An employer of household employees (housekeeper, home health aide, babysitter, dog sitter, etc.) is required to withhold FICA tax from an employee’s wages if the household employee is paid $1,800 or more in the calendar year.  The employer also pays FICA taxes on the employee’s wages.  In addition the employer is responsible for:

  • Verifying immigration status through a Form I-9
  • Obtaining an Employer Identification Number (EIN) to put on required tax forms
  • Paying federal and state unemployment taxes
  • Obtaining workers compensation insurance
  • Filing Schedule H, Household Employment Tax Form, with their Form 1040
  • Issuing Forms W-2