
This guide covers the basics. For deeper walkthroughs of specific topics:
Free tools
Use any of our free tools to estimate costs and get prepared:
- Nanny Paycheck Calculator — model gross-to-net for any rate
- Tax Catch-Up Calculator — estimate what you owe on prior unreported wages
- Gross-Up Calculator — figure the gross pay needed to net a specific take-home
- Free Nanny Contract Builder — fill out and download as PDF