Household Employment Taxes in 2026: An Ohio Guide
Hiring a nanny, housekeeper, or other help at home can make you a household employer. Before the first payday, settle who is responsible for payroll, which taxes apply, and how you’ll keep records. These are the main federal and Ohio rules for 2026.
Start with the working arrangement
You generally have an employee when you control both what work is done and how it is done. Part-time work and payment by the job can still count. An agency’s involvement alone doesn’t settle the question; who actually controls the work matters. A worker running an independent business may be self-employed.
Special tax exceptions apply to certain family members and workers under 18. Check them before applying the thresholds below. IRS Publication 926 explains household-worker classification and these exceptions.
Check the federal tax thresholds
| Tax | 2026 rule |
|---|---|
| Social Security and Medicare | Generally apply when you pay one employee at least $3,000 in cash wages during the year. Once you reach that amount, tax applies to all subject cash wages, including the first $3,000. |
| Social Security wage limit | Social Security tax stops after $184,500 paid to that employee. Medicare tax has no wage limit. |
| Federal unemployment tax (FUTA) | Generally applies if total cash wages to household employees reach $1,000 in any calendar quarter of 2025 or 2026. It covers the first $7,000 per employee in 2026. |
Cash wages include checks, money orders, and similar payments. Noncash benefits have different rules.
Ordinarily, you and the employee each pay 7.65%: 6.2% Social Security and 1.45% Medicare, subject to the Social Security limit. You also withhold an employee-only 0.9% Additional Medicare Tax on wages you pay above $200,000.
FUTA is paid by the employer. Its 6% rate can fall to 0.6% with the full 5.4% credit for qualifying, timely state unemployment payments. That’s $42 on $7,000 of wages. Credit reductions can increase the amount, so check the final rules for the year.
Decide how taxes will be paid
You can withhold the employee’s Social Security and Medicare share or pay it yourself. Paying it yourself adds to the employee’s income-tax wages, but not to wages used for Social Security, Medicare, or FUTA. Paying the employee’s income tax yourself has different consequences.
Federal income-tax withholding is generally optional for household wages. If the employee requests it and you agree, use Form W-4.
Household taxes generally go on Schedule H with your income-tax return. If you have federal income tax withheld or otherwise must make estimated payments, include household taxes when checking whether you’re paying enough during the year. Increasing withholding or making estimated payments can prevent an underpayment penalty.
Put the filing dates on your calendar
| Deadline | For 2026 wages |
|---|---|
| February 1, 2027 | When required, give the employee Form W-2 and file the W-2/W-3 information with the Social Security Administration. SSA’s W-2 Online generates W-3 information without a separate form. |
| April 15, 2027 | Generally file Schedule H and pay the balance due. A filing extension doesn’t extend the payment deadline. |
Obtain an employer identification number when required for payroll reporting. Schedule H can be filed separately if you don’t otherwise need an income-tax return.
Check hiring and Ohio requirements separately
Regular household employees generally need Form I-9 employment verification; certain casual domestic work is excepted. Follow the current USCIS instructions for timing, acceptable documents, and retention.
Ohio unemployment coverage generally starts at $1,000 in domestic cash wages in a calendar quarter of the current or preceding year. Ohio workers’ compensation law includes household workers earning $160 or more in cash in a calendar quarter from one household. These are separate tests.
Minimum-wage, overtime, new-hire reporting, and other requirements also need attention. Exceptions for casual babysitting, companionship services, and live-in work are specific. Check current Labor Department guidance and applicable Ohio rules before relying on an exemption.
Keep records and check available credits
Keep employment-tax records for at least four years after the later of the return’s due date or payment of the tax. Form I-9 has a separate retention rule. Track wages, hours, withholding, and employer payments from the start.
Advance earned-income-credit payments and Form W-5 are obsolete; employee notice obligations may still apply. Qualifying care costs may support a child and dependent care credit. The 2026 maximum credit percentage is 50%, but expense limits, eligibility, and coordination with employer-provided benefits still apply.