— Cosset Payroll

Ensure legal compliance, save time, and reduce costs by paying your household employees legally. Let our Cosset Payroll experts manage all your household tax and payroll needs efficiently.

Who needs household payroll?

The IRS defines a household employer as someone who hires an individual to perform duties in or around their home, while also controlling when, where, how, or by whom the work is done. Household employees can include nannies, medical caregivers, housekeepers, chefs, personal assistants, household managers, and others. Misclassifying these individuals as independent contractors can be considered tax evasion.

Not to worry, we’ve got you covered, because household employee payroll is our specialty.

Read the free household payroll guide

Confused about how household payroll works? Want to know how to pay your household employees the right way? Read our official guide to learn everything you need to know.

Read the guide
How it works

Modern payroll built for household employers

Calculations

Cosset will effortlessly calculate the appropriate withholding amount for each paycheck and the amount due to each government agency. We even keep track of any changes in these laws so that you don't have to.

Tax Returns

Cosset will keep track of all the tax deadlines and rules. We pay your taxes and file to the correct agencies with total accuracy, on time, every time, guaranteed.

PTO & Sick Leave Tracking

With a few clicks, you can customize your own PTO and Sick Leave policies. We'll keep track of the balances and even include them on the paystubs emailed to your employees.

Payments

Cosset will coordinate direct deposit from your account to your employee's account. Or you can do it yourself and write a check with the amounts we provide.

Bookkeeping

Cosset will maintain a digital library containing all of your tax and payroll documents. Plus, our modern interface makes managing and printing your records easy.

Employer Registration

If needed, Cosset will set you up as an employer with the IRS and obtain your EIN (federal employer identification number). We'll also get you registered and file new-hire paperwork with your state's agencies and any local municipalities.

Cosset Payroll helps your employees

Paying legally helps your employees qualify for:

Social Security Benefits

Run your household employer with Cosset Payroll or use it with your preferred provider.

Workers Comp Insurance

Run your household employer with Cosset Payroll or use it with your preferred provider.

Home Mortgages

Run your household employer with Cosset Payroll or use it with your preferred provider.

Car Loans

Run your household employer with Cosset Payroll or use it with your preferred provider.

Unemployment Insurance

Your state incorporates your LLC and Cosset retrieves your tax ID from the IRS.

Health Insurance

Your state incorporates your LLC and Cosset retrieves your tax ID from the IRS.

The most comprehensive tax & payroll service built specifically for household employers

Better product, better service, and better pricing than our competitors.

Poppins
Payroll

Starting at
$49/mo
$588 annually
  • Additional Employee: $10/mo
  • Fee for Year End Docs: Free
    Minimum Contract: None

Care.com Homepay

Starting at
$75/mo
$900 annually
  • Additional Employee: $28/mo
  • Fee for Year End Docs: $100
  • Minimum Contract: 3 months

Ready to start?

Start your household employer company in a few clicks and get ready to hire your staff.

get started

Frequently Asked Questions

Do you generate pay stubs for my employee each pay period?
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Yes, we generate detailed pay stubs every payday, including current period details and year-to-date totals. These pay stubs are archived in your online account, allowing both you and your employee to access historical payroll records whenever needed.

What if the pay needs to change for one specific pay period?
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No problem. You can easily adjust payroll from your account. Our mobile-friendly online payroll manager tool allows you to preview and modify compensation details, including hours or gross wages. Any changes will generate a new pay stub instantly for your review and approval.

Do I have to remember to go to my online account every payday with my payroll information?
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No, we send a courtesy email reminder before each payroll deadline. The email includes gross wages and net pay for the period, along with a link to your online account in case you need to make any modifications. You can also choose to run your payroll automatically.

What if I had a payroll change that I forgot to report?
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No problem. Just reach out to us, and we'll correct the payroll by reconciling the difference on the next paycheck.

If I’m only supposed to pay the net amount each payday, what happens to the taxes?
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The difference between gross wages and net pay represents the employee’s tax withholdings. These withholdings remain in your bank account until they are due to the appropriate tax agency, at which point we remit the taxes along with the necessary employment tax returns.

If I choose Direct Deposit, how does the money get from my bank account to my employee’s bank account?
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We manage funds transfer via Electronic Funds Transfer (EFT). Once both your bank account and your employee’s bank account are set up for Direct Deposit, we initiate a debit transaction three business days before payday. The funds are then credited to your employee’s account on payday, eliminating the need for writing checks or making bank trips.

Can you show me how much in taxes I can expect Cosset to collect from me for the year?
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Yes, our dashboard features a Tax Calculator that provides this information. Simply input your employee's work hours or earnings per pay period to see the corresponding taxes for each pay period and the annual total. It also shows potential tax breaks you may be eligible for.

Do you prepare and file my employment tax returns?
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Yes, we prepare and file your household employment tax returns and remit the tax payments to the relevant tax agencies. We also prepare your Schedule H for attachment to your personal income tax return.

Do I get to preview the returns before they’re filed?
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Yes, before each state and federal tax return deadline, we prepare your tax returns, post them to your online account, and notify you via email. All your tax returns are archived in your online account for anytime access.

What taxes are remitted and how do you collect them from me?
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You only pay your employee the net pay amount each pay period, with tax withholdings remaining in your account. At the end of the tax period, we calculate the total taxes owed to federal and state agencies and provide you with advance notice of the amount due and the collection date. Ensure your account is funded at least one business day before the collection date, and we’ll handle the rest.

Can you help me understand and provide guidance on applicable labor laws?
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Yes, our expertise in household employment includes knowledge of unique and complex labor laws affecting families. Our service offers unlimited access to our team of experts for any questions or concerns, at no extra charge. We recommend contacting us during or after the hiring process to ensure your employment relationship is properly established, preventing expensive mistakes and providing peace of mind.

The last company I used didn’t help with government notices, and I wasted a lot of time. Do you help with this?
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Yes, we handle government notices as part of our service, saving you the frustration and time-consuming task of dealing with government agencies. Relax and let us take care of everything related to household employment.