Household Employment Tax

Household employment tax applies when a homeowner hires someone to perform work in or around a private residence as an employee.

A worker is a household employee if the homeowner controls the work to be done and how it’s done.

Common Household Employees

Independent contractors (plumbers, electricians, repair services) are not household employees.

You may owe household employment taxes if any of the following apply:

You paid $2,800 or more in cash wages to any one household employee during 2025
You paid $1,000 or more in total cash wages to all household employees combined in any calendar quarter (triggers FUTA)
You withheld federal income tax at the employee’s request (using Form W‑4)

Social Security & Medicare (FICA):
- 7.65% withheld from the employee
- 7.65% paid by the employer
Federal Unemployment Tax (FUTA):
- 6% on the first $7,000 of wages per employee
- Often reduced by state unemployment tax credits
Additional Medicare Tax:
- 0.9% withheld on wages over $200,000
- No employer match

Household employers must:

File Schedule H (Form 1040) to report FICA, FUTA, and any withheld federal income tax
Issue Form W‑2 to each household employee by January 31
Obtain an Employer Identification Number (EIN)
Pay taxes by:
- Making estimated tax payments, or
- Increasing personal withholding

If you’re not otherwise required to file a return, Schedule H may be filed by itself

You generally do not owe household employment taxes for wages paid to:

Your spouse
Your child under age 21
Your parent (unless special care‑for‑child exceptions apply)
Workers under age 18, unless household work is their principal occupation