Many families prefer to begin a new employer-employee relationship with a brief trial period – giving both sides a chance to “live with each other” for awhile before a long-term relationship is formally established. This is a logical step in the employment process, especially given the personal nature of hiring someone to work in your home.

However, please know that the law does not absolve families of their tax and legal responsibilities during the trial period. Families are legally considered to be employers the first day the employee shows up for work – whether it has been labeled a “trial period” or not. Therefore, in order to prevent potentially-expensive tax and legal mistakes, it is important to understand the law and the compliance process from the outset of the employment relationship.