How do I register as a household employer in Indiana?

Start with a federal EIN, then register with Indiana for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Indiana's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Indiana income tax at your nanny's request, register separately with the state revenue department for a withholding account. You may also need a local income tax registration, depending on your nanny's work or home municipality. Every Indiana county levies a county income tax (CAGIT/COIT) on top of the 3.05% state rate.

What payroll taxes does Indiana charge for a household employee?

Federal FICA and FUTA, Indiana SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Indiana SUTA: 0.5% - 7.4% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Local income tax may also apply. Every Indiana county levies a county income tax (CAGIT/COIT) on top of the 3.05% state rate.

What are Indiana's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in Indiana. Indiana sets no rate above the federal floor, so the federal minimum is what binds. Some cities and counties may 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. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Indiana?

Yes. Indiana allows direct deposit for household employees. Federal Regulation E still applies: your nanny must be free to choose their own bank, or you offer another payment method. Get a written, signed authorization before the first deposit, even though Indiana does not strictly require one.

What records do I need to keep for a Indiana household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Indiana follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Indiana Nanny Tax Guide

Indiana has a low flat state income tax of 2.95%, but all counties also impose their own income taxes ranging from about 0.5% to 3%. You must withhold both state and county taxes.

Indiana household employer quick facts

Applies in Indiana

State income tax withholding
State unemployment

Not in Indiana

Disability insurance
Paid family leave

Minimum Wage

$7.25/hour (federal)

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SUTA Rate Range

0.5% - 7.4%

New employers: 2.5% on the first $9,500 (2026). Indiana Department of Workforce Development

Key things to know

Flat state income tax of 2.95%
County income taxes apply (varies by county)
Uses federal minimum wage
No disability or paid leave requirements

Indiana Employer Requirements

State Income Tax

Indiana uses a flat 2.95% state income tax rate. A personal exemption of $1,000 per dependent reduces taxable income.

County Income Tax

All Indiana counties have their own income tax, typically ranging from 0.5% to 3%. You must withhold county tax based on where your employee lives.

State Unemployment Insurance

Employers pay SUI tax on the first $9,500 of wages. New employer rate is 2.5%, with rates ranging from 0.5% to 7.4% based on experience.

Indiana household employer questions

What will it cost?

Wondering what you'll actually owe as a Indiana employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Indiana tax agency, IRS Publication 926

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Indiana Nanny Tax Guide

Indiana household employer quick facts

Indiana Employer Requirements

State Income Tax

County Income Tax

State Unemployment Insurance

Indiana household employer questions

What will it cost?

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