Table of Contents
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Schedule H for figuring your household employment taxes.
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Form W-2 for reporting wages paid to your employees.
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Form W-3 for sending Copy A of Form W-2 to the Social Security Administration.
For more information, see What Forms Must You File? in Pub. 926, Household Employer's Tax Guide.
| By | You must |
|---|---|
| February 2, 2009 | Give your employee Form W-2. |
| March 2, 2009 (March 31, 2009, if you file electronically) | Send Copy A of Form W-2 with Form W-3 to the Social Security Administration. |
| April 15, 2009 (see page H-3 for exceptions) | File Schedule H and pay your household employment taxes with your 2008 tax return. |
If you must file a 2008 Form W-2, Wage and Tax Statement, for any household employee, you must also send Form W-3, Transmittal of Wage and Tax Statement, with Copy A of Form(s) W-2 to the Social Security Administration. You are encouraged to file your Forms W-2 and W-3 electronically. Visit the Social Security website at www.socialsecurity.gov/employer to learn about electronic filing.
You must file Schedule H (Form 1040) if you answer “Yes” to any of the questions on lines A, B, or C.
Example.
You paid Betty Oak to babysit your child and do light housework 4 days a week in your home. Betty followed your specific instructions about household and child care duties. You provided the household equipment and supplies Betty needed to do her work. Betty is your household employee.
Household work is work done in or around your home. Some examples of workers who do household work are:
| Babysitters | Drivers | Nannies |
| Caretakers | Health aides | Private nurses |
| Cleaning people | Housekeepers | Yard workers |
If a worker is your employee, it does not matter whether the work is full or part-time or that you hired the worker through an agency or from a list provided by an agency or association. Also, it does not matter if the wages paid are for work done hourly, daily, weekly, or by the job.
Note.
If a government agency files Schedule H for the worker, you do not need to file it.
Example.
You made an agreement with Paul Brown to care for your lawn. Paul runs a lawn care business and offers his services to the general public. He hires his own helpers and provides his own tools and supplies. Neither Paul nor his helpers are your employees.
For more information, see Pub. 926, Household Employer's
Tax Guide.
You must file Form W-2 for each household employee to whom you paid $1,600 or more of cash wages in 2008 that are subject to social security and Medicare taxes. To find out if the wages are subject to these taxes, see the instructions for Schedule H, lines 1 and 3, on page H-4. If the wages are not subject to these taxes but you withheld federal income tax from the wages of any household employee, you must file Form W-2 for that employee.
If you file one or more Forms W-2, you must also file
Form W-3.
If you do not have an EIN, see Form SS-4, Application for Employer Identification Number. The Instructions for Form SS-4 explain how you can get an EIN immediately over the internet or by telephone, in 4 business days by fax, or in about 4 weeks if you apply by mail. See How To Get Forms and Publications on page H-7 for details on how to get forms and publications including Form SS-4. Do not use a social security number in place of an EIN.
It is unlawful to employ an alien who cannot legally work in the United States. When you hire a household employee to work
for you on a regular basis, you and the employee must each complete part of the U.S. Citizenship and Immigration Services
(USCIS) Form I-9, Employment Eligibility Verification. The Bureau was formerly called the Immigration and Naturalization Service,
or INS. You must verify that the employee is either a U.S. citizen or an alien who can legally work and you must keep Form
I-9 for your records. You can get the form and the USCIS Handbook for Employers by calling 1-800-870-3676, or by visiting
the USCIS website at
www.uscis.gov.
If you employed a household employee in 2008, you probably have to pay contributions to your state unemployment fund for 2008. To find out if you do, contact your state unemployment tax agency right away. See page H-10 for some helpful contact information for each state. You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance.
See the Appendix in Pub. 926 for a complete listing of contact information for state unemployment tax agencies.
If you file Forms 1040, 1040NR, 1040-SS, or 1041 for 2008, remember to attach Schedule H to it. Mail your return, by April 15, 2009, to the address shown in your tax return booklet.
Note.
If you are a calendar year taxpayer and have no household employees for 2008, you do not have to file Schedule H (Form 1040) for 2008.
If you are not required to file a 2008 tax return (for example, because your income is below the amount that requires you to file), you must file Schedule H by April 15, 2009. Complete Schedule H and put it in an envelope with your check or money order. Do not send cash. See the list of filing addresses on page H-11. Mail your completed Schedule H and payment to the address listed for the place where you live. Make your check or money order payable to the “United States Treasury” for the total household employment taxes due. Enter your name, address, social security number, daytime phone number, and “2008 Schedule H” on your check or money order. Household employers that are tax-exempt, such as churches, may also file Schedule H by itself.
By February 2, 2009, you must give Copies B, C, and 2 of Form W-2 to each employee. You will meet this requirement if the
form is properly addressed, mailed, and postmarked no later than
February 2, 2009.
By March 2, 2009, (March 31, 2009, if you file electronically) send Copy A of all Forms W-2 with Form W-3 to the Social Security Administration (SSA). Mail Copy A of all Forms W-2 with Form W-3 to:
Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001
For certified mail, the ZIP code is 18769-0002. If you use a carrier other than the U.S. Postal Service, add “ATTN: W-2 Process, 1150 E. Mountain Dr.” to the address and change the ZIP code to “18702-7997.”
If you file Forms W-2 and W-3 electronically, do not mail the paper Forms W-2 and W-3 to the Social Security Administration.
For additional information, visit the website for Social Security at www.socialsecurity.gov/employer/whereto.htm.
Note.
Check with your state, city, or local tax department to find out if you must send Copy 1 of Form W-2 and where to file Copy 1.
If you were notified that your household employee received payments from a state disability plan, see page H-6.
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Your spouse.
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Your child who was under age 21.
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Your parent. (See Exception for parents below.)
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Your employee who was under age 18 at any time during 2008. If the employee was not a student, see Exception for employees under age 18 below.
Count the cash wages you paid your parent for work in or around your home if both 1 and 2 below apply.
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Your child who lived with you was under age 18 or had a physical or mental condition that required the personal care of an adult for at least 4 continuous weeks in a calendar quarter.
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You were divorced and not remarried, a widow or widower, or married to and living with a person whose physical or mental condition prevented him or her from caring for the child during that 4-week period.
Social security and Medicare taxes pay for retirement, disability, and health benefits for workers and their families. You and your employees pay these taxes in equal amounts.
For social security, the tax rate is 6.2% each for you and your employee. For Medicare, the rate is 1.45% each. For 2008, the limit on wages subject to social security tax is $102,000. There is no limit on wages subject to the Medicare tax. If you did not deduct the employee's share from his or her wages, you must pay the employee's share and your share (a total of 12.4% for social security and 2.9% for Medicare). See Form W-2 and Form W-3 on page H-5 for more information.
If you pay a household employee $1,600 or more in cash wages during 2008, you must report and pay social security and Medicare taxes. The test applies to cash wages paid in 2008 regardless of when the wages were earned. See Pub. 926 for more information. Or, visit the website for Social Security at www.socialsecurity.gov/pubs/10021.html.
| If you file Form. . . |
Then enter the amount from Schedule H, line 8, on. . . |
|---|---|
| 1040 | line 60 and check box b |
| 1040NR | line 56 |
| 1040-SS | Part I, line 4 |
| 1041 | Schedule G, line 6 |
FUTA tax, with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and state unemployment tax.
The FUTA tax rate is 6.2%. But see Credit for contributions paid to state below. Do not deduct the FUTA tax from your employee's wages. You must pay it from your own funds. See page H-10 for a listing of some helpful contact information for each state.
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Any payments deducted or deductible from your employees' pay;
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Penalties, interest, or special administrative taxes not included in the contributions rate the state gave you; and
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Voluntary contributions you paid to get a lower experience rate.
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Your spouse.
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Your child who was under age 21.
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Your parent.
Complete lines 18 through 25 only if you checked a “ No ” box on lines 10, 11, or 12.
Enter the total of contributions (defined earlier) you paid to the state unemployment fund for 2008 by April 15, 2009. Fiscal year filers, enter the total contributions you paid to the state unemployment fund for 2008 by the due date of your return (not including extensions). If you are claiming excess credits as payments of state unemployment contributions, attach a copy of the letter from your state.
| If you file Form. . . |
Then do not complete Part IV but enter the amount from Schedule H, line 27, on . . . |
|---|---|
| 1040 | line 60 and check box b |
| 1040NR | line 56 |
| 1040-SS | Part I, line 4 |
| 1041 | Schedule G, line 6 |
If you file Form W-2, you must also file Form W-3.
You must report both cash and noncash wages in box 1, as well as tips and other compensation. The completed Forms W-2 and W-3 in the example (see page H-9) show how the entries are made.
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Enter the amounts you paid on your employee's behalf in boxes 4 and 6 (do not include your share of these taxes).
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Add the amounts in boxes 3, 4, and 6. (However, if box 5 is greater than box 3, then add the amounts in boxes 4, 5, and 6.)
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Enter the total in box 1.
You may need to increase the federal income tax withheld from your pay, pension, annuity, etc. or make estimated tax payments to avoid an estimated tax penalty based on your household employment taxes shown on line 27 of Schedule H. You may increase your federal income tax withheld by filing a new Form W-4, Employee's Withholding Allowance Certificate, or Form W-4P, Withholding Certificate for Pension or Annuity Payments. Make estimated tax payments by filing Form 1040-ES, Estimated Tax for Individuals. For more information, see Pub. 505, Tax Withholding and Estimated Tax.
Estimated tax payments must be made as the tax liability is incurred: by April 15, June 15, September 15, and the following January 15. If you file your Form 1040 by January 31 and pay the rest of the tax that you owe, you do not need to make the payment due on January 15.
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You will not have federal income tax withheld from wages, pensions, or any other payments you receive.
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Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes.
You must keep copies of Schedule H and related Forms W-2, W-3, W-4, and W-5, Earned Income Credit Advance Payment Certificate, for at least 4 years after the due date for filing Schedule H or the date the taxes were paid, whichever is later. If you have to file Form W-2, also keep a record of each employee's name and social security number. Each payday, you should record the dates and amounts of:
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Cash and noncash wage payments.
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Any employee social security tax withheld.
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Any employee Medicare tax withheld.
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Any federal income tax withheld.
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Any advance EIC payments you made.
The EIC is a refundable tax credit for certain workers.
Note.
You are encouraged to notify each employee whose wages for 2008 were less than $38,646 ($41,646 if married filing jointly) that he or she may be eligible for the EIC.
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The official IRS Form W-2, that has the required information about the EIC on the back of Copy B.
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A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the official IRS Form W-2.
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Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC).
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Your written statement with the same wording as Notice 797.
Do not use Schedule H if you chose to report employment taxes for your household employees along with your other employees on Form 941, Employer's QUARTERLY Federal Tax Return, Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, or Form 944, Employer's ANNUAL Federal Tax Return. If you report this way, be sure to include your household employees' wages on your Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.
Certain state disability plan payments to household employees are treated as wages subject to social security and Medicare taxes. If your employee received payments from a plan that withheld the employee's share of social security and Medicare taxes, include the payments on lines 1 and 3 of Schedule H and complete the rest of Part I through line 5. Add lines 2, 4, and 5. From that total, subtract the amount of these taxes withheld by the state. Enter the result on line 6. Also, enter “disability” and the amount subtracted on the dotted line next to line 6. See the notice issued by the state for more details.
If you discover an error on a Schedule H that you previously filed with Form 1040, 1040NR, or Form 1040-SS, file Form 1040X and attach a corrected Schedule H. If you discover an error on a Schedule H that you previously filed with Form 1041, file an “Amended” Form 1041 and attach a corrected Schedule H.
If you discover an error on a Schedule H that you filed as a stand-alone return, file another stand-alone Schedule H with the corrected information. In the top margin of your corrected Schedule H write (in red) “ADJUSTED” followed by the date you discovered the error.
If you owe tax, pay in full with your Form 1040X, Form 1041, or stand-alone Schedule H. If you overpaid tax on a previously filed Schedule H, you must certify that you repaid or reimbursed the employee's share of social security and Medicare taxes. See Pub. 926, Household Employer's Tax Guide, for complete instructions.
To get the IRS forms and publications mentioned in these instructions (including Notice 797), visit the IRS website at www.irs.gov or call 1-800-TAX-FORM (1-800-829-3676).
We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. If you do not provide the information we ask for, or provide false or fraudulent information, you may be subject to penalties.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.
Subtitle C, Employment Taxes, of the Internal Revenue Code imposes employment taxes on wages, including income tax withholding. This form is used to determine the amount of the taxes that you owe. Section 6011 requires you to provide the requested information if the tax is applicable to you. Section 6109 requires taxpayers and paid preparers to provide their identification numbers.
Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions to administer their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below. Recordkeeping, 1hr., 38 min.; Learning about the law or the form, 1 hr., 1min.; Preparing the form, 1 hr., 9 min.; Copying, assembling, and sending the form to the IRS, 34 min.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to: Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Schedule H (Form 1040) to this address. Instead, see When and Where to File on page H-3.
On February 7, 2008, Susan Green hired Helen Maple to clean her house every Wednesday. Susan did not have a household employee in 2007 and had no household employees other than Helen during 2008.
Susan paid Helen $50 every Wednesday for her day's work. Susan decided not to withhold Helen's share of the social security and Medicare taxes from the wages she paid Helen. Instead, she will pay Helen's share of these taxes from her own funds. Susan did not withhold federal income tax because Helen did not give her a Form W-4 to request withholding and no withholding is otherwise required. Susan also did not pay Helen advance earned income credit payments because Helen did not give her a Form W-5.
Helen was employed by Susan for the rest of the year (a total of 46 weeks). The following is some of the information Susan will need to complete Schedule H, Form W-2, and Form W-3.
| Helen's total cash wages | $2,300.00 | ||
| ($50 x 46 weeks) | |||
| Helen's share of the: | |||
| Social security tax | $142.60 | ||
| ($2,300 x 6.2% (.062)) | |||
| Medicare tax | $33.35 | ||
| ($2,300 x 1.45% (.0145)) | |||
| Helen's total cash wages each quarter: | |||
| 1st quarter | $350.00 ($50 x 7 weeks) | ||
| 2nd quarter | $650.00 ($50 x 13 weeks) | ||
| 3rd quarter | $650.00 ($50 x 13 weeks) | ||
| 4th quarter | $650.00 ($50 x 13 weeks) | ||
| Amount included in box 1 of Form W-2 and Form W-3: | |||
| Cash wages | $2,300.00 | ||
| Helen's share of social security tax paid by Susan | 142.60 | ||
| Helen's share of Medicare tax paid by Susan | 33.35 | ||
| Total | $2,475.95 | ||
Because Susan paid less than $1,000 per quarter to household employees during 2007 (no employees) and 2008 (see above), she is not liable for FUTA tax.
See Pub 926 for an example showing how to complete Schedule H and Forms W-2 and W-3 if the employer withheld social security and Medicare taxes from the employee's wages.
Schedule H Example
Form W-2 Wage and Tax Statement and Form W-3 Transmitttal of Wage and Tax Statemtents
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See the Appendix in Pub. 926, Household Employer's Tax Guide for complete contact information.
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| State | Telephone | Web Address |
|---|---|---|
| Alabama | (334) 242-8830 | www.dir.alabama.gov |
| Alaska | (888) 448-3527 | www.labor.state.ak.us |
| Arizona | (602) 771-6601 | www.azdes.gov/esa/uitax/uithome.asp |
| Arkansas | (501) 682-3798 | www.state.ar.us/esd |
| California | (888) 745-3886 | www.edd.cahwnet.gov |
| Colorado | (800) 480-8299 | www.coworkforce.com |
| Connecticut | (860) 263-6550 | www.ctdol.state.ct.us |
| Delaware | (302) 761-8484 | www.delawareworks.com |
| District of Columbia | (202) 698-7550 | www.dcnetworks.org |
| Florida | (800) 482-8293 | http://dor.myflorida.com/dor/uc |
| Georgia | (404) 232-3301 | www.dol.state.ga.us |
| Hawaii | (808) 586-8913 | www.hawaii.gov/labor |
| Idaho | (800) 448-2977 | www.labor.state.id.us |
| Illinois | (800) 247-4984 | www.ides.state.il.us |
| Indiana | (317) 232-7436 | www.in.gov/dwd |
| Iowa | (515) 281-5339 | www.iowaworkforce.org/ui |
| Kansas | (785) 296-5027 | www.dol.ks.gov |
| Kentucky | (502) 564-2272 | www.oet.ky.gov |
| Louisiana | (225) 342-2944 | www.laworks.net/homepage.asp |
| Maine | (207) 621-5120 | www.state.me.us/labor |
| Maryland | (800) 492-5524 | www.dllr.state.md.us |
| Massachusetts | (617) 626-5050 | www.detma.org |
| Michigan | (313) 456-2180 | www.michigan.gov/uia |
| Minnesota | (651) 296-6141 | www.uimn.org/tax |
| Mississippi | (866) 806-0272 | www.mdes.ms.gov |
| Missouri | (573 751-3340 | www.dolir.mo.gov |
| Montana | (406) 444-3834 | www.uid.dli.mt.gov |
| Nebraska | (402) 471-9935 | www.dol.state.ne.us |
| Nevada | (775) 684-6300 | https://uitax.nvdetr.org |
| New Hampshire | (603) 228-4033 | www.nhes.state.nh.us |
| New Jersey | (609) 633-6400 | http://lwd.dol.state.nj.us |
| New Mexico | (505) 841-8576 | www.dws.state.nm.us |
| New York | (518 )457-4179 | www.labor.state.ny.us |
| North Carolina | (919) 733-7396 | www.ncesc.com |
| North Dakota | (701) 328-2814 | www.jobsnd.com |
| Ohio | (614) 466-2319 | www.jfs.ohio.gov |
| Oklahoma | (405) 557-7143 | www.oesc.state.ok.us |
| Oregon | (503) 947-1488, option 5 (503) 947-1537 FUTA |
www.oregon.gov/EMPLOY/TAX |
| Pennsylvania | (717) 787-7679 | www.dli.state.pa.us |
| Puerto Rico | (787) 754-5818 | |
| Rhode Island | (401) 574-8700 | www.uitax.ri.gov |
| South Carolina | (803) 737-3075 | www.sces.org/ui |
| South Dakota | (605) 626-2312 | www.state.sd.us |
| Tennessee | (615) 741-2486 | www.state.tn.us/labor-wfd/esdiv.html |
| Texas | (512) 463-2700 | www.twc.state.tx.us |
| Utah | (801) 526-9400 | www.jobs.utah.gov |
| Vermont | (802) 828-4252 | www.labor.vermont.gov |
| Virginia | (804) 371-7159 | www.VaEmploy.com |
| Virgin Islands | (340) 776-1440 | www.vidol.gov |
| Washington | (360) 902-9360 | www.esd.wa.gov/uitax/index.php |
| West Virginia | (304) 558-2676 | www.wvbep.org/bep/uc |
| Wisconsin | (608) 261-6700 | www.dwd.state.wi.us |
| Wyoming | (307) 235-3217 | http://wydoe.state.wy.us |
Do You Have To File Form 1040, 1040NR, 1040-SS, or Form 1041?
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Yes — Attach Schedule H to that form and mail to the address in your tax return booklet.
No — Mail your completed Schedule H and payment to the Department of the Treasury, Internal Revenue Service Center for the place where you live. No street address is needed. See When and Where To File on page H-3 for the information to enter on your payment.
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| IF you live in... | THEN use this address... |
| Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia | Atlanta, GA 39901–0002 |
| District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, Vermont |
Andover, MA 05501–0002 |
| Kentucky, Louisiana, Mississippi, Tennessee, Texas | Austin, TX 73301–0002 |
| Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming | Fresno, CA 93888–0002 |
| Arkansas, Connecticut, Delaware, Indiana, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, West Virginia | Kansas City, MO 64999–0002 |
| APO, FPO, American Samoa, the Commonwealth of the Northern Mariana Islands, nonpermanent residents of Guam or the Virgin Islands*, Puerto Rico, dual-status aliens, a foreign county | Austin, TX 73301–0215 USA |
| * Permanent residents of Guam should use: Department of Revenue and Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921; permanent residents of the Virgin Islands should use: V.I. Bureau of Internal Revenue, 9601 Estate Thomas, Charlotte Amalie, St. Thomas, VI 00802. | |
| More Online Instructions |