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 New Jersey household employer rules differ
New Jersey takes care of its workers: your employee will have both disability coverage and paid family leave. There's a bit more to track here than in simpler states, but your employee gets some real benefits. We handle all the calculations so you don't have to worry about the details.
State unemployment insurance (SUI). New Jersey 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 New Jersey: 0.5% - 6.78%. Missing the registration is one of the most common audit findings.
State income tax withholding. New Jersey requires its income tax to be withheld once you withhold federal income tax for your nanny, which happens only when your nanny asks and you agree. With no federal withholding, you are not required to withhold New Jersey income tax.
State disability insurance (SDI) and Paid Family Leave (PFL). New Jersey runs a state-administered SDI and 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 New Jersey is $15.23/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.
New Jersey household employer questions
The state-specific rules behind every finding.