[US] Household Employers

Household employers can take advantage of all the self-serve features of Wave Payroll. In states where payroll tax services is available, household employers are not supported

IRS Household Employers employ one or more employees whose work is done in or around the employer's home. Examples include babysitters, housekeepers and nannies. More details, including who qualifies as a household employee, are available in IRS Publication 926 (2020), Household Employer's Tax Guide.

You are not considered a household employer if you provide a service to clients from your home, such as running a daycare, or if you work from home and pay yourself through payroll.

Household employers can use all of Wave Payroll's self-serve features, including paying employees via direct deposit, calculating tax liabilities and generating IRS Form W-2. In states where Wave Payroll offers payroll tax service, automated payments and filings are not available for household employers. This is because Wave's payroll tax service submits tax payments against and files Forms 940 and 941 rather than Schedule H, which is the form the IRS requires household employers to deposit against and file. 

Was this article helpful?
1 out of 1 found this helpful