Resource · IRS Pub 926
Household Employer Tax Guide
When you hire a nanny, senior caregiver, or housekeeper in the U.S., you become a household employer. This guide explains your federal and state tax obligations under IRS Publication 926.
Important: Callme AI is a matching platform, not an employer. Household employment tax obligations are the responsibility of the hiring family. Our Nanny Tax Calculator and payroll service can help you comply.
6 steps to compliance
Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS. This is free and required for filing household employment taxes. Use Form SS-4 or apply online at IRS.gov.
Withhold FICA taxes
If you pay a household employee $2,800 or more in 2026 (wage threshold), you must withhold Social Security (6.2%) and Medicare (1.45%) — total FICA 7.65%. You as the employer pay a matching 7.65%, for a combined 15.3%.
Pay FUTA tax
Federal Unemployment Tax Act (FUTA) is 6.0% on the first $7,000 of wages, but you receive up to 5.4% state credit, making the effective rate 0.6%. Only applies if you paid $1,500+ in any quarter.
Pay state unemployment (SUTA)
Each state has its own SUTA tax rate and wage base. Rates vary widely — from 0.1% to over 5% depending on the state and your experience rating. Callme AI's Nanny Tax Calculator handles all 50 states automatically.
File Schedule H
File IRS Form 1040 Schedule H (Household Employment Taxes) with your personal tax return by April 15. This reports FICA, FUTA, and federal income tax withheld.
Issue Form W-2
By January 31, provide your employee with Form W-2 and file Form W-3 with the Social Security Administration. States may also require quarterly unemployment returns.
Key 2026 thresholds
| Tax | Rate | 2026 Threshold |
|---|---|---|
| FICA (Social Security + Medicare) | 15.3% combined (7.65% each) | $2,800/yr |
| FUTA | 0.6% (after state credit) | $1,500/quarter |
| Federal income tax withholding | Per employee W-4 | Employee request |
| SUTA (state unemployment) | 0.1%–5.4% (varies by state) | State-specific |
Don't risk penalties
The IRS routinely assesses $25,000+ in penalties for household employment noncompliance. Our Callme Payroll service handles FICA, FUTA, SUTA, Schedule H, and W-2 filing for $79/month.
View payroll pricingThis guide is for informational purposes only and does not constitute tax advice. Consult a licensed tax professional or refer to IRS Publication 926 for official guidance.