All states · Updated for 2026
How to pay a nanny in Vermont
Everything a Vermont 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.
- Vermont unemployment tax: register with Vermont Department of Labor (Unemployment Insurance) after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with vt dol); new employers pay 1.00% on the first $15,400.00 of wages; file Quarterly wage and contribution report (VT DOL employer portal) quarterly.
- Vermont income tax: withhold per W-4VT.
- New hire report: within 10 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 (Vermont Earned Sick Time: 1 hour per 52 hours worked, up to 40 hours/year, for employees averaging 18+ hours/week. Not verified this session.).
- Workers' compensation: Verify with the Vermont Department of Labor whether coverage is required for your domestic worker; Vermont excludes some casual and domestic employment. Not verified this session.
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-4VT.
- File the Vermont new-hire report within 10 days at the state site.
- Register with Vermont Department of Labor (Unemployment Insurance) once you cross household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with vt dol) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file Quarterly wage and contribution report (VT DOL employer portal). Quarterly, last day of the month after the quarter. 2026 taxable wage base $15,400 (up from $14,800); new employer rate for most employers 1% (VT DOL, verified). Rate schedule for 2026 not verified.
- January: W-2 to your nanny, W-2/W-3 to the SSA, WHT-434 Annual Withholding Reconciliation (with W-2s, via myVTax) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Vermont 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 Vermont?
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. Vermont unemployment tax applies after household employers paying $1,000 or more in cash wages in a calendar quarter (standard rule; confirm with vt dol).
Do I withhold Vermont income tax from my nanny?
Yes, using W-4VT your nanny fills out. CareTab computes it each paycheck.
What forms do I file in Vermont?
Quarterly wage and contribution report (VT DOL employer portal) quarterly with Vermont Department of Labor (Unemployment Insurance), WHT-434 Annual Withholding Reconciliation (with W-2s, via myVTax) 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 Vermont?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Vermont. PLACEHOLDER: the 2026 Vermont minimum wage (indexed annually on Jan 1) could not be read from labor.vermont.gov this session; federal $7.25 is a placeholder - replace. Vermont has no mandatory paid family leave payroll tax (the state program is voluntary).
What is the minimum wage for a nanny in Vermont?
$7.25 per hour in 2026.
Pay your Vermont nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly wage and contribution report (VT DOL employer portal) pre-filled. 14-day free trial, no card needed.
Start free trialSources: GB-1210 2026 Vermont Income Tax Withholding Instructions, Tables, and Charts (percentage method, annual table p.6); Vermont DOL - 2026 taxable wage base $15,400; Vermont DOL - Unemployment Tax Rates (new employer rate 1%). Rules for 2026 are provisional. General information, not tax or legal advice.