Bank Statement for Household Employer Taxes
Anyone who employs household workers — nannies, housekeepers, senior caregivers, or estate staff — becomes a household employer responsible for payroll taxes once wages cross the IRS threshold. Bank statements are the record of every wage payment, forming the basis for Schedule H, quarterly estimates, and each employee's W-2. This guide covers staying compliant.
Key Benefits
- Documents all wage payments across your household payroll
- Supports Schedule H reporting of Social Security, Medicare, and FUTA
- Helps size quarterly estimated payments to cover the employment taxes
- Provides the audit trail for each employee's year-end W-2
How It Works
- Step 1: Download statements showing all household wage payments for the year as PDFs
- Step 2: Convert them to Excel with Bank Statement Converter to organize by employee and period
- Step 3: Total wages per employee to calculate employment taxes and W-2 figures
- Step 4: Retain the records with your Schedule H filing for the required period
Frequently Asked Questions
- Who counts as a household employer?
- Anyone who pays a worker to perform domestic services in or around their home — and controls how the work is done — above the IRS cash-wage threshold for the year.
- What taxes does a household employer owe?
- Social Security and Medicare (FICA), federal unemployment (FUTA), and often state unemployment tax — all calculated from the wages your bank statements document.
- Do I need to pay estimated taxes for household employment?
- Often yes — since household employment taxes are paid with your personal return, many employers increase withholding or make estimated payments to cover them and avoid a penalty.
- How long should I keep household payroll records?
- The IRS recommends keeping employment tax records for at least four years, including the bank statements documenting wage payments.
Convert Your Household Payroll Statements