Instructions For Schedule H (Form 1040) Household Employment Taxes - 2005 Page 7

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payments on lines 1 and 3 and complete the rest of Part I through
Recordkeeping, 1hr., 38 min.; Learning about the law or the
line 5. Add lines 2, 4, and 5. From that total, subtract the amount of
form, 30 min.; Preparing the form, 54 min.; Copying, assem-
these taxes withheld by the state. Enter the result on line 6. Also,
bling, and sending the form to the IRS, 34 min.
enter “disability” and the amount subtracted on the dotted line next
If you have comments concerning the accuracy of these time
to line 6. See the notice issued by the state for more details.
estimates or suggestions for making this form simpler, we would be
happy to hear from you. You can write to: Internal Revenue Serv-
i c e ,
T a x
P r o d u c t s
C o o r d i n a t i n g
C o m m i t t e e ,
How to Get Forms and Publications
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406,
To get the IRS forms and publications mentioned in these instruc-
Washington, DC 20224. Do not send Schedule H (Form 1040) to
tions (including Notice 797), visit the IRS website at
this address. Instead, see When and Where to File on page H-3.
or call 1-800-TAX-FORM (1-800-829-3676).
Completed Example of Schedule H,
Privacy Act and Paperwork
Form W-2, and Form W-3
Reduction Act Notice.
On February 14, 2005, Susan Green hired Helen Maple to clean her
house every Wednesday. Susan did not have a household employee
We ask for the information on this form to carry out the Internal
in 2004.
Revenue laws of the United States. You are required to give us the
Susan paid Helen $50 every Wednesday for her day’s work.
information. We need it to ensure that you are complying with these
Susan decided not to withhold Helen’s share of the social security
laws and to allow us to figure and collect the right amount of tax.
and Medicare taxes from the wages she paid Helen. Instead, she
will pay Helen’s share of these taxes from her own funds. Susan did
You are not required to provide the information requested on a
not withhold federal income tax because Helen did not give her a
form that is subject to the Paperwork Reduction Act unless the form
Form W-4 to request withholding and no withholding is otherwise
required. Susan also did not pay Helen advance earned income
displays a valid OMB control number. Books or records relating to
credit payments because Helen did not give her a Form W-5.
a form or instructions must be retained as long as their contents may
become material in the administration of any Internal Revenue law.
Helen was employed by Susan for the rest of the year (a total of
46 weeks). The following is some of the information Susan will
Subtitle C, Employment Taxes, of the Internal Revenue Code
need to complete Schedule H, Form W-2, and Form W-3.
imposes employment taxes on wages, including income tax with-
holding. This form is used to determine the amount of the taxes that
Helen’s total cash wages . . . . .
$2,300.00
you owe. Section 6011 requires you to provide the requested infor-
($50 x 46 weeks)
mation if the tax is applicable to you. Section 6109 requires you to
Helen’s share of the:
provide your employer identification number (EIN).
Social security tax . . . . . .
$142.60
($2,300 x 6.2% (.062))
Generally, tax returns and return information are confidential, as
required by section 6103. However, section 6103 allows or requires
Medicare tax . . . . . . . . . .
$33.35
the IRS to disclose or give the information shown on your tax return
($2,300 x 1.45% (.0145))
to others as described in the Code. For example, we may disclose
Helen’s total cash wages each quarter:
your tax information to the Department of Justice for civil and
1st quarter . . . . . . . . . . .
$300.00 ($50 x 6 weeks)
criminal litigation, and to cities, states, and the District of Columbia
2nd quarter . . . . . . . . . .
$650.00 ($50 x 13 weeks)
for use in administering their tax laws. We may also disclose this
3rd quarter . . . . . . . . . . .
$650.00 ($50 x 13 weeks)
information to other countries under a tax treaty, to federal and state
4th quarter . . . . . . . . . . .
$700.00 ($50 x 14 weeks)
agencies to enforce federal nontax criminal laws, or to federal law
Amount included in box 1 of Form W-2 and Form W-3:
enforcement and intelligence agencies to combat terrorism.
Cash wages . . . . . . . . . . . . . . . . . . . . . . . . . $2,300.00
Helen’s share of social security tax paid by
The time needed to complete and file this form will vary depend-
Susan . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142.60
ing on individual circumstances. The estimated burden for individ-
Helen’s share of Medicare tax paid by Susan
33.35
ual taxpayers filing this form is approved under OMB control
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,475.95
number 1545-0074 and is included in the estimates shown in the
instructions for their individual income tax return. The estimated
burden for all other taxpayers who file this form is shown below.
H-7

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