Indiana Household Employer Checklist
We’ve got you covered on the payroll end for Indiana households. Here is the checklist you need when you hire a nanny, caregiver, housekeeper, gardener or anyone that works in your IN home.
Step 1: Obtain workers' compensation insurance coverage
IN household employers are not required by law to maintain workers’ compensation insurance coverage for on-the-job injuries. However, you may want to obtain this insurance regardless. This insurance can typically be provided under your homeowner’s or renter’s insurance policy.
Resource: Workers’ Compensation Board of IN
Step 2: Have your employee complete the I-9 form
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
Step 3: Have your employee complete the W-4 form
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s W-4 settings in your Nest Payroll account at anytime during the year.
Step 4: Give your employee these notices/posters
IN law requires all employers provide the following notices/posters to their employees:
Step 5: Have an agreement (optional but suggested)
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Please take advantage of their excellent and free sample contracts and guide books.
Step 6: Follow the labor laws for Indiana
SALARY OR HOURLY PAY STUBS:
For household employees, labor laws treat them as non-exempt, so you must set an hourly rate, track weekly hours, and pay overtime when due. Nest Payroll uses weekly pay periods to keep you compliant.
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time or PTO is not required for household employees in IN, but it could be an important benefit to offer to your employee. Vacation/PTO hours can be tracked with Nest Payroll.
MINIMUM WAGE: REQUIRED
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections.
IN Dept. of Labor- Minimum Wage
The Economic Policy Institute - Minimum Wage Tracker
OVERTIME: REQUIRED
Overtime of 1.5x the hourly rate for any hours worked over 40 regular hours in a week. If your household employee (excluding companions) also lives in your home, you do not have to pay overtime. Overtime is not required to be paid when work occurs on a holiday.
Details: IN Hours of Work and Overtime
PAYROLL FREQUENCY: MINIMUM TWICE PER MONTH
In Indiana, domestic workers, including nannies, must be paid at least twice per month. This means that you must pay your household employee at least semi-monthly, or more frequently such as daily, weekly or bi-weekly. Nest Payroll has weekly pay periods because government agencies require hourly/non-exempt wages to be evidenced in weekly periods due to overtime laws. If you prefer to pay every two weeks here’s how:
Pay two pay stubs at the same time every two weeks (the pay stubs remain as weekly).
You can also use the recurring pay stub option so you won't need to remember or double check which weeks you paid. The pay stubs will be waiting for review on the main dashboard. Every two weeks you simply approve the two pay stubs waiting on your dashboard, and you can always edit the hours or the other items if you need to before approving each one.
Upon Departure
Employers in Indiana are required to provide all wages due by the next scheduled pay cycle.
Additional Resource:
Disclaimer: The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.