Select your state

Taxes

nanny tax

A nanny tax—also known as a household-employment tax—is not a legal term, but refers to a federal social security tax imposed on the employer of a domestic employee (such as a nanny) if the employer pays the employee more than a specified amount in total wages in a year.

In Louisiana, as in all states, the 'nanny tax' refers to federal tax obligations that apply to household employers. If a household employer in Louisiana pays a nanny or other domestic employee $2,400 or more in cash wages in 2023, they are responsible for withholding and paying Social Security and Medicare taxes. These are often referred to as FICA taxes. The employer and employee each pay 7.65% for a total of 15.3%. If the employer pays $1,000 or more in a calendar quarter, they also need to pay federal unemployment tax (FUTA). Additionally, Louisiana may require employers to pay state unemployment taxes. Employers are required to provide their employees with a W-2 form and to file Schedule H with their federal tax return if they pay total cash wages of $2,400 or more. It's important for employers to keep accurate records of all payments and taxes withheld or paid.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Taxes

nanny tax

Individual & Family Legal Plan

Articles

Louisiana State Code

Louisiana State Code

Taxes

nanny tax

Articles