What will you owe in nanny taxes?
For nannies, babysitters, and housekeepers. Free estimate in 30 seconds — no signup required.
W-2 vs 1099 for nannies
Your nanny is a employee, not a 1099 contractor. The IRS classifies household workers as employees because you control their hours, duties, and tools — the same test that applies to any employer.
Misclassifying as 1099 can trigger back taxes, interest, and penalties.
See IRS Publication 926Understanding your nanny tax estimate
As a household employer paying $3,000+/year to a single nanny, babysitter, or housekeeper, you owe three federal payroll taxes on top of wages. Per IRS Publication 926:
“If you have a household employee, you may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both.”
| 7.65% each | Social Security (6.2%) + Medicare (1.45%), split between you and your employee. | |
| 0.6% | Federal unemployment on the first $7,000 of wages. Employer-only. | |
| Varies | Each state sets its own rate and wage base. Some also require disability insurance. |
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What does a nanny cost in your state?
Average wages, tax rates, and total cost of employment for all 50 states.
Hiring a summer nanny?
Threshold math, setup steps, and year-end wrap-up for summer hires.
Babysitter taxes work the same way
Same $3,000 threshold per person, same FICA rates. Real examples for sitter-sized arrangements.
Managing payroll for multiple clients? NannyKeeper Professional handles up to 50 households from one account.
Common nanny tax questions
Answers based on IRS Publication 926 and current state requirements.
State nanny tax calculators
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