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 Tennessee household employer rules differ
Tennessee has no state income tax on wages (the Hall tax on investment income was eliminated in 2021). This makes it one of the simpler states for household employers.
State unemployment insurance (SUI). Tennessee 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. New-employer rate range in Tennessee: 0.1% - 10%. Missing the registration is one of the most common audit findings — the simulator flags it when your quarterly wages cross the applicable threshold.
No state income tax withholding. Tennessee has no state income tax at all, so there's nothing to deduct from your nanny's paycheck on the state side and no state return for them to file. You still owe the federal baseline (FICA, FUTA, Schedule H) and any SUI obligation.
Minimum wage. The minimum wage in Tennessee is $7.25/hour (federal). 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 Tennessee rules apply to your situation — each finding comes with dollar exposure and a concrete next step.
Tennessee household employer questions
The state-specific rules behind every finding.