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

Washington SUTA runs 0.27% - 6.03% 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. Washington 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
• Washington unemployment insurance still applies on the employer side

At least $17.13 an hour for a nanny in Washington.

• That is Washington's own minimum wage, above the federal $7.25 floor
• Washington raises it to $17.73/hour from January 1, 2027
• Some cities and counties set a higher floor, so check your locality before you set a rate
• 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

Yes, paid family leave. Washington Paid Family and Medical Leave (PFML) and the WA Cares Fund long-term care premium 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 Washington 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 Washington unemployment insurance registration after crossing $1,000 in any calendar quarter (the federal household-employer trigger)
• Missing registration or under-withholding for Washington Paid Family and Medical Leave (PFML) and the WA Cares Fund long-term care premium
• Paying below $17.13/hour 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.