Nevada Household Employment
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 Nevada household employment.
Household employees must be paid at least the highest of the federal, state, or the applicable local minimum wage rates. Nevada’s state minimum wage of $9.75/hour for workers without health benefits ($8.75/hour for employees who have health benefits) applies. The minimum wage will rise to $12/hour by 2024 for employees who are not offered health insurance and $11/hour for those who are provided this benefit. The incremental increases will boost the minimum wage rate by 75 cents every year.
Live-out household employees in Nevada whose hourly rate is less than one-and-a-half times the minimum wage ($13.50/hr) 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
State Unemployment Tax & Rate
In Nevada, the new employer SUI (state unemployment insurance) rate is 2.95% on the first $33,400 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 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.
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.
Social Security and Medicare taxes are commonly referred to as FICA taxes. If you pay cash wages of $2,300 or more to any household employee in a calendar year, 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.
If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2021, the IRS has set the optional standard mileage rate at 56 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 Nevada Household Employment
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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Free Resources on Household Employment
- Nanny Tax Calculator
- Nanny Tax Guide
- Tax Forms
- Tax Calendar for Household Employment
- Free eBook Chapter: Managing Payroll and Taxes
- Payroll & Holiday Calendar
- Guides & Checklists
- Employer Responsibilities
- Domestic Workers' Rights
- Workers' Compensation Requirements
- Government Websites for Household Employers