As tax season kicks off for 2026, families who employ a nanny, senior caregiver, or other household worker have specific responsibilities when it comes to filing their 2025 taxes. Unlike a traditional business, household employment brings its own set of tax forms, deadlines, and compliance requirements—many of which are easy to overlook without a clear plan.
Topics: nanny, senior, CPA, nanny tax requirements, Household employer tax filing, Caregiver payroll compliance, W-2 for nanny, Domestic employment tax guide, How to file taxes for household employee, Schedule H for domestic employees, Household employee tax forms
As we move into 2026, hiring in-home assistance, whether it’s a nanny for your children or a caregiver for an aging parent, comes with greater responsibility.
Topics: nanny, Senior Caregiver Payroll, senior, CPA, Household payroll compliance, household employee classification, 2026 household employer tips, nanny tax mistakes, caregiver payroll laws, nanny classification, HomeWork Solutions payroll help, time tracking household employees, W-2 vs 1099 for nannies, overtime rules for household workers, workers’ comp for household employees, paying household workers legally
If you're hiring a nanny, senior caregiver, or other household employee, you're not just providing a paycheck; you’re also responsible for certain tax withholdings. In 2026, if you pay a household employee more than $3,000, you're required to withhold Social Security and Medicare taxes (FICA) from their wages.
Topics: caregiver payroll, nanny, nanny payroll, nanny tax, senior, CPA, homework solutions, household employer taxes, 2026 W-4 form, household employee withholding, IRS tax forms, how to fill out a w-4 form, 2026 tax updates, W-4 form
Updated December 2025
Every year HomeWork Solutions prepares a summary of new or updated household employment tax laws and benefit information.
The IRS annually reviews, and adjusts as necessary, the wage payment threshold that obligates a family to pay Social Security and Medicare taxes. These tax withholdings are reported annually on a W-2. This threshold will increase to $3,000 for 2026.
At HomeWork Solutions, we support families and professionals on both sides of the household employment relationship — from parents hiring nannies to nannies, caregivers, and other household employees who are parents themselves. Whether you're managing payroll legally or planning for your child’s future, financial responsibility is a shared value. With the introduction of the new Trump Account, many are wondering how it stacks up against more familiar savings tools like 529 plans or custodial Roth IRAs.
Topics: nanny, senior, CPA, kids savings, Trump account, 529 plan, Roth IRA for kids, money education, HomeWork Solutions blog, family finance
When you hire someone to work in your home, whether it’s a nanny, housekeeper, or caregiver, someone must legally be the employer. In most cases, that someone is you.
Topics: nanny, nanny taxes, household payroll, senior, CPA, Pay nanny legally, independent contractor vs employee caregiver, pay nanny, domestic worker tax laws, household employee classification, nanny employer responsibilities, legal household hiring
As we wrap up 2025, many families are taking stock of the year and planning ahead for the holiday season. For household employers, this is an ideal time to recognize the important role your nanny, senior caregiver, or other in-home employee plays in your daily life.
Topics: nanny, senior, CPA, caregiver holiday bonus, nanny payroll taxes, holiday bonus for nanny, Are bonuses taxed, household employee appreciation, bonus, end of year bonus
If you're hiring a nanny, senior caregiver, housekeeper, or any other in-home employee, understanding your responsibilities as a household employer is key to staying compliant with federal employment laws. Two terms you’re likely to encounter in the hiring process are Form I-9 and E-Verify.
Topics: nanny, senior, CPA, HomeWork Solutions payroll services, E-Verify for families, Form I-9, nanny tax requirements, E-Verify and domestic workers, employment eligibility verification
Whether you're employing a nanny, senior caregiver, or housekeeper, understanding when your employee is on the clock—and legally entitled to be paid—is an essential part of running a compliant household payroll.
Topics: nanny, nanny payroll, household payroll, agency, senior, CPA, household employment, senior care payroll, Domestic Workers, Compensable Time, Live-In Employee Laws, Household Employer Guide
A new federal tax law passed this summer, and it includes a provision that could include tax savings for household employees—but only if you know the detail. The One Big Beautiful Bill Act (OBBBA) includes a “No Tax on Overtime” rule, and although it doesn't directly change household payroll practices, it does impact tax reporting and employee tax credits.
Topics: nanny, nanny overtime, agency, senior, CPA, live-in household employee overtime, no tax on overtime rule, FLSA overtime deduction, no tax on tips, household employee overtime, OBBBA tax bill, One Big Beautiful Bill Act, household employer tax 2025, nanny payroll tax update, IRS overtime tax deduction
