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

If you’re not required to give the employee a Form W-2,

Completed Examples of

you must provide the notification by February 7, 2018.

Schedule H, Form W-2, and Form

If the notification isn't given on Form W-2 in a timely man-

ner, you must hand the notice directly to the employee or send

W-3

it by First-Class Mail to the employee's last known address.

How do my employees claim the EIC? Eligible employees

On February 12, 2017, Susan Green hired Helen Maple to

claim the EIC on their 2017 tax returns.

clean her house every Wednesday. Susan didn't have a house-

Rules for Business Employers

hold employee in 2016 and had no household employees other

than Helen during 2017.

Don't use Schedule H if you chose to report employment taxes

Susan paid Helen $50 every Wednesday for her day's work.

for your household employees along with your other employ-

Susan decided not to withhold Helen's share of the social se-

ees on Form 941, Employer's QUARTERLY Federal Tax Re-

curity and Medicare taxes from the wages she paid Helen. In-

turn; Form 943, Employer's Annual Federal Tax Return for

stead, she will pay Helen's share of these taxes from her own

Agricultural Employees; or Form 944, Employer's ANNUAL

funds. Susan didn't withhold federal income tax because Helen

Federal Tax Return. If you report this way, be sure to include

your household employees' wages on your Form 940, Employ-

didn't give her a Form W-4 to request withholding and no with-

holding is otherwise required.

er's Annual Federal Unemployment (FUTA) Tax Return.

State Disability Payments

Helen was employed by Susan for the rest of the year (a to-

tal of 46 weeks). The following is some of the information Sus-

Certain state disability plan payments to household employees

an will need to complete Schedule H, Form W-2, and Form

are treated as wages subject to social security and Medicare

W-3.

taxes. If your employee received payments from a plan that

withheld the employee's share of social security and Medicare

Helen's total cash wages

$2,300.00

. . . . . . . .

taxes, include the payments on lines 1, 3, and, if applicable,

($50 x 46 weeks)

line 5 of Schedule H and complete the rest of Part I through

Helen's share of the:

line 7. Add lines 2, 4, 6, and 7. From that total, subtract the

Social security tax

$142.60

. . . . . .

amount of these taxes withheld by the state. Enter the result on

($2,300 x 6.2% (0.062))

line 8. Also, enter “disability” and the amount subtracted on the

Medicare tax

$33.35

dotted line next to line 8. See the notice issued by the state for

. . . . . . . . .

($2,300 x 1.45% (0.0145))

more details.

How To Correct Schedule H

Helen's total cash wages each quarter:

1st quarter

$350.00 ($50 x 7 weeks)

. . . . . . . . . .

If you discover an error on a Schedule H that you previously

2nd quarter

$650.00 ($50 x 13 weeks)

. . . . . . . . .

filed with Form 1040, Form 1040NR, or Form 1040-SS, file

3rd quarter

$650.00 ($50 x 13 weeks)

. . . . . . . . . .

Form 1040X, Amended U.S. Individual Income Tax Return,

4th quarter

$650.00 ($50 x 13 weeks)

. . . . . . . . . .

and attach a corrected Schedule H. If you discover an error on

Amount included in box 1 of Form W-2 and Form W-3:

a Schedule H that you previously filed with Form 1041, file an

Cash wages

$2,300.00

. . . . . . . . . . . . . . . . . . . . . . .

“Amended” Form 1041 and attach a corrected Schedule H.

Helen's share of social security tax paid by

If you discover an error on a Schedule H that you filed as a

Susan

142.60

. . . . . . . . . . . . . . . . . . . . . . . . . .

stand-alone return, file another stand-alone Schedule H with

Helen's share of Medicare tax paid by Susan

33.35

. . . .

the corrected information. In the top margin of your corrected

Total

$2,475.95

. . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule H write (in bold letters) “CORRECTED” followed by

the date you discovered the error.

Because Susan paid less than $1,000 per quarter to house-

If you owe tax, pay in full with your Form 1040X, Form

hold employees during 2016 (no employees) and 2017 (see

1041, or stand-alone Schedule H. If you overpaid tax on a pre-

above), she isn't liable for FUTA tax.

viously filed Schedule H, then depending on whether you ad-

just or claim a refund, you must certify that you repaid or reim-

See Pub. 926 for an example showing how to complete

bursed the employee's share of social security and Medicare

Forms W-2 and W-3 if the employer withheld social

TIP

taxes, or that you have obtained consents from your employees

security and Medicare taxes from the employee's wa-

to file a claim for refund for the employee tax. See Pub. 926 for

ges.

complete instructions.

How To Get Forms and Publications

To get the IRS forms and publications mentioned in these in-

structions (including Notice 797), go to IRS.gov/Forms.

H-10

Instructions For Schedule H (Form 1040) - Household Employment Taxes - 2017 Page 10

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