A Household Employee is an individual hired to complete household work. The employer can control what work the household employee must complete and direct how they want the job accomplished.
For U.S. tax purposes, the analysis is similar to a company deciding whether an individual is hired as an employee or working as an independent contractor.
Household work generally includes the following roles and responsibilities:
- Cooks
- Maids
- Nannies
- Cleaners and Housekeepers
- Private Nurses
- Drivers
An individual or family that hires a household employee must report the wages and payroll taxes on a Schedule H (Form 1040) Household Employment Taxes.
Filing the Schedule H requires the following information:
- Must apply for an EIN using Form SS-4 (Application for EIN).
- File a Form W-2 (Wage and Tax Statement) if wages exceeded $2,600 for the 2023 tax year.
- Report wages subject to Social Security, Medicare, and Federal Income Tax Withholding.
- Qualified family, health, or sick leave wages, if any.
- Pay required Federal Unemployment Taxes (FUTA)