All states · Updated for 2026
How to pay a nanny in Arizona
Everything a Arizona family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- Arizona unemployment tax: register with Arizona Department of Economic Security (DES), Unemployment Insurance Tax after household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard adopted by arizona; not re-verified against a des publication in this pass); new employers pay 2.00% on the first $8,000.00 of wages; file UC-018 Unemployment Tax and Wage Report (filed via AZTaxes.gov) quarterly.
- Arizona income tax: withholding is voluntary for household employers (form A-4).
- New hire report: within 20 days of their start date.
- Minimum wage: $15.15/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (Fair Wages and Healthy Families Act (Prop. 206) earned paid sick time applies to employers of any size, including household employers. Accrual rate and annual caps (which differ for employers with fewer than 15 employees) were not retrievable from the Industrial Commission of Arizona site in this pass — confirm at azica.gov before relying on an accrual figure.).
- Workers' compensation: Not verified in this pass. Confirm with the Industrial Commission of Arizona whether household/domestic workers must be covered (Arizona's act has historically treated domestic servants differently from other employees).
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and A-4.
- File the Arizona new-hire report within 20 days at the state site.
- Register with Arizona Department of Economic Security (DES), Unemployment Insurance Tax once you cross household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard adopted by arizona; not re-verified against a des publication in this pass) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file UC-018 Unemployment Tax and Wage Report (filed via AZTaxes.gov). Last day of the month after each quarter (Apr 30, Jul 31, Oct 31, Jan 31). 2026 taxable wage base $8,000 and new-employer rate 2.0% are from Bloomberg Tax's report of the DES 2026 tax-rate chart (DES pages blocked automated retrieval); confirm on your DES rate notice.
- January: W-2 to your nanny, W-2/W-3 to the SSA, A1-R Withholding Reconciliation Return (with W-2s); quarterly A1-QRT to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Arizona nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in Arizona?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Arizona unemployment tax applies after household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard adopted by arizona; not re-verified against a des publication in this pass).
Do I withhold Arizona income tax from my nanny?
Arizona does not require household employers to withhold state income tax; you can withhold voluntarily using A-4 if your nanny asks.
What forms do I file in Arizona?
UC-018 Unemployment Tax and Wage Report (filed via AZTaxes.gov) quarterly with Arizona Department of Economic Security (DES), Unemployment Insurance Tax, A1-R Withholding Reconciliation Return (with W-2s); quarterly A1-QRT annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in Arizona?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Arizona. Arizona has no state overtime law; FLSA applies (live-in domestic workers exempt from overtime, not minimum wage). State minimum wage is CPI-indexed each January 1 by the Industrial Commission of Arizona; Flagstaff and Tucson set higher local minimums (not encoded).
What is the minimum wage for a nanny in Arizona?
$15.15 per hour in 2026 (schedule: $14.70 from 2025-01-01, $15.15 from 2026-01-01).
Pay your Arizona nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with UC-018 Unemployment Tax and Wage Report (filed via AZTaxes.gov) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Arizona Form A-4 (2026) — Employee's Arizona Withholding Election (ADOR 10121 (25)); Employer's Instructions for the Arizona Form A-4 (2026); Bloomberg Tax — Arizona Decreases Unemployment Insurance Tax Rates for 2026 (citing the DES 2026 tax chart: $8,000 wage base, 2.0% new employer rate); Bloomberg Tax — Arizona Confirms Minimum Wage Rising to $15.15 for 2026 (Industrial Commission of Arizona announcement). Rules for 2026 are provisional. General information, not tax or legal advice.