Do Social Security taxes have to be withheld from a household worker’s earnings?

It depends on how much the worker earns. If you paid $2,800 or more to a home health aide, cook, gardener or other household employee in 2025, you are required to deduct Social Security and Medicare taxes from their wages and report the information to the Social Security Administration (SSA) and the Internal Revenue Service.

Your responsibilities as an employer don't end there. You also must make Social Security and Medicare payments that match the withholding. Here's how it works for the 2025 tax year:

• For Social Security, you withhold 6.2 percent of the worker's gross pay on income up to $176,100 and pay an additional 6.2 percent yourself. 2025 earnings above $176,100 are not subject to Social Security taxes (the threshold rises to $184,500 in 2026).
• For Medicare, you withhold 1.45 percent of the employee's wages up to $200,000 and 2.35 percent on earnings above that amount.
• Your employer's share of Medicare taxes remains at 1.45 percent, regardless of how much the employee ends up making for the year.

Keep comprehensive records of the names, addresses and Social Security numbers of all household workers and what you paid them. And make sure you hit these tax-season deadlines:

• Issue 2025 W-2s to all household workers by Feb. 2, 2026. W-2s are typically due on Jan. 31, but that date falls on Saturday in 2026, so the deadline is the next business day.
• Report their 2025 wages to Social Security by Feb. 2. You can file the information electronically using SSA's Business Services Online portal.
• Pay your share of Social Security and Medicare taxes and the taxes you withheld from the employee's paycheck as part of your regular tax return, the one due by April 15, 2026.
• Throughout the year, employers who withhold Social Security and Medicare taxes must periodically report the withholding and pay their portion of those taxes, using IRS Form 941. These filings typically are due on Jan. 31, April 30, July 31 and Oct.31, but if one of these dates falls on a weekend, the filing is due on the next business day.

Following these procedures promptly and properly is important, and not just because of the financial penalties that can result if you don't do so. Reporting household workers' wages and taxes ensures that they get the credits that qualify them for Social Security benefits and Medicare coverage in the future.

You can find detailed information on the tax rules and employers’ responsibilities in the SSA brochure "Household Workers" and IRS Publication 926, the Household Employer's Tax Guide. 

Keep in mind

• Cash that you give a household worker for food, lodging and transportation counts as wages and must be included in the withholding calculation. However, you do not need to include the monetary value of these items if you provide them directly to the employee.
• Specific rules apply to minors or members of your immediate family whom you pay to do household work. You do not need to pay Medicare or Social Security taxes on wages for housework performed by:
  • Your spouse.
  • Your children, if they are under age 21. The normal rules for household workers apply if you pay a child who is 21 or older.
  • Your parents, unless they are caring for your minor or disabled children and you are widowed, divorced or single, or are living with a spouse who is unable to care for them due to a mental or physical disability.
  • A babysitter or other worker younger than 18, unless household work is that person's primary occupation.