How to Issue a W-2 to Your Nanny or Household Employee
If you paid a household employee enough to owe Social Security, Medicare, or federal unemployment tax, or withheld federal income tax for them, you owe them a W-2 — not a 1099 — by January 31 of the following year, along with filing a copy with the Social Security Administration.
Why household employees get a W-2, not a 1099
A 1099 is for independent contractors. Nearly every nanny, housekeeper, or caregiver is legally your employee (see our employee vs. contractor guide), which means the correct form is a W-2, reporting wages and withheld taxes — the same form any employer issues.
What goes on the W-2
- Box 1: Total taxable wages for the year
- Box 2: Federal income tax withheld, if any
- Box 3 & 4: Social Security wages and tax withheld
- Box 5 & 6: Medicare wages and tax withheld
- Box 16 (and beyond, if applicable): state wages and withholding, for states with income tax
Every one of these numbers should come directly from your payroll records for the year — not an estimate.
How to file it
- Give Copy B (and C) to your employee by January 31
- File Copy A, along with Form W-3, with the Social Security Administration by the same January 31 deadline — this can be done online through the SSA's Business Services Online portal
- Keep your own copy and supporting payroll records for at least four years
What if you're issuing it late
Late W-2s can carry IRS penalties that increase the longer the delay — filing late is still meaningfully better than not filing at all, so don't let a missed deadline become a reason to skip it entirely.
Frequently asked questions
Do I need my employee's Social Security number for the W-2?
Yes, the W-2 requires it. Sadie never collects or stores Social Security numbers, so you'll get this directly from your employee when you're ready to file — it never passes through Sadie.
What if my employee's address changed during the year?
Use their current address at the time you issue the W-2, not the address from when they started.
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Have the W-2 numbers ready — not a reconstruction project.
Sadie keeps every W-2 box calculated from your recorded paydays, all year, so January isn't a scramble.
This guide is general information, not tax or legal advice. Rules vary by state and change over time — confirm anything specific to your situation with a licensed professional or your state's labor department.