If you pay someone to work in or around your home, you may be considered a household employer. In that case, you could be responsible for paying household employment taxes, including Social Security, Medicare, and federal unemployment (FUTA) taxes.
These taxes are reported on Schedule H and included with your federal income tax return. Any household employment taxes you owe will be added to your total tax due or reduce your refund.
Who Is Considered a Household Employee?
A household employee is someone you hire to perform household work in your home and whose work you control. This means you have the right to direct both what work is done and how it is done, even if you don't actively supervise the worker.
If you hire a worker through an agency and the agency controls the worker's duties and schedule, the worker is generally considered an employee of the agency, not your household employee.
Common examples of household employees include:
- Nannies and babysitters
- Housekeepers and maids
- Private cooks
- Home health aides
- Private nurses
- Drivers
- Gardeners and yard workers
Independent contractors, such as plumbers, electricians, repair technicians, and other service professionals who run their own businesses, generally aren't considered household employees.
When Do Household Employment Taxes Apply?
For tax year 2026, Social Security and Medicare taxes generally apply if you pay a household employee $3,000 or more in cash wages during the year.
If you meet this threshold, you are generally responsible for:
- Withholding the employee's share of Social Security and Medicare taxes, or paying those taxes on the employee's behalf
- Paying the employer's share of Social Security and Medicare taxes
- Reporting the taxes on Schedule H with your tax return
What Is the Tax Rate for Household Employment Taxes?
The employer portion of Social Security and Medicare taxes is 7.65% of taxable wages and consists of:
- 6.2% Social Security tax
- 1.45% Medicare tax
In most cases, the household employee is also responsible for a matching 7.65% share. As the employer, you generally withhold this amount from their wages unless you choose to pay it yourself.
What About Federal and State Unemployment Taxes?
You may also owe federal unemployment (FUTA) tax.
The FUTA tax rate is 6% on the first $7,000 of wages paid to each employee during the year. However, many employers qualify for a credit based on state unemployment taxes paid, which can reduce the effective federal rate.
State unemployment tax is not calculated on Schedule H. Because state requirements vary, contact your state's unemployment tax agency here to determine whether you must register and pay state unemployment taxes.
How Are These Taxes Reported?
When you complete the Household Employment Tax section in the software, we'll calculate the applicable taxes and prepare Schedule H for you.
Any household employment taxes owed will be included on your tax return and factored into your overall refund or amount due.
When Shouldn't I File Schedule H?
Do not file Schedule H if you're already reporting the wages on:
- Form 941
- Form 943
- Form 944
In those situations, household employment taxes are reported through those employer tax forms instead.