Knowledge Center

Nanny Employers

• About Household Employee Workers’ Compensation Insurance

  Household employee workers’ compensation insurance protects the caregiver and the employer from the expenses and liabilities associated with a work-related accident.  A single accident can leave the household employer liable for thousands of dollars in medical bills.  Don’t assume that this liability is covered under your Homeowner’s Insurance Policy! Last updated June 28, 2024 Most… Read more »

• Do I need to pay my housekeeper or nanny overtime? What about nanny minimum wage?

  The simple answer is yes. Domestic employees specifically are covered by the Fair Labor Standards Act (FLSA) and have been since 1974. The FLSA establishes: The rules for workers who may be salaried (exempt) and who must be paid overtime (non-exempt). The rules for workers who must be paid no less than minimum wage. State… Read more »

• Nanny Transportation Allowance

  Many families find that paying for their nanny’s or senior caregiver’s public transportation pass is a great tax free benefit. Because this is non-taxable, you can provide this nanny transportation allowance without having to pay FICA or unemployment taxes on the value! For 2024, an employer may reimburse the nanny or senior caregiver for mass/public… Read more »

• What payroll taxes does my nanny (housekeeper, maid) pay?

  Nanny payroll taxes, what are they?  First it is important to understand the so called “nanny taxes” apply to ALL household employees, not just nannies. Your household employee (nanny, housekeeper, senior caregiver, etc.) contributes to or pays: Social Security & Medicare Taxes (via payroll deduction) Employee Disability/Unemployment Taxes where required. Federal/State Income Taxes The employer... Read more »

• Caregiver or Nanny Pay Stubs: Are they required?

  Did you know that 39 states have now passed laws requiring employers to provide itemized pay stubs to their employees? Why all the attention to nanny pay stubs? There has been a slew of legislation at the state level in the last decade focused on “Wage Theft Prevention” – essentially employers either not paying for all hours... Read more »

• How are the nanny’s (employee’s) payroll taxes paid?

  Our Ultimate Guide to Nanny Payroll Taxes Requirements Whether your nanny works full-time, part-time or lives with your family, the odds are likely that in the eyes of federal and state governments, they are an employee of your household. That means that you, as the nanny's employer, need to make sure that you're following state,... Read more »

• Am I required to offer my nanny benefits such as vacation time, sick time, or paid time off?

  US employers are not required to offer benefits such as paid vacation time, paid sick time, medical or life insurance, or retirement savings plans unless stipulated by state or local laws. However, employers with full-time, permanent staff find that offering some basic level of benefits keeps them competitive in the employment market, attracting and retaining… Read more »

• How often do I need to pay or remit the “nanny taxes”?

  Many wonder how to pay nanny taxes and how often to file. Understand that the federal and state filing schedules are NOT synchronized. Additionally, not all states have the same reporting schedule. Federal Employment Taxes: Employers of domestic workers must, at a minimum, make annual payments for Social Security, Medicare and Withheld Income Tax (if… Read more »

• Can an employer pay the nanny on the payroll of their own business?

  Considering adding a nanny on business payroll? Nanny employers who own a business or a farm operated for profit can choose to include their nanny’s payroll in their 941 or 943 tax returns. The ‘nanny taxes’ are exactly the same employment taxes paid for other employees and do not require special calculation. What the sole… Read more »

• Nanny Fired: When are last wage payments due?

  Whether the nanny is fired (involuntary separation, termination or discharge) or resigns (quits) voluntarily, state rules define how quickly the employer must give the final paycheck. Below is a state by state summary of separation payment rules as they apply to household employees.* May 2019 You MAY NOT withhold the final paycheck pending the return… Read more »