Nanny Tax

What is the Nanny Tax?

The “Nanny Tax” is a name given to federal employment taxes – Social Security and Medicare taxes, and federal unemployment tax – paid to a child care provider working in your home. The State of California also has “Nanny Taxes.”

Where can you get help?

If you need help with the paperwork and process, you can talk to your tax advisor or an accountant who specializes in labor law. Also, there are payroll services that are experts in Nanny Taxes.

The following publications from the State of California and the federal government provide more information about paying taxes for household employees.