Nanny Payroll Calculator

How much are nanny payroll taxes in 2026?

If you pay a nanny $3,000 or more in 2026, you owe FICA (7.65% withheld from your nanny plus a 7.65% employer match for Social Security and Medicare), FUTA (6% on the first $7,000 of wages, usually reduced to 0.6% after state credit), and state unemployment tax (varies by state, typically 1–6%). Most families also voluntarily withhold federal and state income tax so their nanny isn't hit with a year-end bill. Use our Gross-Up Calculator →

Do I need to pay nanny taxes?

Yes, if you pay any household employee $3,000 or more in cash wages in 2026 (the IRS coverage threshold), you must withhold and pay Social Security and Medicare taxes. You also owe federal unemployment (FUTA) if you pay $1,000 or more in any single calendar quarter. Employer taxes are paid quarterly with Form 1040-ES and reconciled annually on Schedule H with your personal tax return. Estimate what you owe →

How do I get started with nanny payroll?

First, apply for a federal Employer Identification Number (EIN) — it's free and takes 10 minutes online at IRS.gov. Next, register for state tax accounts (unemployment and, in most states, income tax withholding). Then set up a system to calculate withholding each pay period, generate compliant paystubs, file quarterly returns, and issue a W-2 in January. Nest Payroll handles all of this automatically — no spreadsheets, no missed deadlines. See how Nest Payroll works →