Should I withhold federal income tax?
This choice is optional. It only covers federal income tax — the tax you settle when you file your return. Social Security and Medicare are separate and still get calculated on your pay once household wages cross the IRS threshold.
- Optional for household pay
- You can change it later
- Sadie never moves money
Why this is optional
For household employment, federal income tax withholding is not required unless you ask for it. That comes from IRS Publication 926, the Household Employer's Tax Guide. A W-4 is how people usually make that request at a regular job; here, the Yes / No choice on your Sadie invite is that request.
Saying no is often a better fit if
- You expect little or no federal income tax this year
- You already have withholding from another job that should cover you
- You prefer higher take-home and will set money aside, or pay estimated taxes yourself
- You're comfortable settling up when you file
Saying yes is often a better fit if
- Household work is most or all of your income
- You'd rather have less take-home now than a bill later
- You don't want to track quarterly estimated payments on your own
- You want each paycheck to chip away at federal income tax
What this does not change
- Social Security and Medicare — still calculated once wages cross the IRS household threshold
- Your employer's unemployment taxes — those are their share, not this toggle
- How you actually get paid — Sadie never moves wage money or tax money
If you say yes, what Sadie does
Sadie estimates federal income tax from your filing status using the IRS percentage method in Publication 15-T. That amount shows on the payday your employer marks sent. They still send your pay and any tax payments themselves. You can change this later on My info — it applies to future paychecks, not ones already sent.
Want a second opinion on whether you're likely to owe? The IRS has a Tax Withholding Estimator. If you'd rather pay during the year yourself, see estimated taxes.
Is this the same as Social Security and Medicare?
No. Those are required household employment taxes once wages cross the IRS threshold. This toggle is only federal income tax — the one you reconcile on your Form 1040.
Will saying no get me in trouble?
For household work, federal income tax withholding is optional unless you ask for it. Skipping it is a normal choice. You may still owe federal income tax when you file, and some people make estimated payments during the year so that isn't a surprise.
Can I change my mind later?
Yes. Update it on My info. The new choice applies to future paychecks, not paydays your employer already marked sent.
Does Sadie send the tax to the IRS?
No. Sadie calculates the amount. Your employer still sends pay and tax payments. We never move money and we never file for you.
Official IRS pages
- Publication 926 — household employer rules, including that income tax withholding is optional unless you request it
- Publication 15-T — the percentage method Sadie uses if you opt in
- About Form W-4 — the usual request form outside household software
This page is general information, not tax advice. Your own return depends on your other income, deductions, and filing status. Confirm anything specific with a tax professional or the IRS.