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

she did and how he or she did it, you had a household employ-

these taxes, if you withheld federal income tax from the wages

ee. This is true even if you gave the employee freedom of ac-

of any household employee, you must file Form W-2 for that

tion. What matters is that you had the right to control the de-

employee. However, when not subject to social security and

tails of how the work was done.

Medicare taxes, leave boxes 3, 4, 5, and 6 blank on Form W-2;

only complete boxes 1 and 2. If the wages are below $2,000 for

Example. You paid Betty Oak to babysit your child and do

2017 and you complete boxes 3, 4, 5, and 6 on Form W-2, the

light housework 4 days a week in your home. Betty followed

SSA will reject your Form W-2.

your specific instructions about household and child care du-

ties. You provided the household equipment and supplies Betty

If you file one or more Forms W-2, you must also file Form

needed to do her work. Betty is your household employee.

W-3. If filing electronically via the SSA's Form W-2 Online

Household work is work done in or around your home.

service, the SSA generates Form W-3 automatically based on

Some examples of workers who do household work are:

your Form(s) W-2. For more information on electronic filing,

go to the SSA's Employer W-2 Filing Instructions & Informa-

tion website at SSA.gov/employer.

Babysitters

Cooks

Maids

Butlers

Drivers

Nannies

Do You Have an Employer

Caretakers

Health aides

Private nurses

Identification Number (EIN)?

Cleaning people

Housekeepers

Yard workers

If you have household employees, you will need an EIN to file

Schedule H. If you don't have an EIN, you may apply for one

If a worker is your employee, it doesn't matter whether the

online by going to IRS.gov/EIN. You may also apply for an

work is full or part time or that you hired the worker through

EIN by faxing or mailing Form SS-4 to the IRS. Don't use a so-

an agency or from a list provided by an agency or association.

cial security number (SSN) in place of an EIN. The Instruc-

Also, it doesn't matter if the wages paid are for work done

tions for Form SS-4 explain how you can get an EIN immedi-

hourly, daily, weekly, or by the job.

ately over the Internet, generally within 4 business days by fax,

If you’re a home care service recipient receiving home care

or in about 4 weeks if you apply by mail. Go to

IRS.gov/Forms

services through a program administered by a federal, state, or

to get forms and publications, including Form SS-4.

local government agency, and the person who provides your

Can Your Employee Legally Work in

care is your household employee, you can ask the IRS to au-

thorize an agent under section 3504 to report, file, and pay all

the United States?

federal employment taxes, including FUTA taxes, on your be-

half. See Form 2678, Employer/Payer Appointment of Agent,

It is unlawful to employ a person who can't legally work in the

for more information.

United States. When you hire a household employee to work

for you on a regular basis, you and the employee must each

If a government agency or third-party agent reports

complete part of the U.S. Citizenship and Immigration Services

and pays the employment taxes on wages paid to your

TIP

(USCIS) Form I-9, Employment Eligibility Verification. You

household employee on your behalf, you don't need to

must verify that the employee is either a U.S. citizen or a per-

file Schedule H to report those taxes.

son who can legally work in the United States and you must

keep Form I-9 for your records. You can get the form and the

Workers who aren't your employees. Workers you get from

USCIS Handbook for Employers by going to the USCIS web-

an agency aren't your employees if the agency is responsible

site at USCIS.gov/I-9-Central, or by calling 1-800-870-3676.

for who does the work and how it is done. Self-employed

workers are also not your employees. A worker is self-em-

What About State Employment

ployed if only he or she can control how the work is done. A

Taxes?

self-employed worker usually provides his or her own tools

and offers services to the general public in an independent

If you employed a household employee in 2017, you probably

business.

have to pay contributions to your state unemployment fund for

Example. You made an agreement with Paul Brown to care

2017. To find out if you do, contact your state unemployment

for your lawn. Paul runs a lawn care business and offers his

tax agency. For a list of state unemployment tax agencies, go to

services to the general public. He hires his own helpers, in-

the U.S. Department of Labor's website at

oui.doleta.gov/

structs them how to do their jobs, and provides his own tools

unemploy/agencies.asp. You should also find out if you need to

and supplies. Neither Paul nor his helpers are your employees.

pay or collect other state employment taxes or carry workers'

compensation insurance.

For more information, see Pub. 926.

Who Needs To File Form W-2 and

When and Where To File

Form W-3?

You must file Form W-2 for each household employee to

Schedule H

whom you paid $2,000 or more of cash wages in 2017 that are

subject to social security and Medicare taxes. To find out if the

If you file Form 1040, 1040NR, 1040-SS, or 1041 for 2017, re-

wages are subject to these taxes, see the instructions for Sched-

member to attach Schedule H to it. Mail your return, by April

ule H, lines 1, 3, and 5. Even if the wages aren't subject to

17, 2018, to the address shown in your tax return instructions.

H-3

Instructions For Schedule H (Form 1040) - Household Employment Taxes - 2017 Page 3

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