Does a Household Employer need a Tax ID (EIN)?

A household employer is an individual who hires people around the house to do work, such as a nanny, gardener, or housekeeper. These individuals are generally not required to have an EIN, because they are hiring people for discrete work. It’s no different than hiring a company such as a plumber, electrician, or gardening and pest control service. However, sometimes the agreement may need to be formalized.

If an employer is consistently hiring an individual, they may want to pay payroll taxes for them. In this situation, they do need an EIN. They will also need W9 forms filled out and also W2 forms at the end of the year. The employer won’t need to do anything besides paying payroll taxes for their employee, but they should be aware of the responsibilities they have as an employer, rather than as someone hiring an independent contractor.

The line between an independent contractor and an employee can be complex, so a household employer may want to consult a legal professional or a tax professional before entering into an employee-employer relationship..