Michigan Nanny Tax Guide 2026
Paying a nanny, caregiver, or housekeeper in Michigan? Federal rules apply once cash wages reach $3,000 for the year and Michigan taxes employer-paid wages up to $9,000 per employee for state unemployment. Estimate the federal taxes below, then use the state links for registration.
Works offline — your inputs never leave this device. How that works
Cash wages only — Pub 926 excludes the value of meals and lodging provided for your convenience, and wages to a spouse, your child under 21, your parent, or an employee under 18 are generally not counted.
State unemployment tax and, in many states, workers’ compensation are additional and not included here. File Schedule H (Form 1040) with your 2026 federal income tax return by April 15, 2027.
Verified 2026-07-31 against Publication 926 (2026), Household Employer's Tax Guide (effective 2026-01-01)
Verified 2026-07-31 against State household-employer registration and UI wage bases (per-row citations) (effective 2026-01-01)
Estimate only — not legal, tax, or financial advice. Only the IRS can determine your actual amounts.
Official source: IRS Publication 926 — Household Employer’s Tax Guide ↗
State unemployment tax
Taxable wage base: $9,000 per employee for 2026. Employers pay state unemployment tax on wages up to that amount, in addition to federal FUTA.
Register as an employer in Michigan ↗Workers’ compensation
Michigan's Workers' Disability Compensation Agency requires coverage from "Householders employing domestic servants if they employ anyone 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks."
New-hire reporting
States require employers to report a new hire shortly after the start date, household employers included.
Michigan new-hire reporting ↗Federal side
Social Security and Medicare apply once cash wages reach $3,000; FUTA is triggered by $1,000 in any calendar quarter and applies to the first $7,000 of wages. File Schedule H (Form 1040) with your 2026 federal income tax return by April 15, 2027.
Check whether the nanny tax applies to you →Source for Michigan: Michigan LEO/UIA, Michigan Employer Advisor December 2025 ("The Taxable Wage Base remains at $9,000 for qualifying employers in 2026"; employers who are delinquent do not qualify for the reduced base, and the UIA Taxable Wage Base FAQ gives the default base as $9,500); UIA, Register Your Business; MDHHS Child Support, New Hire Reporting; Michigan WDCA, Workers' Disability Compensation Insurance Requirements (verified 2026-07-31).
Michigan household-employer questions
Do I have to pay nanny taxes in Michigan?
The federal rules apply everywhere: once cash wages to a household employee reach $3,000 for 2026, Social Security and Medicare taxes apply and are reported on Schedule H. Michigan adds its own state unemployment tax registration on top, and the calculator on this page estimates the federal portion.
What is the Michigan unemployment taxable wage base?
Michigan sets its state unemployment taxable wage base at $9,000 per employee for 2026, according to Michigan LEO/UIA, Michigan Employer Advisor December 2025 ("The Taxable Wage Base remains at $9,000 for qualifying employers in 2026"; employers who are delinquent do not qualify for the reduced base, and the UIA Taxable Wage Base FAQ gives the default base as $9,500); UIA, Register Your Business; MDHHS Child Support, New Hire Reporting; Michigan WDCA, Workers' Disability Compensation Insurance Requirements. State unemployment tax is paid by the employer on wages up to that amount, separately from the federal FUTA tax.
Do I need workers' compensation insurance for a nanny in Michigan?
Michigan's Workers' Disability Compensation Agency requires coverage from "Householders employing domestic servants if they employ anyone 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks." Coverage rules turn on hours worked and wages paid, so the state agency page is the place to confirm a specific situation — and an insurance agent or employment attorney can advise where it is close.
How do I register as a household employer in Michigan?
Registration happens with the state agency directly — the links on this page go to Michigan's own employer registration and new-hire reporting pages. You will also need a federal EIN from the IRS, which is free and issued immediately online.
Recommended services
SurePayroll
Nanny and household-employer payroll service that files Schedule H, state registrations, and quarterly returns for you.
Visit SurePayroll ↗Affiliate disclosure: Some links may earn us a commission at no extra cost to you. Learn more
Other states
Michigan household-employer alerts — wage-base and threshold changes when they drop
One email when the numbers change. Double opt-in, no spam, unsubscribe anytime.