The National Directory of Certified Public Accountants

Ask A CPA - Household Nanny Tax

What Is The Employment Tax Threshold For Household Employees ?

If you pay a household worker such as a housekeeper, babysitter, nanny, maid, gardener or other household helper less than $1,800 in the current year, you will not have to pay Social Security or Medicare taxes on behalf of the worker. The $1,800 threshold has been raised to $1,800 in the year 2013. Payments made to students under the age of 18 for domestic services are exempt from employment taxes. You do you have to pay employment taxes on behalf of a worker who is considered a self-employed "independent contractor". Also exempt are payments to workers who are employees of the agency you contract with.

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