What are nanny taxes?
If someone is your common-law household employee, you're a "household employer"—then the per-worker FICA threshold, separate FUTA test, family exceptions, and state rules determine what taxes apply.
Pay over $3,000/year?
A nonexempt worker generally has Social Security and Medicare wages. FUTA and state rules use separate tests.
You're the employer
The IRS considers household workers employees, not contractors. You control their schedule—that makes you the employer.
The nanny tax breakdown
What you'll owe and who pays what
| Tax | Rate | Who Pays |
|---|---|---|
| 6.2% | Both you and your nanny | |
| 1.45% | Both you and your nanny | |
| 6% (0.6% after credit) | You (employer only) | |
| Varies by state | You (employer only) | |
| Based on W-4 | Your nanny (optional withholding) |
How NannyKeeper handles nanny taxes
You log the hours, we handle the rest
Accurate Tax Calculations
Federal, state, Social Security, Medicare—calculated to the penny for your specific situation.
Professional Pay Stubs
Itemized pay stubs your employee can use for apartments, loans, or their own tax filing.
Never-Miss Reminders
Email alerts before every deadline. No more "I forgot it was due."
Built-In Direct Deposit
Funds transfer automatically on payday. No checks to write or bank runs.
We Handle Your EIN
Need an Employer ID Number? We apply with the IRS on your behalf—no forms to navigate yourself.
W-2s & Schedule H
Your W-2s and household employment form, ready to download when tax season arrives.
We handle payroll for all types of household employees
Not sure what you owe in nanny taxes?
Plug in your nanny's wages and your state. Our free calculator breaks down your federal, state, and obligations in about 30 seconds.
Calculate What You OweFree. No signup required.
Are you a nanny reading this? Learn about your pay stubs, W-2, and benefits.
Common nanny tax questions
Nanny taxes are the employment taxes you're responsible for when you hire someone to work in your home—like a nanny, caregiver, or housekeeper. They include Social Security (6.2% each), Medicare (1.45% each), federal unemployment tax (FUTA), and potentially state unemployment and income taxes.
Are you a nanny reading this?
This page explains your employer's obligations. But if you're a nanny looking for information about your taxes and benefits, we have a page just for you.
See what NannyKeeper means for nanniesAre you a CPA managing nanny payroll for multiple families? NannyKeeper Professional was built for you — manage up to 50 households from a single account.