Does a Household Employer Need a Tax ID (EIN) Number?

9 Aug 2021

A household employer is unique in that you usually do not think of this type of person as a business or an organization. Thus, you may be asking yourself, do they or do they not need to obtain a Tax ID (EIN) number? As a household employer, you need to be thinking about all of the different factors that come into play to determine whether that Tax ID (EIN) is necessary or not. The Internal Revenue Service lays out guidelines to better define this so you know what to expect.

As a household employer, the key thing you want to remember here is that you are paying an employee. You are paying someone to perform duties in and around the house. These could include private nurses, gardeners, cooks, etc. A household employer, since they do have what you would define to be employees, is going to require to have a Tax ID (EIN) number. This will allow them to properly pay the employees and do all of the tax reporting that goes along with it, along with tax filings.