Hiring a Nanny in Salt Lake City: Rates, Taxes, Benefits and What Nobody Tells You
I talk to Utah parents every week, and the first question is almost always "what should we pay?" The second one, usually a little quieter, is "do we really have to do taxes?" So I'm going to answer both, plus everything in between, the way I'd explain it if you called me today.
My partner Mario and I run The Family Care Collective together. We're a family business, and we place nannies with families all over the Salt Lake Valley and Utah County. Here's what we've learned.
Where we place nannies around Salt Lake
Most of our Utah families are in:
Salt Lake City: Sugar House, the Avenues, East Bench, Federal Heights, Yalecrest
The east side suburbs: Holladay, Millcreek, Cottonwood Heights
South valley: Sandy, Draper, South Jordan, Herriman
Utah County: Lehi, Highland, Alpine, American Fork
One thing I always bring up early is the commute. A nanny who lives in West Jordan can probably get to Draper easily. Ask her to get to Alpine at 7:30 on a snowy January morning and you'll lose her by February. We look at where candidates actually live before we send you anyone.
How much does a nanny cost in Salt Lake City?
Most nannies in the Salt Lake area earn $25 to $35 per hour. Where you land depends on a few things:
Newer nanny ($25 to $28/hr): 1 to 3 years of childcare experience (daycare, preschool, babysitting), CPR certified, great with routines
Experienced nanny ($28 to $32/hr): 3+ years in private homes, strong family references, comfortable with infants or multiple kids, drives
Career nanny ($32 to $35/hr): 5 to 10+ years as a nanny, early childhood background, sleep and potty training experience, long-term mindset
House manager (Starts around $32 to $40/hr): Runs the household side: calendars, errands, groceries, vendors, organizing, sometimes kids too
A few things push your rate up: more than two kids, a newborn, twins, lots of driving, kids' laundry and meal prep, or a schedule that changes week to week. If you want someone experienced, I'd honestly price yourself in the middle of the range or higher. The good nannies in Salt Lake get multiple offers.
Always talk gross pay, not net
This trips families up constantly. When you say "$28 an hour," make sure everyone understands that means $28 before taxes. Some nannies are used to being paid cash and hear "$28" as what lands in their account. Clear this up in the first conversation and put it in writing. It saves a lot of hurt feelings later.
Do I really have to pay nanny taxes in Utah?
Yes, in almost every case. If your nanny works in your home and you control the schedule and the work, the IRS considers her your household employee, not an independent contractor. That means she gets a W-2, not a 1099. Paying a nanny on a 1099 or in cash "under the table" is the most common mistake I see, and it can come back on you if she files for unemployment, gets hurt, or you ever need to prove your childcare costs.
Here's what that looks like for 2026:
Federal taxes
Social Security and Medicare (FICA): Required once you pay a household employee $3,000 or more in cash wages in 2026. You pay 7.65% and withhold 7.65% from her pay (some families choose to cover her half too).
Federal unemployment (FUTA): Required once you pay $1,000 or more in a calendar quarter. It's 6% on her first $7,000 of wages, but most families get a credit for paying state unemployment, which brings it down to about 0.6%, or roughly $42 a year.
Income tax withholding: Optional for household employees, but most nannies want it so they don't get a big bill in April. If she asks, you withhold based on her W-4.
Utah taxes
Utah unemployment insurance: As a new household employer you'll pay at least 0.1% on the first $50,700 of her wages. You pay this, not her.
Utah income tax: If you're withholding federal income tax, plan on withholding Utah income tax as well. A nanny payroll service sets this up for you.
Workers' compensation: Utah requires it if your nanny works 40 or more hours a week for you. Even if she works less, I recommend it. If she slips on your stairs carrying your toddler, you want that covered.
Paperwork you'll need
An Employer Identification Number (EIN) from the IRS. It's free and takes about 10 minutes online.
A Utah unemployment account.
Form I-9 and Form W-4 from your nanny when she starts.
A W-2 to your nanny by January 31 each year.
Schedule H filed with your own tax return.
If that list makes your eyes glaze over, you're not alone. Most of our families use a nanny payroll service. It costs a few hundred dollars a year and handles all of it.
What it actually costs: a real example
Let's say you hire a full-time nanny at $28/hr for 40 hours a week, 52 weeks a year.
Gross pay ($28 x 2,080 hours): $58,240
Your share of Social Security and Medicare (7.65%): $4,455
Federal unemployment (about 0.6% of $7,000): $42
Utah unemployment (0.1% of $50,700, new employer minimum): $51
Workers' comp (required at 40+ hrs/week): Varies, get a quote
Total before benefits and workers' comp: About $62,790
So plan on employer taxes adding roughly 8% on top of her pay, plus workers' comp, plus any benefits you offer.
Overtime
Utah requires time and a half for hours over 40 in a seven-day workweek for household employees. Live-in nannies are an exception. If your nanny works 45 hours a week, those last 5 hours are paid at 1.5 times her rate. Budget for it from the start instead of being surprised by it.
Benefits Salt Lake nannies expect
Utah doesn't require paid sick leave for household employees. But the strong nannies are choosing between several families, and benefits are often what tips the decision. Here's what most of our Utah families offer:
Guaranteed hours. If you go on vacation or don't need her one day, you still pay her normal hours. This is the single biggest thing career nannies look for.
Paid time off. Usually two weeks a year. Often one week is her choice and one is yours.
Paid holidays. Typically the major federal holidays, like New Year's Day, Memorial Day, July 4th, Labor Day, Thanksgiving and Christmas. Pioneer Day is a nice bonus here.
Sick days. Three to five paid days is common.
Mileage. If she drives your kids in her car, reimburse her at the 2026 IRS rate of 72.5 cents per mile.
A health stipend. Not required, but a monthly amount toward her health insurance goes a long way.
An annual review and raise. Most families give a raise each year she stays.
Tax breaks that help you
Paying legally also lets you use the childcare tax breaks.
Dependent Care FSA: Starting in 2026 the limit went up to $7,500 per household. If your employer offers one, you pay part of your nanny's wages with pre-tax dollars.
Child and Dependent Care Tax Credit: You can count up to $3,000 of care costs for one child or $6,000 for two or more. You can't use the same dollars for both the FSA and the credit, so talk to your CPA about the best mix.
What to put in your nanny agreement
A written agreement protects both of you. Ours covers:
Hourly rate (gross), pay schedule and how overtime works
Guaranteed hours and the weekly schedule
PTO, holidays and sick days
Duties: childcare, kids' laundry, meal prep, driving, light tidying
Car use and mileage
Snow days and school breaks (Canyons, Granite, Jordan and Alpine school calendars rarely match your work schedule)
Cameras, phone use, social media and confidentiality
How either side ends the relationship, and how much notice
How we vet every nanny
Every candidate we introduce has been interviewed by our team. We call her references from past families, run a background check, and talk through real situations with her, like a toddler meltdown at Smith's or a sick kid on a school day. We ask about her driving record, CPR and first aid, and whether she has pets, so nobody gets surprised after she starts.
Ready to start?
If you're in Salt Lake City, Holladay, Sandy, Draper, Lehi or anywhere nearby, tell us about your family through our family application. One of us, Mario or me, will follow up personally. You can also learn more at thefamilycarecollective.com.
Want to know how we work with Utah families? Read about our Salt Lake City nanny agency.
This post is general information, not tax or legal advice. Tax rules change, so check with a CPA or a nanny payroll service before you file.
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