Resources & Guides
Everything you need to understand household employment taxes and run payroll with confidence.
Guides
Household Employment Tax Basics
When you hire someone to work in your home — a nanny, housekeeper, senior caregiver, or private chef — you become a household employer. This means you have tax obligations similar to any other employer, including withholding and paying employment taxes.
Compliance Checklist
- Obtain an EIN from the IRS (or use your SSN)
- Verify employee eligibility (I-9 form)
- Collect W-4 for federal tax withholding
- Withhold Social Security & Medicare taxes (FICA)
- Pay FUTA taxes quarterly
- File Schedule H with your personal tax return
- Issue W-2 to employees by January 31
- Register with your state tax agency
- Collect state W-4 (if different from federal)
- Withhold state income tax (varies by state)
- Pay state unemployment insurance (SUI)
- File state payroll tax returns quarterly
- Some states require workers' compensation insurance
- Check local/city tax requirements
Tax Calendar
- January 31
Issue W-2s to employees for previous year
- January 31
File Schedule H (if not filing with your 1040)
- April 15
File personal tax return (1040) with Schedule H
- April 30
Pay Q1 state unemployment taxes (SUI)
- June 15
Pay estimated taxes (if applicable)
- July 31
Pay Q2 state unemployment taxes (SUI)
- September 15
Pay estimated taxes (if applicable)
- October 31
Pay Q3 state unemployment taxes (SUI)
- January 15 (following year)
Pay estimated taxes (if applicable)
- January 31 (following year)
Pay Q4 SUI and file annual returns
W-2 & Schedule H
You must issue a W-2 to each household employee by January 31 of the following year. The W-2 reports total wages paid and taxes withheld during the calendar year.
NannyLedger generates W-2s automatically from your payroll data. Download them from the Documents page and provide copies to your employee and the SSA.
Schedule H is filed with your personal tax return (Form 1040). It reports Social Security, Medicare, FUTA, and federal income tax withholding for your household employees.
NannyLedger prepares your Schedule H data automatically. Export it from the Documents page and provide it to your tax preparer or use it for self-filing.
Common Questions
If you pay a household employee $2,700 or more in a calendar year (2024 threshold), you're required to withhold and pay Social Security and Medicare taxes. If you pay $1,000 or more in any quarter, you owe federal unemployment tax (FUTA).
The 'nanny tax' is an informal term for the employment taxes household employers must pay. It includes the employer's share of Social Security (6.2%), Medicare (1.45%), federal unemployment (FUTA), and applicable state taxes.
In most cases, no. The IRS considers household workers to be employees if you control when, where, and how they work. Misclassifying an employee as a contractor can result in penalties and back taxes.
Schedule H is the IRS form household employers use to report employment taxes. It's filed with your personal tax return (Form 1040) and covers Social Security, Medicare, FUTA, and federal income tax withholding for your household employees.
Requirements vary by state. Some states require workers' compensation for all household employees, while others have minimum hour or wage thresholds. Check your state's requirements or ask our AI assistant.
NannyLedger automatically calculates state income tax withholding, state unemployment insurance (SUI), and any local taxes for all 50 states + DC. We keep tax tables updated so you don't have to.
Official IRS Resources
Publication 926 — Household Employer's Tax Guide
The IRS's comprehensive guide for household employers.
Schedule H (Form 1040) Instructions
Official instructions for filing household employment taxes.
Topic No. 756 — Employment Taxes for Household Employees
IRS overview of when and how to pay household employment taxes.
Form I-9 — Employment Eligibility Verification
Required form to verify your employee's identity and work authorization.
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