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Family & ChildcareIRS Schedule H

Nanny Tax Calculator

Calculate Schedule H household employer tax obligations, including Social Security, Medicare, FUTA, and state unemployment withholdings.

IRS Schedule H Household Employer Taxes

Employer Tax Liability
—
FICA + FUTA + SUTA
Quarterly Tax Reserve
—
Form 1040-ES payment
Employer FICA (7.65%)
—
SS + Medicare
Unemployment Taxes
—
FUTA ($42 max) + SUTA

Household Employer Tax Liability Formula

Employer Nanny Tax Liability = (Gross Wages × 7.65% FICA) + (First $7,000 Wages × 0.6% FUTA) + (Wages up to State Wage Base × SUTA Rate)
  • 2026 Household Threshold: Employers paying $2,800 or more in cash wages in a calendar year must pay Social Security (6.2%) and Medicare (1.45%).
  • Federal Unemployment (FUTA): 0.6% on the first $7,000 of cash wages ($42 max per employee) if state unemployment taxes are paid on time.
  • State Unemployment Insurance (SUTA): Assessed on new employer tax rates (typically 1.5% to 5.5%) up to state wage caps ($7,000 to $40,000+ depending on state).

Step-by-Step Worked Example

Scenario: Nanny earning $40,000 gross annual pay in a state with 3.0% SUTA on a $10,000 wage base

Calculation Steps:

  1. Employer FICA = $40,000 × 7.65% = $3,060
  2. FUTA Tax = $7,000 × 0.006 = $42
  3. State Unemployment (SUTA) = $10,000 × 0.03 = $300
  4. Total Employer Tax Liability = $3,060 + $42 + $300 = $3,402/yr
  5. Quarterly Tax Withholding/Estimated Payment = $3,402 / 4 = $850.50/quarter
Result: The family owes $3,402 annually in employer payroll taxes ($850.50 per quarter) reported via Schedule H.

How to Use This Calculator

  1. 1Input the estimated annual or weekly gross wages paid to your household worker.
  2. 2Enter your state unemployment tax rate and state taxable wage cap.
  3. 3View total employer tax obligations and recommended quarterly estimated tax reserves.

Assumptions & Limitations

  • Assumes cash wages meet or exceed the annual IRS household employment threshold.

Frequently Asked Questions

How do I pay nanny taxes to the IRS?

You can remit nanny taxes quarterly using IRS Form 1040-ES or increase federal income tax withholding on your own personal W-4 at your day job. The annual accounting is filed with your personal tax return on IRS Schedule H.

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