Are you legally required to pay nanny taxes?
Two quick questions. No sign-up, no email required.
Common questions about nanny taxes
What makes someone a household employer?
Under IRS Publication 926, you're a household employer if you pay a nanny, babysitter, housekeeper, or caregiver more than $3,000 in a year, or more than $1,000 in any single 3-month period — either threshold on its own is enough.
Does paying with Venmo or Zelle count as paying my nanny?
Yes. How you send the money — cash, check, Venmo, Zelle, Cash App, bank transfer — doesn't change whether you owe household employment taxes. The IRS looks at how much you paid, not which app you used to send it.
What happens if I don't pay nanny taxes?
If you're over the threshold and don't withhold and pay the required taxes, you can owe back taxes, penalties, and interest, and your employee misses out on Social Security and unemployment credit for the work they did. Starting to comply going forward matters more than the past.
Do I need an EIN to pay a nanny?
If you're a household employer, you generally need a federal EIN to report and pay employment taxes. The IRS issues these for free, instantly, through their online EIN Assistant.