Nanny taxes and pay runs, made simple and worry-free.

No. CareTax is a calculation and recordkeeping tool, not a tax advisor. Our calculations reference IRS Publication 926 (Household Employer's Tax Guide) to help you understand your withholding and employer tax obligations, but the output is for informational purposes only. Every household employer's situation is unique (income, filing status, state rules, and worker classification all matter). When in doubt, a CPA or enrolled agent can review your situation before you file.

All 50 states plus the District of Columbia. On the federal side, CareTax covers the employer share of FICA (6.2% Social Security and 1.45% Medicare), plus FUTA, which has a headline rate of 6% but drops to an effective 0.6% after the standard state unemployment credit, applied to the first $7,000 of each worker's wages. On the state side, CareTax handles unemployment insurance, state income tax withholding, and programs like disability insurance and paid family leave where they apply. Rates update each tax year automatically.

No. CareTax generates the reference documents you need, but filing happens directly with the IRS and your state agencies. For federal taxes, household employers typically report on Schedule H (attached to Form 1040), issue a Form W-2 to the employee by January 31, and transmit copies to the Social Security Administration using Form W-3. CareTax produces draft versions of these documents so you arrive at filing time organized and confident. You (or your accountant) then submit them through the IRS, SSA, and relevant state portals.