CLIENT LOGIN | Member Services OR EMPLOYEE LOGIN | Self Service

Knowledge Center

Nanny Tax FAQ

  • Why Aren’t Arizona State Taxes Withheld from My Paycheck?

    Arizona does not allow withholding to be deducted or retained from wages paid for domestic service in a private home. This does not mean that AZ income taxes are not due on these wages, it simply means the employer is unable to withhold and remit them for their household employees. If my employer cannot withhold my… Read more »

  • Are you a household employer?

    What Your Family Needs to Know... At HWS, we are experts on the tax and labor laws surrounding household employment, so you don't have to be. Let's first determine whether YOU are a household employer. Our knowledge center goes into much more depth on the details, here it is short and simple. Our lives are busy,... Read more »
  • I have a housekeeper working in my home. What taxes do I need to pay?

    In general, the Internal Revenue Service requires payroll tax filings by a domestic employer (household employer) who pays a housekeeper or other household employee more than $2,700 cash wages (2023) in a calendar year*. These payroll taxes are collectively referred to as “nanny taxes”, although as a practical matter these employment taxes are applied to… Read more »

  • Is my nanny an “Independent Contractor?” Can I do that?

    Is my nanny an independent contractor? Can I give my nanny or senior caregiver a 1099  and let her file her own taxes? Most Workers are Employees! The US Department of Labor's Administrator of the Wage and Hour Division, David Weil, clearly stated on July 15, 2015 that most workers are considered employees under the... Read more »
  • So what are the payroll taxes household employers pay?

    Nanny taxes, what are they?  First it is important to understand the so called “nanny taxes” are not just for nannies! The Nanny Tax is a catchy phrase for headline writers! However, these are really household employment taxes and apply when you hire a nanny, housekeeper, maid, senior caregiver or other domestic worker. Household employers... Read more »
  • Why is my nanny an hourly employee? I want to pay her a salary and not worry about tracking hours each week.

    Nannies and other ‘domestic service employees’ are classified under the Fair Labor Standards Act (FLSA) as non-exempt workers. The term non-exempt employee refers to a worker who IS subject to the terms of the FLSA regarding such issues as overtime compensation and minimum wage coverage, contemporaneous time tracking record keeping, as well as nanny pay… Read more »

  • Do I need to pay my housekeeper or nanny overtime? What about nanny minimum wage?

    The simple answer is yes. Domestic employees specifically are covered by the Fair Labor Standards Act (FLSA) and have been since 1974. The FLSA establishes: The rules for workers who may be salaried (exempt) and who must be paid overtime (non-exempt). The rules for workers who must be paid no less than minimum wage. State… Read more »

  • What payroll taxes does my nanny (housekeeper, maid) pay?

    Nanny payroll taxes, what are they?  First it is important to understand the so called “nanny taxes” apply to ALL household employees, not just nannies. Your household employee (nanny, housekeeper, senior caregiver, etc.) contributes to or pays: Social Security & Medicare Taxes (via payroll deduction) Employee Disability/Unemployment Taxes where required. Federal/State Income Taxes The employer... Read more »
  • How are the nanny’s (employee’s) payroll taxes paid?

    Whether your nanny works full-time, part-time or lives with your family, the odds are likely that in the eyes of federal and state governments, they are an employee of your household. That means that you, as the nanny's employer, need to make sure that you're following state, federal and local tax requirements, both when you... Read more »
  • Am I required to offer my nanny benefits such as vacation time, sick time, or paid time off?

    US employers are not required to offer benefits such as paid vacation time, paid sick time, medical or life insurance, or retirement savings plans unless stipulated by state or local laws. However, employers with full-time, permanent staff find that offering some basic level of benefits keeps them competitive in the employment market, attracting and retaining… Read more »

FREE Updates & Tools

FREE Updates & Tools

Sign up with HomeWork Solutions today for valuable resources only available to our subscribers.

  • Receive industry related news and updates though our blog.
  • Access our FREE payroll tax calculators.
  • Access special offers & downloads.

I understand that I am registering for access to HWS. I grant HWS permission to contact me via email regarding household payroll and tax services they offer.

All fields are required.