Family Caregiver Taxes and Employment in New Jersey

When you employ a family member as your household caregiver in New Jersey, your caregiver's age and/or their relationship to you may mean certain federal and New Jersey taxes apply a little differently. We've broken down these differences below — along with the state-specific employment requirements you'll want to know — so you always know what's going on with your employee's payroll.

Tax exemptions

Requirements and rates vary by state and are subject to change. The information below is current as of 2026.

Federal taxes

FICA (Social Security and Medicare) and FUTA (Federal Unemployment Tax) may apply a little differently based on your caregiver's age and family relationship to you.

Caregiver relationship	FICA (Social Security and Medicare)	FUTA (Federal Unemployment)
A minor under 18 who isn't your child	Exempt (until age 18)	Applies
Your child, currently under 21	Exempt (until age 21)	Exempt (until age 21)
Your spouse	Exempt	Exempt
Your parent	Usually exempt (see parent-childcare exception)	Exempt

When your caregiver passes one of the age thresholds, we'll automatically update how their wages are taxed based on the information in your account, and email you in advance. For the full federal breakdown, see How federal tax exemptions work for family caregivers.

New Jersey state taxes

New Jersey follows the federal family caregiver exemption with one important difference: the child age cutoff is under 18, not under 21. The same exemption rule applies across NJ's bundled employer programs — Unemployment Insurance (UI), Workforce Development and Supplemental Workforce Fund (WF/SWF), Temporary Disability Insurance (TDI), and Family Leave Insurance (FLI).

Caregiver relationship	NJ UI, WF/SWF, TDI, FLI
A minor under 18 who isn't your child	Applies
Your child, currently 18–20	Applies (NJ cutoff is under 18)
Your child, currently under 18	Exempt
Your spouse	Exempt
Your parent	Exempt

New Jersey state income tax withholding generally applies to caregivers regardless of family relationship (current as of 2026; rules subject to change).

Employment requirements

Quick overview

For all caregivers — spouse, parent, child, non-family minor — New Jersey applies standard household employment rules with no major family-relationship carve-outs. The main minor-specific rules involve working papers and hour caps for employees under 16.

Requirements by relationship

Where you see "Standard rules" in the table below, family caregivers follow the same rules as any other household employee — no family-specific carve-out applies.

Requirement	Spouse	Parent	Your child <18	Your child <21	Non-family minor <18
Minimum wage	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Overtime	Standard rules	Standard rules	Minors <16: max 40 hrs/week	Standard rules (treated as adult)	Minors <16: max 40 hrs/week
Workers' comp	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
NJ FLI and TDI (already covered in tax section)	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
PTO and Sick time (Earned Sick Leave Law)	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Working papers / employment certificate	—	—	Required for under-18 employees	Required	Required
Termination notices, posting, meal and rest	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Food and lodging credit (live-in arrangements)	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules

Important notes

Working papers (employment certificates) are required for minors under 18 in New Jersey, regardless of family relationship.

New Jersey's Earned Sick Leave Law applies broadly — to most employees, including family caregivers.

Disclaimer: This information is provided for general educational purposes and should not be considered tax, legal, financial, or human resources advice.