Federal Household Employment Tax Guide
Everything you need to know about your federal tax obligations as a household employer -- Schedule H, FICA, FUTA, W-2s, and estimated payments.
Last updated: February 10, 2026
Household Employer Overview
FICA Threshold (Social Security & Medicare)
If you pay a household employee $3,000 or more in cash wages during the calendar year, you must withhold and pay FICA taxes.
FUTA Threshold (Federal Unemployment)
If you pay total cash wages of $1,000 or more in any calendar quarter, you owe FUTA tax on the first $7,000 of each employee's wages.
| Item | Value | Notes |
|---|---|---|
| Social Security Rate | 6.2% | Employee + employer each pay this rate (12.4% combined) |
| Social Security Wage Base | $184,500 | Maximum wages subject to SS tax per employee |
| Medicare Rate | 1.45% | Employee + employer each pay this rate (2.9% combined) |
| Additional Medicare Rate | 0.9% | Employee-only on wages above threshold |
| Additional Medicare Threshold | $200,000 | Applies to wages exceeding this amount |
How it works: Both the employer and employee pay FICA taxes. As the employer, you withhold the employee's share from their wages and pay a matching amount. The combined Social Security rate is 12.4% and the combined Medicare rate is 2.9%.
Additional Medicare Tax: The 0.9% Additional Medicare Tax applies only to the employee's wages exceeding $200,000. This is an employee-only tax -- you do not pay a matching amount.
| Item | Value | Notes |
|---|---|---|
| Gross FUTA Rate | 6% | Before state unemployment tax credit |
| State Credit | 5.4% | Maximum credit for paying state unemployment tax on time |
| Net FUTA Rate | 0.6% | Effective rate after full state credit |
| FUTA Wage Base | $7,000 | First $7,000 of wages per employee |
| Quarterly Wage Threshold | $1,000 | Pay $1,000+ in any quarter to trigger FUTA |
State credit mechanism: The gross FUTA rate is 6%, but you receive a credit of up to 5.4% if you pay your state unemployment taxes in full and on time. This brings the effective FUTA rate down to just 0.6%.
Employer-only tax: Unlike FICA, FUTA is paid entirely by the employer. You do not withhold any FUTA tax from your employee's wages.
Form 1040 Schedule H -- Household Employment Taxes. Used by household employers to report Social Security, Medicare, FUTA, and federal income tax withholding for domestic employees.
Part I: Social Security, Medicare, and Income Tax
Calculate combined FICA and federal income tax withholding for your household employee.
Total cash wages subject to social security tax
Wages up to $176,100/employee (2025) or $184,500 (2026)
Social security tax
Line 1 x 12.4%
Total cash wages subject to Medicare tax
All wages (no cap)
Medicare tax
Line 3 x 2.9%
Total cash wages over $200,000 subject to Additional Medicare Tax
Wages exceeding $200,000 threshold
Additional Medicare Tax withholding
Line 5 x 0.9%
Federal income tax withheld
Amount withheld (if applicable)
Total social security, Medicare, and federal income taxes
Lines 2 + 4 + 6 + 7
Part II: Federal Unemployment (FUTA) Tax
Determine whether you owe FUTA tax and calculate the amount based on state credit.
Did you pay total cash wages of $1,000 or more in any calendar quarter?
Yes/No determination for FUTA eligibility
Did you pay unemployment contributions to only one state?
Section A vs B routing
Tip
Did you pay all state unemployment contributions by April 15?
Determines FUTA credit eligibility
Were all wages taxable for FUTA also taxable for state unemployment?
Determines FUTA credit eligibility
State abbreviation for unemployment contributions
Two-letter state code
Contributions paid to state unemployment fund
Amount paid to state UI fund
Total cash wages subject to FUTA tax
Up to $7,000/employee
FUTA tax (Section A)
6.0% gross - 5.4% credit = 0.6% net on Line 15
Tip
FUTA tax worksheet (Section B)
Multi-state or late-payment FUTA calculation
FUTA tax (Section B total)
Computed from Lines 17-23 worksheet
Part III: Total Household Employment Taxes
Sum all taxes and determine how to report them on your Form 1040.
Total household employment taxes from Part I
From Line 8
Add FUTA tax from Part II
Line 16 or Line 24 + Line 25
Are you filing Schedule H with Form 1040?
Filing method determination
Address and signature block for standalone filers
Remember
What it contains: Form W-2 reports the total wages paid and all taxes withheld (Social Security, Medicare, federal income tax, and state/local taxes if applicable).
Who gets copies:
- Employee -- Copies B, C, and 2 by January 31
- Social Security Administration (SSA) -- Copy A with Form W-3 by January 31
- State/local tax agency -- Copy 1 if your state requires it
Household employment taxes are due with your annual Form 1040. To avoid an underpayment penalty, you can either increase the federal income tax withholding from your own wages (if employed) or make quarterly estimated payments using Form 1040-ES.
April 15
Q1 estimated tax payment; Schedule H filed with Form 1040
June 15
Q2 estimated tax payment
September 15
Q3 estimated tax payment
January 15 (following year)
Q4 estimated tax payment
| Date | Description |
|---|---|
| January 31 | W-2s due to employees; W-2/W-3 due to SSA |
| April 15 | Q1 estimated tax payment; Schedule H filed with Form 1040 |
| June 15 | Q2 estimated tax payment |
| September 15 | Q3 estimated tax payment |
| January 15 (following year) | Q4 estimated tax payment |
Disclaimer
Check Your State Requirements
Federal taxes are just one part of the picture. Each state has its own income tax, unemployment insurance, and other requirements for household employers.
Browse State Guides