Instructions For Schedule H Household Employment Taxes (Form 1040)

employees paid less than $1,000. However, do not include cash

Add the amounts on lines 17 and 26. (If you were required

Line 27.

wages paid in 2006 to any of the following individuals.

to complete Section B, add the amounts on lines 25 and 26 and enter

•

the total on line 27.)

Your spouse.

•

Your child who was under age 21.

•

Your parent.

Part III. Total Household Employment Taxes

If you paid any household employee more than $7,000 in 2006,

Follow the instructions in the chart below.

Line 28.

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

wages.

Then do not complete Part IV but

If you file

enter the amount from Schedule

Complete lines 18 through 25 only if you checked a

Form. . .

H, line 27, on . . .

“No” box on lines 10, 11, or 12.

CAUTION

1040

line 62

1040NR

line 57

Line 18.

Complete all columns that apply. If you do not, you will

not get a credit. If you need more space, attach a statement using the

1040-SS

Part I, line 4

same format as line 18. Your state will provide the experience rate.

If you do not know your rate, contact your state unemployment tax

1041

Schedule G, line 6

agency. See page H-10 for a listing of some helpful contact infor-

mation for each state.

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

You must complete columns (a), (b), (c), and (i), even if you

Schedule H and follow the instructions under When and Where To

were not given an experience rate. If you were given an experience

File on page H-3.

rate of 5.4% or higher, you must also complete columns (d) and (e).

If you were given a rate of less than 5.4%, you must complete all

Form W-2 and Form W-3

columns.

If you file Form W-2, you must also file Form W-3.

If you were given a rate for only part of the year, or the rate

changed during the year, you must complete a separate line for each

rate period.

You must report both cash and noncash wages in box 1, as well

Column (c). Enter the taxable wages on which you must pay

as tips and other compensation. The completed Forms W-2 and

taxes to the unemployment fund of the state shown in column (a). If

W-3 in the example (see page H-9) show how the entries are made.

your experience rate is zero percent, enter the amount of wages you

would have had to pay taxes on if that rate had not been granted.

Employee’s portion of taxes paid by employer.

If you paid all of

Column (i). Enter the total of contributions (defined earlier) you

your employee’s share of social security and Medicare taxes, with-

paid to the state unemployment fund for 2006 by April 16, 2007.

out deducting them from the employee, follow steps 1 through 3.

Fiscal year filers, enter the total contributions you paid to the state

(See the example on pages H-7, H-8, and H-9.)

unemployment fund for 2006 by the due date of your return (not

including extensions). If you are claiming excess credits as pay-

1. Enter the amount you paid on your employee’s behalf in

ments of state unemployment contributions, attach a copy of the

boxes 4 and 6 (do not include your share of these taxes).

letter from your state.

2. Add the amounts in boxes 3, 4, and 6. (However, if box 5 is

greater than box 3, then add the amounts in boxes 4, 5, and 6.)

Line 19.

Add the amounts in columns (h) and (i) separately and

enter the totals in the spaces provided.

3. Enter the total in box 1.

Add the amounts shown on line 19 and enter the total on

Line 20.

line 20.

On Form W-3, put an “X” in the “Hshld. emp.” box

Enter the smaller of line 20 or line 23.

Line 24.

located in box b, Kind of Payer.

TIP

Enter the amount from line 8. If there is no entry on line 8,

Line 26.

enter -0-.

H-5

Instructions For Schedule H Household Employment Taxes (Form 1040) - 2006 Page 5

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