Nanny Taxes in Missouri

Household employers must comply with tax, wage, and labor laws affecting nannies, in-home senior caregivers, and other household employees. While federal laws cover employers in all states, there are also state- and city-specific regulations that employers must follow. Here’s what you need to know about nanny taxes in Missouri.

Missouri Minimum Wage

Household employees must be paid at least the highest of the federal, state, or applicable local minimum wage rates. Missouri’s state minimum wage of $13.75/hour applies.

Overtime

Household employees in Missouri are required to be paid at least time and a half for hours worked over 40 in a seven-day workweek. Overtime compensation is not required for live-in employees.

Missouri State Unemployment Tax & Rate

In Missouri, the new employer SUI (state unemployment insurance) rate is 2.376 percent on each employee’s first $10,00 of wages. Employers with previous employees may be subject to a different rate. This is an employer-only tax.

Paid Sick Time

Employees will start accruing paid sick time benefits on May 1, 2025, at a rate of one hour of “earned paid sick time” for every 30 hours worked. Workers are entitled to use no more than 40 hours of paid sick time per year and can rollover 80 hours of “earned paid sick time” into the next 12-month period.

An employee can use their “earned paid sick time” for the following reasons:

• They or a family member have a mental or physical illness, injury, or health condition.
• They or a family member require medical care, a medical diagnosis, or treatment, as well as receiving preventative medical care services.
• A public official has ordered their place of employment closed due to a public health emergency.
• They need to care for a child whose school district has been ordered closed by a public official due to a public health emergency.
• They need to be absent to attend to matters relating to domestic violence, sexual assault, or stalking.

“Casual workers on private residences employed for less than six hours on each occasion” and “casual babysitters” are not considered employees for the purposes of “earned paid sick time.”

Written notice of the “earned paid sick time” policy must be provided to employees by April 15, 2025.

Workers’ Compensation Insurance

Household employers in Missouri are not required to have workers’ compensation coverage for full- or part-time employees. However, you can choose a voluntary policy to protect you and your employee. Get a quote on workers’ compensation insurance.

Helpful Links for Nanny Taxes in Missouri

Missouri Department of Labor

Missouri Division of Finance

Federal Regulations

All household employers need to follow certain federal regulations including:

Fair Labor Standards Act (FLSA) Classification Guidelines

• Household workers are considered employees and not independent contractors. Learn more about misclassifying employees as independent contractors.
• Household workers are also non-exempt employees, which means they receive overtime pay of at least time-and-a-half for hours worked over 40 per workweek. Learn more about overtime pay.

FICA Taxes

Social Security and Medicare taxes are commonly referred to as FICA taxes. If you pay cash wages of $2,800 or more to any household employee in 2025 (or paid a domestic worker $2,700 or more in 2024), you must withhold and pay FICA taxes. FICA taxes are 15.3 percent of cash wages. As an employer, you pay 7.65 percent (6.2 percent for Social Security and 1.45 percent for Medicare). Your employee's share is also 7.65 percent, which you can withhold from their wages or choose to pay yourself. You don't withhold or owe FICA taxes on wages you pay to your spouse, child under the age of 21, parent, or any employee under 18 at any time during the calendar year.

Federal Unemployment Tax (FUTA)

If you pay a household employee total cash wages of $1,000 or more in any calendar quarter, you'll owe federal unemployment tax. This is an employer-only tax. FUTA is six percent of cash wages on the first $7,000 you pay an employee.

Mileage Reimbursement

If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2025, the IRS has set the optional standard mileage rate at 70 cents per mile driven. Paying mileage is not mandatory in most states, and you can reimburse your employee at a different rate. However, if the cost of mileage causes your employee to fall below minimum wage, then you need to reimburse them for mileage.

GTM Can Help with Nanny Taxes in Missouri

Call (800) 929-9213 for a free, no-obligation consultation with a household employment expert. We’ll answer all your questions and show you how to comply with wage, tax, and labor laws as a household employer. Or, if you’re ready to have GTM Payroll Services handle it all for you, get started with our nanny payroll and tax service.

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