Employer Guide
EIN for a Household Employer: The Nanny Tax (2026)
Pay a nanny, housekeeper, gardener, or caregiver $3,000 or more in 2026 and the IRS treats you as a household employer. You need an EIN to file Schedule H with your Form 1040 and to issue your employee a W-2.
Last updated: August 30, 2026
You become a household employer when you pay any one household employee $3,000 or more in cash wages during 2026. At that point you owe Social Security and Medicare tax on the wages and need an EIN to report them. Apply on Form SS-4 with Household Employer as the entity type. You file Schedule H with your personal Form 1040 and issue the employee a Form W-2. The IRS charges $0 for the EIN.
A household employee is someone you hire to work in or around your home where you control what work is done and how it is done: a nanny, housekeeper, gardener, private nurse, caregiver, or home health aide. The distinction that matters is control, not job title. A gardener who brings their own equipment, sets their own schedule, and serves many households is running a business. A nanny who works the hours you set, in your home, under your direction, is your employee. This guide covers the 2026 threshold, which forms you file, and how to get the EIN. ein.so files Form SS-4 and does not give tax advice; confirm your position with a US CPA.
| Factor | Detail |
|---|---|
| 2026 wage threshold | $3,000 per employee, per year |
| Source | IRS Topic 756 |
| Combined FICA rate | 15.3% (7.65% employer + 7.65% employee) |
| Entity type on Form SS-4 | Household Employer |
| Annual filing | Schedule H with Form 1040 |
| Employee filing | Form W-2, plus Form W-3 to the SSA |
| Federal income tax withholding | Optional |
| IRS fee for the EIN | $0 |
The Threshold
When Does a Household Employer Need an EIN?
When cash wages to any one household employee reach $3,000 during 2026. IRS Topic 756 sets that figure, and the IRS adjusts it in most years, so check the current amount before each tax season.
Two details decide whether you cross the line, and both are commonly misread:
The test is per employee, not per household. Pay one nanny $8,000 and you are a household employer. Pay four different babysitters $1,000 each — $4,000 in total — and you are not, because no single person reached $3,000. Track each worker's wages separately.
Only cash wages count. Wages you pay in cash, by check, or by transfer count toward the threshold. The value of meals and lodging you provide on your premises for your convenience generally does not.
| Situation | Household Employer? |
|---|---|
| Nanny paid $18,000 for the year | Yes |
| Housekeeper paid $4,500 for the year | Yes |
| Caregiver paid $3,000 exactly | Yes — the threshold is met |
| Babysitter paid $900 across the year | No |
| Four sitters paid $1,000 each | No — no single worker reached $3,000 |
| Gardener who runs their own business, invoices you, and serves other clients | No — an independent contractor |
Getting this wrong in either direction is expensive. Treating an employee as a contractor exposes you to back taxes, interest, and penalties. Filing as an employer when nobody crossed the threshold creates filings you did not need.
The Tax
What Is the Nanny Tax and Who Pays It?
The nanny tax is Social Security and Medicare tax on household wages, charged at a combined 15.3%. You withhold 7.65% from the employee's pay and contribute a matching 7.65% yourself.
| Component | Employee Share | Employer Share | Combined |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | 12.4% |
| Medicare | 1.45% | 1.45% | 2.9% |
| Total FICA | 7.65% | 7.65% | 15.3% |
You may also owe federal unemployment tax (FUTA) if you paid $1,000 or more in cash wages in any calendar quarter, and most states run their own unemployment insurance program with separate registration and rates. State rules vary widely, which is where a CPA earns their fee.
Federal income tax withholding works differently from FICA: it is optional. You are not required to withhold income tax from a household employee, and many families do not. If the employee asks you to withhold and you agree, they give you a Form W-4 and you withhold as an ordinary employer would. Either way the employee owes the income tax; withholding only changes whether it is paid gradually or at filing time.
How to Apply
How Do You Get a Household Employer EIN?
File Form SS-4 and select Household Employer as the entity type. You apply as an individual, not as a business, because the employer is you personally rather than a company.
Enter Your Own Name on Line 1
Enter Your Home Address on Lines 4 and 5
Complete Lines 7a and 7b
Select Household Employer on Line 9a
Submit the Form
Apply before the first payroll run rather than at tax time. You need the EIN on every Form W-2 you issue, and the W-2 deadline of January 31 arrives faster than most families expect. The complete field-by-field walkthrough is in the Form SS-4 guide, and how to get an EIN compares the three application methods.
Filing
What Does a Household Employer File Each Year?
Schedule H with your personal Form 1040, plus a Form W-2 for each employee and a Form W-3 summary to the Social Security Administration. The household employer EIN appears on all of them.
| Form | Purpose | Deadline |
|---|---|---|
| Form W-2 | Reports the employee's wages and withholding | January 31 |
| Form W-3 | Transmits the W-2s to the Social Security Administration | January 31 |
| Schedule H | Reports FICA and FUTA owed, filed with your Form 1040 | April 15 |
Schedule H is not a separate return. It attaches to the Form 1040 you were already filing, and the tax it calculates is added to your personal tax bill. Many families cover it by increasing withholding at their own job or by making quarterly estimated payments, which avoids a large balance in April.
The one form you do not file is Form 941. That is the quarterly return for business payroll, and household wages do not belong on it. This is the reason a household employer needs its own EIN rather than reusing a business number: putting household wages on a business EIN puts them into the Form 941 system where the IRS will expect quarterly returns that you should not be filing. See EIN for hiring employees for how business payroll differs.
Common Errors
What Do Household Employers Get Wrong?
Four mistakes account for most household payroll problems, and all four are avoidable with an EIN obtained before the first payday.
Calling an employee a contractor and issuing a 1099. This is the most expensive error. A nanny is not an independent contractor, and issuing a Form 1099-NEC does not make one. If the IRS reclassifies the worker, you owe the back FICA, interest, and penalties, and the employee may have a claim for unemployment benefits you never funded.
Using a business EIN for household wages. Household payroll is personal, not business. It belongs on Schedule H under a household employer EIN, not on Form 941 under a company's number.
Missing the January 31 W-2 deadline. The W-2 deadline arrives well before the April tax filing date, and families who wait until tax season to think about payroll have already missed it. The EIN must exist before the W-2 can be issued.
Ignoring state obligations. Most states require separate registration for unemployment insurance and have their own wage thresholds, which are frequently lower than the federal one. The federal EIN does not cover state registration.
Need an EIN? ein.so prepares Form SS-4, faxes it to the IRS, and delivers your EIN by email — $49 Standard (4-7 business days) or $97 Express (2-3 business days), no SSN required. Start your application.
Related guides: EIN for hiring employees | Who needs an EIN? | Form SS-4 guide | What is an EIN? | EIN cost.
Frequently Asked Questions
When do I need a household employer EIN?
When you pay any one household employee $3,000 or more in cash wages during 2026. That threshold, published in IRS Topic 756, triggers Social Security and Medicare withholding, and you need an EIN to report it on Schedule H. The amount is adjusted most years.
What is the nanny tax?
The informal name for the Social Security and Medicare tax a household employer owes on a household employee's wages. The combined rate is 15.3%: 7.65% withheld from the employee and 7.65% paid by the employer. It applies once cash wages reach $3,000 in 2026.
How do I apply for a household employer EIN?
File Form SS-4 and select Household Employer as the entity type on Line 9a. You apply in your own name as an individual, not as a business. A US applicant with an SSN gets the number instantly online at irs.gov. The IRS charges $0.
Which tax forms does a household employer file?
Schedule H filed with your personal Form 1040, plus a Form W-2 for each household employee and a Form W-3 sent to the Social Security Administration. Schedule H reports the Social Security, Medicare, and any federal unemployment tax you owe.
Is my nanny an employee or an independent contractor?
Almost always an employee. The IRS looks at control: if you set the hours, the duties, and how the work is done, the worker is your employee. Nannies, housekeepers, and caregivers working in your home nearly always fail the independent contractor test.
Do I need to withhold federal income tax from a household employee?
Not unless the employee asks you to and you agree. Federal income tax withholding is optional for household employees. Social Security and Medicare withholding is not optional once cash wages reach the $3,000 threshold for 2026.
Do I need an EIN for a one-time babysitter?
No, if total cash wages to that person stay under $3,000 for the year. Occasional babysitting rarely reaches the threshold. Track what you pay each individual separately, because the test applies per employee rather than to your total household spending.
Can I use my business EIN for a household employee?
No. A household employee is not a business employee, and the wages do not belong on your business payroll returns. Apply for a separate EIN as a household employer. Mixing the two puts personal household wages on Form 941 where they do not belong.
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