Frequently Asked Questions about the Nanny Taxes
"Nanny Tax" Basics
- Am I a household employer?
- I have a domestic (nanny, elder care giver, housekeeper) working in my home. What taxes do I need to pay?
- What taxes does my employee pay?
- How are the employee's payroll taxes paid?
- How often do I need to pay these taxes?
- Congress simplified the "nanny taxes." What does that mean to me?
- What is "New Hire Reporting"?
Legal & Insurance Issues
- Why is my nanny an hourly employee? I want to pay her a salary.
- Do I need to pay minimum wage? What about overtime?
- What about tracking the nanny's hours? What is required?
- Do I need a written agreement or contract with my nanny?
- What about worker's compensation and disability insurance?
- Is health insurance for my domestic (nanny, elder care giver, housekeeper) taxable?
- How frequently do I need to pay my household worker? My nanny wants to be paid weekly. Do I need to do that?
- How do I calculate overtime for my salaried nanny? What about compensation for occasional overnights?
- Am I required to offer my nanny benefits such as vacation time, sick time, or paid time off?
- We are hiring a live-in nanny. How do you figure her room and board for tax purposes?
- Our former nanny applied for unemployment benefits? She was fired due to poor attendence - will she get benefits?
- Can I pay my nanny on my business payroll?
- My nanny wants to take home $600 a week. What does that mean?
- How do we handle the taxes if we share a nanny with another family?
- My employee is not a legal resident. What should I do about employment taxes?
- Am I required to hire U.S. citizens?
- My domestic (nanny, elder care giver, housekeeper) wants to be treated as a "contractor." Can I do that?
- Do I have to pay taxes for the cleaning lady that comes weekly?
- What are my tax responsibilities with a temporary nanny?
- I am hiring a nanny who has a F-1 (J-1) Student Visa. Are there special rules?
- I gave my nanny a $2000 holiday bonus. Do I have to report that as wages? I would perfer it be a gift!
- How can I help my nanny build a tax-deferred retirement savings account?
- Our wonderful nanny will be leaving in September when our son begins full time school. How do we help her with a letter of recommendation?