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Nanny Salaries & Taxes
Required Nanny Payroll Taxes
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What nanny payroll taxes are you required to pay?
Required Nanny Payroll Taxes
Employers who pay their nannies more than $1500 per year are required by the federal government to pay taxes on that person. Payroll taxes consist of the following items:
- Social Security-You must match the 6.2% of Social Security tax that is paid by the nanny for up to $94,200.
- Medicare-You must match the 1.45% of Medicare tax that is paid by the nanny with no limit or stipulations on wage amounts paid.
- Federal Unemployment Taxes-You must pay a net tax of 0.08% for your nanny. This is based on you paying 6.2% taxes on the first $7000 and then you receiving a tax credit of 5.4% after that amount has been reached.
- State Employment and Disability Taxes-You will need to check with your state's tax department for recommendations on how much to withhold.
