@speedway121 wrote:
Is it absolutely necessary to report the Au Pair as a household employee if they are hired thru an agency?
I havent done one yet but wondering how this will affect my taxes going forward?
It depends on if the au pair works for you directly (and the agency is just a matchmaker) or if they work for the agency. If they work for you directly, you need to pay household employee's tax on your tax return and you need to issue a W-2 to the au pair by January 31 of the tax year.
https://www.irs.gov/taxtopics/tc756
https://www.irs.gov/businesses/small-businesses-self-employed/hiring-household-employees
https://www.irs.gov/forms-pubs/about-publication-926
