Small Business/Self-Employed/Other Business > Forms 941, 940, Employment Taxes

Previous Page: Small Business/Self-Employed/Other Business > Form W-4 & Wage Withholding

Next Page: Small Business/Self-Employed/Other Business > Income & Expenses
Use

to find additional instances of index items.

Frequently Asked Tax Questions

Small Business/Self-Employed/Other Business - Forms 941, 940, Employment Taxes

Rev. date: 1/2009

We are about to hire employees and need to know how much tax to take out and where to send this money?

Circular E, Employer's Tax Guide

You will need:

To secure a completed Form W-4 (PDF), Employee's Withholding Allowance Certificate, from each employee.
Publication 15, Circular E, Employer's Tax Guide, and Publication 15-A (PDF), Employer's Supplemental Tax Guide, to determine the amount of withholding and for directions on depositing the withholding amounts and other employment taxes.

Employers will quarterly file Form 941 (PDF), Employer's Quarterly Federal Tax Return, and annually file Form 940 (PDF), Employer's Annual Federal Unemployment Tax Return (FUTA), and Form W-2 (PDF), Wage and Tax Statement, with Form W-3 (PDF), Transmittal of Wage and Tax Statements.

Rev. date: 1/2009

We hired a nanny to look after our baby while we work. How do we pay her social security taxes and properly report her income?

Employment Tax
Household Employer's Tax Guide
Household Employment Taxes
Housekeepers, maids, or servants.
Social Security and Medicare Taxes
Withholding Tax

A nanny is considered a household employee:

A household employer only has to pay social security and Medicare tax only for the employee(s) that receive cash wages that exceed the threshold amount for the year.
If the amount paid is less than the threshold, no social security or Medicare tax is owed.
If social security and Medicare tax must be paid, you will need to file Form 1040, Schedule H (PDF), Household Employment Taxes.
You must withhold the employee's portion of the social security and Medicare unless the employer chooses to pay both the employee's share and the employers share. The taxes are 15.3% of cash wages. Your share is 7.65% and the employee's share is 7.65%.
You may also be responsible for paying federal unemployment taxes.


Previous Page: Small Business/Self-Employed/Other Business > Form W-4 & Wage Withholding Next Page: Small Business/Self-Employed/Other Business > Income & Expenses Use to find additional instances of index items.