Resources & Templates

If you pay a household employee $2,700 or more in a calendar year (2024 threshold), you're required to withhold and pay Social Security and Medicare taxes. If you pay $1,000 or more in any quarter, you owe federal unemployment tax (FUTA).

The 'nanny tax' is an informal term for the employment taxes household employers must pay. It includes the employer's share of Social Security (6.2%), Medicare (1.45%), federal unemployment (FUTA), and applicable state taxes.

In most cases, no. The IRS considers household workers to be employees if you control when, where, and how they work. Misclassifying an employee as a contractor can result in penalties and back taxes.

Schedule H is the IRS form household employers use to report employment taxes. It's filed with your personal tax return (Form 1040) and covers Social Security, Medicare, FUTA, and federal income tax withholding for your household employees.

Requirements vary by state. Some states require workers' compensation for all household employees, while others have minimum hour or wage thresholds. Check your state's requirements in our state tax guides.

NannyLedger provides comprehensive state-by-state tax guides covering income tax, unemployment insurance, and local requirements for all 50 states and DC. Visit our state guides for details.