Definition
A household worker is an individual who is employed to perform domestic duties within a private residence. This can include a range of job roles such as nannies, housekeepers, gardeners, caretakers, and cooks. Unlike regular employees in businesses, household workers are subject to specific tax and labor regulations that differ from typical employment contracts.
Examples
- Nanny: Employed to take care of the employer’s children, often responsible for feeding, bathing, and educational activities.
- Housekeeper: Hired to perform cleaning and maintenance tasks like dusting, vacuuming, and laundry within the household.
- Gardener: Responsible for maintaining the plants and landscaping around the residence.
- Caretaker for the elderly: Provides personal care and assistance to elderly individuals, including help with daily activities and medical care.
Frequently Asked Questions (FAQs)
Q: Is federal income tax withholding required for household workers?
A: No, federal income tax withholding is not required on payments made to household workers. It is the worker’s responsibility to pay their own income taxes.
Q: What taxes are required for household workers?
A: Employers must pay Social Security and Medicare taxes (often referred to as FICA taxes) for household workers if they pay the worker $2,200 or more in wages in a calendar year (as of 2023).
Q: How are Social Security and Medicare taxes reported and paid?
A: Employers are required to file Schedule H (Form 1040) to report Social Security and Medicare taxes for household employees. This form is usually filed annually with the employer’s federal income tax return.
Q: Are there any exceptions to paying Social Security and Medicare taxes for household workers?
A: Yes, exceptions include payments to your spouse, your child under the age of 21, your parent (under certain conditions), and any employee under the age of 18 at any time during the year.
Related Terms
Domestic Employment:
Employment within a private household, including roles such as nannies, maids, and gardeners.
Form W-2:
A form used by employers to report wages paid to employees and the taxes withheld from them. Household employers must provide W-2s to employees and the Social Security Administration.
Schedule H (Form 1040):
The form used to report household employment taxes, including Social Security, Medicare, and optional federal unemployment taxes.
Online References
- IRS Household Employer’s Tax Guide - Publication 926
- Social Security Taxes Information - IRS
- Department of Labor Domestic Workers’ Rights
Suggested Books for Further Studies
- Household Employer’s Tax Guide by the IRS
- Employment Law: A Guide for Domestic Employers by Elizabeth Kiernen
- The Household Employee’s Guide to Labor and Employment Law by Marc Linder
Fundamentals of Employment Law: Household Workers Basics Quiz
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