Instructions For Schedule H (Form 1040) Household Employment Taxes

Enter on line 1 the total of cash wages (see Cash wages

00-0000000. Enter your EIN in the space provided. If you do not

Line 1.

have an EIN, see Do You Have an Employer Identification Number

above) paid in 2010 to each household employee who meets the

(EIN)? earlier. If you applied for an EIN but have not received it,

$1,700 test, explained above.

enter “Applied For.” Do not use your social security number as an

EIN.

If you paid any household employee cash wages of

Line A.

To figure the total cash wages you paid in 2010 to each

more than $106,800 in 2010, include on line 1 only the

household employee, do not count amounts paid to any of the

first $106,800 of that employee’s cash wages.

following individuals.

CAUTION

•

Your spouse.

Multiply the amount on line 1 by 12.4% (.124) and enter the

Line 2.

•

Your child who was under age 21.

result on line 2.

•

Your parent. (See Exception for parents below.)

Enter on line 3 the total of cash wages (see Cash wages

Line 3.

•

Your employee who was under age 18 at any time during

earlier) paid in 2010 to each employee who meets the $1,700 test.

2010. If the employee was not a student, see Exception for employ-

There is no limit on wages subject to the Medicare tax.

ees under age 18 below.

Line 4.

Multiply the amount on line 3 by 2.9% (.029) and enter the

Exception for parents. Count the cash wages you paid your

result on line 4.

parent for work in or around your home if both 1 and 2 below apply.

Enter on line 5 any federal income tax you withheld from

Line 5.

1. Your child who lived with you was under age 18 or had a

the wages you paid to your household employees in 2010. See Pub.

physical or mental condition that required the personal care of an

15 (Circular E), Employer’s Tax Guide, for information on with-

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

holding federal income taxes.

calendar quarter is January through March, April through June, July

through September, or October through December.

Add lines 2, 4, and 5 and enter the result on line 6.

Line 6.

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

Enter on line 7 any advance EIC payments you made to

Line 7.

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

your household employees in 2010.

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

Line 8.

Subtract the amount on line 7 from the amount on line 6 and

4-week period.

enter the result on line 8.

Exception for employees under age 18. Count the cash wages

Line 9.

Review the cash wages you paid to all your household

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

employees for each calendar quarter of 2009 and 2010. Is the total

providing household services was his or her principal occupation.

for any quarter in 2009 or 2010 $1,000 or more?

Cash wages include wages paid by check, money

Cash wages.

Yes. Complete Part II of Schedule H.

order, etc. Cash wages do not include the value of food, lodging,

No. Follow the instructions in the chart below.

clothing or other noncash items you give a household employee.

See Wages in Pub. 926.

If you file

Then enter the amount from

Transportation (commuting) benefits. For 2010, you can gener-

Form. . .

Schedule H, line 8, on. . .

ally give your employee transportation benefits such as transit

1040

line 59 and check box b

passes worth up to $230 per month without the benefits counting as

cash. However, the value of benefits over $230 a month is included

1040NR

line 58

as wages. (See Transportation (Commuting) Benefits in Pub. 15-B,

Employer’s Tax Guide to Fringe Benefits, for more information.)

1040-SS

Part I, line 4

Part I. Social Security, Medicare, and Federal

1041

Schedule G, line 6

Income Taxes

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

Social security and Medicare taxes fund retirement, survivor, disa-

Schedule H and follow the instructions under When and Where To

bility, and health benefits for workers and their families. You and

File on page H-3.

your employees pay these taxes in equal amounts.

Part II. Federal Unemployment (FUTA) Tax

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

employee. For Medicare, the tax rate is 1.45% each. For 2010, the

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

limit on wages subject to social security tax is $106,800. There is no

ments of unemployment compensation to workers who have lost

limit on wages subject to the Medicare tax. If you did not deduct the

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

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

ment tax.

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

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

ity and 2.9% for Medicare tax) of tax. See Form W-2 and Form W-3

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

on page H-6 for more information.

wages. You must pay it from your own funds. See page H-11 for a

$1,700 test. If you pay a household employee $1,700 or more in

listing of some helpful contact information for each state.

cash wages during 2010, you must report and pay social security

and Medicare taxes on all the wages. The test applies to cash wages

Credit for contributions paid to state.

You may be able to take a

paid in 2010 regardless of when the wages were earned. See Pub.

credit of up to 5.4% against the FUTA tax, resulting in a net FUTA

926 for more information. Or, visit the website for Social Security

tax rate of 0.8%. But to do so, you must pay all the required

contributions for 2010 to your state unemployment fund by

H-4

Instructions For Schedule H (Form 1040) Household Employment Taxes - 2010 Page 4

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