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