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 New York household employer rules differ
New York has a few more requirements than simpler states, but your employee gets some valuable benefits in return—including disability coverage and paid family leave. If you're in NYC, Yonkers, or certain other areas, there may be local taxes too. Don't worry, we sort it all out for you.
State unemployment insurance (SUI). New York 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 New York: 0.6% - 9.7%. Missing the registration is one of the most common audit findings — the simulator flags it as soon as your quarterly wages cross the threshold.
State income tax withholding. New Yorkhas 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.
State disability insurance (SDI) and Paid Family Leave (PFL). New York 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. The simulator flags missing setup or under-withholding.
Local income taxes. New York has significant local income tax layers — New York City and Yonkers collect their own income taxes on top of state. Depending on where the employee actually works (resident vs. work locality), you may need to register with multiple local agencies. The simulator flags missing local registrations.
Minimum wage. The minimum wage in New York is $15.50-$16.50/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 New York rules apply to your situation — each finding comes with dollar exposure and a concrete next step.
New York household employer questions
The state-specific rules behind every finding.