U.S. nanny tax for household employers
The U.S. nanny tax is the household-employer tax process for families who pay a nanny or other household employee above the annual IRS threshold. It can include Social Security, Medicare, federal unemployment tax, state payroll rules, wage records, and forms. Families should use current IRS guidance or a payroll professional before hiring.
When it can apply
A family may become a household employer when it controls what work is done and how the caregiver does it. A regular nanny is often different from an agency employee or independent occasional babysitter.
What families usually need to plan
Confirm whether the worker is a household employee under IRS rules.
Track wages and tax thresholds for the tax year.
Handle required forms, withholdings, unemployment taxes, and state obligations.
Avoid paying under the table; it can create tax, insurance, and employment problems.
What this does not cover
This answer does not replace professional tax advice. State payroll, workers compensation, sick leave, overtime, and local rules may apply separately.
Follow-up questions
Does nanny tax apply to au pairs?
U.S. au pairs are handled through the J-1 au pair programme and have separate tax considerations. Families should follow sponsor and IRS guidance.
Can I classify my nanny as self-employed?
Not just by agreement. The classification depends on control and facts under tax and employment rules.