All states · Updated for 2026
How to pay a nanny in New Jersey
Everything a New Jersey 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.
- New Jersey unemployment tax: register with New Jersey Department of Labor and Workforce Development (Division of Employer Accounts) after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with nj dol); new employers pay 2.80% on the first $44,800.00 of wages; file NJ-927-H Domestic Employer Annual Report (with WR-30 wage report) annual. Employees also contribute 0.43%.
- New Jersey income tax: withhold per NJ-W4.
- State programs: NJ Temporary Disability Insurance (0.19% employee, 0.50% employer); NJ Family Leave Insurance (employee-paid) (0.23% employee).
- New hire report: within 20 days of their start date.
- Minimum wage: $15.92/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (NJ Earned Sick Leave Law covers nearly all employees including domestic workers (accrual 1 hour per 30 hours worked, up to 40 hours/year). Accrual figures not re-verified this session.).
- Workers' compensation: New Jersey requires workers compensation insurance for all employers, including household employers of domestic workers (NJ DOL Division of Workers Compensation). Verify.
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 NJ-W4.
- File the New Jersey new-hire report within 20 days at the state site.
- Register with New Jersey Department of Labor and Workforce Development (Division of Employer Accounts) once you cross household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with nj 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 year: file NJ-927-H Domestic Employer Annual Report (with WR-30 wage report). Domestic employers report income tax withholding, UI and disability once a year on Form NJ-927-H, due January 31 for the prior calendar year (NJ-WT p.10). 2026 employer new-employer rate 2.80% = 2.6825% UI + 0.1175% Workforce Development; employee 0.425% = 0.3825% UI + 0.0425% WF/SWF on the $44,800 base (nj.gov/labor rate page).
- January: W-2 to your nanny, W-2/W-3 to the SSA, NJ-W-3 (domestic employers also file NJ-927-H) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free New Jersey 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 New Jersey?
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. New Jersey unemployment tax applies after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with nj dol).
Do I withhold New Jersey income tax from my nanny?
Yes, using NJ-W4 your nanny fills out. CareTab computes it each paycheck.
What forms do I file in New Jersey?
NJ-927-H Domestic Employer Annual Report (with WR-30 wage report) annual with New Jersey Department of Labor and Workforce Development (Division of Employer Accounts), NJ-W-3 (domestic employers also file NJ-927-H) 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 New Jersey?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in New Jersey. NJ follows FLSA for domestic workers; live-in domestic workers are exempt from overtime under the NJ Wage and Hour Law. Verify current NJ Domestic Workers Bill of Rights guidance.
What is the minimum wage for a nanny in New Jersey?
$15.92 per hour in 2026.
Pay your New Jersey nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with NJ-927-H Domestic Employer Annual Report (with WR-30 wage report) pre-filled. 14-day free trial, no card needed.
Start free trialSources: NJ-WT New Jersey Gross Income Tax Instruction Booklet for Employers (September 2025); New Jersey Withholding Rate Tables - Tables for Percentage Method of Withholding (Rates A-E, wages paid on and after Oct 1 2020; current); NJ DOL Employer Accounts - Rate information, contributions, and due dates (2026 wage bases and worker rates); NJ DOL Wage and Hour (minimum wage $15.92 effective Jan 1 2026). Rules for 2026. General information, not tax or legal advice.