Utah Nanny Laws & Tax Compliance Guide (2025): What Every Family Needs to Know When Hiring a Nanny
Hiring a nanny in Utah is a significant decision that brings both joy and responsibility. As a household employer, it's essential to understand and comply with Utah's specific laws and tax obligations to ensure a smooth and legal employment relationship. This comprehensive guide will walk you through each step, providing clarity and confidence as you navigate the process.
Step 1: Determine Your Status as a Household Employer
If you hire a nanny to work in your home and direct their work, you're considered a household employer under both federal and Utah state law. This classification comes with specific responsibilities, including tax withholdings and labor law compliance.
Step 2: Obtain an Employer Identification Number (EIN)
Before you can handle tax obligations, you'll need to obtain an EIN from the IRS. This number is used to report taxes and other documents to the IRS. You can apply for an EIN online through the IRS website.
Step 3: Verify Employment Eligibility
Complete Form I-9, Employment Eligibility Verification, for your nanny to ensure they are legally authorized to work in the United States. Keep this form on file for your records.
Step 4: Understand and Comply with Wage Laws
Minimum Wage:
Utah adheres to the federal minimum wage, which is currently $7.25 per hour. Ensure that your nanny is paid at least this amount for all hours worked.
Overtime Pay:
Non-live-in nannies must be paid 1.5 times their regular hourly rate for any hours worked over 40 in a workweek. Live-in nannies are exempt from overtime pay under federal law.
Pay Frequency:
Utah law requires that employees be paid at least semi-monthly. Wages earned must be paid within ten days after the end of the pay period.
Step 5: Set Up Tax Withholdings and Payments
Federal Taxes:
Social Security and Medicare (FICA): If you pay your nanny $2,800 or more in a calendar year, you must withhold and pay FICA taxes.
Federal Unemployment Tax Act (FUTA): If you pay your nanny $1,000 or more in any calendar quarter, you must pay FUTA taxes.
State Taxes:
Utah Unemployment Insurance (SUI): You are required to pay SUI taxes if your nanny earns $1,000 or more in a calendar quarter.
Step 6: Provide Workers' Compensation Insurance
In Utah, if your nanny works 40 or more hours per week, you are required to carry workers' compensation insurance. This insurance provides benefits to your nanny in case of a work-related injury or illness.
Step 7: Offer Standard Employment Benefits
While not legally required, offering benefits can help attract and retain a high-quality nanny. Common benefits include:
Paid Time Off (PTO): Offering 2-6 weeks of PTO.
Paid Holidays: Recognizing major holidays.
Sick Leave: Providing a set number of sick days.
Health Insurance Stipend: Contributing to health insurance premiums.
Mileage Reimbursement: Reimbursing for work-related travel.Utah State Tax Commission
Step 8: Maintain Accurate Records
Keep detailed records of your nanny's employment, including:
Hours Worked: Track daily and weekly hours.
Wages Paid: Document all payments made.
Tax Filings: Retain copies of all tax documents filed.
Benefits Provided: Record any benefits offered and used.
Step 9: Draft a Comprehensive Employment Agreement
Create a written contract outlining the terms of employment, including:
Job Responsibilities: Clearly define duties and expectations.
Work Schedule: Specify days and hours of work.
Compensation: Detail wage rate and payment frequency.
Benefits: List any benefits provided.
Termination Policy: Explain the process for ending employment.
Step 10: Partner with a Trusted Nanny Agency
Navigating the complexities of hiring a nanny can be overwhelming. Partnering with a reputable nanny agency, like The Natural Nanny Collective, can simplify the process. Our agency specializes in holistic, therapist-backed nanny placements, ensuring that families in Utah find caregivers who align with their values and meet all legal requirements.
By following these steps, you can confidently hire a nanny in Utah, ensuring compliance with all legal obligations and creating a positive employment relationship. If you have any questions or need assistance, The Natural Nanny Collective is here to support you every step of the way. Partner with the best and safest nanny agency in the nation!
