Nanny Taxes in South Carolina (Charleston): A Simple Guide for Families

Hiring a nanny in Charleston is an exciting step for many families — but it also comes with legal and tax responsibilities that often catch parents off guard.

If you employ a nanny in your home, you are considered a household employer under federal and South Carolina guidelines. That means nanny taxes and payroll compliance are part of the process — and understanding them early can save you time, stress, and costly mistakes.

This guide explains South Carolina nanny taxes in plain English so Charleston families can feel confident, compliant, and supported.

Disclaimer: This article is for general informational purposes only and should not be considered tax or legal advice. Always consult a qualified payroll or tax professional for guidance specific to your situation.

What Are “Nanny Taxes”?

“Nanny taxes” is the common term for the employment taxes and payroll responsibilities families take on when they hire a household employee, such as a nanny.

If you control:

• Your nanny’s schedule
• Their duties
• How the work is performed

Then your nanny is almost always classified as a household employee, not an independent contractor.

Payroll companies that specialize in household employment, like GTM Payroll Services, help families understand and manage these responsibilities correctly:
https://gtm.com/household/

When Do Nanny Taxes Apply in South Carolina?

In South Carolina, nanny taxes generally apply if:

• You pay a nanny above the annual household employee threshold
• The nanny works in your private home
• The nanny is not your spouse, parent, or under-age child

Most full-time and part-time nannies do qualify, even if they only work a few days per week.

Many Charleston families are surprised to learn that even part-time nannies often require payroll setup — which is why many families partner with a household payroll provider.

Federal Nanny Tax Responsibilities (High-Level)

Most Charleston families employing a nanny are responsible for:

• Social Security and Medicare contributions
• Federal unemployment taxes
• Year-end tax forms (such as W-2s)

Rather than navigating this alone, many families use a service like GTM Payroll Services, which specializes in nanny payroll and tax filings for household employers:
https://gtm.com/household/nanny-tax-payroll-services/

South Carolina Nanny Tax Responsibilities

In addition to federal requirements, South Carolina families may be responsible for:

• State unemployment insurance
• State employer registration
• Ongoing payroll reporting

Household payroll providers help families stay compliant at both the federal and state level, reducing the risk of errors or missed filings.

Can I Pay My Nanny “Under the Table”?

This is one of the most common — and risky — questions families ask.

Paying a nanny off the books:

• Is illegal
• Removes protections for both the family and the nanny
• Can create serious issues during audits, refinancing, or employment disputes

Professional nannies also expect to be paid legally — and families who handle payroll correctly tend to have stronger, longer-lasting placements.

How Dream Nannies Supports Charleston Families

While Dream Nannies does not process payroll directly, we educate families upfront so there are no surprises after a hire.

We help families:

• Understand household employee classification
• Set expectations clearly from the beginning
• Avoid common misclassification mistakes
• Connect with trusted partners like GTM Payroll Services for payroll and tax support

Most importantly, we place professional, career nannies who expect proper payroll and compliance from the start.

Learn more about how our family placement process works here:
https://www.gadreamnannies.com/families-how-it-works/

Explore our South Carolina domestic staffing services here:
https://www.gadreamnannies.com/south-carolina-domestic-staffing-agency/

Nanny Taxes Checklist for Charleston Families

Before hiring a nanny, make sure you’re prepared to:

✔ Register as a household employer
✔ Set up payroll and tax withholdings
✔ Issue a W-2 at year-end
✔ Maintain accurate payroll records
✔ Work with a household payroll provider if needed

Families who plan ahead experience far less stress — and far better long-term outcomes.

Is Hiring a Nanny in Charleston Still Worth It?

For many families, the answer is yes.

Despite the added payroll responsibilities, families choose nannies because of:

• One-on-one care in the child’s own home
• Consistent routines
• Personalized schedules
• Long-term relationships

When handled correctly — with expert staffing and payroll support — hiring a nanny is both manageable and incredibly rewarding.

Need Help Hiring a Nanny in Charleston?

Georgia’s Dream Nannies helps Charleston families find experienced, professional nannies — while guiding them through the hiring process with clarity and care.

👉 Learn how our process works:
https://www.gadreamnannies.com/families-how-it-works/

👉 Explore South Carolina nanny and household staffing services:
https://www.gadreamnannies.com/south-carolina-domestic-staffing-agency/

👉 View current nanny and household job openings:
https://www.gadreamnannies.com/job-listings/domestic-staffing-jobs-available/

FAQ

What are nanny taxes in South Carolina?
Nanny taxes are employment taxes and payroll responsibilities families must manage when hiring a household employee, such as Social Security, Medicare, and unemployment taxes.

Do I need payroll for a part-time nanny in Charleston?
In most cases, yes. Even part-time nannies are usually classified as household employees and require proper payroll setup.

Can I classify my nanny as an independent contractor?
Typically no. Most nannies are household employees and should be paid through payroll with a W-2, not a 1099.

Who helps families with nanny payroll and taxes?
Many families work with household payroll providers like GTM Payroll Services, which specializes in nanny payroll and tax compliance.

Does Dream Nannies handle payroll?
Georgia’s Dream Nannies does not process payroll but helps families understand requirements and connect with trusted payroll partners.