Finding helpful New York nanny tax information is not always easy. That’s why we’ve combined all the state and federal tax and labor law information you’ll need. Check out the information below that HomePay is here to help with.*
Checklist for New York household employers
We know you’re busy! Here’s a quick “to-do” list with links to extra details below.
Beginning of employment
- Verify caregiver’s work eligibility.
- Set up EIN & state tax account(s).
- Obtain the required New York workers’ compensation insurance and disability insurance/paid family leave policies.
- Provide a wage notice, posters and training.
During employment
- File returns, remit taxes and manage correspondence.
- Pay at least New York minimum wage weekly.
- Pay overtime, when it applies.
- Provide a paystub and keep payroll records each payday.
- Provide New York state and local required leave.
- Paid Family leave
- Job protected sick leave
- Paid time off
- NYC paid safe and sick leave
- Westchester paid sick leave
- Westchester safe time leave
Optional benefits for your employee
Ending employment
- Provide a termination notice.
- Manage unused paid time off.
- Close down your state employment tax account(s).
- Maintain payroll records.
Beginning of employment
Verify caregiver’s work eligibility
Before your employee begins to work, you need to fill out Form I-9 to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned.
Set up EIN & state tax account(s)
You must first apply for a EIN (Employee Identification Number) with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.
Workers’ compensation, disability insurance, and paid family leave
Household employers in New York with full-time employees (40+ hours/week or a live-in employee) are required to get coverage for workers’ compensation insurance. Disability insurance and paid family leave is also required for families with employees that work 20 or more hours per week.
Fines for non-compliance can be very high!
These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online, or by contacting our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.
Wage notice
New York employers must provide all household employees with a wage notice at the time of hire, on an annual basis, and when there is a change in pay rate or payday. Employers must get written acknowledgement of the wage notice from their employee and keep them on file for six years.
Employment posters
Families in New York are required to notify their employee(s) of their rights by sharing these posters.
Sexual harassment prevention training
New York household employers must establish a sexual harassment prevention policy.
During employment
Set up EIN & state tax account(s)
You must first apply for a EIN (Employee Identification Number) with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.
New York wage requirements
Household employers in New York are required to pay their employees on a weekly basis.
Minimum wage rates
- New York state – $15.50/hour ($18.10/hour for home care aides as defined under 3614c)
- New York City – $16.50/hour ($19.10/hour or home care aides as defined under 3614c)
- Nassau County – $16.50/hour ($19.10/hour for home care aides – as defined under 3614c)
- Suffolk County – $16.50/hour ($19.10/hour for home care aides – as defined under 3614c)
- Long Island County – $16.50/hour ($19.10/hour for home care aides – as defined under 3614c)
- Westchester County – $16.50/hour ($19.10/hour for home care aides – as defined under 3614c)
Note: Whenever more than one minimum wage rate applies, employers are required to pay the higher rate.
10+ hour shifts and split shifts
If your employee earns minimum wage and works more than 10 hours per day (or works a split shift that ends more than 10 hours after the first shift began that day), your employee is entitled to one additional hour’s pay for the day.
New York overtime requirements
- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
- Live-in employees must be paid 1.5x their hourly rate for all hours worked over 44 in a workweek.
- New York household employees must be allowed one day (24 hours) of rest per week. If an employee agrees to work on the 7th day, all hours worked that day must be paid at the overtime rate.
Payroll records
New York law requires employers to provide employees with a paystub each payday. You are required to keep up-to-date weekly payroll records of hours worked by your employees and wages paid for six years.
Paid leave
Paid family leave
Household employees in New York working 20 hours or more per week are eligible for paid family leave to help them bond with a child, care for a close relative with a serious health condition or help relieve family pressure due to active military service.
Job-protected sick leave
All employees in New York must accrue job-protected sick leave. Whether the leave is paid or unpaid depends on the number of employees you have and whether you are subject to a city or county paid sick leave law. HomePay will handle the accruals on your account.
Paid time off
After a year of employment, New York household employees must be provided paid time off.
- 1 day of PTO for employees working 19 hours per week or less.
- 2 days of PTO for employees working 20-29 hours per week.
- 3 days of PTO for employees working 30 or more hours per week.
New York City paid safe and sick leave
Household employers in New York City are required to provide domestic workers with 40 hours of paid safe and sick leave per calendar year.
Westchester County paid sick leave
Westchester County employers must provide their household employee(s) with up to 40 hours of paid sick leave per year.
Westchester County safe time leave
Employers must allow employees up to 40 hours of paid leave per calendar year if they become victims of domestic violence or human trafficking. Time away is used to attend or testify in criminal or civil court proceedings or to move to a safe location. Employers cannot require their employee to find a substitute as a condition for using safe time.
Optional benefits for your employee
Health insurance
Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.
Families with 2 or more employees have 3 options:
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA)
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
- Purchase a policy through SHOP (Small Business Health Options Program).
Visit our health insurance page for more information about these options.
Mileage reimbursement
The current federal mileage reimbursement rate is 70 cents per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.
Ending employment
Termination notice
Household employers in New York are required to provide a termination notice to their employee if they are fired or laid off. Notice must be given no later than 5 working days after the termination.
Managing unused PTO
New York household employers do not need to pay their employees for unused sick time. However, unless your employment contract states otherwise, unused vacation time must be paid out.
Close down your state employment tax account(s)
The state tax agencies expect you to file timely returns for as long as your tax accounts are open — even to report $0 in wages paid.
Maintain payroll records
Household employers are required to keep wage records on file for at least three years.
* HomePay can assist with a wide range of the above-listed household tax and payroll needs; however, some state-specific requirements may not be fully supported. Ask a HomePay representative for more information.
The information contained in this article is general in nature, may not be applicable to your specific circumstances, and is not intended to be a substitute for or relied upon as personalized tax or legal advice.
