Nanny Tax Calculator
Estimate the employer taxes on top of your nanny's wages — so the "nanny taxes" don't surprise you at filing time.
What this includes
The estimate is built from the parts of "nanny taxes" that fall on you, the employer:
- Social Security & Medicare (FICA) — 7.65% of cash wages. This is well-defined and applies once wages cross the annual threshold.
- Unemployment & state buffer — a percentage you set (default 2%) standing in for federal unemployment (FUTA) plus state unemployment and any state-specific contributions. This one genuinely varies by state, so adjust it.
- Optionally, the employee's 7.65% FICA share if you choose to cover it instead of withholding it.
It does not include income tax withholding (optional) or payroll-service fees.
Rough rule of thumb
For quick budgeting, assume the employer's added tax cost is around 10% over gross wages. The exact number depends on your state and whether you cover the employee's share.
Keep tax-ready records automatically
Every nanny-tax calculation depends on an accurate log of hours and payments. Paypr keeps that record for you and exports a clean CSV at tax time — track one person free.
Download Paypr on the App StoreCommon questions
Do I really owe taxes if I pay cash?
Paying cash doesn't remove the obligation. If cash wages to a household employee cross the IRS annual threshold, the employment taxes still apply.
Is my nanny a W-2 employee or 1099 contractor?
Almost always a W-2 household employee — you control the work and how it's done. A nanny is not a 1099 contractor, and misclassifying one is a costly mistake.
Why is the state buffer a guess?
Federal unemployment is small after the state credit, but state unemployment rates and rules vary widely — from well under 1% to several percent. Set the buffer to your state's figure for a closer estimate.
→ Full guide: Nanny taxes explained
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