Maybe if we didn't withhold their income taxes, we don't have to report them as household employees? That's what point 7 seems to suggest here:
7. Is Schedule H (Form 1040) required to be filed by the host family? According to the IRS, Schedule H is required for reporting wages of $2,200 or more paid to a domestic worker. However, families are only required to file the form if they withheld income taxes or paid wages that are subject to Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes. Since payments to the au pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, you are not required to fill out the Schedule H if you do not withhold income taxes from your au pair’s wages.
