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February 10, 2020
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I paid a babysitter $10,182.89 (gross wages) in 2019. Turbotax says I owe $1617 in household employment taxes. Why is it so much?

  • February 10, 2020
  • 1 reply
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I calculated $631 in Social security and $147 owed for Medicare.  Even with 6% FUTA of $600, it still seems wrong.
Best answer by DavidD66

It's hard to say without being able to see your entries.  In addition to paying your share of social security and medicare, you have to either pay the babysitter's portion for them, or remit what you withheld from their pay.  As a result, your liability for social security and medicare taxes is 15.3% of $10,182.89  = $1,557.98.  In addition, you would owe FUTA. 

For additional information, see IRS 2019 Instructions for Schedule H (2019)

1 reply

DavidD66Answer
February 10, 2020

It's hard to say without being able to see your entries.  In addition to paying your share of social security and medicare, you have to either pay the babysitter's portion for them, or remit what you withheld from their pay.  As a result, your liability for social security and medicare taxes is 15.3% of $10,182.89  = $1,557.98.  In addition, you would owe FUTA. 

For additional information, see IRS 2019 Instructions for Schedule H (2019)

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