How do I actually PAY the IRS my nanny's withheld income taxes?

So I've been employing a nanny since January and for the first six months, she only wanted me to handle the FICA taxes, which I've been paying quarterly without any issues. Pretty straightforward. Now she's asking if I can start withholding both state and federal income taxes as well. I've done some research and I understand the calculation part - how much to withhold and all that. But my question is **how do I actually send the withheld income taxes to the IRS and state tax agencies?** Do I just add it to my own tax payments when I submit a 1040-ES payment online? And how does the system know this money belongs to her record and not mine? I've got an EIN as a household employer, but I'm confused about how to properly credit these withholdings to her SSN so she gets credit when she files her taxes. Any help would be super appreciated!

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18 comments

Beth Ford

•8M

As a household employer, you handle your nanny's withholdings through the same federal and state tax deposit systems you use for the FICA taxes you've already been paying. Here's how it works: For federal taxes, you'll include her income tax withholdings along with the FICA taxes you're already paying. You can make these payments through the Electronic Federal Tax Payment System (EFTPS) using your EIN. You don't need to connect it specifically to her SSN at the time of payment - that connection happens when you file Schedule H with your annual tax return and provide her with a W-2 form. For state taxes, the process varies by state, but generally you'll make payments through your state's tax portal using your state employer account number. Again, you don't separately identify her SSN with each payment. The important part is properly completing and filing a W-2 for her by January 31st of next year. That W-2 will show all the taxes you withheld and paid on her behalf, which she'll use when filing her personal tax return.

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Atticus Domingo

•8M

Thanks so much for explaining! So just to make sure I understand correctly - I continue making the same quarterly estimated tax payments through EFTPS like I've been doing for FICA, but now I just include the additional amount I've withheld for her income taxes? And then at tax time, the W-2 I provide her will show all those withholdings, which connects everything to her SSN? Do I need to adjust anything on my quarterly 1040-ES voucher to reflect that some of this money is her withholdings versus my estimated taxes?

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Beth Ford

•8M

You've got it right about using EFTPS to make the payments with your EIN, and the W-2 being the document that connects the withholdings to her SSN. However, there's an important distinction - household employer taxes are typically reported and paid using Schedule H with your annual 1040 return, not with 1040-ES quarterly estimated payments. These are two separate things. Your nanny's withholdings are not part of your personal estimated tax payments. If you've been paying FICA quarterly, you're likely already using the correct system (EFTPS) designated for employer tax deposits. Just increase those payments to include the income tax withholdings.

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Morita Montoya

•8M

Hey there, just wanted to share a resource that made household payroll WAY easier for me. I was in the same boat last year with my nanny taxes and was completely lost trying to figure out the withholding process. I found this tool called taxr.ai (https://taxr.ai) that analyzes all your household employment docs and tells you exactly what to do. They explained how to make the federal tax deposits through EFTPS and walked me through setting up state withholding accounts too. The best part was they created a payroll schedule showing exactly what to withhold and when to make payments. Saved me from making mistakes that would have caused problems for both me and my nanny at tax time.

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Morita Montoya

•8M

For back taxes, it definitely helps! They have a specific feature for catching up on previous quarters or years. It generates all the forms you need to file late and calculates any penalties you might owe so you can resolve everything properly. They handle all quarterly forms automatically and will send you reminders when it's time to file. The withholding calculator is much more reliable than a spreadsheet since it accounts for all the latest tax tables and rules. And yes, they do provide guidance on workers comp requirements by state and can connect you with appropriate insurance providers if needed.

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Kingston Bellamy

•8M

Just wanted to update that I tried taxr.ai after asking about my back taxes situation. Honestly didn't think there was hope for my mess but they sorted everything out! Their system identified exactly which forms I needed to file retroactively and calculated all the withholdings I should have been making. They even generated a letter explaining the late filing to reduce penalties. Been using it for regular payroll now too and it automatically reminds me when deposits are due. Wish I'd found this two years ago!

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Isaiah Cross

•8M

If you're having trouble getting answers from the IRS about nanny tax payments (which I definitely did), try Claimyr (https://claimyr.com). They got me through to an actual IRS agent in about 15 minutes after I'd been trying for DAYS to get someone on the phone. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a whole mess with my nanny's withholdings last year because I was putting her income tax withholdings in the wrong place. The IRS agent they connected me with walked me through the whole process and even helped me correct my previous payments. Saved me from what would have been a major headache at tax time when my nanny's W-2 wouldn't have matched her actual withholdings.

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Isaiah Cross

•8M

It uses a system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call back instantly to connect with them. No special access - they're just taking the waiting burden off you. They use specialized technology that continuously redials and navigates through the system until it gets through to a representative. It's basically doing exactly what you'd do manually but with technology that can stay on it persistently. And about finding knowledgeable agents - I specifically asked for someone in the household employment division and got transferred to a specialist who knew exactly what to do.

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Evelyn Kelly

•8M

I need to publicly eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway since I was desperate for answers about my nanny's tax withholdings. Not only did I get through to the IRS in about 20 minutes (after trying for WEEKS on my own), but they connected me with someone in the household employment tax department who actually understood what I was talking about! The agent confirmed I'd been doing everything wrong - I was mixing my nanny's withholdings with my estimated tax payments which would have created a nightmare at tax time. She walked me through setting up proper EFTPS payments and explained how to correctly report everything on Schedule H. Worth every penny for the stress it saved me.

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Paloma Clark

•8M

The state process was actually more straightforward than the federal one in some ways. In Massachusetts, you'll need to register with the Department of Revenue and Department of Unemployment Assistance. You'll get separate state account numbers, but you'll reference your federal EIN during registration. Massachusetts has a specific household employer registration that's simplified compared to regular business registration. You can do most of it online through MassTaxConnect. They'll set you up for withholding payments and unemployment insurance contributions, which are typically due quarterly. The DUA process is separate but equally important for unemployment taxes.

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