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

New York SUTA runs 1.625% - 9.425% by claims history, before New York's separate re-employment service fund, with a separate rate for new employers.

• You owe it once you pay $500 in any calendar quarter (lower than the federal $1,000)
• Filings are usually quarterly, with an annual reconciliation
• Your assigned rate moves over time, depending on whether former employees file unemployment claims

Usually not. New York has a state income tax, but withholding it from a household employee is optional unless your nanny asks for it.

• It is usually optional, and your nanny elects it on New York's W-4 equivalent
• If they do elect it, you owe quarterly remittance to the state and an annual reconciliation return that includes the W-2 you issued

At least $16.00 an hour for a nanny in New York.

• That is New York's own minimum wage, above the federal $7.25 floor
• Parts of New York have a higher floor, so check the rate where the work happens before you set one
• Overtime is 1.5x pay for hours over 40 in a week, under the FLSA
• Live-in nannies are exempt from FLSA overtime, but not from minimum wage

US DOL, State Minimum Wage Laws

Yes, both, once New York's household coverage rule applies: Disability Benefits Law (DBL) and Paid Family Leave (PFL) cover a nanny who works 20 or more hours a week for you, counted the way the state counts them (a live-in nanny almost always reaches 20), after 30 days of work in the calendar year.

• The policy must be in place within four weeks of that 30th day, and withholding starts when coverage takes effect at the end of those four weeks; below the rule you can elect coverage on Form DB-135 or DB-136
• The premium goes to a private carrier or NYSIF, not the state; PFL is employee-funded and the DBL deduction is capped at 60 cents a week

If your nanny is over the rule, arrange the policy before the four weeks run out; the carrier, not the state, bills you for it.

These are the findings that come up most often for New York household employers.

• Treating a household worker as a 1099 contractor when their schedule and duties make them a W-2 employee under IRS Publication 926
• Missing New York unemployment insurance registration after crossing $500 in any calendar quarter (lower than the federal $1,000)
• Under-withholding New York state income tax when the employee has elected withholding on the state W-4 equivalent
• No New York Disability Benefits Law (DBL) and Paid Family Leave (PFL) policy in place four weeks after a nanny working 20 or more hours a week reaches 30 days of work in the calendar year
• Missing local income tax registration in the employee's work or residence municipality
• Paying below $16.00-$17.00/hour or skipping FLSA overtime, which is a Department of Labor (not IRS) finding

Federal exposure layers on top of all of these: no Schedule H filed, no W-2 issued, no EIN, and any FICA underpayment.