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IRS.gov Website
Instructions for Schedule H (Form 1040)
taxmap/instr/i1040sh-002.htm#TXMP17155ac2

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

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taxmap/instr/i1040sh-002.htm#TXMP5a361386

Schedule H(p3)

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caution
If you were notified that your household employee received payments from a state disability plan, see State Disability Payments.
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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 and the date you applied. Do not use your social security number as an EIN.
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Line A.(p3)
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To figure the total cash wages you paid in 2011 to each household employee, do not count amounts paid to any of the following individuals.
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Exception for parents.(p4)
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 during the calendar quarter in which services were performed. A calendar quarter is January through March, April through June, July through September, or 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.
taxmap/instr/i1040sh-002.htm#TXMP032a098a
Exception for employees under age 18.(p4)
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 check, money order, etc. Cash wages do not include the value of food, lodging, clothing or other noncash items you give a household employee. See Wages in Pub. 926.
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Transportation (commuting) benefits.(p4)
For 2011, you can generally give your employee transportation benefits such as transit passes worth up to $230 per month without the benefits counting as cash. However, the value of benefits over $230 a month 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(p4)

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Social security and Medicare taxes fund retirement, survivor, disability, and health benefits for workers and their families. You and your employees generally pay these taxes in equal amounts.
For social security, the tax rate is 6.2% for you and 4.2% for your employee. For Medicare, the tax rate is 1.45% each. For 2011, 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 10.4% for social security and 2.9% for Medicare tax) of tax. See Form W-2 and Form W-3 in these instructions for more information.
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$1,700 test.(p4)
If you pay a household employee $1,700 or more in cash wages during 2011, you must report and pay social security and Medicare taxes on all the wages. The test applies to cash wages paid in 2011 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 2011 to each household employee who meets the $1,700 test, explained above.
caution
If you paid any household employee cash wages of more than $106,800 in 2011, 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 10.4% (.104) 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 2011 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 2011. 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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Review the cash wages you paid to all your household employees for each calendar quarter of 2010 and 2011. Is the total for any quarter in 2010 or 2011 $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 6, on. . .
1040line 59a
1040NRline 58
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.
taxmap/instr/i1040sh-002.htm#TXMP07625653

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% (.062) before July 1 and 6.0% (.060) after June 30. 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 these instructions 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 FUTA tax rate of 0.8% (.008) before July 1 and 0.6% (.006) after June 30. But to do so, you must pay all the required contributions for 2011 to your state unemployment fund by April 17, 2012. Fiscal year filers must pay all required contributions for 2011 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 any credit reduction state, see the instructions for line 21.
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Lines 8 through 10.(p4)
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Answer the questions on lines 8 through 10 to see if you should complete Section A or Section B of Part II.
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Fiscal year filers.(p4)
If you paid all state unemployment contributions for 2011 by the due date of your return (not including extensions), check the Yes box on line 9. 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 11.(p4)
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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 12.(p4)
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Enter the total of contributions (defined earlier) you paid to your state unemployment fund for 2011. If you did not have to make contributions because your state gave you a zero percent experience rate, enter 0% rate on line 12.
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Line 13.(p4)
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Enter the total of cash wages (see Cash wages in these instructions) you paid in 2011 to each household employee, includ ing employees paid less than $1,000. However, do not include cash wages paid in 2011 to any of the following individuals.
If you paid any household employee more than $7,000 in 2011, include on line 13 only the first $7,000 of that employee's cash wages.
caution
Complete lines 15 through 22 only if you checked a No box on lines 8, 9, or 10.
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Line 14.(p5)
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Complete the Worksheet for FUTA Tax—Line 14 in these instructions. Multiply the portion of the wages on line 13 paid before July 1, 2011, by .8% (.008). Multiply the portion of the wages on line 13 paid after June 30, 2011, by .6% (.006). Enter the sum of those two amounts on line 14.
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Line 15.(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 15. Your state will provide the experience rate. If you do not know your rate, contact your state unemployment tax agency. See these instructions for a listing of some helpful contact information for each state.
You must complete columns (a), (b), and (h), 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 (c) and (d). 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 (b).(p5)
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.
taxmap/instr/i1040sh-002.htm#TXMP1ad416ac
Column (h).(p5)
Enter the total of contributions (defined earlier) you paid to the state unemployment fund for 2011 by April 17, 2012. Fiscal year filers, enter the total contributions you paid to the state unemployment fund for 2011 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 16.(p5)
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Add the amounts in columns (g) and (h) separately and enter the totals in the spaces provided.
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Line 17.(p5)
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Add the amounts shown on line 16 and enter the total on line 17.
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Line 19.(p5)
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Complete the Worksheet for FUTA Tax—Line 19 in these instructions. Multiply the portion of the wages on line 18 paid before July 1, 2011, by 6.2% (.062). Multiply the portion of the wages on line 18 paid after June 30, 2011, by 6.0% (.060). Enter the sum of those two amounts on line 19.
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Line 21.(p5)
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Complete the Worksheet for Household Employers in a Credit Reduction State—Line 21 in these instructions only if you are a household employer in any of the credit reduction states. A state is a credit reduction state if the amount in the Reduction rate column for the state in the worksheet is greater than zero.
taxmap/instr/i1040sh-002.htm#w1234501
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Worksheet for FUTA Tax—Line 14

Time PeriodLine 13 WagesPercentageSum
Before 7/1/2011 x .008 
After 6/30/2011 x .006
ENTER RESULTS ON LINE 14TOTAL
taxmap/instr/i1040sh-002.htm#w1234501
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Worksheet for FUTA Tax—Line 19

Time PeriodLine 18 WagesPercentageSum
Before 7/1/2011 x .062 
After 6/30/2011 x .060
ENTER RESULTS ON LINE 19TOTAL
State Names and Postal Abbreviations
StatePostal AbbreviationStatePostal Abbreviation
AlabamaALNebraskaNE
AlaskaAKNevadaNV
ArizonaAZNew HampshireNH
ArkansasARNew JerseyNJ
CaliforniaCANew MexicoNM
ColoradoCONew YorkNY
ConnecticutCTNorth CarolinaNC
DelawareDENorth DakotaND
District of ColumbiaDCOhioOH
FloridaFLOklahomaOK
GeorgiaGAOregonOR
HawaiiHIPennsylvaniaPA
IdahoIDRhode IslandRI
IllinoisILSouth CarolinaSC
IndianaINSouth DakotaSD
IowaIATennesseeTN
KansasKSTexasTX
KentuckyKYUtahUT
LouisianaLAVermontVT
MaineMEVirginiaVA
MarylandMDWashingtonWA
MassachusettsMAWest VirginiaWV
MichiganMIWisconsinWI
MinnesotaMNWyomingWY
MississippiMSPuerto RicoPR
MissouriMOU.S. Virgin IslandsVI
MontanaMT  


taxmap/instr/i1040sh-002.htm#w1234501
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Worksheet for Household Employers in a Credit Reduction State—Line 21

1. Enter the smaller of the amount from Schedule H, line 17 or line 20 1 
2. Enter the total taxable FUTA wages from Schedule H, line 182 
3. Check the box of every state in which you were required to pay state unemployment tax this year. If the credit reduction rate for a state is greater than zero, it is a credit reduction state. If all of the states you check have a credit reduction rate of zero, do not enter an amount on Line 21. For credit reduction states, enter the FUTA taxable wages paid in the state, multiply by the reduction rate, and then enter the credit reduction amount for that state. If any states do not apply to you, leave them blank.
Postal AbbreviationFUTA Taxable WagesReduction RateCredit ReductionPostal AbbreviationFUTA Taxable WagesReduction RateCredit Reduction
 AK x .000  NC x .003 
 AL x .000  ND x .000 
 AR x .003  NE x .000 
 AZ x .000  NH x .000 
 CA x .003  NJ x .003 
 CO x .000  NM x .000 
 CT x .003  NV x .003 
 DC x .000  NY x .003 
 DE x .000  OH x .003 
 FL x .003  OK x .000 
 GA x .003  OR x .000 
 HI x .000  PA x .003 
 IA x .000  RI x .003 
 ID x .000  SC x .000 
 IL x .003  SD x .000 
 IN x .006  TN x .000 
 KS x .000  TX x .000 
 KY x .003  UT x .000 
 LA x .000  VA x .003 
 MA x .000  VT x .000 
 MD x .000  WA x .000 
 ME x .000  WI x .003 
 MI x .009  WV x .000 
 MN x .003  WY x .000 
 MO x .003  PR x .000 
 MS x .000  VI x .003 
 MT x .000  
4. Total Credit reduction4 
5. Subtract line 4 of this worksheet from line 1 of this worksheet and enter the result here and on Schedule H, line 21. 5 
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Part III. Total Household Employment Taxes(p7)

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Line 23.(p7)
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Enter the amount from line 6. If there is no entry on line 6, enter -0-.
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Line 24.(p7)
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Add the amounts on lines 14 and 23. If you were required to complete Section B of Part II, add the amounts on lines 22 and 23 and enter the total on line 24.
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Line 25.(p8)
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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 24, on . . .
1040line 59a
1040NRline 58
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.
taxmap/instr/i1040sh-002.htm#TXMP36646d37

Paid Preparers(p8)

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taxmap/instr/i1040sh-002.htm#TXMP49402578
Paid preparer use only.(p8)
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You must complete this part if you were paid to prepare Schedule H, 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.
taxmap/instr/i1040sh-002.htm#TXMP4842d32b

Form W-2 and Form W-3(p8)

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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 (in these instructions) 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.(p8)
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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 in these instructions.)
  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.
taxtip
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.