Navigating Payroll for Private Families: Your 2025 Guide: Welcoming a nanny or household employee into your family brings invaluable support to your daily life. At Nanny Village, we understand the importance of creating positive employment relationships that benefit both families and staff.

Let’s explore what you need to know about nanny payroll taxes and household employer payroll services in 2025 to ensure a smooth experience for everyone involved.

Important Payroll Changes for 2025

Several key updates have taken effect this year that impact household employers:

• Wage threshold increase: The threshold for tax withholding has risen to $2,800 in 2025 (previously $2,700)
• Social Security tax wage base: Earnings subject to Social Security taxes have increased to $176,100
• Mileage reimbursement: The IRS mileage rate is now 70 cents per mile
• Minimum wage updates: Many states and cities have implemented new minimum wage rates for 2025

Understanding Employee Classification

When hiring household staff professionals, it’s important to understand proper worker classification. Household staff like nannies typically qualify as W-2 employees rather than independent contractors because:

• The family provides direction about when and how work is performed
• The relationship is usually ongoing rather than project-based
• The family provides the work environment and necessary resources

Proper classification ensures both families and staff receive appropriate protections and benefits.

Managing Your Household Payroll

As a discerning employer of household staff, you understand that excellence in home management reflects your personal standards. Yet managing payroll—a seemingly straightforward administrative task—often becomes an unexpected drain on your time and attention.

Understanding the Process

Employment Verification documentation demands precision and discretion. While completing Form I-9 seems routine, maintaining proper records while respecting staff privacy requires thoughtful implementation of systems that many find surprisingly time-intensive.

Implementing a robust payroll infrastructure extends well beyond basic calculations:

• Developing customized timekeeping solutions that accommodate your household’s unique schedule
• Ensuring compensation accuracy, particularly for staff who may travel with your family
• Administering benefits and leave policies that retain quality staff
• Creating payment protocols that maintain appropriate boundaries
• Establishing record retention systems that balance accessibility with security

Navigating nanny taxes and payroll obligations becomes particularly nuanced when managing staff across multiple residences or jurisdictions:

• FICA withholdings that must be calculated with precision
• Unemployment tax requirements that vary significantly between locations
• State-specific regulations that may apply differently to various staff roles
• Tax law updates that require interpretation for your specific situation

Regional Considerations for 2025

Families in California and New York should be aware of an additional 0.9% Federal Unemployment Insurance requirement this year due to the FUTA Credit Reduction. This temporary measure helps these states repay unemployment insurance loans to the federal government.

Business and Household Employment Considerations

If you are a founder or business owner, you may have considered simplifying your life by running household staff payroll through your company. This approach can present significant risks:

• Tax classification complications can arise immediately. Household employees (nannies, housekeepers, private chefs) perform services in your personal residence, not for your business entity. The IRS and state tax authorities maintain clear separation between business and personal expenses.
• Audit risk escalation occurs when household employees appear on business payroll. This arrangement often triggers enhanced scrutiny of both your business and personal finances—potentially opening examination of areas beyond just payroll practices.
• Employment law misalignment creates additional exposure, as your business may become subject to household employment regulations it wouldn’t otherwise face, while your household employee might gain unintended access to business benefits or protections.
• Insurance coverage gaps frequently emerge, as your business liability and workers’ compensation policies typically exclude coverage for employees working in your personal residence, creating potential uncovered liability.

What appears as a convenient shortcut can create complex compliance issues that can lead to large fines and inconveniences for both your personal and business life.

Nanny Village’s Supportive Approach

At Nanny Village, we understand that finding exceptional household staff is only the beginning of your employment journey. As the premier placement service for discerning families, we provide comprehensive support that extends well beyond the initial match.

When you partner with Nanny Village, you receive:

• Expert placement of qualified, thoroughly vetted household professionals
• Guidance through the entire employment process, from interviewing to onboarding
• A complimentary consultation with our specialized payroll partners who understand the unique needs of private employers and offer guidance on a wide variety of topics – from HR related topics to nannies payroll
• Access to industry-leading expertise in household employment compliance
• Ongoing support to ensure your employment relationship thrives

Our integrated approach means you’re never navigating complex household employment matters alone. We’ve cultivated relationships with the finest household payroll specialists who can seamlessly handle all the administrative details while you focus on what matters most.

Begin your simplified household employment experience today. Complete our brief inquiry form to schedule both your personalized staffing consultation and your free payroll assessment. Discover how Nanny Village creates a seamless experience from finding your perfect household match to navigating work agreements and more —all with the exceptional service you deserve.

Contact Nanny Village today to learn more about our placement services and schedule your complimentary payroll consultation.

Frequently Asked Questions

What is the highest salary for a nanny?

Nanny salaries vary based on location, duties and level of experience. When it comes to staffing a single nanny or an experienced ROTA nanny team, having a structured and attractive compensation package is essential for retaining the best care for your children. Discerning families have invested $500K+ to ensure the absolute best fit with desired experience and certifications, which can include teaching credentials and governess experience or certifications in special needs care. Partnering with Nanny Village not only gives you access to the best nannies and household staff in the industry but personalized guidance on market -specific and industry standards to attract the best talent that fit within your expectations and preferences.

How much do nannies get paid per month?

Nannies and other household staff earn an hourly rate and should never be paid a monthly salary. As a household employer, you may require your staff to work overtime or travel hours, which should be paid in accordance with employment and labor laws. Partnering with Nanny Village Agency gives you professional guidance and a stress-free hiring process.

What is nanny payroll 2025 San Francisco?

In San Francisco for 2025, nanny payroll involves compliance with the city’s strict employment classification requirements, and a complex mix of federal, state and local tax obligations. Beyond basic withholding, it is suggested private employers should budget an additional 15-18% for employer-side taxes and consider the city’s generous paid sick leave mandates.

How much does a full time nanny make in San Francisco?

San Francisco nanny rates vary depending on the level of experience of the candidate, local market conditions and duties required of the position. While every nanny determines their own hourly rate, in 2025, families can expect to pay a starting market rate of $35 or $40+ per hour plus industry standards. Working with Nanny Village, includes a personalized compensation consultation to give you a clear offer strategy that aligns with your goals.

How much does a night nanny cost in San Francisco?

Night nannies in San Francisco typically start in the $55 per hour range in 2025. Certified Newborn Care Specialists and Postpartum Doulas can earn as much as $60+ per hour depending on experience, required travel and specialized care. What does your night nanny or NCS do? These professionals not only provide expert newborn care, including the overnight or daytime support and soothing needed for new parents to rest, they are also trained to provide lactation support, sleep training and routine development, child-related household support and national and international travel care.

How much is nanny share in San Francisco?

San Francisco nanny shares are a great way to ensure your children are socialized with other children while receiving personalized in-home care and enrichment. While every family and nanny agreement is unique, nanny share families can expect to split the investment between the families while providing their nanny with a competitive hourly rate starting in the $45 per hour range plus industry standards.

How much does a full time nanny get paid in Los Angeles?

Los Angeles nanny rates vary depending on the level of experience of the candidate, local market conditions and duties required of the position. Every nanny has determined their own rate and goals for compensation, in 2025, families can expect to pay a starting market rate of $35 or $40 per hour plus nanny industry standards. Your personalized compensation consultation when you work with Nanny Village. We work to understand your needs to give you a clear offer strategy with your expectations in mind.

How much does a doula cost in San Francisco?

San Francisco Doulas offer a wide range of benefits for new and intended families – prenatal visits, continuous labor support and postpartum follow-up. San Francisco doula services typically range from $8,500+ for birth support, with more experienced doulas commanding higher rates. Some premium packages may add extended postpartum care, lactation support, and additional services.