Am I a household employer?
Six quick questions to find out whether your nanny, housekeeper, or caregiver is a W-2 employee — and whether you owe nanny taxes. No sign-up, nothing leaves your browser.
Who are you paying?
Household employees come in many forms — the tax rules are broadly the same.
Two questions decide it.
- Do you control the work? If you set the schedule and direct the tasks, your worker is a W-2 employee, not a 1099 contractor — no matter what you both agree to call it.
- How much will you pay? Cross $3,000 a year(2026) and Social Security & Medicare kick in; $1,000 in any quarter adds federal unemployment tax.
- Misclassifying a nanny as a 1099 contractor is a common, costly mistake. See why it matters
Household employer FAQ.
What makes someone a household employer?
You're a household employer when you hire someone to do work in or around your home and you control what work is done and how — a nanny, housekeeper, senior caregiver, cook, or personal assistant. Because you direct the work, the IRS treats them as your W-2 employee, not an independent contractor.
How do I know if my nanny is W-2 or 1099?
The deciding factor is control. If you set the schedule, decide the tasks, and direct how the work is done, your nanny is a W-2 employee. A true 1099 contractor runs their own business, serves many clients, brings their own tools, and controls their own methods — which almost never describes a nanny you hired directly.
When do I actually owe nanny taxes?
For 2026, once you pay a household employee $3,000 or more in the year, you owe the employer and employee shares of Social Security and Medicare. A separate trigger — $1,000 or more in any single calendar quarter — creates federal unemployment (FUTA) tax. These figures change yearly, so confirm the current numbers.
Are wages to a family member taxed?
Often not. Wages you pay your spouse, your child under 21, or (in most cases) your parent are exempt from Social Security, Medicare, and unemployment taxes. Other relatives are usually treated like any other household employee. Family situations have specific exceptions, so it's worth checking yours.
A household employer? We've got the rest.
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