taxmap/instr/i1040sh-000.htm#en_us_publink1000274719taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e192012
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e40- Schedule H for figuring your household employment taxes.
- Form W-2 for reporting wages paid to your employees.
- 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.
If you did not have any household employees in 2012, you do not have to file Schedule H (Form 1040) for
2012.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e77taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e82Enter the taxes from Schedule H on the
Household employment taxes
line of your Form 1040, 1040NR, 1040-SS, or 1041. You do this because these
taxes are added to your income taxes.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e93File Schedule H with your Form 1040, 1040NR, 1040-SS, or 1041. If you are not filing a 2012 tax return, file Schedule H by itself.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e101No. You pay both income and employment taxes to the United States Treasury when you file Schedule H with your
return.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e109Most filers must pay by April 15, 2013.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e118Send one copy of Form W-3 with Copy A of Form(s) W-2 to the SSA, and keep one copy of Form W-3 for your records. Instructions for filing Forms W-2 and Form W-3 electronically are available at
www.socialsecurity.gov/employer.
| By | You must |
|---|
| January 31, 2013 | Give your employee Form W-2. |
| February 28, 2013 (April 1, 2013 if you file electronically) | Send Copy A of Form W-2 with Form W-3 to the Social Security Administration. Visit
www.socialsecurity.gov/employer for details.
|
| April 15, 2013 | File Schedule H and pay your household employment taxes with your 2012 tax
return. |
For the latest information about developments related to Schedule H (Form 1040) and its instructions, such as legislation enacted after they were published, go to
www.irs.gov/form1040.
The employee tax rate for social security is 4.2% and the employer tax rate for social security is 6.2%, unchanged from 2011. The social security wage base limit is $110,100. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2011. There is no wage base limit for Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $1,800 or more in cash or an equivalent form of compensation in 2012. For 2012, the FUTA tax rate is
6.0%.
For information about the rates and wage threshold that will apply in 2013, see Pub.
926, Household Employer's Tax Guide (released in December 2012).
A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a
credit reduction state.
The Department of Labor determines these states. If an employer pays wages that
are subject to the unemployment tax laws of a credit reduction state, that
employer must pay additional federal unemployment tax.
For 2012, there are credit reduction states. If you paid wages that were subject to the unemployment compensation laws of a credit reduction state, you are not allowed the credit reduction rate (i.e., .003, .006, .009 or .015) of the regular .054 credit for that credit reduction
state.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e374taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e379The option of receiving advance payroll payments of EIC expired on December 31, 2010. Individuals eligible for EIC in 2012 can still claim the credit when they file their federal income tax
return.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e387Your paid preparer must sign Schedule H in Part IV
unless
you are attaching Schedule H to Form 1040, 1040NR, 1040-SS, or Form 1041. A paid
preparer must sign Schedule H and provide the information requested in the
Paid Preparer Use Only
section only if the preparer was paid to prepare Schedule H and is not your
employee. The preparer must give you a copy of the return in addition to the
copy to be filed with the IRS.
If you are required to file a 2012 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 SSA. You are encouraged to file your Forms W-2 and W-3 electronically. Visit the SSA's Employer W-2 Filing Instructions & Information website at
www.socialsecurity.gov/employer to learn about electronic filing.
You must file Schedule H if you answer
Yes
to any of the questions on lines A, B, or C of Schedule H.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e419If you hired someone to do household work and you were able to control what work he or she did and how he or she did it, you had a household employee. This is true even if you gave the employee freedom of action. What matters is that you had the right to control the details of how the work was
done.
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.
If you are a home care service recipient receiving home care services through a program administered by a federal, State, or local government agency, you can designate an agent under section 3504 to report, file, and pay all federal employment taxes, including FUTA taxes, on your
behalf.
Note.(p2)
If a government agency or third party agent reports and pays the employment taxes on wages paid to your household employee under its own employer identification number (EIN), you do not need to file Schedule H to report those
taxes.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e502Workers you get from an agency are not your employees if the agency is responsible for who does the work and how it is done. Self-employed workers are also not your employees. A worker is self-employed if only he or she can control how the work is done. A self-employed worker usually provides his or her own tools and offers services to the general public in an independent
business.
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, instructs them how to do their jobs, and provides his own tools and supplies. Neither Paul nor his helpers are your
employees.
For more information, see Pub. 926.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e523You must file Form W-2 for each household employee to whom you paid $1,800 or more of cash wages in 2012 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. Even if the wages are not subject to these taxes, if 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.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e538If you have household employees, you will need an EIN to file Schedule H. If you do not have an EIN, see Form SS-4, Application for Employer Identification Number. Do not use a social security number in place of an EIN. 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
for details on how to get forms and publications including Form SS-4.To get an
EIN over the internet, visit IRS.gov and click on the
Apply for an EIN Online link under
Tools.
taxmap/instr/i1040sh-000.htm#en_us_publink_21451xd0e558It is unlawful to employ a person 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. You must verify that the employee is either a U.S. citizen or a person who can legally work in the United States 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 2012, you probably have to pay contributions to your state unemployment fund for 2012. To find out if you do, contact your state unemployment tax agency. For a list of state unemployment tax agencies, visit the U.S. Department of Labor's website at
www.workforcesecurity.doleta.gov/unemploy/agencies.asp. You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation
insurance.
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