What Is a Schedule H and Who Needs to File It?

Schedule H is an Internal Revenue Service (IRS) form for individuals who employ household help. It reports and calculates federal employment taxes, including Social Security, Medicare, and Federal Unemployment Tax (FUTA), for wages paid to household employees.

Defining Schedule H and Filing Requirements

Schedule H reports and pays Social Security, Medicare, and Federal Unemployment (FUTA) taxes for household employees. It also covers any federal income tax withheld from employee wages. These taxes contribute to federal programs like retirement, disability, hospital insurance, and unemployment compensation.

A household employee performs work in or around your home, and you control both the work and how it is done. This includes nannies, housekeepers, caregivers, and yard workers. Individuals offering services to the public, providing their own tools, and controlling their work are generally independent contractors, not household employees.

Filing Schedule H is triggered by specific wage thresholds. For 2024, report Social Security and Medicare taxes if you paid $2,700 or more in cash wages to any single household employee. FUTA applies if you paid total cash wages of $1,000 or more to all household employees in any calendar quarter during 2023 or 2024. Employers generally need an Employer Identification Number (EIN) to meet these tax obligations.

Information Needed for Schedule H

Preparing Schedule H requires specific financial and employee information. You will need your name and Employer Identification Number (EIN). For each household employee, their name and Social Security Number (SSN) are needed.

Track total cash wages paid to each household employee during the tax year. Distinguish between wages subject to Social Security and Medicare taxes and those subject to FUTA, as different thresholds and wage bases apply. If you withheld federal income tax, determine the total amount withheld for the year.

Calculate the employer’s share of Social Security and Medicare taxes, known as FICA taxes. For 2024, Social Security tax is 6.2% for both employer and employee, applied to wages up to $168,600; Medicare tax is 1.45% for both, with no wage base limit. FUTA calculations apply a 6.0% tax rate to the first $7,000 of wages paid per employee. Employers typically receive a credit of up to 5.4% for timely state unemployment payments, often reducing the effective FUTA rate to 0.6%. Maintain accurate payroll records, including dates and amounts paid.

Submitting and Paying Schedule H Taxes

Schedule H is typically filed as an attachment to your annual federal income tax return, such as Form 1040. This integrates household employment tax responsibilities with your personal tax filing. You can file Schedule H electronically using tax preparation software, or submit a paper return by mail.

Taxes reported on Schedule H are generally due by the annual tax filing deadline, typically April 15 of the following tax year. If this date falls on a weekend or holiday, the deadline shifts to the next business day. Pay these taxes through direct bank pay, the Electronic Federal Tax Payment System (EFTPS), or by including payment with your mailed tax return.

To avoid potential underpayment penalties, especially with substantial household employment tax liability, consider making estimated tax payments throughout the year. Use Form 1040-ES, Estimated Tax for Individuals. This ensures tax obligations are met periodically, not in a single lump sum at year-end.