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What is a Nanny Tax? The term “nanny tax” refers to the federal tax imposed on employers who hire household employees and pay wages exceeding specific thresholds. According to the Internal Revenue Service (IRS), if an employer pays cash wages of $2,300 or more annually to a single household employee,
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What is a Household Employee? A household employee is an individual who performs services within the confines of their employer’s home. The employer decides the specific duties and work methods for household employees. Examples include nannies, babysitters, caretakers, cleaning personnel, domestic workers, drivers, health aids, housekeepers, maids, gardeners, private nurses,
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