Basic steps for setting up and maintaining household payroll:

1) Get a federal identification number.

2) Register for payroll with your state.

3) Get workers’ compensation & disability insurance coverage.

4) The employee must complete forms W4 & I9.

5) The employer must complete the employer section of form I9.

6) The employer must keep forms W4 and I9 on file.

7) Compute payroll based on the information in form W4.

8) Notify your state of new hires. (This is required in New York State. Requirements may vary from state to state.)

9) Make periodic state tax deposits if required.

10) File state quarterly payroll tax returns.

11) Include federal payroll taxes with your estimated tax payments.

12) File form W2 annually.

13) Report federal information annually on schedule H.