Form 942

August 6, 2026

What was Form 942 and what replaced it?

Form 942, the Employer's Quarterly Tax Return for Household Employees, was the IRS form household employers used to report Social Security, Medicare, and federal income tax withholding on wages paid to household workers like nannies, housekeepers, and caregivers. The IRS discontinued Form 942 at the end of 1994. Household employers now report household employment taxes annually on Schedule H (Form 1040) rather than quarterly. Any current reference to Form 942 reflects legacy documentation.

Form 942 hasn't been used since 1994. For over three decades, household employers have reported household employment taxes annually on Schedule H, filed with the employer's personal Form 1040. The form is still referenced in older accounting books and occasional vendor materials, but it's not a live IRS form. Household employers in 2026 use a completely different filing approach, and the distinction matters for families employing nannies, housekeepers, in-home caregivers, or other household workers.

What Form 942 Was

Form 942 was the household employer's quarterly return, parallel to the standard Form 941 used by business employers. It reported Social Security, Medicare, and federal income tax withholding on household employee wages. Household employers filed 942 four times per year alongside their regular business employment tax filings.

The quarterly cadence was burdensome for the typical household employer (a family paying a single nanny, for example), and the IRS moved to consolidate household employment tax reporting into the family's annual personal tax return.

What Replaced Form 942

Schedule H (Form 1040) is the current household employment tax return. It's an annual filing, attached to the household employer's personal Form 1040, due by the personal return deadline (April 15, typically). Schedule H covers the same taxes Form 942 covered: Social Security, Medicare, federal unemployment (FUTA), and federal income tax withholding.

The shift simplified compliance for household employers who aren't otherwise in business. Instead of filing separate quarterly returns, the household employer files once per year with their own tax return.

When Does a Family Become a Household Employer?

The $2,800 annual wage threshold for 2026 is the trigger for Social Security and Medicare taxes. If a family pays a household worker $2,800 or more in the calendar year, FICA taxes apply and must be reported on Schedule H. The FUTA threshold is $1,000 paid in any calendar quarter. State rules for state unemployment tax and worker's compensation vary by state.

Withholding Mechanics for Household Employers

Federal income tax withholding is optional for household employees; the family can withhold only if both the family and the employee agree. FICA withholding (Social Security + Medicare) is required once the $2,800 threshold is met. The family can choose to pay the full 15.3% FICA or split it 7.65% each with the employee.

Most household employment taxes are paid via estimated tax payments (Form 1040-ES) throughout the year, or by increasing W-4 withholding on the employer's own wages at their primary job. Waiting until April 15 to pay the full amount often triggers an estimated-tax underpayment penalty.

Staying Compliant as a Household Employer

Five practical steps keep household employment compliance manageable. Determine whether the worker is an employee or independent contractor under common-law rules (most household workers are employees). Obtain an Employer Identification Number (EIN) for the household. Collect a W-4 and Form I-9 from the worker. Pay estimated taxes during the year via 1040-ES. And file Schedule H with the annual 1040.

The IRS publishes Schedule H, Publication 926 (Household Employer's Tax Guide), and current thresholds at irs.gov/taxtopics/tc756. For related topics, see FICA, Form 940, and payroll.