All states · Updated for 2026
How to pay a nanny in Maine
Everything a Maine 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.
- Maine unemployment tax: register with Maine Department of Labor, Bureau of Unemployment Compensation after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with maine dol); new employers pay 2.54% on the first $12,000.00 of wages; file Quarterly unemployment contributions report (ReEmployME) quarterly.
- Maine income tax: withhold per W-4ME.
- State programs: Maine Paid Family and Medical Leave (0.50% employee).
- New hire report: within 7 days of their start date.
- Minimum wage: $13.80/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: not mandated by the state.
- Workers' compensation: Maine workers compensation law excludes most domestic servants employed in a private home; verify with the Maine Workers Compensation Board. Not verified this session.
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 W-4ME.
- File the Maine new-hire report within 7 days at the state site.
- Register with Maine Department of Labor, Bureau of Unemployment Compensation once you cross household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with maine dol) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65% plus state program premiums, give a pay stub.
- Each quarter: file Quarterly unemployment contributions report (ReEmployME). Quarterly, last day of the month after the quarter. 2026 new employer rate 2.23% + 0.14% CSSF + 0.17% UPAF = 2.54% combined (Maine DOL rate array, verified). PROVISIONAL: $12,000 taxable wage base is from press reports of the DOL announcement, not read from a DOL page this session.
- January: W-2 to your nanny, W-2/W-3 to the SSA, Forms W-2 electronic filing with Maine Revenue Services (Maine Tax Portal); Q4 Form 941ME to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Maine 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 Maine?
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. Maine unemployment tax applies after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with maine dol).
Do I withhold Maine income tax from my nanny?
Yes, using W-4ME your nanny fills out. CareTab computes it each paycheck.
What forms do I file in Maine?
Quarterly unemployment contributions report (ReEmployME) quarterly with Maine Department of Labor, Bureau of Unemployment Compensation, Forms W-2 electronic filing with Maine Revenue Services (Maine Tax Portal); Q4 Form 941ME 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 Maine?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Maine. PLACEHOLDER: the Maine DOL minimum wage page fetched lists rates only through 1/1/2023 ($13.80); the indexed 2024-2026 rates were not verified - replace with the current figure. Maine DOL notes municipal minimum wage ordinances (e.g., Portland, Rockland) apply to domestic employees working in those municipalities.
What is the minimum wage for a nanny in Maine?
$13.80 per hour in 2026.
Pay your Maine nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly unemployment contributions report (ReEmployME) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Maine Revenue Services 2026 Withholding Tables for Individual Income Tax (Revised August 2026 - standard deduction increase and 2% surcharge); Maine DOL Bureau of Unemployment Compensation - 2026 Annual Rate Category/Employer Array (new employer 2.23% + 0.14% CSSF + 0.17% UPAF = 2.54%); Maine DOL Earned Paid Leave (employers with more than 10 employees; 1 hour per 40 worked, up to 40 hours); Maine Paid Family and Medical Leave - Employers (contributions began January 2025). Rules for 2026 are provisional. General information, not tax or legal advice.