If you are paying someone to do regular work in your home, whether a nanny, cook, housekeeper, gardener, or other, you may be liable for taxes. Nanny taxes can comprise up to 13.65% of your employee’s wages, not counting federal income tax withholdings and your employee’s share of the Social Security and Medicare taxes. You are also responsible for a separate portion that comes from your own funds as an employer. We’ll discuss the different taxes levied against household employees and how they are paid.