Nanny Taxes in Nevada

Household employers need to comply with tax, wage, and labor laws that affect 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 Nevada.

Nevada Minimum Wage

Household employees must be paid at least the highest of the federal, state, or applicable local minimum wage rates. Nevada’s state minimum wage of $11.25/hour for workers without health benefits ($10.25/hour for employees who have health benefits) applies. Starting on July 1, 2024, there will be a single rate of $12/hour as the state will eliminate its two-tiered minimum wage system based on whether health benefits are offered.

Overtime

Live-out household employees in Nevada whose hourly rate is less than one-and-a-half times the minimum wage are due overtime after eight hours worked in a day unless the employee’s scheduled shift is 10 hours/day for four calendar days within any scheduled week of work. Otherwise, live-out household employees are required to be paid at least time and a half for hours worked over 40 in a seven-day workweek. A live-in household employee can be exempted from overtime rules if they and their employer agree in writing to the exemption.

Domestic Workers’ Bill of Rights

Nevada has adopted a Domestic Workers’ Bill of Rights that entitles household employees to overtime for hours worked over 40 in a workweek. Live-in employees can be excluded from overtime. Household employees should be paid for all working hours, including sleeping and meal times if they are required to be on duty. They also receive at least one day off per week and a minimum of two consecutive days off at least once per month.

In addition, employers must provide a written agreement that includes:

• Rate of pay
• Conditions of overtime
• Description of job duties
• Work days and hours of work (including break times)
• Applicable live-in employment conditions

Sick Leave for “Kin Care”

A household employer who offers paid or unpaid sick leave must allow their employee to use accrued sick leave to assist a member of their “immediate family” who has:

• An illness or injury;
• Medical appointment; or
• Other authorized medical needs

Immediate family includes children, foster children, spouses, domestic partners, siblings, parents, in-laws, grandchildren, grandparents, stepparents, and any person for who the employee is the legal guardian.

Employees are permitted to use their sick leave to assist family members “to the same extent and under the same conditions that apply” when they take sick leave to care for themselves. Household employers can limit the amount of sick leave used to care for a family member to an amount equal to what the employee would accrue in a six-month period.

Nevada State Unemployment Tax & Rate

In Nevada, the new employer SUI (state unemployment insurance) rate is 2.95% on the first $40,600 of wages for each employee. This includes a career enhancement program tax of 0.05%. Employers with previous employees may be subject to a different rate. This is an employer-only tax.

Workers’ Compensation Insurance

Household employers in Nevada 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.

Final Pay

A household employee who is fired must be paid all earned wages immediately. When they resign or quit, wages earned must be paid no later than the day on which the employee would have regularly been paid, or seven days after their resignation, whichever is earlier. Penalties may apply when final wages are not paid in a timely manner.

Helpful Links for Nanny Taxes in Nevada

Nevada Department of Labor

Nevada Department of Taxation

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 $2,700 or more to any household employee in 2024 (or paid a domestic worker $2,600 or more in 2023), then you need to 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 it 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 the age of 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 2024, the IRS has set the optional standard mileage rate at 67 cents per mile driven. Paying mileage is not mandatory or 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 Nevada

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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