Instructions for Schedule H (Form 1040)
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e690taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e695 | If you were notified that your household employee received payments from a state disability plan, see State Disability Payments,
later. |
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e710Enter 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.)
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e718An 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e733To figure the total cash wages you paid in 2012 to each household employee, do not include amounts paid to any of the following
individuals.
- Your spouse.
- Your child who was under age 21.
- Your parent. (See
Exception for parents below.)
- Your employee who was under age 18 at any time during 2012. If the employee was not a student, see
Exception for employees under age 18 below.
Include the cash wages you paid your parent for work in or around your home if both 1 and 2 below
apply.
- 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.
- 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.
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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e795Cash 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e806For 2012, you can generally give your employee transportation benefits such as $125 per month for combined commuter highway vehicle transportation and transit passes; $240 per month for qualified parking; and 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.
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 2012, the social security tax rate is 6.2% for you and 4.2% for your employee. The Medicare tax rate is 1.45% each. The limit on wages subject to social security tax is $110,100. 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e844If you pay a household employee $1,800 or more in cash wages during 2012, you must report and pay social security and Medicare taxes on all the wages. The test applies to cash wages paid in 2012 regardless of when the wages were earned. See Pub.
926 for more information. Or, visit the SSA's website at
www.socialsecurity.gov/pubs/10021.html.
Enter on line 1 the total of cash wages (see
Cash wages
above) paid in 2012 to each household employee who meets the $1,800 test, explained above.
| If you paid any household employee cash wages of more than $110,100 in 2012, include on line 1 only the first $110,100 of that employee's cash wages.
|
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e878Multiply the amount on line 1 by 10.4% (.104) and enter the result on line
2.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e886Enter on line 3 the total of cash wages (see
Cash wages
earlier) paid in 2012 to each employee who meets the $1,800 test. There is no
limit on wages subject to the Medicare tax.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e898Multiply the amount on line 3 by 2.9% (.029) and enter the result on line
4.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e906Enter on line 5 any federal income tax you withheld from the wages you paid to your household employees in 2012. See Pub.
15
(Circular E), Employer's Tax Guide, for information on withholding federal
income taxes.
Add lines 2, 4, and 5 and enter the result on line 6.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e922Review the cash wages you paid to all your household employees for each calendar quarter of 2011 and 2012. Is the total for any quarter in 2011 or 2012 $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 6, on. . . |
|---|
| 1040 | line 59a |
| 1040NR | line 58a
|
| 1040-SS | Part I, line 4
|
| 1041 | Schedule 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1009FUTA 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1024You 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 2012 to your state unemployment fund by April 15, 2013. Fiscal year filers must pay all required contributions for 2012 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:
- Any payments deducted or deductible from your employees' pay;
- Penalties, interest, or special administrative taxes not included in the contributions rate the state gave you;
or
- Voluntary contributions you paid to get a lower experience rate. See the instructions for line 15 for more
information.
If you paid contributions to any credit reduction state, see the instructions for line
21.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1054Answer the questions on lines 8 through 10 to see if you should complete Section A or Section B of Part
II.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1061If you paid all state unemployment contributions for 2012 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1077Enter 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1085Enter the total of
contributions
(defined earlier) you paid to your state unemployment fund for 2012. If you did
not have to make contributions because your state gave you a zero percent
experience rate, enter
0% rate
on line 12.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1099Enter the total of cash wages (see
Cash wages, earlier) you paid in 2012 to each household employee, including employees paid less than $1,000. However, do not include cash wages paid in 2012 to any of the following
individuals.
- Your spouse.
- Your child who was under age 21.
- Your parent.
If you paid any household employee more than $7,000 in 2012, include on line 13 only the first $7,000 of that employee's cash
wages.
taxmap/instr/i1040sh-002.htm#en_us_publink1000291371The credit you can take for any state unemployment fund contributions for 2012 that you pay after April 15, 2013, is limited to 90% of the credit that would have been allowable if the contributions were paid on or before April 15,
2013.
 | You must complete 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. |
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1140Multiply the wages on line 13 by .6% (.006). Enter the result on line
14.
| Complete lines 15 through 22
only if you checked a
No box on lines 8, 9, or 10. |
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1148Complete 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.
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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1161Enter 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#en_us_publink_21451xd0e1171Enter the total of
contributions
(defined earlier) you paid to the state unemployment fund for 2012 by April 15,
2013. Fiscal year filers, enter the total contributions you paid to the state
unemployment fund for 2012 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1182Add the amounts in columns (g) and (h) separately and enter the totals in the spaces
provided.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1191Add the amounts shown on line 16 and enter the total on line
17.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1199Enter the total cash wages subject to FUTA tax. See the line 13 instructions for
details.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1207Multiply the wages on line 18 by 6.0% (.060). Enter the result on line
19.
taxmap/instr/i1040sh-002.htm#en_us_publink1000292356Multiply the wages on line 18 by 5.4% (.054). Enter the result on line
20.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e1215Complete 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.
State Names and Postal Abbreviations
| State | Postal Abbreviation | State | Postal Abbreviation |
| Alabama | AL | Nebraska | NE |
| Alaska | AK | Nevada | NV |
| Arizona | AZ | New Hampshire | NH |
| Arkansas | AR | New Jersey | NJ |
| California | CA | New Mexico | NM |
| Colorado | CO | New York | NY |
| Connecticut | CT | North Carolina | NC |
| Delaware | DE | North Dakota | ND |
| District of Columbia | DC | Ohio | OH |
| Florida | FL | Oklahoma | OK |
| Georgia | GA | Oregon | OR |
| Hawaii | HI | Pennsylvania | PA |
| Idaho | ID | Rhode Island | RI |
| Illinois | IL | South Carolina | SC |
| Indiana | IN | South Dakota | SD |
| Iowa | IA | Tennessee | TN |
| Kansas | KS | Texas | TX |
| Kentucky | KY | Utah | UT |
| Louisiana | LA | Vermont | VT |
| Maine | ME | Virginia | VA |
| Maryland | MD | Washington | WA |
| Massachusetts | MA | West Virginia | WV |
| Michigan | MI | Wisconsin | WI |
| Minnesota | MN | Wyoming | WY |
| Mississippi | MS | Puerto Rico | PR |
| Missouri | MO | U.S. Virgin Islands | VI |
| Montana | MT | | |
taxmap/instr/i1040sh-002.htm#w21451x03 | 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 18
| 2 | | | 3. Place an "X" in the box of
EVERY
state in which you were required 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 21. For states 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 for that state. If any states do not apply to you, leave
them blank.
| | Postal Abbreviation | FUTA Taxable Wages | Reduction Rate | Credit Reduction | Postal Abbreviation | FUTA Taxable Wages | Reduction Rate | Credit Reduction | | | AK | | x .000 | | | NC | | x .006 | | | | AL | | x .000 | | | ND | | x .000 | | | | AR | | x .006 | | | NE | | x .000 | | | | AZ | | x .003 | | | NH | | x .000 | | | | CA | | x .006 | | | NJ | | x .006 | | | | CO | | x .000 | | | NM | | x .000 | | | | CT | | x .006 | | | NV | | x .006 | | | | DC | | x .000 | | | NY | | x .006 | | | | DE | | x .003 | | | OH | | x .006 | | | | FL | | x .006 | | | OK | | x .000 | | | | GA | | x .006 | | | OR | | x .000 | | | | HI | | x .000 | | | PA | | x .000 | | | | IA | | x .000 | | | RI | | x .006 | | | | ID | | x .000 | | | SC | | x .000 | | | | IL | | x .000 | | | SD | | x .000 | | | | IN | | x .009 | | | TN | | x .000 | | | | KS | | x .000 | | | TX | | x .000 | | | | KY | | x .006 | | | UT | | x .000 | | | | LA | | x .000 | | | VA | | x .000 | | | | MA | | x .000 | | | VT | | x .003 | | | | MD | | x .000 | | | WA | | x .000 | | | | ME | | x .000 | | | WI | | x .006 | | | | MI | | x .000 | | | WV | | x .000 | | | | MN | | x .000 | | | WY | | x .000 | | | | MO | | x .006 | | | PR | | x .000 | | | | MS | | x .000 | | | VI | | x .015 | | | | 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 21.
| 5 | |
|
Enter the amount from line 6. If there is no entry on line 6, enter
-0-.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e2567Add 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e2578Follow 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 . .
. |
|---|
| 1040 | line 59a |
| 1040NR | line 58a |
| 1040-SS | Part I, line 4 |
| 1041 | Schedule 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.
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#en_us_publink_21451xd0e2669If 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.
taxmap/instr/i1040sh-002.htm#en_us_publink_21451xd0e2681If you paid all of your employee's share of social security and Medicare taxes, without deducting them from the employee, the employee's income is increased by the amount of that tax for income tax withholding purposes. Follow steps 1 through 3, below. (See the example in these instructions.)
- Enter the amounts you paid on your employee's behalf in boxes 4 and 6 (do not include your share of these
taxes).
- 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.)
- 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
www.socialsecurity.gov/employer.
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