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Instructions for Schedule H (Form 1040)

How To Fill In Schedule H, Form W-2, and Form W-3(p4)


Schedule H(p4)

If you were notified that your household employee received payments from a state disability plan, see State Disability Payments, later.
Social security number.(p4)
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.
Employer identification number (EIN).(p4)
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.
Line A.(p4)
To figure the total cash wages you paid in 2014 to each household employee, do not include amounts paid to any of the following individuals.
Exception for parents.(p4)
Include 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.
Exception for employees under age 18.(p4)
Include 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.
Cash wages.(p4)
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.
Transportation (commuting) benefits. (p4)
For 2014, you can generally give your employee transportation benefits such as $130 per month for combined commuter highway vehicle transportation and transit passes; $250 per month for qualified parking; or for a calendar year, $20 multiplied by the number of qualified bicycle commuting months during that year for qualified bicycle commuting reimbursement of expenses incurred during the year, without the benefits counting as cash. However, the value of benefits over the specified amounts a month is included as wages. See Transportation (Commuting) Benefits in Pub. 15-B, Employer's Tax Guide to Fringe Benefits, for more information.

Part I. Social Security, Medicare, and Federal Income Taxes (p4)

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.
You are not required to withhold federal income tax from wages you pay a household employee. You should withhold federal income tax only if your household employee asks you to withhold it and you agree. The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate.
For 2014, the social security tax rate is 6.2% each for you and your employee. The Medicare tax rate is 1.45% each. The limit on wages subject to social security tax is $117,000. 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 tax) of tax. See Form W-2 and Form W-3 in these instructions for more information.
In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.
For more information on Additional Medicare Tax, visit and enter Additional Medicare Tax in the search box.
$1,900 test.(p4)
If you pay a household employee $1,900 or more in cash wages during 2014, you must report and pay social security and Medicare taxes on all the wages. The test applies to cash wages paid in 2014 regardless of when the wages were earned. See Pub. 926 for more information. Or, visit the SSA's website at
Line 1.(p5)
Enter on line 1 the total of cash wages (see Cash wages earlier) paid in 2014 to each household employee who meets the $1,900 test, explained earlier.
If you paid any household employee cash wages of more than $117,000 in 2014, include on line 1 only the first $117,000 of that employee's cash wages.
Line 2. (p5)
Multiply the amount on line 1 by 12.4% (.124) and enter the result on line 2.
Line 3. (p5)
Enter on line 3 the total of cash wages (see Cash wages earlier) paid in 2014 to each employee who meets the $1,900 test. There is no limit on wages subject to the Medicare tax.
Line 4.(p5)
Multiply the amount on line 3 by 2.9% (.029) and enter the result on line 4.
Line 5.(p5)
Enter on line 5 the total cash wages (see Cash wages earlier) paid to each employee in 2014 that exceeded $200,000.
Line 6.(p5)
Multiply the amount on line 5 by 0.9% (.009) and enter the result on line 6.
Line 7. (p5)
Enter on line 7 any federal income tax you withheld from the wages you paid to your household employees in 2014. See Pub. 926 and Pub. 15 (Circular E), Employer's Tax Guide, for information on withholding federal income taxes.
Line 8. (p5)
Add lines 2, 4, 6, and 7 and enter the result on line 8.
Line 9.(p5)
Review the cash wages you paid to all your household employees for each calendar quarter of 2013 and 2014. Is the total for any quarter in 2013 or 2014 $1,000 or more?
Yes. Complete Schedule H, Part II.
No. Follow the instructions in the chart below.
If you file
Form. . .
Then enter the amount from Schedule H, line 8, on. . .
1040line 60a
1040NRline 59a
1040-SSPart I, line 4
1041Schedule G, line 6
If you do not file any of the above forms, complete Schedule H, Part IV and follow the instructions under When and Where To File.

Part II. Federal Unemployment (FUTA) Tax(p5)

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 6.0% (.060). 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.
Credit for contributions paid to state.(p5)
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 0.6% (.006). But to do so, you must pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. Fiscal year filers must pay all required contributions for 2014 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 23.
Lines 10 through 12.(p5)
Answer the questions on lines 10 through 12 to see if you should complete Section A or Section B of Part II.
Fiscal year filers.(p5)
If you paid all state unemployment contributions for 2014 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.
Line 13.(p5)
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.
Line 14.(p5)
Enter the total of contributions (defined earlier) you paid to your state unemployment fund for 2014. If you did not have to make contributions because your state gave you a zero percent experience rate, enter 0% rate on line 14.
Line 15.(p5)
Enter the total of cash wages (see Cash wages earlier) you paid in 2014 to each household employee, including employees paid less than $1,000. However, do not include cash wages paid in 2014 to any of the following individuals.
If you paid any household employee more than $7,000 in 2014, include on line 15 only the first $7,000 of that employee's cash wages.
Credit for 2014.(p5)
The credit you can take for any state unemployment fund contributions for 2014 that you pay after April 15, 2015, is limited to 90% of the credit that would have been allowable if the contributions were paid on or before April 15, 2015.
Use Worksheet A in Pub. 926 to figure the credit for late contributions if you paid any state contributions after the due date for filing Form 1040.
Line 16. (p5)
Multiply the wages on line 15 by .6% (.006). Enter the result on line 16.
Complete lines 17 through 24 only if you checked a No box on lines 10, 11, or 12.
Line 17.(p5)
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 17. Your state will provide the experience rate. If you do not know your rate, contact your state unemployment tax agency.
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.
Column (b).(p6)
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.
Column (h).(p6)
Enter the total contributions (defined earlier) you paid to the state unemployment fund for 2014 by April 15, 2015. Fiscal year filers, enter the total contributions you paid to the state unemployment fund for 2014 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.
Line 18. (p6)
Add the amounts in columns (g) and (h) separately and enter the totals in the spaces provided.
Line 19. (p6)
Add the amounts shown on line 18 and enter the total on line 19.
Line 20.(p6)
Enter the total cash wages subject to FUTA tax. See the line 15 instructions for details.
Line 21. (p6)
Multiply the wages on line 20 by 6.0% (.060). Enter the result on line 21.
Line 22.(p6)
Multiply the wages on line 20 by 5.4% (.054). Enter the result on line 22.
Line 23.(p6)
Complete the Worksheet for Household Employers in a Credit Reduction State—Line 23 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.
State Names and Postal Abbreviations
StatePostal AbbreviationStatePostal Abbreviation
ArizonaAZNew HampshireNH
ArkansasARNew JerseyNJ
CaliforniaCANew MexicoNM
ColoradoCONew YorkNY
ConnecticutCTNorth CarolinaNC
DelawareDENorth DakotaND
District of ColumbiaDCOhioOH
IdahoIDRhode IslandRI
IllinoisILSouth CarolinaSC
IndianaINSouth DakotaSD
MassachusettsMAWest VirginiaWV
MississippiMSPuerto RicoPR
MissouriMOU.S. Virgin IslandsVI
pencilWorksheet for Household Employers in a Credit Reduction State—Line 23
1. Enter the smaller of the amount from Schedule H, line 19 or line 22 1 
2. Enter the total taxable FUTA wages from Schedule H, line 202 
3. Place an "X" in the box of EVERY state in which you had to pay state unemployment tax this year. If all of the states you check have a credit reduction rate of zero, do not enter an amount on line 23. For each state with a credit reduction rate greater than zero, enter the FUTA taxable wages, multiply by the reduction rate, and then enter the credit reduction amount. Do not include in the FUTA Taxable Wages box wages that were excluded from state unemployment tax. 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 .012 
 AL x .000  ND x .000 
 AR x .000  NE x .000 
 AZ x .000  NH x .000 
 CA x .012  NJ x .000 
 CO x .000  NM x .000 
 CT x .017  NV x .000 
 DC x .000  NY x .012 
 DE x .000  OH x .012 
 FL x .000  OK x .000 
 GA x .000  OR x .000 
 HI x .000  PA x .000 
 IA x .000  RI x .000 
 ID x .000  SC x .000 
 IL x .000  SD x .000 
 IN x .015  TN x .000 
 KS x .000  TX x .000 
 KY x .012  UT x .000 
 LA x .000  VA x .000 
 MA x .000  VT x .000 
 MD x .000  WA x .000 
 ME x .000  WI x .000 
 MI x .000  WV x .000 
 MN x .000  WY x .000 
 MO x .000  PR x .000 
 MS x .000  VI x .012 
 MT x .000  
4. Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total here. 4 
5. Subtract line 4 of this worksheet from line 1 of this worksheet and enter the result here and on Schedule H, line 23. 5 

Part III. Total Household Employment Taxes(p7)

Line 25.(p7)
Enter the amount from line 8. If there is no entry on line 8, enter -0-.
Line 26.(p7)
Add the amounts on lines 16 and 25. If you were required to complete Section B of Part II, add the amounts on lines 24 and 25 and enter the total on line 26.
Line 27.(p7)
Follow the instructions in the chart.
If you file
Form. . .
Then do not complete Part IV but enter the amount from Schedule H, line 26, on . . .
1040line 60a
1040NRline 59a
1040-SSPart I, line 4
1041Schedule G, line 6
If you do not file any of the above forms, complete Schedule H, Part IV and follow the instructions under When and Where To File.

Paid Preparers(p8)

Paid preparer use only.(p8)
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.

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

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 General Instructions for Forms W-2 and W-3.
Employee's portion of taxes paid by employer.(p8)
If you paid all of your employee's share of social security and Medicare taxes, without deducting the amounts from the employee's pay, the employee's wages are increased by the amount of that tax for income tax withholding purposes. Follow steps 1 through 3 below. (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.
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 SSA's Employer W-2 Filing Instructions & Information website at