What would the IRS flag about how you've been paying your nanny?

Delaware has progressive income tax. Household employers with fewer than 10 eligible employees don't have to participate in Delaware Paid Leave, though they may opt in. Wilmington residents or workers should be aware of the local city income tax.

State unemployment insurance (SUI). Delaware 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. New-employer rate range in Delaware: 0.1% - 8%. Missing the registration is one of the most common audit findings — the simulator flags it when your quarterly wages cross the applicable threshold.

State income tax withholding. Delaware 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. The simulator flags missing withholding setup or unreported wages.

Minimum wage. The minimum wage in Delaware is $15.00/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 Delaware rules apply to your situation — each finding comes with dollar exposure and a concrete next step.