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

Oregon SUTA runs 0.7% - 5.4% by claims history, with a separate rate for new employers.

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

Usually not. Oregon 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 Oregon'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 $7.25 an hour for a nanny in Oregon.

• Oregon has its own minimum wage of $15.55/hour, but it does not cover nannies, so the federal floor governs instead
• A regular housekeeper is covered by Oregon's minimum wage: $16.80/hour in the Portland metro area, $15.55/hour in most of the state and $14.55/hour in non-urban counties
• 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

ORS 653.020(13)

Yes, paid family leave. Oregon Paid Leave covers household employees.

• Funding rules vary: some states are employee-funded, some split it between employer and employee
• You register and remit for it separately from unemployment insurance

These are the findings that come up most often for Oregon 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 Oregon unemployment insurance registration after crossing $1,000 in any calendar quarter (the federal household-employer trigger)
• Under-withholding Oregon state income tax when the employee has elected withholding on the state W-4 equivalent
• Missing registration or under-withholding for Oregon Paid Leave
• Paying a nanny below $7.25/hour or a regular housekeeper below Oregon's minimum wage, 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.