I had a household employee for a brief period over the first two quarters of 2007. I used a payroll service which handled all the withholding and check issuance, for which they charged me a fee.

Are those fees deductible? If so, where do I deduct them? On which form, category, etc.

Thank you.

No - not dedutible, sorry. These are personal expenses not related to costs of owning a business, managing investment income, or of preparing your own tax return.