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 Ohio household employer rules differ
Ohio has a flat 2.75% income tax on income above $26,050. Most Ohio cities also levy a municipal income tax, and whether a household employer withholds it depends on the city. Cincinnati and Columbus require it, so we withhold it there. Elsewhere, where nothing is withheld, your nanny still owes it on their own city return.
State unemployment insurance (SUI). Ohio 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 Ohio: 0.3% - 9.7%. Missing the registration is one of the most common audit findings.
State income tax withholding. Ohio 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.
Local income taxes. Ohio has significant local income tax layers: over 600 cities levy their own income tax. In Cincinnati and Columbus you register with the city and withhold its tax. Other Ohio cities set their own rules, so check yours.
Minimum wage. The minimum wage that applies to a nanny in Ohio is $7.25/hour. That is the federal floor, because the state's own rate does not cover nannies. 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.
Ohio household employer questions
The state-specific rules behind every finding.