Who Counts as a Household Employee?
A household employee is someone you pay to do work in or around your home. Examples listed in IRS Publication 926 include babysitters, nannies, housekeepers, cooks, drivers, health aides, private nurses and yard workers.
You use Schedule H when the cash wages you paid were subject to Social Security, Medicare or federal unemployment tax. You also use it if you withhold federal income tax.
When You Owe Household Employment Taxes for 2026
Each tax has its own trigger. These terms help:
- FICA is the combined name for Social Security and Medicare taxes.
- FUTA is the federal unemployment tax.
- Withholding is money you hold back from your worker’s pay and send to the IRS for them. This amount is reported on the employee’s Form W-2.
- Cash wages are the money you pay your worker for their work.
| Tax | 2026 trigger | Rate | Who pays |
|---|---|---|---|
| Social Security and Medicare (FICA) | $3,000+ in cash wages to one household employee | 15.3% (6.2% Social Security plus 1.45% Medicare, each side) | You 7.65%, employee 7.65% (you may pay their share) |
| Additional Medicare Tax | Wages over $200,000 | 0.9% | Your employee, through withholding |
| Federal FUTA* | $1,000+ in total cash wages in any calendar quarter of 2025 or 2026 | 6.0% on the first $7,000 per employee; 0.6% after a state credit of up to 5.4% | You only, from your own funds |
| Federal income tax withholding | Only if your employee asks and you agree | Based on your employee’s Form W-4 | Your employee, through withholding |
You may also owe state unemployment tax in addition to federal unemployment tax (FUTA). To find out if you owe state unemployment tax and what the requirements are, check with your state unemployment agency.
For a list of state unemployment tax agencies, visit the U.S. Department of Labor’s website.
The FICA split matches what comes out of a regular paycheck. Social Security tax stops after the first $184,500 of wages. You may also owe state unemployment tax.
An IRS employment taxes FAQ confirms income tax withholding is optional.
Family Members and Young Workers Who Are Exempt
Some wages don’t count toward these triggers.
Social Security and Medicare Exemptions
Don’t count wages you pay your spouse, your child under 21 or your parents. A parent who cares for your child can count under specific conditions. You also skip any employee who was under 18 at any time in 2026.
The under-18 rule doesn’t apply if household work is the worker’s principal occupation. For a student, it isn’t, so a teen sitter who’s in school doesn’t count.
FUTA Exemptions
For FUTA, don’t count wages you pay your spouse, your child under 21 or your parents.
How to File and Pay Schedule H
If you owe, two deadlines matter for 2026 wages.
By February 1, 2027
Get an EIN (Employer Identification Number), which is a tax ID number for employers. Give your employee Copies B, C and 2 of Form W-2. Send Copy A with Form W-3 to the Social Security Administration.
By April 15, 2027
File Schedule H with your Form 1040. You can also attach it to Form 1040-SR, 1040-SS, 1040-NR or 1041. Household employment taxes are one reason you may need to file a return. If you aren’t otherwise required to file, you send Schedule H by itself.
If you already report business employees on Forms 941, 944 or 943 and 940, you may include your household employee there instead.
Paying During the Year
Paying as you go can help you avoid an estimated tax penalty. You can have extra tax withheld from your own wages. Or you can make estimated tax payments, which are payments you send during the year, using Form 1040-ES.
