Nanny Taxes in New Hampshire

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 New Hampshire.

New Hampshire Minimum Wage

Household employees must be paid at least the highest of the federal, state, or applicable local minimum wage rates. New Hampshire hasn’t adopted a state minimum wage so the federal rate of $7.25/hour applies.

Overtime

Household employees in New Hampshire 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.

New Hampshire State Unemployment Tax & Rate

In New Hampshire, the new employer SUI (state unemployment insurance) rate is 1.7% on the first $14,000 of wages for each employee. Employers are also charged a surcharge tax called the Administrative Contribution (AC) rate, which is 0.4% for a total contribution of 2.1%. Rates can be reduced by any Fund Reduction or increased from any Emergency Power Surcharge in place for the applicable quarter. Employers with previous employees may be subject to a different rate. This is an employer-only tax.

New Hampshire assigns SUI tax rates for a fiscal year so new tax-rate calculations take effect as of July 1 and are effective through June 30 of the following year. Typically, the state issues new fiscal year SUI tax rates in August.

Workers’ Compensation Insurance

Household employers in New Hampshire are required to have workers’ compensation coverage for all part- and full-time employees. Get a quote on workers’ compensation insurance.

Voluntary Paid Family and Medical Leave Plan

All employers in New Hampshire can participate in the voluntary New Hampshire Paid Family & Medical Leave plan (NH PFML), an insurance plan that provides workers with wage replacement coverage for specific leaves of absence.

Workers can receive 60 percent of their average weekly wage (up to the Social Security wage cap) for up to six weeks per year for specified leaves of absence from the workplace.

Household employees may purchase NH PFML for themselves if their employer does not provide NH PFML insurance or an equivalent benefit.

NH PFML insurance provides wage replacement during absences from work for common life events, such as:

Final Pay

If a family “discharges” an employee, their wages must be paid within 72 hours. If an employee voluntarily resigns or is otherwise “laid off,” the worker’s wages must be paid on the next regular payday. However, if an employee gives the family at least one pay period’s notice, the worker must be paid within 72 hours of the last day of employment.

Helpful Links for Nanny Taxes in New Hampshire

New Hampshire Department of Labor

New Hampshire Department of Revenue Administration

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 will pay 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 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 2024, the IRS has set the optional standard mileage rate at 67 cents per mile driven. This rate increases to 70 cents per mile on January 1, 2025. 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 New Hampshire

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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