All states · Updated for 2026
How to pay a nanny in Indiana
Everything a Indiana 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.
- Indiana unemployment tax: register with Indiana Department of Workforce Development (DWD) after $1,000 or more in cash wages in a calendar quarter for domestic services in your home (current or preceding calendar year); new employers pay 2.50% on the first $9,500.00 of wages; file UC-1 / UC-5A Quarterly Payroll and Wage Report (Uplink Employer Self Service) quarterly.
- Indiana income tax: withholding is voluntary for household employers (form WH-4).
- New hire report: within 20 days of their start date.
- Minimum wage: $7.25/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: not mandated by the state.
- Workers' compensation: Household (domestic) employees are excluded from the Indiana Worker's Compensation Act (IC 22-3-2-9) unless the employer voluntarily elects coverage; statute text not retrieved this session — verify with the Worker's Compensation Board of Indiana.
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 WH-4.
- File the Indiana new-hire report within 20 days at the state site.
- Register with Indiana Department of Workforce Development (DWD) once you cross $1,000 or more in cash wages in a calendar quarter for domestic services in your home (current or preceding calendar year) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file UC-1 / UC-5A Quarterly Payroll and Wage Report (Uplink Employer Self Service). Quarterly reports and payments are due Apr 30, Jul 31, Oct 31 and Jan 31 (electronic filing and payment required). New employers pay the typical 2.50% rate on the first $9,500 per employee; use the rate on your DWD merit-rate notice. Register with DWD before the end of the first quarter in which you become liable.
- January: W-2 to your nanny, W-2/W-3 to the SSA, WH-3 Annual Withholding Reconciliation (with W-2s) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Indiana 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 Indiana?
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. Indiana unemployment tax applies after $1,000 or more in cash wages in a calendar quarter for domestic services in your home (current or preceding calendar year).
Do I withhold Indiana income tax from my nanny?
Indiana does not require household employers to withhold state income tax; you can withhold voluntarily using WH-4 if your nanny asks.
What forms do I file in Indiana?
UC-1 / UC-5A Quarterly Payroll and Wage Report (Uplink Employer Self Service) quarterly with Indiana Department of Workforce Development (DWD), WH-3 Annual Withholding Reconciliation (with W-2s) 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 Indiana?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Indiana. Indiana's Minimum Wage Law applies only to employers with 2 or more employees not covered by the FLSA, so household employment is governed by the federal FLSA: overtime after 40 hours for live-out domestic workers; live-in domestic workers are exempt from overtime.
What is the minimum wage for a nanny in Indiana?
$7.25 per hour in 2026.
Pay your Indiana nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with UC-1 / UC-5A Quarterly Payroll and Wage Report (Uplink Employer Self Service) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Indiana DOR Departmental Notice #1 (R46 / 01-26), effective Jan. 1, 2026 — How to Compute Withholding for State and County Income Tax; county rate table; Indiana DOR — Withholding Income Tax (WH-3 annual reconciliation due Jan. 31; INBIZ registration); Indiana DWD — Rate Computation (premiums on first $9,500; typical new employer rate 2.50%); Indiana DWD — Business Types (household employer: $1,000 or more cash wages in a calendar quarter); Indiana DWD — Quarterly Report Due Dates (Apr 30, Jul 31, Oct 31, Jan 31); Indiana Department of Labor — Minimum Wage poster ($7.25; overtime after 40 hours). Rules for 2026. General information, not tax or legal advice.