How to File a W-2 for Your Nanny: Employer's Complete Guide

Why Your Nanny Needs a W-2

If you paid your nanny $2,800 or more in cash wages during the 2026 tax year, you are required to issue them a Form W-2 by January 31 of the following year. The W-2 reports their total wages and the taxes withheld, which they need to file their own personal income tax return.

Unlike independent contractors who receive a 1099, household employees are W-2 workers. The IRS is clear on this: nannies, housekeepers, and other domestic workers are employees, not contractors. Issuing a 1099 instead of a W-2 is a common mistake that can trigger penalties and audits for both you and your employee.

When to Issue the W-2

The deadline for providing your nanny with their W-2 is January 31 of the year following the tax year. For wages paid in 2026, you must deliver the W-2 by January 31, 2027.

You must also file Copy A with the Social Security Administration (SSA) by the same January 31 deadline. If you are filing on paper, use Form W-3 (Transmittal of Wage and Tax Statements) to submit Copy A. Electronic filers do not need to submit a separate W-3.

Box-by-Box Guide to the W-2

Employee and Employer Information

Box a (Employee's SSN): Your nanny's Social Security number.
Box b (Employer's EIN): Your Employer Identification Number. If you do not have one, apply online at IRS.gov before filing.
Boxes c and e: Your name/address and your employee's name/address, respectively.

Wage and Tax Boxes

Box 1 (Wages, tips, other compensation): Total cash wages paid during the year. This is gross pay before any deductions.
Box 2 (Federal income tax withheld): The total federal income tax you withheld at your employee's request. Note that federal income tax withholding is optional for household employers -- you only withhold it if both you and your employee agree.
Box 3 (Social Security wages): Same as Box 1, up to the Social Security wage base ($176,100 for 2026). For most household employees, Box 3 equals Box 1.
Box 4 (Social Security tax withheld): The employee's share of Social Security tax: 6.2% of Box 3.
Box 5 (Medicare wages): Same as Box 1. There is no wage cap for Medicare.
Box 6 (Medicare tax withheld): The employee's share of Medicare tax: 1.45% of Box 5.

State and Local Boxes

Box 15 (State/Employer's state ID number): Your state and state employer ID. If you are registered for state unemployment insurance, use that number.
Box 16 (State wages): Wages subject to state income tax, typically the same as Box 1.
Box 17 (State income tax withheld): If you withheld state income tax, report the amount here. Not all states require withholding for household employers.

Boxes 7 through 14 are generally not applicable for household employers and can be left blank.

Copy Distribution

Form W-2 has multiple copies, each with a specific purpose:

Copy	Recipient	Purpose
Copy A	Social Security Administration	Filed with SSA (paper or electronic)
Copy B	Employee	For employee's federal tax return
Copy C	Employee	For employee's personal records
Copy D	Employer (you)	For your records -- keep for at least 4 years
Copy 1	State/local tax agency	If your state requires it
Copy 2	Employee	For employee's state/local tax return

Electronic Filing

The SSA encourages electronic filing through their Business Services Online (BSO) portal at ssa.gov/bso. Electronic filing is faster, reduces errors, and gives you instant confirmation that your submission was accepted.

If you file 10 or more W-2s across all businesses, electronic filing is mandatory. Most household employers file just one or two, so paper filing remains an option, but electronic filing is still recommended for convenience.

Common W-2 Mistakes to Avoid

Wrong Social Security number. Double-check your nanny's SSN before filing. A mismatch delays processing and can trigger IRS notices.
Forgetting state copies. Many states require you to file a copy of the W-2 with the state revenue department. Check your state's requirements.
Missing the deadline. Late W-2 filing penalties range from $60 to $310 per form depending on how late it is filed. Intentional disregard can cost $630 per form.
Using the wrong year's form. Always download the current year's W-2 from the IRS website or SSA.
Not keeping Copy D. Retain your copy for at least four years. You may need it if the IRS or SSA has questions.

How NannyLedger Simplifies W-2 Filing

NannyLedger tracks every paycheck throughout the year and calculates the exact amounts for each W-2 box. When January arrives, your year-end summary maps directly to the W-2, eliminating guesswork. You will know exactly what goes in Box 1, Box 4, Box 6, and every other field -- with confidence that the numbers are correct.

Combined with our Schedule H walkthrough and state-by-state filing guides, NannyLedger gives you everything you need to handle tax season smoothly. Get started today.