For families who employ a nanny, housekeeper or home aide
You hired a nanny or a home aide. You're an employer now.
Families who pay a caregiver directly usually find out about household employer taxes too late. The thresholds are low, and New Jersey has its own filings. We set it up and run it so you just pay your caregiver.
The 2026 rules
- Federal: if you pay one household employee $3,000 or more in cash wages in 2026, Social Security and Medicare apply. Federal unemployment applies if you paid $1,000 or more in any quarter. You report it on Schedule H with your tax return. (IRS)
- W-2: due to your employee and the Social Security Administration by February 1, 2027.
- New Jersey: if you paid a domestic worker $1,000 or more in a year, you must register as an employer. (NJ Labor) The NJ-927-H annual report covers withholding and state unemployment, disability and family leave contributions, and is due at the end of January.
- Minimum wage: $16.48 for most workers on January 1, 2027. Domestic workers also get overtime and up to 40 hours of earned sick leave.
- Agency caregivers: if an agency provides the worker and controls the work, the agency is usually the employer, not you.
What we do
- Register you with the IRS and New Jersey
- Calculate each paycheck, with taxes withheld if you choose to withhold
- Track sick leave and overtime
- Prepare the W-2, NJ-927-H and Schedule H figures each January
- Remind you of every due date, with the amount
A flat monthly fee, quoted before we start. Your tax preparer files your personal return with the Schedule H figures we give them.
Payroll and leave tracking · Caring for aging parents
Questions
Do I have to pay taxes for my nanny?
In 2026, Social Security and Medicare apply once you pay one household employee $3,000 or more in cash wages. New Jersey registration starts at $1,000 a year. Your tax preparer confirms the details for your situation.
My mother's home aide comes from an agency. Am I the employer?
Usually not, if the agency provides the worker and controls how the work is done. If you hire and pay the aide directly, you probably are.
Is this tax advice?
No. We handle the payroll filings and records. Your tax preparer advises on your own return.