All states · Updated for 2026
How to pay a nanny in North Carolina
Everything a North Carolina 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.
- North Carolina unemployment tax: register with North Carolina Division of Employment Security after domestic employer is liable after paying $1,000 or more in cash wages for domestic service in a calendar quarter of the current or preceding year (g.s. 96-1 adopting irc § 3306); new employers pay 1.00% on the first $34,200.00 of wages; file NCUI 101 Quarterly Tax and Wage Report (NCSUITS) quarterly.
- North Carolina income tax: withholding is voluntary for household employers (form NC-4 / NC-4 EZ).
- 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: Not required: the Workers' Compensation Act does not apply to domestic servants or to employers with fewer than three employees (G.S. 97-13(b)); buying a policy voluntarily brings the household under the Act for its term.
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 NC-4 / NC-4 EZ.
- File the North Carolina new-hire report within 20 days at the state site.
- Register with North Carolina Division of Employment Security once you cross domestic employer is liable after paying $1,000 or more in cash wages for domestic service in a calendar quarter of the current or preceding year (g.s. 96-1 adopting irc § 3306) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file NCUI 101 Quarterly Tax and Wage Report (NCSUITS). Quarterly reports and payments due Apr 30, Jul 31, Oct 31, Jan 31. 2026: 1% beginning rate for new employers; experience rates 0.06%–5.76%; wage base $34,200.
- January: W-2 to your nanny, W-2/W-3 to the SSA, NC-3 Annual Withholding Reconciliation with W-2s (electronic) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free North Carolina 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 North Carolina?
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. North Carolina unemployment tax applies after domestic employer is liable after paying $1,000 or more in cash wages for domestic service in a calendar quarter of the current or preceding year (g.s. 96-1 adopting irc § 3306).
Do I withhold North Carolina income tax from my nanny?
North Carolina does not require household employers to withhold state income tax; you can withhold voluntarily using NC-4 / NC-4 EZ if your nanny asks.
What forms do I file in North Carolina?
NCUI 101 Quarterly Tax and Wage Report (NCSUITS) quarterly with North Carolina Division of Employment Security, NC-3 Annual Withholding Reconciliation with W-2s (electronic) 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 North Carolina?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in North Carolina. North Carolina's minimum wage equals the federal $7.25; the N.C. Wage and Hour Act defers to the FLSA for covered household employment (1.5× over 40 for live-out workers; live-in domestic workers exempt from overtime).
What is the minimum wage for a nanny in North Carolina?
$7.25 per hour in 2026.
Pay your North Carolina nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with NCUI 101 Quarterly Tax and Wage Report (NCSUITS) pre-filled. 14-day free trial, no card needed.
Start free trialSources: NCDOR — 2026 NC-30 Income Tax Withholding Tables and Instructions for Employers (3.99% rate + 0.1% = 4.09%; standard deduction $12,750 / $19,125; $2,500 per allowance; whole-dollar rounding; worked example; filing frequencies; domestic employees; NC-3); NC Division of Employment Security — Tax rate information (2026 taxable wage base $34,200; new employer beginning rate 1%); NC Division of Employment Security — File, adjust or review Quarterly Tax & Wage Report (due Apr 30, Jul 31, Oct 31, Jan 31); N.C.G.S. § 96-1(b) — 'employment' and 'employer' defined by reference to IRC § 3306 (domestic service: $1,000 cash wages in a calendar quarter); N.C.G.S. § 97-13(b) — Workers' Compensation Act does not apply to domestic servants or employers with fewer than three employees; North Carolina New Hire Directory (NC DHHS). Rules for 2026. General information, not tax or legal advice.