Deductions & credits

1. The Rate is 15.3% of the wages
2. and 6% on the first $7000 for unemployment Tax

See descriptions below:

1. For 2018 and 2019, there are two income thresholds that affect when the nanny tax becomes due. The first involves Social Security and Medicare taxes, and if you pay a household employee wages for the year that exceed $2,100, then you'll also need to pay the tax. That includes the employer tax of 6.2% for Social Security and 1.45% for Medicare. You'll also need to cover the matching amounts for the employee, although you have the option of withholding that amount from what you pay your household employee if you want.
2. The second income threshold is important for federal unemployment taxes. If you paid a household employee more than $1,000 in any single quarter of either the current year or the previous year, then you'll need to pay unemployment tax on the first $7,000 in cash wages you pay the employee. The tax rate is 6%, although you'll need to coordinate with state unemployment and labor rules to determine whether a portion of that amount gets paid to the state and then credited against what you owe the IRS.