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 Washington State, as in the rest of the United States, the 'nanny tax' refers to federal employment taxes that must be paid by household employers. If a household employer in Washington 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 taxes are collectively known as FICA taxes. The employer is also responsible for paying a matching amount of these taxes. If the total cash wages paid to all household employees total $1,000 or more in any calendar quarter, the employer must also pay federal unemployment tax (FUTA). It's important to note that these thresholds and regulations are set by federal law and apply to all states. Employers are also required to provide their employees with a W-2 form and to file Schedule H with their federal tax return. Failure to comply with these tax obligations can result in penalties and interest charges.

Legal Articles

State Statutes

As a LegalFix Member You Will Be an Important Client of Local Law Firms

For about 82¢ a day you can have a LegalFix Legal Plan that includes initial consultations with an attorney at no additional charge—and additional legal services at reduced rates—all from top law firms in your state. Don't wait—be prepared for life's inevitable legal challenges, starting today.

And ask your employer, credit union, or membership group to offer LegalFix for even better pricing.

Taxes

nanny tax

As a LegalFix Member You Will Be an Important Client of Local Law Firms

Articles

Washington State Code

Washington State Code

Taxes

nanny tax

Articles