1. Is the worker your employee?
If you control what work is done and how it's done, the worker is generally your household employee — a nanny or housekeeper on your schedule, for example. If the worker runs their own business, brings their own tools and offers services to the public, they're generally self-employed (IRS Publication 926).
2. Pay at least minimum wage
The Florida minimum wage is $15.00/hour since September 30, 2026, and will be adjusted for inflation every year from 2027.
3. Federal taxes (the "nanny tax")
- Social Security and Medicare: if you pay one household employee $3,000 or more in cash wages in 2026, you withhold 6.2% + 1.45% from their pay and pay the same amount yourself.
- FUTA: if you pay $1,000 or more to household employees in any calendar quarter, you owe federal unemployment tax (6% on the first $7,000 per employee, usually reduced by state credit).
- You report these on Schedule H with your Form 1040 and give the employee a Form W-2.
- Wages paid to workers under 18 don't count for Social Security and Medicare unless household work is their main occupation.
4. Florida taxes
- No state income tax to withhold.
- Florida reemployment tax: applies if you pay $1,000 or more in a calendar quarter for domestic services; it's charged on the first $7,000 per employee per year, at 2.7% for new employers (Florida Department of Revenue).
5. Put it in writing
Agree in writing on hours, duties, pay, overtime, paid time off and how either side ends the arrangement.
Sources: IRS Publication 926 (2026) · Florida Department of Revenue — reemployment tax · Florida Constitution, Art. X §24.
Frequently asked questions
What is the nanny tax threshold for 2026?
$3,000 in cash wages paid to one household employee in the year (IRS Publication 926).
Do I need to withhold Florida income tax?
No. Florida has no state income tax.
Last updated 2026-11-02. This guide is general information, not legal or tax advice.