What would the IRS flag about how you've been paying your nanny?
Answer 12 questions. We'll check common federal and state household-employment issues and show you what needs review.
Educational only. Not tax, legal, or accounting advice. Consult a licensed tax professional for your specific situation.
How Colorado household employer rules differ
Colorado has a flat income tax rate and an active Paid Family and Medical Leave Insurance (FAMLI) program. If your employee works in Denver, a small monthly local tax comes out of their pay too, and we handle that withholding for you.
State unemployment insurance (SUI). Colorado requires household employers to register and pay state unemployment tax once wages cross its applicable threshold. New York and DC use $500 per quarter; many states use $1,000. 2026 unemployment tax rates in Colorado: 0% - 11.01%. Missing the registration is one of the most common audit findings.
State income tax withholding. Colorado has state income tax, which means you may need to withhold from your nanny's paycheck (it depends on whether they elect withholding on the state W-4 equivalent). If they do, you owe quarterly remittance and an annual state W-2 reconciliation.
Paid Family Leave (PFL). Colorado runs a state-administered PFL program that applies to household employees. These are typically funded by employee withholding (some states add an employer contribution) and require separate registration and remittance from FICA/FUTA.
Minimum wage. The minimum wage in Colorado is $15.16/hour. Paying below the rate that applies is a wage problem with the Department of Labor, separate from taxes and often more expensive, because you owe the back wages plus a penalty on top.
Colorado household employer questions
The state-specific rules behind every finding.