Moving States? Your Nanny Tax Checklist

You just accepted a job across the country. Or maybe you're moving closer to family a few states over. Either way, the nanny tax question hits fast: what happens to your payroll when you cross state lines?

Federal taxes stay exactly the same. State taxes follow wherever your nanny physically works. That means some paperwork, but it's manageable once you know the steps.

Federal Taxes Stay Put

Your federal obligations are completely unaffected by a move. FICA (Social Security + Medicare) and FUTA are federal programs — they don't care which state your nanny works in.

Nothing changes:

Your EIN carries over too. You don't need a new one just because you moved. The same EIN covers household employment in any state.

If you're new to these numbers, our complete nanny tax guide breaks down every line item.

State Taxes Follow the Work

State income tax and state unemployment insurance (SUTA) are based on where your nanny physically performs the work — not where you're registered to vote or where your driver's license says you live.

For household employers, this distinction rarely matters in practice. Your nanny works in your home, and your home is in the state you live in. So when you move, the work location moves with you.

In practice:

• Before the move: state taxes withheld based on your old state's rules
• After the move: state taxes withheld based on your new state's rules
• The transition: you split the year between two states

Check your state's specific requirements for details on rates and registration.

Registering in the New State

Most states require household employers to register for a state unemployment insurance (SUTA) account. Some also require separate registration for state income tax withholding.

The process varies by state, but you'll typically need to:

1. Apply for a state employer account with the new state's labor or workforce agency
2. Get assigned a state employer ID number and SUTA rate (new employers typically get a default rate)
3. Set up state income tax withholding if required (some states piggyback on your federal EIN, others issue a separate number)

This takes anywhere from a few days to a couple of weeks depending on the state. Start as soon as you know your move date.

No-income-tax states make this easier

If you're moving to a state with no personal income tax, you only need to worry about unemployment insurance. No state income tax withholding at all.

Moving to one of these states is simpler. One fewer thing to set up.

Complex states take more planning

California requires registration with both the EDD and the Franchise Tax Board, plus quarterly DE 9 filings. New York has its own quarterly reporting and specific household employer provisions. Both states have robust online portals, but the setup takes time.

If you're moving from one of these states, make sure you properly close out your account (more on that below).

Closing Out Your Old State

Leaving your old state's employer rolls is just as important as registering in the new one. An open employer account with no wages reported can trigger notices, audits, or — in some states — estimated tax bills.

What to do:

• File your final quarterly report for the last quarter you paid wages in that state (even if it's a partial quarter)
• Mark the account as closed or "final" on the quarterly report — most states have a checkbox for this
• Pay any remaining SUTA balance owed for the period
• Keep records of your final filing confirmation

Some states let you close your account online. Others require a written notice or a phone call. Check your state's page for the agency contact.

The Mid-Year Move Timeline

Before You Move

• 2–4 weeks out: Start your new state employer registration (don't wait — processing times vary)
• Last payday in old state: Run a final payroll reflecting work performed at the old address, with old-state tax withholding
• Note the exact wages: Record the total wages paid in the old state through your move date — you'll need this for the split W-2

At the Move

• Update your payroll settings: Switch state tax withholding to the new state starting with the first payday after you've moved
• Confirm new state registration: Make sure your new employer ID and SUTA rate are active before the first payroll in the new state
• Update your address with the IRS (Form 8822) and your new state tax agency

After the Move

• File the final quarterly report in your old state for the last quarter you paid wages there
• Close your old state employer account once the final quarter is filed and any balance is paid
• Start filing quarterly reports in your new state
• Year-end W-2: Issue state W-2s reflecting wages earned in each state (more on this below)

Two State W-2s at Year-End

Your nanny gets one federal W-2, but the state portion splits across each state where wages were earned.

Say you moved from New York to Texas in July:

If your nanny uses their W-2 to file their own state tax returns, the accuracy of this split matters. They may need to file a part-year return in both states.

Tip: Track the exact date your nanny's work location changed. A paycheck that spans the move date (say, a biweekly check covering two weeks where one week was in each state) should ideally be split by the actual days worked in each location.

If Your Nanny Moves With You

Same employee, same EIN, same employment relationship — just a new state. You don't need a new W-4, though it's a good time to have your nanny review theirs. No separation, no final paycheck, no gap.

What does change:

• State tax withholding switches to the new state
• SUTA registration in the new state
• Pay rate — worth reviewing if cost of living is significantly different (this is a conversation, not a tax obligation)

If you have a nanny contract, update the work address and any state-specific provisions (like PTO requirements or overtime rules that differ between states).

Use our calculator to see how your tax obligations change in the new state.

If Your Nanny Doesn't Move With You

You're ending employment in one state and, if you hire someone new, starting fresh in another.

For the departing nanny:

• Issue a final paycheck on or before your state's required deadline (some states require same-day pay for terminations)
• Pay out accrued PTO if your state requires it
• Notify the state unemployment agency if required — your nanny may file for unemployment
• Issue a W-2 by January 31 covering all wages paid during the year

Our guide on what to do when your nanny leaves covers the full separation checklist.

For the new nanny in your new state:

• Collect a W-4 and I-9
• Set up payroll with new-state withholding
• Run through the first-time employer checklist — most of it applies even if you've done this before in another state

You'll issue two separate W-2s at year-end: one for the old nanny (old state) and one for the new nanny (new state).

What About Quarterly Filing?

You may have overlapping quarterly obligations in both states for the quarter you move.

Say you move in May (Q2). You'd owe:

Federal quarterly payments (Schedule H estimated taxes) continue uninterrupted — just one set of federal filings regardless of how many states are involved.

FAQ

Do I need a new EIN when I move to a new state?

No. Your EIN is a federal number and works in every state. You'll get a new state employer ID when you register in the new state, but your federal EIN stays the same.

What if I move to a state with no income tax?

You still need to register for state unemployment insurance (SUTA). But you won't need to withhold state income tax from your nanny's pay, which simplifies payroll. States like Texas and Florida only require the SUTA piece.

Can I just keep running payroll under my old state?

No. State taxes must reflect where the work is actually performed. Once your nanny is working in the new state, their wages are subject to the new state's rules. Running payroll under the old state after you've moved would create incorrect withholding and could trigger issues for both you and your nanny at tax time.

Does my nanny need to file taxes in both states?

If your nanny earned wages in two different states during the year, they'll likely need to file a part-year resident return in each state. The split W-2 gives them the information they need. This is their responsibility, but giving them accurate W-2s with the correct state wage breakdown makes it straightforward.

What happens to my SUTA rate in the new state?

New employers typically receive a default SUTA rate (sometimes called the "new employer rate"). It's usually higher than what experienced employers with clean records pay. After a year or two of history in the new state, your rate may decrease. Your old state's experience rating does not transfer.

New to nanny taxes? Start with our complete nanny tax guide for the full breakdown.

Setting up for the first time in a new state? The first-time employer checklist covers EIN, registration, and payroll setup.

Nanny not coming with you? See what to do when your nanny leaves for the separation checklist.