Your Responsibilities as a Household Employer in New York

Hiring a nanny or housekeeper does not just mean welcoming someone into your home — it also means taking on the responsibilities of being an employer. Many families are surprised by what that involves, so this guide walks through the essentials in plain language.

When you hire a household professional in New York, you become their employer of record. That means you — not the agency that introduced them — are responsible for their wages, taxes, insurance and working conditions. One note before we start: Seva Elite Staffing is a household placement agency, not a legal or tax adviser. The overview below points to official government sources for the specifics, and for anything that affects your particular situation you should confirm with a qualified professional. Rules and dollar thresholds change, so treat the linked government pages as the authority rather than any summary.

Are you really the employer, or is the agency?

You are. Seva Elite Staffing identifies, screens and introduces candidates, and you hire your chosen professional directly. From that point the working relationship — pay, schedule, day-to-day supervision — is between you and your employee. The agency does not employ, pay or supervise the professionals it places. This is the standard structure for household placement across the industry, and it is why the responsibilities below sit with the family rather than the agency.

What are you required to pay?

Household employees in New York are generally entitled to at least the applicable minimum wage, which is higher in New York City and the surrounding counties than in the rest of the state, and which has been rising on a set schedule. Most household employees are also entitled to overtime — typically one and a half times the regular rate for hours worked beyond a weekly threshold — and live-in employees have their own overtime rules. The New York State Department of Labor publishes the current rates and the domestic-worker specifics; you can read the official guidance on the New York State Department of Labor's Domestic Workers page.

What is the Domestic Workers' Bill of Rights?

New York was the first state to pass a Domestic Workers' Bill of Rights, and it sets a floor of protections for nannies, housekeepers and caregivers working in private homes. Among other things it establishes overtime pay, a day of rest each week (or overtime pay if the employee agrees to work it), several days of paid rest per year after a period of employment, and protection from certain forms of harassment. These are legal entitlements, not optional benefits, and they apply to household employees regardless of immigration status. The Department of Labor page linked above lays out the current terms.

What about taxes — the "nanny tax"?

If you pay a household employee more than a threshold amount in a year, you generally have federal tax obligations often referred to informally as the "nanny tax": withholding and paying Social Security and Medicare taxes, paying federal unemployment tax, and reporting wages appropriately. Many families handle this through a payroll service that specialises in household employment. The Internal Revenue Service sets out the rules and the current thresholds in IRS Publication 926, the Household Employer's Tax Guide. New York has its own state reporting requirements alongside the federal ones, so it is worth confirming both.

Do you need workers' compensation or disability insurance?

In many cases, yes. New York generally requires household employers to carry workers' compensation insurance once an employee works above a certain number of hours per week, and disability benefits coverage can apply as well. These protect both you and your employee if an injury or illness affects their ability to work. The rules turn on hours and circumstances, so the New York State Workers' Compensation Board is the place to confirm what applies to your household. This is one of the most commonly overlooked obligations, and it is worth checking early rather than after a problem arises.

What paperwork should be in place?

Good documentation protects both sides and prevents most disputes. In practice, household employers commonly put the following in place:

• Written employment agreement — pay, hours, duties, time off and notice, agreed from the start.
• Payroll records — hours worked and payments made, which several of the obligations above assume you are keeping.
• Pay statements — provided for each pay period, as New York requires for employees.
• Tax forms — the relevant federal and state forms for a household employer.
• Employment eligibility documents — the required federal work-authorisation verification.

A household payroll service or an employment attorney can set most of this up quickly, and the cost is modest against the peace of mind of getting it right.

Where does the agency fit in?

Seva Elite Staffing's role is to find and introduce the right professional; your role, once you hire, is to be a compliant and fair employer. Whether you are hiring a nanny, a housekeeper or any of the other household roles we place, the responsibilities above apply once the person is working in your home, so it is worth understanding them before the first day rather than after. We are glad to talk through what a placement involves before you commit, and you can always get in touch with a question.

Before your household employee starts

A short checklist to run through before a start date:

• Confirm wages and schedule with the professional you are hiring.
• Prepare a written agreement covering pay, hours, duties and time off.
• Set up payroll, ideally through a household payroll service.
• Verify insurance requirements — workers' compensation and disability where they apply.
• Complete tax and employment forms, including work-authorisation verification.

While becoming a household employer comes with important responsibilities, most families find the process straightforward with the right guidance. Seva Elite Staffing is here to help you find the right professional, while trusted legal, tax and payroll resources can help you manage your responsibilities with confidence.