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taxmap/instr/i1040sh-002.htm#TXMP290440bf

How To Fill In Schedule H, Form W-2, and Form W-3(p3)


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Schedule H(p3)


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If you were notified that your household employee received payments from a state disability plan, see page H-6.
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Social security number.(p3)

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Enter your social security number. (Form 1041 filers, do not enter a number in this space. But be sure to enter your EIN in the space provided.)
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Employer identification number (EIN).(p3)

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An EIN is a nine-digit number assigned by the IRS. The digits are arranged as follows: 00-0000000. Enter your EIN in the space provided. If you do not have an EIN, see Do You Have an Employer Identification Number (EIN)? earlier. If you applied for an EIN but have not received it, enter Applied For. Do not use your social security number as an EIN.
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Line A.(p4)

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To figure the total cash wages you paid in 2009 to each household employee, do not count amounts paid to any of the following individuals.
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Exception for parents.(p4)
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Count the cash wages you paid your parent for work in or around your home if both 1 and 2 below apply.
  1. 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. A calendar quarter is January through March, April through June, July through September, and October through December.
  2. 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.
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Exception for employees under age 18.(p4)
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Count the cash wages you paid to a person who was under age 18 and not a student if providing household services was his or her principal occupation.
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Cash wages.(p4)

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Cash wages include wages paid by checks, money orders, etc. Cash wages do not include the value of food, lodging, clothing or other noncash items you give a household employee. See Wages on page 7 of Pub. 926, Household Employer's Tax Guide.
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Transportation (commuting benefits).(p4)
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For 2009, you can generally give your employee transportation benefits such as transit passes worth up to: However, the value of benefits over $120 a month for the months of January and February, and over $230 a month after February is included as wages. (See Transportation (Commuting Benefits) in Pub. 15-B, Employer's Tax Guide to Fringe Benefits, for more information.)
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Part I. Social Security, Medicare, and Federal Income Taxes Withholding(p4)


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Social security and Medicare taxes fund 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 2009, the limit on wages subject to social security tax is $106,800. 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-6 for more information.
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$1,700 test.(p4)
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If you pay a household employee $1,700 or more in cash wages during 2009, you must report and pay social security and Medicare taxes. The test applies to cash wages paid in 2009 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.
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Line 1.(p4)

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Enter on line 1 the total of cash wages (see Cash wages above) paid in 2009 to each household employee who meets the $1,700 test, explained above.
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(p4)

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If you paid any household employee cash wages of more than $106,800 in 2009, include on line 1 only the first $106,800 of that employee's cash wages.
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Line 2.(p4)

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Multiply the amount on line 1 by 12.4% (.124) and enter the result on line 2.
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Line 3.(p4)

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Enter on line 3 the total of cash wages (see Cash wages earlier) paid in 2009 to each employee who meets the $1,700 test. There is no limit on wages subject to the Medicare tax.
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Line 4.(p4)

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Multiply the amount on line 3 by 2.9% (.029) and enter the result on line 4.
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Line 5.(p4)

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Enter on line 5 any federal income tax you withheld from the wages you paid to your household employees in 2009. See Pub. 15 (Circular E), Employer's Tax Guide, for information on withholding federal income taxes.
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Line 6.(p4)

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Add lines 2, 4, and 5 and enter the result on line 6.
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Line 7.(p4)

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Enter on line 7, any advance EIC payments you made to your household employees in 2009.
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Line 8.(p4)

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Subtract the amount on line 7 from the amount on line 6 and enter the result on line 8.
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Line 9.(p4)

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Review the cash wages you paid to all your household employees for each calendar quarter of 2008 and 2009. Is the total for any quarter in 2008 or 2009 $1,000 or more?
Yes. Complete Part II of Schedule H.
No. Follow the instructions in the chart below.
If you file
Form. . .
Then enter the amount from Schedule H, line 8, on. . .
1040line 59 and check box b
1040NRline 56
1040-SSPart I, line 4
1041Schedule G, line 6
If you do not file any of the above forms, complete Part IV of Schedule H and follow the instructions under When and Where To File on page H-3.
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Part II. Federal Unemployment (FUTA) Tax(p4)


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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-11 for a listing of some helpful contact information for each state.
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Credit for contributions paid to state.(p4)

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You may be able to take a credit of up to 5.4% against the FUTA tax, resulting in a net tax rate of 0.8%. But to do so, you must pay all the required contributions for 2009 to your state unemployment fund by April 15, 2010. Fiscal year filers must pay all required contributions for 2009 by the due date of their federal income tax returns (not including extensions).
Contributions are payments that a state requires you, as an employer, to make to its unemployment fund for the payment of unemployment benefits. However, contributions do not include:
If you paid contributions to the state of Michigan, see the instructions for line 24.
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Lines 10 through 12.(p5)

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Answer the questions on lines 10 through 12 to see if you should complete Section A or Section B of Part II.
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Fiscal year filers.(p5)
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If you paid all state unemployment contributions for 2009 by the due date of your return (not including extensions), check the Yes box on line 11. Check the No box if you did not pay all of your state contributions by the due date of your return.
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Line 13.(p5)

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Enter the two-letter abbreviation of the name of the state (or the District of Columbia, Puerto Rico, or the U.S. Virgin Islands) to which you paid unemployment contributions.
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Line 14.(p5)

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Enter your state reporting number. If you do not have one, contact your state's unemployment tax agency. See the Appendix in Pub. 926 for your state's contact information.
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Line 15.(p5)

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Enter the total of contributions (defined earlier) you paid to your state unemployment fund for 2009. If you did not have to make contributions because your state gave you a zero percent experience rate, enter 0% rate on line 15.
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Line 16.(p5)

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Enter the total of cash wages (see Cash wages on page H-4) you paid in 2009 to each household employee, including employees paid less than $1,000. However, do not include cash wages paid in 2009 to any of the following individuals.
If you paid any household employee more than $7,000 in 2009, include on line 16 only the first $7,000 of that employee's cash wages.
caution
Complete lines 18 through 25 only if you checked a No box on lines 10, 11, or 12.
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Line 18.(p5)

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Complete all columns that apply. If you do not, you will not get a credit. If you need more space, attach a statement using the same format as line 18. Your state will provide the experience rate. If you do not know your rate, contact your state unemployment tax agency. See page H-11 for a listing of some helpful contact information for each state.
You must complete columns (a), (b), (c), and (i), even if you were not given an experience rate. If you were given an experience rate of 5.4% or higher, you must also complete columns (d) and (e). If you were given a rate of less than 5.4%, you must complete all columns.
If you were given a rate for only part of the year, or the rate changed during the year, you must complete a separate line for each rate period.
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Column (c).(p5)
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Enter the taxable wages on which you must pay taxes to the unemployment fund of the state shown in column (a). If your experience rate is zero percent, enter the amount of wages you would have had to pay taxes on if that rate had not been granted.
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Column (i).(p5)
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Enter the total of contributions (defined earlier) you paid to the state unemployment fund for 2009 by April 15, 2010. Fiscal year filers, enter the total contributions you paid to the state unemployment fund for 2009 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.
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Line 19.(p5)

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Add the amounts in columns (h) and (i) separately and enter the totals in the spaces provided.
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Line 20.(p5)

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Add the amounts shown on line 19 and enter the total on line 20.
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Line 24.(p5)

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Complete the worksheet below only if you are a Michigan State employer.
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Worksheet for Michigan State Employers—Line 24
1. Enter the smaller of the amounts from Schedule H, line 20 or 23.1.
2. Enter your Michigan wages from Schedule H, line 212.
3. Multiply the amount from line 2 of this worksheet by .003 and enter the result here.3.
4. Subtract line 3 of this worksheet from line 1 of this worksheet and enter the result here and on Schedule H, line 24.4.
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Part III. Total Household Employment Taxes(p5)


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Line 26.(p5)

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Enter the amount from line 8. If there is no entry on line 8, enter -0-.
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Line 27.(p5)

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Add the amounts on lines 17 and 26. If you were required to complete Section B, of Part II, add the amounts on lines 25 and 26 and enter the total on line 27.
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Line 28.(p5)

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Follow the instructions in the chart below.
If you file
Form. . .
Then do not complete Part IV but enter the amount from Schedule H, line 27, on . . .
1040line 59 and check box b
1040NRline 56
1040-SSPart I, line 4
1041Schedule G, line 6
If you do not file any of the above forms, complete Part IV of Schedule H and follow the instructions under When and Where To File on page H-3.
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Paid Preparers(p6)


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Paid preparer's use only.(p6)

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You must complete this part if you were paid to prepare Schedule H (Form 1040), and are not an employee of the filing entity, and are not attaching Schedule H to Form 1040, 1040NR, 1040-SS, or Form 1041. You must sign in the space provided and give the filer a copy of the return in addition to the copy to be filed with the IRS.
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Form W-2 and Form W-3(p6)


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If you file one or more Forms 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-10) show how the entries are made. For detailed information on preparing these forms, see the Instructions for Forms W-2 and W-3, Wage and Tax Statement and Transmittal of Wages and Tax Statements.
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Employee's portion of taxes paid by employer.(p6)

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If you paid all of your employee's share of social security and Medicare taxes, without deducting them from the employee, follow steps 1 through 3. (See the example on pages H-7, H-8, and H-9.)
  1. Enter the amounts you paid on your employee's behalf in boxes 4 and 6 (do not include your share of these taxes).
  2. 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.)
  3. Enter the total in box 1.
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On Form W-3, put an X in the Hshld. emp. box located in box b, Kind of Payer.
For information on filing Forms W-2 and W-3 electronically, visit the website for Social Security, Business Services Online, at www.socialsecurity.gov/bso/bsowelcome.htm.