What Is Revenue Code 942 for Household Employee Taxes?

Revenue Code 942 refers to the obsolete IRS Form 942, the “Employer’s Quarterly Tax Return for Household Employees.” This form is no longer used for reporting and paying federal taxes for household workers, as the IRS has streamlined the process from a quarterly to an annual filing.

The Role of the Obsolete Form

Form 942 was the designated document for employers to report and remit federal employment taxes for their household staff on a quarterly basis. The form covered withholdings for federal income tax, Social Security, and Medicare taxes. A household employee is someone who performs work in or around your home, where you control what work is done and how it is done. This category includes nannies, housekeepers, private chefs, and gardeners, and it is important to distinguish them from independent contractors, who control how their work is performed and provide their own tools.

Modern Tax Obligations for Household Employers

Today, household employment taxes are reported using Schedule H (Form 1040), “Household Employment Taxes.” The federal taxes involved are Social Security and Medicare taxes (FICA) and the Federal Unemployment Tax (FUTA). These obligations are triggered when cash wages paid to a household employee meet certain thresholds set by the IRS each year.

For 2025, you must withhold and pay FICA taxes if you pay any single household employee cash wages of $2,800 or more during the year. The FICA tax rate is 15.3%, split between the employer (7.65%) and the employee (7.65%). The FUTA tax obligation arises if you paid total cash wages of $1,000 or more to all household employees in any calendar quarter of the current or preceding year. This tax is calculated on the first $7,000 in cash wages paid to each employee.

Federal income tax withholding is not mandatory for household employees, but it can be done if the employee requests it and the employer agrees. Employers also have state-level unemployment tax duties, which have their own distinct reporting and payment requirements.

How to File for Household Employees Today

Filing for household employees involves attaching the completed Schedule H to your personal annual income tax return, such as Form 1040, 1040-SR, or 1040-NR. The total household employment taxes from Schedule H are then transferred to your personal tax return, becoming part of your overall tax liability for the year.

Payment of these taxes is handled throughout the year to avoid a large balance due at tax time. You can cover the tax liability by increasing the federal income tax withheld from your own paychecks or by making quarterly estimated tax payments using Form 1040-ES. The deadline for filing Schedule H and paying any remaining balance coincides with the standard personal income tax filing deadline, April 15th.