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 Hawaii household employer rules differ
Hawaii requires Temporary Disability Insurance (TDI) for employees, providing partial wage replacement for non-work-related illness or injury, and health coverage under its Prepaid Health Care law for employees who work 20 hours or more a week. The state has a progressive income tax reaching 11%.
State unemployment insurance (SUI). Hawaii 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 Hawaii: 0% - 5.6%. Missing the registration is one of the most common audit findings.
State income tax withholding. Hawaii requires you to withhold its income tax from the pay of a household employee you regularly employ, whether or not you withhold federal income tax. You register for a withholding account and send the state what you withhold.
State disability insurance (SDI). Hawaii runs a state-administered SDI 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 Hawaii is $16.00/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.
Hawaii household employer questions
The state-specific rules behind every finding.