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a federal or state tax levied on those who employ live-in domestic help
The nanny tax pays for the workers' Social Security, Medicare, and unemployment benefits.
The legal requirement, enacted in 1951, that full-time domestic child-minders be treated like other employees under the Social Security law: The Social Security ''nanny tax,'' made famous last year in confirmation hearings will be eased under legislation Congress passed Thursday
[1980s+; fr British nanny, ''childrens' nurse,'' a nickname for Ann, and found by 1795]