State Withholding Tax for Household Employee (Nanny)

[Michael16]

We had a household employee (nanny) in 2023 for whom we used a payroll service. Each quarter, the payroll service submitted quarterly estimated federal taxes (1040ES) and filed quarterly state withholdings (we live in Georgia so the quarterly G-7 return).

I'm able to see the federal estimate filings (amounts and dates) when I log into my IRS online account. I've entered those amounts and dates in TurboTax for federal estimated taxes. I'm unsure how to handle the state withholdings (I can only see the filings and not the dates/amounts in my state online tax account), since they aren't state estimated taxes.

Since state taxes were withheld from our household employee's paycheck and transmitted electronically by the payroll company to the state, how do I account for those withholdings on my taxes? I don't see any of this included on the Schedule H.

[ThomasM125 · Accepted solution]

For the State of Georgia, you need to file a Form G-1003 Withholding Income Statement Transmittal and Form DOL-4A Annual Tax and Wage Report for Domestic Employment to account for the wages paid to and tax withheld from your domestic employee. It is likely your payroll service filed those returns, but you should check with them to make sure.

You do not report any tax with your Georgia state personal income tax return as far as your domestic employee wages are concerned like you do on your federal return. Consequently, you don't need to account for the state tax withholding from your domestic employee on your personal tax return for Georgia.

[Michael16]

I can see through my online tax center account that Form G-1003 was filed with the state. I will need to check on Form DOL-4A but I presume that was/will be filed.

So because I'm not responsible for the state taxes (the employee is responsible for paying), I won't see that tax responsibility on my side in TurboTax. As a result, those employee withholdings do not need to be reported on my individual filing so long as Form G-1003 and Form DOL-4A were transmitted by the payroll company. Is this correct?

[RobertB4444]

That is correct.

@Michael16