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household employee taxes also called nene taxes for the obvious reason my name is tony cameron with tldr accounting and we provide tax and accounting services to individuals and small business owners a big question that has been coming up recently is what happens if i hire a nanny and how do i end up paying them so a nanny falls under the term household employee a household employee would be like a nanny a butler a house cleaner if you hired someone just to take care of your lawn things like that now for the most part a lot of times youd hire a service for this so like a lawn care service or a house cleaner from a service and you would pay the service and the service would take care of those things but a nanny is very very different a nanny for the most part youre going to end up being the employer so hence the term nanny taxes now what happens with this is if it is a real meaning not your spouse not a kid under 21 or your parents and you pay them thats where naming taxes come in it