I paid a household employee $9705 in 2019 & I’ve paid $738 in Fed taxes. Why is TurboTax saying that I owe a total of $2264? FUTA tax shouldn’t be more than 6% of 9705.

[MinhT1 · Accepted solution]

The amount you owe on your tax return is not directly related to the Household employee taxes, but is the tax owed on your whole return, including your other income.

The FUTA tax is 6% limited to the first $7,000 of wages for each employee. In your case, the FUTA owed on your employee is $420.

[NCperson]

The FUTA tax is 6% limited to the first $7,000 of wages for each employee. In your case, the FUTA owed on your employee is $420.