Why State Registration Matters When You Hire a Nanny

Bringing a nanny into your home is a big step for any family. But once you've found someone who fits, there's another important item to care for: registering as a household employer with your state.

In this post, we’ll explain why state registration matters, how it helps you stay on track, and the steps to get started.  

Whether you're paying a full-time nanny, part-time caregiver, or another type of household helper, understanding your household employer responsibilities can save you time, stress, and unexpected tax headaches down the road.

What Is Household Employer State Registration?

When you hire someone to work in your home—like a nanny, senior caregiver, or housekeeper—you may be considered a household employer in the eyes of the IRS and your state government.

That means you may need to:

• Register with your state’s tax and/or labor departments

• Report wages paid to your employee

• Pay state employment taxes, like unemployment insurance or workers’ compensation (depending on your state)
  

Each state has its own rules, forms, and timelines. But generally, the process of registering tells your state: “I’ve hired someone to work in my home, and I’m taking the right steps to pay them legally.”

Why State Registration Matters

You might be wondering: “If I’m already planning to pay my nanny legally, why does registration matter?”

Here are three reasons it’s worth your time:

It’s required in most states

Many states require household employers to register and pay state employment taxes, even if you’re already reporting wages to the IRS. Skipping this step could result in penalties, back payments, or notices down the line.

It protects your nanny

Registering allows your nanny to access unemployment benefits (if ever needed) and helps build a verifiable work history. That’s important for applying for things like loans, leases, or even future jobs.

It can help make tax season less stressful

State registration is often the first step in setting up proper withholding and payment of state taxes. It can also make generating year-end forms (like the W-2, Wage and Tax Statement, and Schedule H, Household Employment Taxes) much simpler.

How to Register as a Household Employer with Your State

The process varies depending on where you live, but here are the general steps most families may need to follow for nanny employer registration:

Check Your State’s Requirements

You can start by visiting your state’s tax agency or labor department website. If available, you can also contact their customer support line or connect with your financial advisor for clarification.

You should also note that some states require registration for unemployment insurance; others may also require workers' comp coverage.

Gather Your Information

You’ll likely need to provide:

• Your name, address, and Social Security number, or employee identification number (EIN) if you’ve already requested one

• Your nanny’s details (name, Social Security number, start date, and other new hire information.)

• Estimated wages you plan to pay

Some states may assign you a state employer account number during registration.

Complete the Registration Forms

Most states now offer online registration portals. This could take less than 30 minutes when you have everything ready. In some cases, you may need to mail in additional documentation.

Stay Current on Your Filings

Once you’re registered, you’ll typically be required to:

• File quarterly wage reports

• Pay state unemployment tax (SUTA)

• Submit year-end forms as required

Some states also require electronic payments or special filings if your employee earns over a certain threshold.

Keep Records on File

Even after you register, you should plan to maintain copies of your nanny’s pay history, W-2, and any tax filings for at least four years. This is helpful in case of audits or future benefit claims.

Sound Like a Lot?

You’re not alone. Between federal forms, state registrations, quarterly filings, and year-end reports, many household employers find it overwhelming to manage it all, especially when it’s your first time.

That’s why many families turn to a household payroll service like SurePayroll® by Paychex.

Let SurePayroll Help with State Registration and More

SurePayroll makes it simple to pay your nanny correctly and easily, while helping you navigate some of the complicated tasks involved in household payroll, including:

• Handling state registration when you sign up as a new household employer

• Calculating and filing payroll taxes at the state and federal level

• Providing direct deposit, pay stubs, and year-end W-2s

• Offering live and online support for household-specific payroll questions
  

At SurePayroll, we can help guide you through setup and handle the back-end work—so you can focus on your family, not the forms.

Ready to Make Payroll Easier?

If you’d rather not go it alone, SurePayroll is here to help.

Learn more about our household payroll services and how we can help with registration, taxes, and more.

‍