on your check or money order. Household employers that are
1. Your child who lived with you was under age 18 or had a
tax-exempt, such as churches, may file Schedule H by itself.
physical or mental condition that required the personal care of an
adult for at least 4 continuous weeks in a calendar quarter.
2. You were divorced and not remarried, a widow or widower,
Form W-2 and Form W-3
or married to and living with a person whose physical or mental
condition prevented him or her from caring for the child during that
By February 2, 2004, you must give Copies B, C, and 2 of Form
4-week period.
W-2 to each employee. You will meet this requirement if the form
is properly addressed, mailed, and postmarked no later than Febru-
Exception for Employees Under Age 18. Count the cash wages
ary 2, 2004.
you paid to a person who was under age 18 and not a student if
By March 1, 2004, (March 31, 2004 if you file electronically)
providing household services was his or her principal occupation.
send Copy A of all Forms W-2 with Form W-3 to the Social
Part I. Social Security, Medicare, and Income
Security Administration (SSA). If an envelope addressed to the
SSA came with this booklet, please use it. Do not mail your Sched-
Taxes
ule H in the envelope. If you do not have the envelope, mail Copy A
Social security and Medicare taxes pay for retirement, disability,
of all Forms W-2 with Form W-3 to the
and health benefits for workers and their families. You and your
Social Security Administration
employees pay these taxes in equal amounts.
Data Operations Center
For social security, the tax rate is 6.2% each for you and your
Wilkes-Barre, PA 18769-0001.
employee. For Medicare, the rate is 1.45% each. If you did not
deduct the employee’s share from his or her wages, you must pay
For certified mail, the ZIP code is 18769-0002. If you use a carrier
the employee’s share and your share (a total of 12.4% for social
other than the U.S. Postal Service, add “ATTN: W-2 Process, 1150
security and 2.9% for Medicare). See Form W-2 and Form W-3
E. Mountain Dr.” to the address and change the ZIP code to
on page H-4 for more information.
“18702-7997.”
Lines 1 and 3.
Enter on lines 1 and 3 the total cash wages (defined
Note:
Check with your state, city, or local tax department to find
on page H-2) paid in 2003 to each household employee who meets
out if you must send Copy 1 of Form W-2.
the $1,400 test, explained later. However, if you paid any household
You may have to pay a penalty if you do not give Forms
Penalties.
employee cash wages of more than $87,000 in 2003, include on line
W-2 to your employees or file Copy A of the forms with the SSA.
1 only the first $87,000 of that employee’s cash wages. On line 3,
You may also have to pay a penalty if you do not show your
include that employee’s total cash wages.
employee’s social security number on Form W-2 or do not provide
$1,400 Test. Any household employee to whom you paid cash
correct information on the form.
wages of $1,400 or more in 2003 meets this test. The test applies to
cash wages paid in 2003 regardless of when the wages were earned.
To figure the total cash wages you paid in 2003 to each household
employee, see the instructions for line A, earlier.
How To Fill In Schedule H, Form
Enter on line 5 any Federal income tax you withheld
Lines 5 and 7.
W-2, and Form W-3
from the wages you paid your household employees in 2003. On
line 7, enter any advance EIC payments you made to your house-
hold employees in 2003.
Schedule H
Line 9.
For each calendar quarter of 2002 and 2003, add the cash
wages you paid to all your household employees in that quarter. Is
If you were notified that your household employee re-
the total for any quarter in 2002 or 2003 $1,000 or more?
!
ceived payments from a state disability plan, see page
H-5.
Yes. Complete Part II of Schedule H.
CAUTION
No. Follow the instructions in the chart below.
Enter your social security number. (Form
Social Security Number.
1041 filers, do not enter a number in this space. But be sure to enter
IF you file
THEN enter the amount from
your EIN in the space provided.)
Form. . .
Schedule H, line 8, on. . .
Employer Identification Number (EIN).
An EIN is a nine-digit
1040
line 59
number assigned by the IRS. The digits are arranged as follows:
00-0000000. If you have an EIN, enter it in the space provided. If
1040NR
line 55
you do not have an EIN, see Do You Have an Employer Identifi-
1040 –SS
line 4
cation Number (EIN)? earlier. If you applied for an EIN but have
not received it, enter “Applied For”. Do not use your social security
1041
Schedule G, line 6
number as an EIN.
To figure the total cash wages you paid in 2003 to each
Line A.
If you do not file any of the above forms, complete Part IV of
household employee, do not count amounts paid to any of the
Schedule H and follow the instructions under When and Where To
following individuals.
File on page H-2.
•
Your spouse.
•
Part II. Federal Unemployment (FUTA) Tax
Your child who was under age 21.
•
Your parent. (But see Exception for Parents below.)
FUTA tax, with state unemployment systems, provides for pay-
•
ments of unemployment compensation to workers who have lost
Your employee who was under age 18 at any time during
their jobs. Most employers pay both a Federal and state unemploy-
2003. If the employee was not a student, see Exception for Em-
ment tax.
ployees Under Age 18 below.
Exception for Parents. Count the cash wages you paid your
The FUTA tax rate is 6.2%. But see Credit for Contributions
parent for work in or around your home if both 1 and 2 below
Paid to State below. Do not deduct the FUTA tax from your
apply.
employee’s wages. You must pay it from your own funds.
H-3