New Jersey nanny & household employment guide

Everything a family or nanny needs to know about household employment law in New Jersey: overtime, payroll taxes, and workers' compensation. This is a plain-language summary, not legal advice.

Overtime rules in New Jersey

Live-out overtime begins after 40 hours/week.
Live-in overtime begins after 40 hours/week.
Overtime multiplier: 1.5x.

New Jersey's Domestic Workers' Bill of Rights requires 1.5x after 40 hours for live-out and live-in workers.

Payroll taxes in New Jersey

Federal (applies everywhere): Social Security 6.2% and Medicare 1.45% from both employer and employee, plus FUTA at 0.6% on the first $7,000 (employer only).

New Jersey state taxes:

State unemployment (SUTA, employer): 2.80% on the first $43,300 of wages.
State income tax (employee, estimated effective): ~5.25%.
Other state employer taxes: 0.50%.
Other state employee taxes (SDI / paid leave): 0.94%.

State disability / paid leave: NJ TDI/FLI: 0.34% (TDI) + 0.6% (FLI) paid by employee.

Workers' compensation in New Jersey

Required for any household employee working 12+ hours/week or earning $1,000+.

Put it in writing

Once you have the rules straight, document the terms. The free Kindred offer letter generator builds a professional nanny offer letter covering pay, overtime, PTO, and duties. See also the nanny tax calculator and take-home pay calculator.

Hiring in New Jersey? Post a job free on Kindred or see what nannies earn.