Instructions For Schedule H (Form 1040) 2003 Page 2
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8If you hired someone to do
Did You Have a Household Employee?
Do You Have an Employer
household work and you were able to control what work he or she
did and how he or she did it, you had a household employee. This
Identification Number (EIN)?
is true even if you gave the employee freedom of action. What
If you do not have an EIN, see Form SS-4, Application for Em-
matters is that you had the right to control the details of how the
ployer Identification Number. The instructions explain how you
work was done.
can get an EIN immediately over the internet, by telephone, or in
Example. You paid Betty Oak to babysit your child and do light
about 4 weeks if you apply by mail. See How To Get Forms and
housework 4 days a week in your home. Betty followed your
Publications on page H-5 for details on how to get forms and
specific instructions about household and child care duties. You
publications including Form SS-4. Do not use a social security
provided the household equipment and supplies Betty needed to do
number in place of an EIN.
her work. Betty is your household employee.
Can Your Employee Legally Work in
Household work is work done in or around your home. Some
examples of workers who do household work are:
the United States?
Babysitters
Drivers
Nannies
It is unlawful to employ an alien who cannot legally work in the
United States. When you hire a household employee to work for
Caretakers
Health aides
Private nurses
you on a regular basis, you and the employee must each complete
Cleaning people
Housekeepers
Yard workers
part of the U.S. Citizenship and Immigration Services (USCIS)
Form I-9, Employment Eligibility Verification. The Bureau was
If a worker is your employee, it does not matter whether the
formerly called the Immigration and Naturalization Service, or INS.
work is full or part time or that you hired the worker through an
You must verify that the employee is either a U.S. citizen or an alien
agency or from a list provided by an agency or association. Also, it
who can legally work and you must keep Form I-9 for your records.
does not matter if the wages paid are for work done hourly, daily,
You can get the form and the USCIS Handbook for Employers by
weekly, or by the job.
calling 1-800-870-3676, or by visiting the USCIS website at
If a government agency files Schedule H for the worker, you
Note:
do not need to file it.
What About State Employment
Cash wages include wages paid by checks, money
Cash Wages.
Taxes?
orders, etc. Cash wages do not include the value of food, lodging,
clothing, or other noncash items you give a household employee.
If you employed a household employee in 2003, you probably have
to pay contributions to your state unemployment fund for 2003. To
For 2003, you can give your employee as much as $100
find out if you do, contact your state unemployment tax agency
a month for his or her expenses to commute to your
TIP
right away. You should also find out if you need to pay or collect
home by public transportation (bus, train, etc.) without
other state employment taxes or carry workers’ compensation in-
the repayment counting as cash wages. However, if you
surance.
gave the employee more than $100 a month for these expenses,
include the amount over $100 as wages.
Calendar Quarter.
A calendar quarter is January through March,
When and Where To File
April through June, July through September, or October through
December.
Schedule H
Workers Who are Not Your Employees.
Workers you get from an
agency are not your employees if the agency is responsible for who
If you file any of the returns listed below for 2003, remember to
does the work and how it is done. Self-employed workers are also
attach Schedule H to it. Mail your return by April 15, 2004, to the
not your employees. A worker is self-employed if only he or she
address shown in your tax return booklet. Exceptions. If you get an
can control how the work is done. A self-employed worker usually
extension of time to file your return, file it with Schedule H by the
provides his or her own tools and offers services to the general
extended due date. If you are a fiscal year filer, file your return and
public in an independent business.
Schedule H by the due date of your fiscal year return, including
extensions.
Example. You made an agreement with Paul Brown to care for
your lawn. Paul runs a lawn care business and offers his services to
Form 1040
Form 1040-SS
the general public. He hires his own helpers and provides his own
Form 1040NR
Form 1041
tools and supplies. Neither Paul nor his helpers are your employees.
Note:
If you are a calendar year taxpayer and have no household
Who Needs To File Form W-2 and
employees for 2003, you do not have to file Form 1040 (Schedule
H) for 2003.
Form W-3?
If you are not required to file a 2003 tax return (for example,
You must file Form W-2 for each household employee to whom
because your income is below the amount that requires you to file),
you paid $1,400 or more of cash wages in 2003 that are subject to
you must file Schedule H by April 15, 2004. Complete Schedule H
social security and Medicare taxes. To find out if the wages are
and put it in an envelope with your check or money order — do not
subject to these taxes, see the instructions for Schedule H, lines 1
send cash. See the list of addresses on the back cover of this
and 3, on page H-3. If the wages are not subject to these taxes but
booklet. Mail your completed Schedule H and payment to the
you withheld Federal income tax from the wages of any household
address listed for the place where you live. Make your check or
employee, you must file Form W-2 for that employee.
money order payable to the “United States Treasury” for the total
If you file one or more Forms W-2, you must also file Form
household employment taxes due. Enter your name, address, social
W-3.
security number, daytime phone number, and “2003 Schedule H”
H-2
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