Nanny Taxes in Nebraska

Minimum Wage

Household employees must be paid at least the highest of the federal, state, or applicable local minimum wage rates. Nebraska’s state minimum wage rate of $13.50/hour applies. This rate will increase to $15/hour on January 1, 2026.

Overtime Pay Rules

Household employees in Nebraska 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.

State Unemployment Tax & Rate

In Nebraska, the new employer SUI (state unemployment insurance) rate is 1.25 percent on the first $9,000 of wages for each employee. This is an employer-only tax.

Workers’ Compensation Insurance

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

Disability Benefits Insurance

The state has no disability benefits rules related to nanny tax and payroll.

Domestic Workers’ Bill of Rights

The state has no domestic workers’ bill of rights.

Paid Leave Laws

The state has no paid leave regulations related to nanny tax and payroll.

Other State Regulations

Nebraska Healthy Families and Workplaces Act

Starting October 1, 2025, all Nebraska employers must offer paid sick leave. Employees can earn one hour of paid sick leave for every 30 hours worked. Workers may earn up to 40 hours of paid sick leave annually.

Employees are considered “eligible” if they work at least eighty hours in Nebraska during a calendar year.

Employees can use paid sick leave for themselves or a family member for mental or physical illness, injury, or a health condition or for a medical diagnosis or preventive medical care. Paid sick time could also be used during a public health emergency that closes a business or school.

Employees may carry over unused paid sick leave to the following year but no more than the maximum number of hours (40 hours).

Full-time, part-time, and temporary employees are eligible.

Final Pay

The Nebraska Wage Payment and Collection Act requires employers who terminate a worker to pay all wages due, including earned but unused vacation time, on the next regular payday or within two weeks of the date of separation, whichever is sooner.

Helpful Links for Nanny Taxes in Nebraska

• Nebraska Department of Labor
• Nebraska Department of Revenue

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, meaning they receive 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 $3,000 or more to any household employee in 2026 (or paid a domestic worker $2,800 or more in 2025), 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 may withhold from their wages or 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 6% of cash wages on the first $7,000 of wages paid to an employee.

Mileage Reimbursement

If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2026, the IRS has set the optional standard mileage rate at 72.5 cents per mile driven. Paying mileage is not mandatory in most states, and you can reimburse your employee at a different rate. However, if mileage costs cause your employee to fall below the minimum wage, you must reimburse them for mileage.

Remitting Taxes Quarterly

Household employers can remit taxes, including FICA, employee income, and federal unemployment, quarterly using Form 1040-ES. If a household employer does not remit their taxes quarterly, the entire amount will be due when they file their personal tax return. This could cause an underpayment penalty.

Year-End Requirements

By January 31, household employers must provide Form W-2 to their employees and submit Form W-3 and Copy A of Form W-2 to the Social Security Administration. Then, a household employer must file Schedule H with their personal tax return. Learn more: How to File Schedule H