All states · Updated for 2026
How to pay a nanny in Minnesota
Everything a Minnesota 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.
- Minnesota unemployment tax: register with Minnesota Unemployment Insurance Program (DEED) after $1,000 or more in total gross wages (including the value of room, board and other advantages) for domestic service in a calendar quarter; all wages for that calendar year then become reportable; your rate comes on a notice on the first $44,000.00 of wages; file Quarterly wage detail report and payment (uimn.org employer account; also carries Paid Leave premiums) quarterly.
- Minnesota income tax: withholding is voluntary for household employers (form W-4MN).
- State programs: Minnesota Paid Leave (family and medical leave premiums, from Jan 1, 2026) (0.44% employee, 0.44% employer).
- New hire report: within 20 days of their start date.
- Minimum wage: $11.41/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (Earned Sick and Safe Time (ESST): employees anticipated to work at least 80 hours in a year for a Minnesota employer accrue 1 hour per 30 hours worked, up to 48 hours per year (unused time carries over, up to an 80-hour balance unless front-loaded). Applies to household employers.).
- Workers' compensation: Required once a household worker earns $1,000 or more in cash in a three-month period from your household (Minn. Stat. 176.041 subd. 1(14)); a worker who met that test in the previous year remains covered this year regardless of current-quarter earnings.
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-4MN.
- File the Minnesota new-hire report within 20 days at the state site.
- Register with Minnesota Unemployment Insurance Program (DEED) once you cross $1,000 or more in total gross wages (including the value of room, board and other advantages) for domestic service in a calendar quarter; all wages for that calendar year then become reportable (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 wage detail report and payment (uimn.org employer account; also carries Paid Leave premiums). Wage detail reports, UI tax and Paid Leave premiums are due the last day of the month after each quarter (Apr 30, Jul 31, Oct 31, Jan 31). New employers (two years or less) are assigned their industry's average rate — 1.00% for Other Services (NAICS 81, which includes private households) in 2026 — plus the 0.40% base tax rate; a 14.00% additional assessment applies to the tax due in 2026. Enter the rate from your Determination of Tax Rate notice. Taxable wage base $44,000.
- 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 Minnesota 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 Minnesota?
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. Minnesota unemployment tax applies after $1,000 or more in total gross wages (including the value of room, board and other advantages) for domestic service in a calendar quarter; all wages for that calendar year then become reportable.
Do I withhold Minnesota income tax from my nanny?
Minnesota does not require household employers to withhold state income tax; you can withhold voluntarily using W-4MN if your nanny asks.
What forms do I file in Minnesota?
Quarterly wage detail report and payment (uimn.org employer account; also carries Paid Leave premiums) quarterly with Minnesota Unemployment Insurance Program (DEED), 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 Minnesota?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are also owed overtime in Minnesota. Minnesota's Fair Labor Standards Act requires overtime after 48 hours in a workweek (Minn. Stat. 177.25) with no exemption for live-in domestic workers (only babysitting as a sole practitioner is excluded); the federal FLSA requires overtime after 40 hours for live-out domestic workers and exempts live-in workers. The engine applies the 40-hour threshold to all workers; for a live-in worker Minnesota law only requires overtime after 48 hours, which the schema cannot express (gap: per-status live-in threshold).
What is the minimum wage for a nanny in Minnesota?
$11.41 per hour in 2026.
Pay your Minnesota nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly wage detail report and payment (uimn.org employer account; also carries Paid Leave premiums) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Minnesota DOR — 2026 Minnesota Income Tax Withholding Instruction Booklet (computer formula p. 34: $5,300 per allowance; Single/Married rate charts; W-4MN; annual filers due Jan 31); Minnesota DOR — Household Employees (withholding is voluntary if the employee asks and you agree); Minnesota UI — Tax Rates (2026 taxable wage base $44,000; base tax rate 0.40%; additional assessment 14.00%); Minnesota UI — 2026 New Employer Rates by industry (Other Services 1.00%); Minnesota UI — Domestic (household) employees ($1,000 gross wages in a calendar quarter); Minnesota UI — Due Dates (wage detail reports, UI tax and Paid Leave premiums due last day of month after quarter); Minnesota Paid Leave — Premium rate and contributions (0.88% for 2026–2027: 0.61% medical + 0.27% family; small employer 0.66%; up to 0.44% from employees); Minnesota DLI — Minimum wage ($11.41 all employers from Jan 1, 2026; $9.31 training wage); Minnesota DLI — Overtime laws (state overtime after 48 hours; federal after 40); Minnesota DLI — Earned sick and safe time (1 hour per 30 hours worked, up to 48 hours per year); Minn. Stat. 176.041 subd. 1(14) — household workers earning $1,000 or more in cash in a three-month period are covered by workers' compensation. Rules for 2026. General information, not tax or legal advice.