All states · Updated for 2026
How to pay a nanny in Iowa
Everything a Iowa 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.
- Iowa unemployment tax: register with Iowa Workforce Development (IWD), Unemployment Insurance Tax after household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard; not re-verified against an iwd publication in this pass); new employers pay 1.00% on the first $20,400.00 of wages; file 65-5300 Employer's Contribution & Payroll Report (myIowaUI) quarterly.
- Iowa income tax: withhold per IA W-4.
- New hire report: within 15 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: Iowa exempts domestic/household workers who earn less than $1,500 from the employer in the 12 consecutive months before the injury; above that, coverage is required (secondary source — confirm with the Iowa Division of Workers' Compensation).
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 IA W-4.
- File the Iowa new-hire report within 15 days at the state site.
- Register with Iowa Workforce Development (IWD), Unemployment Insurance Tax once you cross household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard; not re-verified against an iwd 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 65-5300 Employer's Contribution & Payroll Report (myIowaUI). Last day of the month after each quarter. 2026 taxable wage base $20,400 (one-third of the 2024 average annual wage under SF 607; down from $39,500) and new non-construction employer rate 1.0% (Table D) per Bloomberg Tax's report of the IWD release; confirm on your IWD rate notice.
- January: W-2 to your nanny, W-2/W-3 to the SSA, Verified Summary of Payments (VSP) with W-2 e-file via GovConnectIowa to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Iowa 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 Iowa?
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. Iowa unemployment tax applies after household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard; not re-verified against an iwd publication in this pass).
Do I withhold Iowa income tax from my nanny?
Yes, using IA W-4 your nanny fills out. CareTab computes it each paycheck.
What forms do I file in Iowa?
65-5300 Employer's Contribution & Payroll Report (myIowaUI) quarterly with Iowa Workforce Development (IWD), Unemployment Insurance Tax, Verified Summary of Payments (VSP) with W-2 e-file via GovConnectIowa 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 Iowa?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Iowa. Iowa minimum wage equals the federal $7.25 (local governments may not set a higher rate); overtime follows FLSA (live-in domestic workers exempt from overtime).
What is the minimum wage for a nanny in Iowa?
$7.25 per hour in 2026.
Pay your Iowa nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with 65-5300 Employer's Contribution & Payroll Report (myIowaUI) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Iowa Department of Revenue — Iowa Individual Income Tax Withholding Formula, Effective January 1, 2026 (Released November 2025); Iowa Department of Revenue — Iowa Withholding Tax Information; Bloomberg Tax — Iowa Releases 2026 Unemployment Insurance Tax Rates (IWD: $20,400 wage base, 1% new employer rate, Table D). Rules for 2026 are provisional. General information, not tax or legal advice.