Instructions For Schedule H (Form 1040) Household Employment Taxes

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If you file

Then enter the amount from

Your spouse.

•

Form. . .

Schedule H, line 8, on. . .

Your child who was under age 21.

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Your parent. (See Exception for parents below.)

1040

line 62

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Your employee who was under age 18 at any time during

1040NR

line 57

2005. If the employee was not a student, see Exception for employ-

ees under age 18 below.

1040-SS

Part I, line 4

Exception for parents. Count the cash wages you paid your

1041

Schedule G, line 6

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

If you do not file any of the above forms, complete Part IV of

physical or mental condition that required the personal care of an

Schedule H and follow the instructions under When and Where To

adult for at least 4 continuous weeks in a calendar quarter.

File on page H-3.

2. You were divorced and not remarried, a widow or widower,

Part II. Federal Unemployment (FUTA) Tax

or married to and living with a person whose physical or mental

FUTA tax, with state unemployment systems, provides for pay-

condition prevented him or her from caring for the child during that

ments of unemployment compensation to workers who have lost

4-week period.

their jobs. Most employers pay both a federal and state unemploy-

ment tax.

Exception for employees under age 18. Count the cash wages

The FUTA tax rate is 6.2%. But see Credit for contributions paid

you paid to a person who was under age 18 and not a student if

to state below. Do not deduct the FUTA tax from your employee’s

providing household services was his or her principal occupation.

wages. You must pay it from your own funds.

Credit for contributions paid to state.

You may be able to take a

Part I. Social Security, Medicare, and Income

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

Taxes

for 2005 to your state unemployment fund by April 17, 2006. Fiscal

Social security and Medicare taxes pay for retirement, disability,

year filers must pay all required contributions for 2005 by the due

date of their federal income tax returns (not including extension). If

and health benefits for workers and their families. You and your

you pay contributions to the State of New York, see the instructions

employees pay these taxes in equal amounts.

for Line 24 .

For social security, the tax rate is 6.2% each for you and your

Contributions are payments that a state requires you, as an

employer, to make to its unemployment fund for the payment of

employee. For Medicare, the rate is 1.45% each. If you did not

unemployment benefits. However, contributions do not include:

deduct the employee’s share from his or her wages, you must pay

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Any payment such as FUTA tax deducted or deductible from

the employee’s share and your share (a total of 12.4% for social

your employees’ pay;

security and 2.9% for Medicare). See Form W-2 and Form W-3 on

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Penalties, interest, or special administrative taxes not included

page H-5 for more information.

in the contributions rate the state gave you; and

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Voluntary contributions you paid to get a lower experience

Enter on lines 1 and 3 the total cash wages (defined

Lines 1 and 3.

rate.

on page H-2) paid in 2005 to each household employee who meets

Answer the questions on lines 10 through 12

Lines 10 through 12.

the $1,400 test, explained later. However, if you paid any household

to see if you should complete Section A or Section B of Part II.

employee cash wages of more than $90,000 in 2005, include on line

Fiscal year filers. If you paid all state unemployment contribu-

1 only the first $90,000 of that employee’s cash wages. On line 3,

tions for 2005 by the due date of your return (not including exten-

include that employee’s total cash wages.

sions), check the “Yes” box on line 11. Otherwise, check the “No”

box.

$1,400 test. Any household employee to whom you paid cash

Enter the two-letter abbreviation of the name of the state

Line 13.

wages of $1,400 or more in 2005 meets this test. The test applies to

(or the District of Columbia, Puerto Rico, or the Virgin Islands) to

cash wages paid in 2005 regardless of when the wages were earned.

which you paid unemployment contributions.

To figure the total cash wages you paid in 2005 to each household

Enter the total contributions (defined earlier) you paid to

Line 15.

employee, see the instructions for line A, earlier.

your state unemployment fund for 2005. If you did not have to

make contributions because your state gave you a zero percent

Enter on line 5 any federal income tax you withheld

Lines 5 and 7.

experience rate, enter “0% rate” on line 15.

from the wages you paid your household employees in 2005. On

Line 16.

Enter the total cash wages you paid in 2005 to each

line 7, enter any advance EIC payments you made to your house-

household employee, including employees paid less than $1,000.

hold employees in 2005.

However, do not include cash wages paid in 2005 to any of the

following individuals.

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For each calendar quarter of 2004 and 2005, add the cash

Line 9.

Your spouse.

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wages you paid to all your household employees in that quarter. Is

Your child who was under age 21.

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the total for any quarter in 2004 or 2005 $1,000 or more?

Your parent.

If you paid any household employee more than $7,000 in 2005,

Yes. Complete Part II of Schedule H.

include on line 16 only the first $7,000 of that employee’s cash

No. Follow the instructions in the chart below.

wages.

H-4

Instructions For Schedule H (Form 1040) Household Employment Taxes - 2005 Page 4

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