Schedule H adjustment

[huynh-tung-1980]

I hired a nanny through homepay last year and received a W3 as an employer. When I enter the amount as wage to Schedule H, I owe the IRS 12.4% for social security and 2.9% for medicare tax for the nanny. But the W3 only states 6.2% in box 4 and 1.45% in box 6 respectively. So do I owe the IRS the whole 15.3% or just 7.65% per W3? and if only 7.65%, how do i specify that amount on schedule H because I cannot manually input the amount

[MonikaK1]

You are required to remit the entire amount to the IRS, but typically you would have withheld the employee's half from their wages.

Social Security tax and Medicare tax, commonly referred to as FICA tax, applies to both employees and employers, each paying 7.65% of wages. 

An employer is generally required to withhold the household employee's share of FICA tax from wages. If you pay cash wages of $2,800 or more for 2025 (this threshold can change from year to year) to any one household employee, you generally must withhold 6.2% for Social Security tax and 1.45% for Medicare tax (for a total of 7.65%) from all cash wages you pay to that employee, unless you prefer to pay your employee's share of Social Security and Medicare taxes from your own funds. 

You must also pay your share of Social Security and Medicare taxes, which is also 7.65% of cash wages. Cash wages include wages you pay by check, money order, etc.

See this IRS webpage for more information regarding employment taxes for household employees.

See this tax tips article for more information about Schedule H.