Can I pay my nanny with Zelle, Venmo or cash?
Updated November 6, 2026 · For 2026 · General information, not tax or legal advice
The payment method is the easy part. You can pay your nanny by Zelle, Venmo, PayPal, check, cash or bank transfer. What matters is that the amount you send is the net pay after withholding and that you keep a record showing how you got there.
Pay the net, keep the withholding
If gross pay for the week is $1,000, you withhold $76.50 for Social Security and Medicare (plus any income tax the nanny asked for) and send the rest. The $76.50 stays in your account until you pay it with Schedule H in April, or through estimated payments. Many families move the withheld amounts plus their own employer share into a separate savings account each payday so the money is there.
Give a stub
A stub turns a Zelle transfer into payroll. It shows pay period, hours, rate, gross, each deduction, reimbursements and net. Several states require one each payday for domestic workers (California, New York, Massachusetts and others). Email it or hand it over; CareTab generates it from the hours you log.
Venmo and 1099-K
Payment apps issue Form 1099-K for business payments above a threshold. Nanny wages are not business income to the nanny; they are W-2 wages. On Venmo and PayPal, send as a personal transfer ("friends and family"), not goods and services. Zelle never issues 1099-Ks. If a 1099-K does arrive, the nanny reports the W-2 and explains the duplicate; it does not change the tax.
Cash
Cash is legal. The only problem with cash is proof. If you pay cash, have the nanny sign the stub or a simple receipt, or send a confirming text, so both of you can show what was paid if the state ever asks.
Reimbursements
Send mileage, tolls and purchases as a separate transfer, or list them separately on the stub, so they are not mistaken for wages. See mileage reimbursement.
Direct deposit
Not required, and for one employee usually not worth a payroll company's fee. If your nanny prefers it, most banks will schedule a recurring transfer to another account for free.
Frequently asked
Will Venmo send my nanny a 1099-K?
Only for payments tagged as goods and services. Mark nanny pay as a personal transfer, or use Zelle, which does not issue 1099-Ks at all. The wages belong on the W-2 you issue, not on a 1099-K.
Do I have to use direct deposit?
No. No federal law requires a particular payment method for household employees. A few states require that employees can access wages without a fee, which Zelle, Venmo and cash all satisfy.
Do I still need a pay stub if I pay by Zelle?
Yes, where your state requires stubs, and it is good practice everywhere. The stub shows gross pay, hours, each withholding and net pay; the Zelle memo cannot.
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