Everything you need to pay your nanny the right way.
Plain-language explainers, step-by-step how-tos, and the real math behind nanny taxes — written for families doing this themselves.
The Nanny Tax: A Plain-English Guide for Families
If you employ a nanny, you're a household employer with real tax obligations. Here's the whole picture in plain English — what you owe, when, and how to keep it simple.
What Changed for Nanny Taxes in 2026
A handful of the numbers moved for 2026 — the wage threshold, the Social Security cap, and a much larger Dependent Care FSA. Here's what's different and what it means for your payroll.
How to Set Up Nanny Payroll in 6 Steps
Setting up household payroll is a one-time checklist, not a mystery. Here are the six steps from EIN to first pay stub — in order.
W-2 vs. 1099: Why Your Nanny Is Almost Always an Employee
It's tempting to treat a nanny as a contractor and hand them a 1099. The IRS almost always disagrees — and misclassifying costs you. Here's the test that decides it.
Use a Dependent Care FSA to Pay Your Nanny Pre-Tax
If your job offers a Dependent Care FSA, it's the single easiest way to knock hundreds off your nanny costs. And for 2026 the limit jumped to $7,500.
Do I Really Have to Pay Nanny Taxes?
The short answer: if you pay a nanny more than a modest yearly threshold, yes. Here's when the rules apply — and why on-the-books pay is worth it anyway.
Am I a Household Employer? A 2-Minute Test
The whole nanny tax hinges on one question: is your worker an employee or not? Here's the simple test the IRS actually uses.
How Much Do Nanny Taxes Actually Cost?
The employer cost of nanny taxes is smaller and more predictable than most families expect — roughly 10% on top of wages, before tax breaks. Here's the breakdown.
How to Get an EIN for Nanny Payroll (Free, in Minutes)
Before your first payroll you need one thing from the IRS: an Employer Identification Number. It's free, it's online, and it takes about 15 minutes. Here's how.
Hiring a Nanny: The Legal Setup Checklist
You found the right nanny. Now the paperwork. This is the full checklist — everything to do on day one and across the first month, in order.
What to Put in a Nanny Contract
A good contract prevents 90% of nanny disputes before they start. Here's what belongs in one — and why each clause matters.
Overtime and Your Nanny: What the Law Requires
Nannies are non-exempt, which means overtime is the law, not a favor. Here's how it works — including the live-in wrinkle — and how to get the math right.
Gross vs. Net Pay: Agree on the Right Number
The most expensive mistake in nanny pay isn't the rate — it's agreeing on the wrong kind of number. Here's why 'gross' beats 'take-home.'
Guaranteed Hours: Why Nannies Expect Them
If your nanny asks for 'guaranteed hours,' they're not asking for a favor — it's a standard term. Here's what it means and how to set it.
How to Read (and Make) a Nanny Pay Stub
A pay stub turns 'here's your money' into a clear record both of you can trust. Here's every line explained — and why it matters at tax time.
Reimbursing Your Nanny for Gas and Mileage (Tax-Free)
If your nanny drives their own car for the kids, you should reimburse them — and done right, it's completely tax-free for both of you. Here's how.
Every Tax Form You Need as a Household Employer
Five forms cover the whole year of household payroll. Here's what each one does, who fills it out, and when it's due.
Schedule H, Explained
Schedule H is where your whole year of household payroll settles up — filed right alongside your personal 1040. Here's how it works.
Paying Your Nanny Taxes Quarterly (Form 1040-ES)
Schedule H settles up in April — but the IRS wants the money as you go. Here's how quarterly estimated payments keep you penalty-free.
The New-Hire Forms: W-4 and I-9, Explained
Two forms turn a handshake into a legal hire: the W-4 (so you withhold the right tax) and the I-9 (so you verify work authorization). Here's how each works.
The Real Risk of Paying Your Nanny Under the Table
Cash off the books feels simpler and cheaper — until a single event turns hidden wages into a tax problem. Here's what really goes wrong, and who it hurts.
Do You Need Workers' Comp for Your Nanny?
If your nanny gets hurt on the job, workers' comp is what stands between you and the bill. Many states require it — here's how to know and what it costs.
You Didn't Pay Nanny Taxes Last Year. Now What?
Realizing you should have been paying nanny taxes is unsettling — but very fixable. Here's a calm, practical path to getting compliant.
Nanny Share Taxes: How Two Families Split Payroll
A nanny share splits the cost of great care between two families. The tax setup is simpler than it looks — as long as you don't try to merge it.
The Child & Dependent Care Tax Credit, Explained
Pay a nanny so you can work, and the IRS gives some of it back through the Child & Dependent Care Credit. Here's how much — and how it changed for 2026.
Every Tax Break for Families Who Employ a Nanny
Paying a nanny on the books isn't just the law — it's what unlocks thousands in tax savings. Here's the full menu, and how to combine them.
Helping Your Nanny with Health Insurance
Health coverage is the benefit that keeps great nannies. Here are the ways to help — and which ones are tax-free versus taxable.
PTO, Sick Days, and the Benefits Nannies Expect
Pay gets a nanny in the door; benefits keep them. Here's the standard package families offer — PTO, holidays, sick days, and the extras worth considering.
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