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

Texas SUTA runs 0.32% - 6.32% 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

No. Texas has no state income tax, so there is nothing to withhold and no state return for your nanny to file.

• You still owe the federal baseline: FICA, FUTA and Schedule H
• Texas unemployment insurance still applies on the employer side

At least $7.25 an hour for a nanny in Texas.

• Texas sets no rate above the federal floor, so the federal minimum is what binds
• 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

No. Texas does not require state disability insurance or paid family leave for household employees.

• Your obligations are the federal baseline: FICA, FUTA and Schedule H
• Texas state unemployment insurance still applies on the employer side

These are the findings that come up most often for Texas 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 Texas unemployment insurance registration after crossing $1,000 in any calendar quarter (the federal household-employer trigger)
• Paying below $7.25/hour (federal) 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.