{"id":325,"date":"2025-01-02T08:00:00","date_gmt":"2025-01-02T08:00:00","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/how-to-pay-nanny-taxes-yourself\/"},"modified":"2025-02-26T23:41:17","modified_gmt":"2025-02-26T23:41:17","slug":"how-to-pay-nanny-taxes-yourself","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/how-to-pay-nanny-taxes-yourself\/","title":{"rendered":"How to pay nanny taxes yourself: Guide for parents and families"},"content":{"rendered":"\n<p>If&nbsp;you pay your nanny or child care provider at least $2,800 in the 2025&nbsp;calendar year, the IRS expects you to pay what\u2019s known as the \u201cnanny tax.\u201d This year-round process is completed in four basic steps, and while many families choose to have <a href=\"https:\/\/www.care.com\/homepay\" target=\"_blank\" rel=\"noreferrer noopener\">Care.com HomePay<\/a> do everything for them, it is possible to tackle these items and pay nanny taxes yourself.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><h2>Table of contents<\/h2><ul><li><a href=\"#h-steps-for-paying-nanny-taxes-yourself\" data-level=\"2\">Steps for paying nanny taxes yourself<\/a><ul><li><a href=\"#h-1-complete-some-initial-paperwork\" data-level=\"3\">1. Complete some initial paperwork<\/a><\/li><li><a href=\"#h-2-accurately-calculate-payroll-each-pay-period\" data-level=\"3\">2. Accurately calculate payroll each pay period<\/a><\/li><li><a href=\"#h-3-send-tax-payments-and-returns-to-the-irs-and-the-state\" data-level=\"3\">3. Send tax payments and returns to the IRS and the state<\/a><\/li><li><a href=\"#h-4-prepare-your-year-end-tax-documents\" data-level=\"3\">4. Prepare your year-end tax documents<\/a><\/li><\/ul><\/li><\/ul><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/www.care.com\/homepay\"><img decoding=\"async\" width=\"300\" height=\"250\" src=\"https:\/\/www.care.com\/hp\/wp-content\/uploads\/sites\/3\/2024\/08\/300x250-V2-1.png\" alt=\"Cross nanny taxes off your to-do list forever\" class=\"wp-image-3084\" \/><\/a><\/figure><\/div>\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-steps-for-paying-nanny-taxes-yourself\">Steps for paying nanny taxes yourself <\/h2>\n\n\n\n<p>Before you dive in, it\u2019s a good idea to understand all these steps, so here\u2019s a general idea of what you can expect to do if you choose to pay nanny taxes yourself:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-complete-some-initial-paperwork\"><strong><a id=\"stepone\" name=\"stepone\"><\/a>1. Complete some initial paperwork<\/strong><\/h3>\n\n\n\n<p>You can\u2019t begin calculating payroll for your nanny without knowing how much in taxes to withhold. To do this, you\u2019ll need your nanny to fill out <a href=\"https:\/\/www.care.com\/hp\/nanny-tax-forms\">Form W-4 and a state withholding form<\/a> (if your state collects income taxes).<\/p>\n\n\n\n<p>Because you are, technically, the employer of your nanny, you\u2019ll also need to <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" target=\"_blank\" rel=\"noreferrer noopener\">apply for a Federal Employer Identification Number (FEIN)<\/a> with the IRS, as well as state tax identification numbers with the agencies that handle collection of <a href=\"https:\/\/www.care.com\/hp\/nanny-taxes-by-state\/\">state taxes<\/a>. These tax IDs identify you as a household employer and are required for sending in tax returns. You should apply for you tax IDs once you\u2019ve made the decision to hire a nanny.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-accurately-calculate-payroll-each-pay-period\"><strong><a id=\"steptwo\" name=\"steptwo\"><\/a>2. Accurately calculate payroll each pay period<\/strong><\/h3>\n\n\n\n<p>You\u2019ll need to keep track of the hours your nanny works, apply their hourly rate and add any <a href=\"https:\/\/www.care.com\/c\/do-nannies-get-overtime\/\" target=\"_blank\" rel=\"noreferrer noopener\">overtime pay<\/a> to get to the gross (before taxes) amount. From there, you\u2019ll need to withhold the correct amount of Social Security &amp; Medicare taxes, income taxes and any other state or local taxes that may apply. After these deductions, you\u2019ll know how much your nanny\u2019s net, or take-home, pay will be.<\/p>\n\n\n\n<p class=\"has-text-align-left\">See <a href=\"https:\/\/www.care.com\/hp\/nanny-pay-rates-how-much-should-i-pay-my-nanny\">how much a nanny costs<\/a>&nbsp;where you live.<\/p>\n\n\n\n<p>You\u2019ll also need to calculate how much in Social Security &amp; Medicare taxes, <a href=\"https:\/\/www.care.com\/hp\/unemployment-insurance\">unemployment insurance taxes<\/a> and any other miscellaneous state taxes you have accumulated as a household employer. These household employment taxes will generally be about 10% of the gross wages paid to your nanny, but can vary depending on where you live.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-send-tax-payments-and-returns-to-the-irs-and-the-state\"><strong><a id=\"stepthree\" name=\"stepthree\"><\/a>3. Send tax payments and returns to the IRS and the state<\/strong><\/h3>\n\n\n\n<p>Your state requires you to send in tax returns \u2014 generally on a quarterly basis \u2014 for unemployment insurance taxes and income taxes. You\u2019ll need to keep track of when these returns are due and send the appropriate amount of taxes to the correct agency. Some states have a different filing schedule so check <a href=\"https:\/\/www.care.com\/hp\/nanny-taxes-by-state\">your state\u2019s requirements<\/a> for more details.<\/p>\n\n\n\n<p>Additionally, it\u2019s recommended to send in <a href=\"https:\/\/www.care.com\/hp\/what-household-employers-need-to-know-about-estimated-tax-payments\">estimated tax payments<\/a> to the IRS four times per year to account for the Social Security &amp; Medicare taxes you\u2019re withholding from your nanny and accumulating for yourself. Waiting until you file your personal income tax return in April can result in underpayment penalties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-prepare-your-year-end-tax-documents\"><strong><a id=\"stepfour\" name=\"stepfour\"><\/a>4. Prepare your year-end tax documents<\/strong><\/h3>\n\n\n\n<p>After the year ends, you\u2019ll need to prepare several documents to wrap up your annual nanny tax requirements:<\/p>\n\n\n\n<ul>\n<li><p dir=\"ltr\">Form W-2 for your nanny, so they can file their personal income tax return.<\/p><\/li>\n\n\n\n<li><p dir=\"ltr\">W-2 Copy A and Form W-3 to be filed with the Social Security Administration.<\/p><\/li>\n\n\n\n<li><p dir=\"ltr\">A state Annual Reconciliation Form if your state requires it.<\/p><\/li>\n\n\n\n<li><p dir=\"ltr\"><a href=\"https:\/\/www.care.com\/hp\/file-a-schedule-h-with-your-2021-tax-return-if-you-hire-a-household-employee\">Schedule H<\/a> for you to attach to your personal income tax return.<\/p><\/li>\n<\/ul>\n\n\n\n<p>The IRS estimates this work will take the average family 50-55 hours per year to administer. If you\u2019d like to have those hours back in your life and enjoy the peace of mind of having an expert handle it all for you, give HomePay a call at <strong>(888) 273-3356<\/strong>. We\u2019ve helped families with these requirements since 1992 and can make the process a breeze.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><strong>Next Steps:<\/strong><\/p>\n\n\n\n<ul>\n<li><a href=\"https:\/\/www.care.com\/hp\/nanny-pay-rates-how-much-should-i-pay-my-nanny\">Find out how much to pay a nanny in your area<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.care.com\/homepay\/nanny-tax-calculator\">Use our nanny tax calculator to estimate your tax costs<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.care.com\/homepay\">See a demo of the HomePay nanny tax service<\/a>.<\/li>\n<\/ul>\n\n\n\n<p><a id=\"getstarted\" name=\"getstarted\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you pay your nanny or caregiver more than $2,800 in a calendar year, you need to learn about your nanny tax responsibilities and how to pay them.<\/p>\n","protected":false},"author":1301,"featured_media":3375,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"enable_toc":false,"care_post_updated_flag":false,"care_updated_date":"2025-01-02 08:00:00","last_update":"2025-01-02","view_count":19898,"footnotes":""},"categories":[1],"tags":[],"member-type":[2],"vertical":[3,366],"platform":[11],"acf":[],"created":"2018-03-20","_links":{"self":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/325"}],"collection":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/users\/1301"}],"replies":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/comments?post=325"}],"version-history":[{"count":7,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/325\/revisions"}],"predecessor-version":[{"id":3536,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/posts\/325\/revisions\/3536"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/media\/3375"}],"wp:attachment":[{"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/media?parent=325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/categories?post=325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/tags?post=325"},{"taxonomy":"member-type","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/member-type?post=325"},{"taxonomy":"vertical","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/vertical?post=325"},{"taxonomy":"platform","embeddable":true,"href":"https:\/\/www.care.com\/hp\/wp-json\/wp\/v2\/platform?post=325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}