IRS Schedule H (Household Employment Taxes) is used by taxpayers who employ household employees, such as nannies, housekeepers, gardeners, drivers, or other workers.
The form is required to calculate and pay employment taxes for these employees. These employment taxes include the Social Security and Medicare taxes imposed under the Federal Insurance Contributions Act (FICA) and federal unemployment taxes (FUTA).
Who Must Complete Schedule H?
A taxpayer must file Schedule H if they had a household employee for whom they paid cash wages of $2,600 or more during the year.
For example, John Doe is an executive and employs a full-time driver at his own expense. He pays his driver to be a full-time employee for $45,000 per year. John Doe must prepare a Schedule H with his Form 1040 each year.
What Information is Required?
Taxpayers report the following information on Schedule H:
- Taxpayer’s name (i.e., as the employer)
- Total cash wages paid to household employees
- Total cash wages paid which are subject to social security and medicare taxes
- Any pay related to qualified sick leave, family leave, or other health plan expenses.
- Total wages subject to federal unemployment taxes (FUTA)
Video Tutorials
Please view our video here for a walkthrough of Schedule H for an individual taxpayer.
Additional Information
Taxpayers seeking more information on household employment taxes can view the Schedule H instructions and review IRS Publication 926 (Household Employer’s Tax Guide).