This mom pays a college student $25/hour to run her household — and says it’s 'worth every penny.' Here’s the IRS rule to know first

She hired Amelia, a college senior who had done similar work for another family and came with a glowing recommendation. They agreed on $25 an hour, matching what Amelia had earned before.

For nearly eight months, she came two days a week for four hours at a time, tidying, vacuuming, folding laundry, prepping recipes and running errands. To cover the $200 a week, the couple trimmed takeout and clothes shopping. After some early guilt, Harrell said the help was “worth every penny.”

Her search is now on for a replacement, which is where the tax question comes in.

The IRS rule to know first

The IRS counts housekeepers, maids and babysitters as household employees when you control the work. Its Publication 926 says that means controlling “not only what work is done, but how it is done.” A helper like Amelia, who follows your to-do list and recipes, may fit that description.

Once a household employee’s cash pay reaches $3,000 in 2026 (the threshold can change yearly), you generally must withhold 7.65% for Social Security and Medicare and add a matching 7.65% yourself, the IRS explains. You can also choose to cover the employee’s share from your own pocket.

In Harrell’s case, at $200 a week, the $3,000 mark comes in 15 weeks, and each side of the tax is $15.30 a week.

Being a student isn’t an automatic exemption. The IRS’s list of exceptions covers employees under 18 but doesn’t include older students.

Key things not to miss

Unemployment tax is another thing you may be liable for:

• If you pay more than $1,000 in wages in any calendar quarter, you generally owe federal unemployment tax, which applies to the first $7,000 you pay each worker. A state credit can cut the net rate from 6% to 0.6%.
• You file Schedule H with your tax return to report the taxes, and you’ll need an employer identification number and a Form W-2 for the worker.
• For 2026 pay, you must give the employee a W-2 and send Copy A, with Form W-3, to the Social Security Administration by Feb. 1, 2027. Schedule H is due April 15, 2027.
• Your state may also have its own unemployment tax and workers’ compensation rules.

The Social Security Administration notes reporting also protects the worker, who earns credits toward benefits only on wages of at least $3,000 per employer. If you skip it, the employee could fall short of the credits needed for full benefits.

To avoid surprises, you can pay the extra taxes through estimated payments or by asking your own employer to withhold more, according to the IRS. Publication 926 also notes you may owe a penalty for not giving employees their W-2 forms.