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 Texas household employer rules differ
Great news—Texas is one of the easiest states for household employers! There's no state income tax, so you don't need to withhold anything extra from your employee's paycheck. You'll just need to pay into the state unemployment fund, and we handle that for you.
State unemployment insurance (SUI). Texas 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 Texas: 0.25% - 6.4%. Missing the registration is one of the most common audit findings — the simulator flags it as soon as your quarterly wages cross the threshold.
No state income tax withholding. Texashas no state income tax (or exempts domestic-service wages from withholding), so there's nothing to deduct from your nanny's paycheck on the state side. You still owe the federal baseline (FICA, FUTA, Schedule H) and any SUI obligation.
Minimum wage. The minimum wage in Texas 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 Texas rules apply to your situation — each finding comes with dollar exposure and a concrete next step.
Texas household employer questions
The state-specific rules behind every finding.