Do I owe nanny tax in New Jersey?

If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. New Jersey state unemployment kicks in once you exceed the state's wage threshold — typically the first $44,800 of wages.

What is the New Jersey SUI rate for a new household employer?

New household employers in New Jersey start at 2.8%, applied to the first $44,800 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.

Does New Jersey require State Disability Insurance (SDI)?

Yes. New Jersey requires SDI contributions: 0.19% (both-paid). SDI funds short-term disability benefits for employees who can't work due to non-work-related illness or injury.

Does New Jersey require Paid Family and Medical Leave (PFML)?

Yes. New Jersey requires PFML contributions totaling 0.23% of wages up to $171,100 per employee. The employee share is 0.23% and the employer share is 0%.

How much state income tax do I withhold for a New Jersey nanny?

New Jersey uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.

What forms do I need to file for a household employee in New Jersey?

Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In New Jersey: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the New Jersey state portals.

New Jersey Nanny Tax Guide 2026

Quick Facts

Item	Value	Notes
Minimum Wage	$15.92/hr	$15.92/hr (standard); $15.23/hr (<6 employees and seasonal)
Pay Frequency	Twice monthly
Overtime Rules	1.5x after 40 hrs/week
Record Retention	3 years

State Income Tax

Withholding Form: NJ-W4

Unemployment Insurance

Registration: Register online

Workers' Compensation

Threshold: (all household employers)

Paid Family & Medical Leave

Program: Family Leave Insurance (FLI) + Temporary Disability Insurance (TDI)

40 hrs/year paid; 1hr/30hrs worked; 100% employee-funded; up to 12 consecutive weeks; Both employer and employee contribute

Item	Value
Employer Contribution	Yes
Employee Contribution	Yes
Max Weeks	12 weeks

Paid Sick Leave

Accrual Rate: 1hr/30hrs worked

Annual Cap: 40 hrs

40 hrs/year paid; 1hr/30hrs worked; 100% employee-funded; up to 12 consecutive weeks; Both employer and employee contribute

New Hire Reporting

Deadline: Within 20 days of hire

Report Online: File report

File report

Written Contract Required

Threshold: 5+ hrs/month

Must be in worker's preferred language

Special Requirements

Written employment contract REQUIRED for 5+ hrs/month domestic workers (in worker's preferred language); food/lodging credits allowed with records; anti-discrimination protections; rest breaks 10 min/4 hrs; 30-min meal after 5 hrs; live-in: max 6 consecutive days without 24-hr rest

Required Forms

Form NJ-W4

New Jersey state income tax withholding form

Purpose: Employee completes for state tax withholding

New Jersey state form

Purpose: State compliance

Key Deadlines

Deadline	Date	Description	Frequency
New Hire Reporting	Within 20 days of hire	Report new employees within 20 days to the state	at-event

State Agencies

Sources

Poppins Payroll State Resources

Frequently asked

Do I owe nanny tax in New Jersey?: If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. New Jersey state unemployment kicks in once you exceed the state's wage threshold — typically the first $44,800 of wages.
What is the New Jersey SUI rate for a new household employer?: New household employers in New Jersey start at 2.8%, applied to the first $44,800 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
Does New Jersey require State Disability Insurance (SDI)?: Yes. New Jersey requires SDI contributions: 0.19% (both-paid). SDI funds short-term disability benefits for employees who can't work due to non-work-related illness or injury.
Does New Jersey require Paid Family and Medical Leave (PFML)?: Yes. New Jersey requires PFML contributions totaling 0.23% of wages up to $171,100 per employee. The employee share is 0.23% and the employer share is 0%.
How much state income tax do I withhold for a New Jersey nanny?: New Jersey uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
What forms do I need to file for a household employee in New Jersey?: Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In New Jersey: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the New Jersey state portals.