Nanny taxes in New York, New Jersey and Connecticut

If your nanny is your employee, you have tax and payroll duties.

Federal

If you pay $3,000 or more in cash wages in 2026, withhold and pay Social Security and Medicare (7.65% each side) and report on Schedule H with your Form 1040.
Federal unemployment tax (FUTA) applies if you pay $1,000 or more in a quarter: 0.6% of the first $7,000 per employee after credits, in most states.
Give your nanny a Form W-2 each January.

Register as an employer with your state for unemployment insurance (and, in NJ and NY, disability and family leave programs).
New York and New Jersey also have domestic workers' bills of rights covering overtime, rest days and written agreements.
A payroll service for household employers can do all of this for a monthly fee.

Minimum wage is $17.00 an hour in New York City, Long Island and Westchester from 1 January 2026, and $16.00 in the rest of the state. Source: New York State: Minimum wage
New York's Domestic Workers' Bill of Rights gives nannies overtime after 40 hours a week (44 for live-in nannies), a day of rest each week and paid days off. Source: New York State Department of Labor
Employment agencies in New York City need a licence from the Department of Consumer and Worker Protection. Source: NYC DCWP: Employment agency licence
If you pay a household employee $3,000 or more in cash wages in 2026, you must withhold and pay Social Security and Medicare taxes (7.65% from you and 7.65% from the nanny). Source: IRS Topic 756
Nannies who don't live in your home must be paid overtime at 1.5 times their regular rate for hours over 40 a week; live-in nannies are exempt from federal overtime, but not from minimum wage. Source: U.S. Department of Labor, Fact Sheet #79B