All states · Updated for 2026
How to pay a nanny in Kentucky
Everything a Kentucky 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.
- Kentucky unemployment tax: register with Kentucky Office of Unemployment Insurance after $1,000 or more in gross wages for domestic work in a private home in a single calendar quarter; new employers pay 2.70% on the first $12,000.00 of wages; file Quarterly Wage and Tax Report (filed via the Kentucky Unemployment Insurance Portal, KUIP) quarterly.
- Kentucky income tax: withholding is voluntary for household employers (form K-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: KRS 342.650 exempts domestic servants in a private home where fewer than two employees are regularly employed 40 or more hours per week — not verified against the statute text in this pass; confirm with the Department of Workers' Claims. Voluntary coverage available.
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 K-4.
- File the Kentucky new-hire report within 20 days at the state site.
- Register with Kentucky Office of Unemployment Insurance once you cross $1,000 or more in gross wages for domestic work in a private home in a single calendar quarter (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file Quarterly Wage and Tax Report (filed via the Kentucky Unemployment Insurance Portal, KUIP). Due the last day of the month after each quarter (Apr 30, Jul 31, Oct 31, Jan 31). New employers are assigned 2.7% on the first $12,000 of each worker's wages (Rate Schedule A for 2026; SCUF surcharge suspended for 2026). KUIP replaces KEWES during 2026.
- January: W-2 to your nanny, W-2/W-3 to the SSA, K-5 Employer's Report of Withholding Tax Statements (with W-2s) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Kentucky 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 Kentucky?
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. Kentucky unemployment tax applies after $1,000 or more in gross wages for domestic work in a private home in a single calendar quarter.
Do I withhold Kentucky income tax from my nanny?
Kentucky does not require household employers to withhold state income tax; you can withhold voluntarily using K-4 if your nanny asks.
What forms do I file in Kentucky?
Quarterly Wage and Tax Report (filed via the Kentucky Unemployment Insurance Portal, KUIP) quarterly with Kentucky Office of Unemployment Insurance, K-5 Employer's Report of Withholding Tax Statements (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 Kentucky?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Kentucky. Kentucky's minimum wage (KRS 337.275) tracks the federal $7.25. Federal overtime rules apply (live-in domestic workers exempt from overtime).
What is the minimum wage for a nanny in Kentucky?
$7.25 per hour in 2026.
Pay your Kentucky nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly Wage and Tax Report (filed via the Kentucky Unemployment Insurance Portal, KUIP) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Kentucky DOR 42A003 (TCF) 2026 Kentucky Withholding Tax Formula; Kentucky DOR Form K-4 (42A804) 2026 Kentucky's Withholding Certificate; Kentucky DOR – Employer Payroll Withholding (3.5% for 2026; K-5 due January 31); Kentucky Office of Unemployment Insurance – Employer Guide 2026 (domestic liability $1,000/quarter; $12,000 wage base; 2.7% new employer rate; quarterly due dates). Rules for 2026 are provisional. General information, not tax or legal advice.