What would the IRS flag about how you've been paying your nanny?
Answer 6 questions. We'll run the same checks a tax professional would and show you the specific findings — with dollar exposure and how to fix each one.
Educational only. Not tax, legal, or accounting advice. Consult a licensed tax professional for your specific situation.
How Arkansas household employer rules differ
Arkansas excludes domestic service wages from the definition of 'wages' entirely, so household employers don't withhold state income tax from their nanny's paycheck. The nanny remains responsible for any income tax they owe at year-end. Employer-side SUI is still required.
State unemployment insurance (SUI). Arkansas requires household employers to register and pay state unemployment tax once you cross the federal $1,000/quarter threshold (some states use a lower threshold — California is $750/quarter, New York and DC are $500/quarter). New-employer rate range in Arkansas: 0.1% - 14.0%. Missing the registration is one of the most common audit findings — the simulator flags it as soon as your quarterly wages cross the threshold.
No state income tax withholding. Arkansashas no state income tax (or exempts domestic-service wages from withholding), so there's nothing to deduct from your nanny's paycheck on the state side. You still owe the federal baseline (FICA, FUTA, Schedule H) and any SUI obligation.
Minimum wage. The minimum wage in Arkansas is $11.00/hour. If you paid below this rate, the simulator surfaces it as a Department of Labor exposure — separate from tax findings, and often more expensive (back wages plus liquidated damages).
Run the audit above to see exactly which Arkansas rules apply to your situation — each finding comes with dollar exposure and a concrete next step.
Arkansas household employer questions
The state-specific rules behind every finding.