How to Fill Out Schedule H
Form 1040 Schedule H — Household Employment Taxes
A line-by-line guide for household employers to report Social Security, Medicare, FUTA, and federal income tax withholding for domestic employees.
Gather the following information before starting Schedule H:
- Total cash wages paid to each household employee during the year
- Whether you paid any single employee $3,000 or more (the Social Security/Medicare threshold)
- Whether you withheld federal income tax (this is optional for household employers)
- Your state unemployment (SUTA) tax payments and account information
- Whether you paid $1,000 or more in any calendar quarter (FUTA threshold)
- Your Employer Identification Number (EIN)
Step-by-Step Guide
You must file Schedule H if you paid any single household employee cash wages of $3,000 or more during the tax year. This threshold triggers Social Security and Medicare tax obligations. Even if you only withheld federal income tax, you use Schedule H to report it.
Tips
- Cash wages include salary, hourly pay, and non-cash compensation converted to a dollar amount.
- You do NOT count amounts paid for food or lodging provided at your home for your convenience.
- The threshold is per employee -- if you paid one employee $2,500 and another $3,500, only the $3,500 employee triggers Schedule H.
Part I begins with Social Security and Medicare calculations. Enter total cash wages subject to Social Security tax on Line 1 (up to $184,500 per employee for 2026). Line 2 multiplies by 12.4% (6.2% employer share + 6.2% employee share). Line 3 is total wages subject to Medicare (no cap), and Line 4 multiplies by 2.9% (1.45% each).
| Line | Description | Calculation |
|---|---|---|
| 1 | Total cash wages subject to social security tax | Wages up to $176,100/employee (2025) or $184,500 (2026) |
| 2 | Social security tax | Line 1 x 12.4% |
| 3 | Total cash wages subject to Medicare tax | All wages (no cap) |
| 4 | Medicare tax | Line 3 x 2.9% |
| 5 | Total cash wages over $200,000 subject to Additional Medicare Tax | Wages exceeding $200,000 threshold |
| 6 | Additional Medicare Tax withholding | Line 5 x 0.9% |
Tips
- The Social Security wage base for 2026 is $184,500. Wages above this amount are not subject to Social Security tax.
- Medicare has no wage cap -- all wages are subject to Medicare tax.
- Additional Medicare Tax of 0.9% applies to wages over $200,000 (Lines 5-6). This is relatively rare for household employees.
Line 7 is for any federal income tax you voluntarily withheld from your employee's wages. Federal income tax withholding is optional for household employers -- unlike Social Security and Medicare, you are not required to withhold it. If you and your employee agreed to withhold, enter that amount here. Line 8 totals Social Security, Medicare, and income tax.
Tips
- Many household employers choose not to withhold federal income tax. This does not create a penalty for the employer.
- If your employee requests withholding, have them complete Form W-4 so you know how much to withhold.
- Even if you did not withhold, your employee may still owe income tax and should consider estimated payments.
Part II covers Federal Unemployment Tax (FUTA). You owe FUTA if you paid $1,000 or more in cash wages in any calendar quarter. The gross rate is 6%, but you receive a 5.4% credit for state unemployment taxes paid on time, making the net rate 0.6%. FUTA applies to the first $7,000 in wages per employee.
| Line | Description | Calculation |
|---|---|---|
| 9 | Did you pay total cash wages of $1,000 or more in any calendar quarter? | Yes/No determination for FUTA eligibility |
| 10 | Did you pay unemployment contributions to only one state? | Section A vs B routing |
| 11 | Did you pay all state unemployment contributions by April 15? | Determines FUTA credit eligibility |
| 12 | Were all wages taxable for FUTA also taxable for state unemployment? | Determines FUTA credit eligibility |
| 13 | State abbreviation for unemployment contributions | Two-letter state code |
| 14 | Contributions paid to state unemployment fund | Amount paid to state UI fund |
| 15 | Total cash wages subject to FUTA tax | Up to $7,000/employee |
| 16 | FUTA tax (Section A) | 6.0% gross - 5.4% credit = 0.6% net on Line 15 |
Tips
- Most employers use Section A (simple calculation). Use Section B only if you paid unemployment tax to multiple states or paid state taxes late.
- The net FUTA rate is typically just 0.6% after the state credit -- on $7,000 that is only $42 per employee.
- If your state has an outstanding federal unemployment loan, the credit may be reduced (credit reduction state). Check the Schedule H instructions.
Part III brings everything together. Line 25 carries over your total from Part I (Social Security, Medicare, and any income tax withheld). Line 26 adds your FUTA tax from Part II. The sum is your total household employment tax for the year.
Tips
- Double-check your math before moving to the final step. This total will appear on your Form 1040.
- Keep a copy of your calculations for your records -- you may need them if the IRS has questions.
The final step determines how you report. If you are filing Schedule H with your Form 1040 (the most common approach), check the box on Line 27 and enter the total from Line 26 on Schedule 2 (Form 1040), Line 9. If you are not otherwise required to file Form 1040, you can file Schedule H by itself with the address block on Line 28.
Tips
- Most household employers attach Schedule H to their regular Form 1040 filing.
- The total flows to Schedule 2, Line 9 of your Form 1040 -- your tax software will handle this automatically.
- If you use a tax professional, provide them with your completed Schedule H or the wage/payment records they need to complete it.