All states · Updated for 2026
How to pay a nanny in Oregon
Everything a Oregon 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.
- Oregon unemployment tax: register with Oregon Employment Department after $1,000 or more in cash wages to domestic employees in a calendar quarter (current or preceding year); once met, subject for the rest of that year and the next; new employers pay 2.40% on the first $56,700.00 of wages; file Form OA (Oregon Annual Tax Report – Domestic) with Form 132 Domestic for each quarter; or quarterly Form OQ + Form 132 annual.
- Oregon income tax: withholding is voluntary for household employers (form OR-W-4).
- State programs: Paid Leave Oregon (0.60% employee).
- New hire report: within 20 days of their start date.
- Minimum wage: $15.55/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (Oregon sick time: 1 hour per 30 hours worked (or front-load 40); use may be limited to 40 hours/year. Employers with 10 or more Oregon employees (6+ with a Portland location) must pay for it; smaller employers—including nearly all household employers—must provide protected UNPAID sick time. Domestic workers averaging 30+ hours/week in the prior year are also owed 3 paid personal days per year (ORS 653.547).).
- Workers' compensation: ORS 656.027(1): domestic servants in or about a private home (including home health workers employed directly by the homeowner) are nonsubject workers, so coverage is not required; elective coverage is available. Because there is no coverage, the Workers' Benefit Fund hourly assessment does not apply.
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 OR-W-4.
- File the Oregon new-hire report within 20 days at the state site.
- Register with Oregon Employment Department once you cross $1,000 or more in cash wages to domestic employees in a calendar quarter (current or preceding year); once met, subject for the rest of that year and the next (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 Form OA (Oregon Annual Tax Report – Domestic) with Form 132 Domestic for each quarter; or quarterly Form OQ + Form 132. Domestic employers may file the annual Form OA by January 31 (all four quarters of wages on Forms 132) or file quarterly Form OQ by Apr 30 / Jul 31 / Oct 31 / Jan 31. 2026: Tax Schedule 3, new-employer rate 2.4% for employers with under 12 months of payroll; Frances Online shows your assigned rate. Withholding and Paid Leave contributions are reported on the same combined report.
- January: W-2 to your nanny, W-2/W-3 to the SSA, Form OR-WR (Oregon Annual Withholding Reconciliation Report) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Oregon 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 Oregon?
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. Oregon unemployment tax applies after $1,000 or more in cash wages to domestic employees in a calendar quarter (current or preceding year); once met, subject for the rest of that year and the next.
Do I withhold Oregon income tax from my nanny?
Oregon does not require household employers to withhold state income tax; you can withhold voluntarily using OR-W-4 if your nanny asks.
What forms do I file in Oregon?
Form OA (Oregon Annual Tax Report – Domestic) with Form 132 Domestic for each quarter; or quarterly Form OQ + Form 132 annual with Oregon Employment Department, Form OR-WR (Oregon Annual Withholding Reconciliation Report) 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 Oregon?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are also owed overtime in Oregon. Domestic Workers' Protection Act (ORS 653.547): 1.5× after 40 hours/week, or after 44 hours/week for domestic workers who live in the home; 24 consecutive hours of rest each week (overtime rate if they agree to work it); live-in workers get 8 consecutive hours of rest per day. Casual, irregular babysitting is exempt. BOLI notes Oregon's minimum wage law exempts in-home child care/babysitting (federal $7.25 floor applies) but most domestic workers are owed at least minimum wage. Regional rates from July 1, 2026: Portland metro $16.80, nonurban counties $14.55 (standard $15.55).
What is the minimum wage for a nanny in Oregon?
$15.55 per hour in 2026 (schedule: $15.05 from 2025-07-01, $15.55 from 2026-07-01).
Pay your Oregon nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Form OA (Oregon Annual Tax Report – Domestic) with Form 132 Domestic for each quarter; or quarterly Form OQ + Form 132 pre-filled. 14-day free trial, no card needed.
Start free trialSources: Oregon DOR, Oregon Withholding Tax Formulas, effective January 1, 2026 (150-206-436, Rev. 12-31-25); Oregon Employment Department, Current Tax Rate (2026 UI wage base $56,700, Schedule 3, Paid Leave 1% to $184,500); Oregon Employment Department, Employer News 11/19/2025 (2026 new-employer rate 2.4%); Paid Leave Oregon, Employers (60% employee / 40% employer; employers under 25 employees exempt from employer share); Oregon Employment Department, UI Pub 207 Domestic Employers ($1,000 quarterly threshold; Form OA annual report); Oregon DOR, Withholding Taxes: Household Employees (150-206-627) — withholding voluntary; domestic service exempt from Statewide Transit Tax; Oregon DOR, Withholding and Payroll Tax (Form OR-WR due January 31; Form OQ due dates); BOLI, Domestic Workers (overtime after 40 hours; 44 for live-in; casual-basis exemption); BOLI, Sick Time (1 hour per 30; paid for 10+ employees, protected unpaid otherwise); BOLI, 2026 minimum wage announcement (standard $15.55, Portland metro $16.80, nonurban $14.55 from July 1, 2026); Oregon DOJ Child Support, Report New Hires (within 20 days); Oregon Workers' Compensation Division industry notice: home care workers employed by a private home owner are not subject workers (ORS 656.027(1)). Rules for 2026 are provisional. General information, not tax or legal advice.