Catching up now can help prevent bigger issues later.
As a household employer, you're responsible for payroll taxes on wages paid above applicable thresholds, $3,000 annually and $1,000 per quarter in 2026 (thresholds are reviewed annually and subject to change), even if those wages were paid before payroll was set up. Leaving them unreported can mean:
- Back taxes and interest — Unpaid employment taxes can accrue interest over time.
- Penalties for late filing — The longer prior wages go unreported, the more complicated and costly the fix can become in many cases.
- No Social Security or Medicare credit for your employee — Undocumented wages don't count toward your employee's future earning record. Getting compliant is the right thing for them too.
- Exposure if audited — Undocumented cash payments can increase exposure in the event of an audit.
The good news: the fix is straightforward when you act early. Poppins handles the documentation, the payroll tax calculations, and the applicable filings, so you can put this behind you.



