All states · Updated for 2026
How to pay a nanny in Massachusetts
Everything a Massachusetts 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.
- Massachusetts unemployment tax: register with Massachusetts Department of Unemployment Assistance (DUA) after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with dua); new employers pay 2.42% on the first $15,000.00 of wages; file Quarterly employment and wage detail report (UI Online) quarterly.
- Massachusetts income tax: withholding is voluntary for household employers (form M-4).
- State programs: MA Paid Family and Medical Leave (0.46% employee).
- New hire report: within 14 days of their start date.
- Minimum wage: $7.25/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (MA Earned Sick Time law covers all employees (1 hour per 30 hours worked, up to 40 hours/year; unpaid for employers with fewer than 11 employees, so a household employer generally provides unpaid earned sick time). Not verified this session.).
- Workers' compensation: Massachusetts requires workers compensation for domestic workers employed 16 or more hours per week. Not verified this session - confirm with the MA Department of Industrial Accidents.
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 M-4.
- File the Massachusetts new-hire report within 14 days at the state site.
- Register with Massachusetts Department of Unemployment Assistance (DUA) once you cross household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with dua) (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 employment and wage detail report (UI Online). PROVISIONAL: mass.gov blocked automated access this session. $15,000 wage base and 2.42% new (non-construction) employer rate are from secondary 2026 payroll summaries, not from DUA - confirm on your rate notice. Quarterly reports due the last day of the month after the quarter; MA also levies a workforce training fund contribution and (for some employers) EMAC.
- January: W-2 to your nanny, W-2/W-3 to the SSA. April: Schedule H with your 1040.
Run your numbers
Use the free Massachusetts 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 Massachusetts?
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. Massachusetts unemployment tax applies after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with dua).
Do I withhold Massachusetts income tax from my nanny?
Massachusetts does not require household employers to withhold state income tax; you can withhold voluntarily using M-4 if your nanny asks.
What forms do I file in Massachusetts?
Quarterly employment and wage detail report (UI Online) quarterly with Massachusetts Department of Unemployment Assistance (DUA), 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 Massachusetts?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are also owed overtime in Massachusetts. PLACEHOLDER: Massachusetts minimum wage ($15.00 since 2023 per statute) could not be read from mass.gov this session; federal $7.25 is a placeholder - replace. MA Domestic Workers Bill of Rights: domestic workers (incl. live-in) are owed overtime after 40 hours; verify live-in treatment.
What is the minimum wage for a nanny in Massachusetts?
$7.25 per hour in 2026.
Pay your Massachusetts nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly employment and wage detail report (UI Online) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Massachusetts Circular M, Income Tax Withholding Tables at 5.0% effective January 1, 2026 (Rev. 12/25) - Percentage Methods p.12. Rules for 2026 are provisional. General information, not tax or legal advice.