Can I pay my nanny in cash or through Venmo?
Short answer
Yes, but how you pay doesn't change what you owe. The IRS doesn't name payment apps; it counts wages paid by check, money order and the like as cash wages, and leaves out only noncash things like meals and lodging. Money sent by Venmo or Zelle is still money, so we count it toward the $3,000 threshold the same as bills, and you should too. Keep a record of every payment.
Answered by the NannyKeeper team
The numbers
“Cash wages include wages you pay by check, money order, etc.”
- Counts as cash wages
- Bills, checks, money orders and other money
- Doesn't count
- Food, lodging, clothing and other noncash items
- Keep payment records
- At least 4 years after the taxes are due or paid, whichever is later
Sources
- IRS Publication 926 (2026), Household Employer's Tax Guide · Read October 25, 2026
- California EDD, DE 8829 Household Employer's Guide (Rev. 46, 1-26) · Read October 25, 2026
What this means for you
- Paying in cash doesn't keep it off the books. Once you pay $3,000 or more in 2026, you owe the same Social Security and Medicare taxes either way.
- Money you hand over in place of meals or a transit pass counts as cash wages too.
- An app's payment history isn't a payroll record. Note the hours and pay period each payment covers, and what you withheld.
- California says it outright for its own registration test: its household employer guide counts payment apps as cash wages.
Read the full guide: Pay a nanny or babysitter via Venmo or Zelle?