{"id":167,"date":"2025-06-26T21:23:27","date_gmt":"2025-06-26T21:23:27","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/maryland-tax-and-labor-law-summary\/"},"modified":"2025-06-26T21:23:35","modified_gmt":"2025-06-26T21:23:35","slug":"maryland-nanny-taxes","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/maryland-nanny-taxes\/","title":{"rendered":"2025 Maryland household employment tax and labor law guide"},"content":{"rendered":"
Finding helpful Maryland nanny tax information is not always easy. That’s why we’ve combined all the state and federal tax and labor law information you’ll need. Check out the information below that HomePay is here to help with.*<\/p>
We know you’re busy! Here’s a quick “to-do” list with links to extra details below.<\/p>
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned.<\/p> You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p> Household employers in Maryland are required to carry a workers’ compensation insurance<\/a> policy if their employee earns more than $1,000 in a calendar quarter. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p> Maryland household employers are required to provide their employees with a written wage notice at the time of hire. The notice must include the employee’s hourly pay rate, regular pay days and leave benefits (sick time, vacation time, etc.).<\/p> Under the Domestic Workers Law, household employers in Montgomery County must negotiate a written contract<\/a> with an employee who works 20 or more hours per week for a period of 30 or more days. <\/p> Families in Maryland are required to notify their employee of their rights by sharing these posters<\/a>.<\/p> Note:<\/em> Whenever more than one rate applies, employers are required to pay the higher rate.<\/p> Household employers in Montgomery County are required to provide up to 56 hours of sick leave to their employee each calendar year. 32 hours must be paid sick leave and the remaining 24 hours may be unpaid. HomePay keeps track of sick time accruals on your account.<\/p> Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p> Families with 2 or more employees have 3 options:<\/p>Set up EIN & state tax account(s)<\/h3>
Workers’ compensation<\/strong><\/h3>
Wage notice requirement<\/strong><\/h3>
Montgomery County employment contract requirement<\/strong><\/h3>
Employment posters <\/strong><\/h3>
During employment <\/strong><\/h2>
File returns, remit taxes and manage correspondence<\/h3>
Minimum wage rates<\/h3>
Maryland overtime requirements<\/h3>
Montgomery County sick leave<\/strong><\/h3>
Optional benefits for your employee <\/strong><\/h2>
Health insurance<\/h3>