Schedule H Household Employment Tax
If you pay nanny/housekeeper $2,800+ annual or $1,000+ quarterly: must pay employer share of FICA (7.65%) + FUTA ($56/employee max). File Schedule H with Form 1040.
| Annual cash wages | — |
| Social Security (6.2%) | — |
| Medicare (1.45%) | — |
| Total FICA portion | — |
| FUTA (federal unemp) | — |
| Total Schedule H liability | — |
Schedule H reports federal employment taxes for household workers (nannies, housekeepers, gardeners) paid $2,800+ annually (2026). Includes Social Security, Medicare (FICA), and federal unemployment (FUTA). Filed with your personal Form 1040.
Who Counts as Household Employee
Worker is your employee if you control what AND how they work — schedule, tasks, tools. Babysitter at your home = employee. Daycare center = independent contractor (their own business).
FICA: Pay Both Halves or Withhold?
Employer must pay 7.65% (6.2% SS + 1.45% Med). Employee 7.65% can be withheld OR paid by employer (becomes additional taxable wages). Withholding is the standard professional choice.
FUTA: Often Just 0.6%
FUTA is 6% on first $7,000 wages. State UI credit reduces to 0.6% in most states ($42/employee max federal). Required if you pay $1,000+ in any quarter.
State Workers Comp + UI
Most states require workers comp insurance for household employees ($200-$800/year). Most require state unemployment insurance (varies). Check your state department of labor.
Last updated May 2026. Sources: IRS Pub 926 Household, Schedule H Form.