
Hassle-free taxes & payroll
Get Free Quote
Everything you need in one place

Taxes filed on time, every time —
100% guaranteed*.

Set your payroll once and forget it.

Health insurance, 401k plan, and
other employee benefits
What parents like you are saying
FAQs
Do I need to pay nanny taxes?
Yes. As a household employer, if you pay cash wages of $2,200 or more in 2020 (or $2,300 in 2021) to your employee, you must withhold Social Security and Medicare taxes. Employers are not required to withhold Federal and State income taxes unless it is agreed upon by both parties.
If income taxes are not withheld throughout the year, your nanny will be responsible for paying them at the end of the year. If you pay a total of $1,000 or more per quarter to a household employee you must pay federal unemployment tax. This does not apply if your household employee is your spouse, child under age 21, parent, or any employee under the age of 18 at any time in the current tax year.
How much will I owe in nanny taxes?
You will also pay FUTA (unemployment tax), which is six percent of wages up to $7,000 in earnings. Your employee is not responsible for this tax.
What happens if I fail to pay nanny taxes?
FAQs
Do I need to pay nanny taxes?
If income taxes are not withheld throughout the year, your nanny will be responsible for paying them at the end of the year. If you pay a total of $1,000 or more per quarter to a household employee you must pay federal unemployment tax. This does not apply if your household employee is your spouse, child under age 21, parent, or any employee under the age of 18 at any time in the current tax year.
How much will I owe in nanny taxes?
You will also pay FUTA (unemployment tax), which is six percent of wages up to $7,000 in earnings. Your employee is not responsible for this tax.
What happens if I fail to pay nanny taxes?
