New York has its own Domestic Workers' Bill of Rights, so a family employing a nanny, housekeeper or home carer has more state rules to follow than in most states. Searches for "payroll services New York" often come from families deciding whether to pay someone to handle it. This post sets out the state rules from the Department of Labor and the Tax Department, the federal ones on top, and the options for running it.
New York's wage rules for domestic workers
| Rule | What it requires |
|---|---|
| Minimum wage | $17.00 an hour in New York City, Long Island and Westchester; $16.00 in the rest of the state. The DOL says these stay the same on 1 January 2027 |
| Overtime | 1.5 times the basic rate after 40 hours in a calendar week, or after 44 hours if the worker lives in your home |
| Day of rest | 24 hours each calendar week; hours worked on that day are paid at the overtime rate |
| Paid days off | At least 3 paid days after one year of work for you |
| Meal period | 30 minutes off duty on a shift of more than 6 hours (unpaid) |
| Paid sick leave | Accrues at 1 hour per 30 hours worked; with 4 or fewer employees, up to 40 hours a year, paid if your net income was over $1 million, otherwise unpaid |
At hiring you must give a written notice of the agreed pay rate, the overtime rate and the regular payday, plus a written notice of your sick leave, vacation, personal leave, holiday and hours policies.
Weekly pay and the pay statement
The DOL says employers must pay domestic workers each week, by cash or check, and give a written statement each week showing the hours worked, gross pay and every deduction. Deductions must be agreed by the worker in writing and allowed by law, and you must keep a record of daily and weekly hours.
New York payroll taxes and insurance for household employers
| Trigger | What you do |
|---|---|
| $500 or more in cash wages to household workers in a calendar quarter | Register for unemployment insurance (form NYS-100); you're liable from the first day of that quarter. File Form NYS-45 each quarter, within 30 days of the quarter's end, even with no wages |
| Worker does 20 or more hours a week, or lives in | Provide disability (DBL) and paid family leave cover. DBL pays up to $170 a week for up to 26 weeks |
| Worker does 40 or more hours a week, or lives in | Provide workers' compensation insurance |
| You and the worker agree to it | Withhold New York State, New York City or Yonkers income tax using Form IT-2104. It's voluntary for household employees |
If you do withhold income tax, the Tax Department says to report it on Form NYS-45 each quarter, and to pay it with Form NYS-1 if what you've withheld in a quarter reaches $700. Your spouse and your child under 21 are excluded from unemployment insurance coverage.
Federal rules on top
- Social Security and Medicare once you pay one household employee $3,000 or more in cash wages in 2026: 6.2% and 1.45% from the worker, matched by you (IRS Publication 926).
- Federal unemployment tax (FUTA) once you pay $1,000 or more in cash wages to household employees in any calendar quarter of 2025 or 2026.
- Federal income tax withholding isn't required for a household employee; you withhold only if they ask and you agree.
- Give the W-2 and file it with the SSA by 1 February 2027, and file Schedule H with your 2026 return by 15 April 2027.
A worked example
A live-out nanny in Brooklyn earns $20 an hour for 40 hours a week: $800 gross. Social Security is $49.60 and Medicare $11.60. With no income tax withholding agreed, take-home is $738.80 before any DBL or paid family leave contribution you deduct. You owe a matching $61.20, plus state unemployment insurance and FUTA. If she works 45 hours one week, the 5 extra hours are paid at $30.
Your options: service or do it yourself
A household payroll service registers you, withholds, files the NYS-45 and federal forms and produces the weekly statement for a monthly fee: on 8 October 2026 Poppins Payroll listed $49 a month and Care.com HomePay $59 or $75 on their own pricing pages. Doing it yourself costs your time: registering, a weekly pay statement, a quarterly NYS-45 and the year-end W-2 and Schedule H. The DBL, paid family leave and workers' compensation policies are bought separately either way.
Where PayDocs fits
If you run household payroll yourself, PayDocs makes the weekly pay stub with hours, gross pay, each deduction and year-to-date totals, and the W-2 at year end. PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate). Every line stays editable, so leave income tax off if you haven't agreed to withhold it. You preview free and pay per document.
PayDocs doesn't register you with the DOL, file the NYS-45 or buy insurance for you. This is general information as of 8 October 2026, not tax or legal advice; the NYS DOL and Tax Department pages in the sources are the authority.
Questions
What is the minimum wage for a nanny in New York in 2026?
$17.00 an hour in New York City, Long Island and Westchester and $16.00 in the rest of the state. The Department of Labor says the rates stay the same on 1 January 2027.
When does overtime start for a domestic worker in New York?
After 40 hours in a calendar week for a worker who lives out, or after 44 hours for one who lives in your home. Overtime is 1.5 times the basic rate, and hours on the weekly day of rest are paid at it too.
Do I have to withhold New York income tax for my nanny?
No. The Tax Department says withholding is voluntary for household employees: you withhold New York State, New York City or Yonkers tax only if you and the worker both agree, using Form IT-2104.
When do I register for New York unemployment insurance?
Once you pay $500 or more in cash wages to household workers in a calendar quarter. You're liable from the first day of that quarter and file Form NYS-45 every quarter after that, even with no wages.
Sources
- New York State Department of Labor: Facts for employers of domestic workers
- New York State Department of Labor: Minimum wage
- New York State Department of Taxation and Finance: Hiring household help (updated 10 August 2026)
- IRS: Publication 926 (2026), Household Employer's Tax Guide
- Poppins Payroll: Pricing (checked 8 October 2026)
- Care.com HomePay: Product and pricing (checked 8 October 2026)
Sources checked October 8, 2026. This article explains how pay documents work; it is not tax or legal advice.
