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

Section B

tax from your employee's wages. You must pay it from your

own funds.

Complete lines 17 through 24 only if you checked a

Credit for contributions paid to state. You may be able to

“No” box on line 10, 11, or 12.

take a credit of up to 5.4% (0.054) against the FUTA tax, re-

CAUTION

sulting in a net FUTA tax rate of 0.6% (0.006). But to do so,

Credit for 2017. The credit you can take for any state unem-

you must pay all the required contributions for 2017 to your

ployment fund contributions for 2017 that you pay after April

state unemployment fund by April 17, 2018. Fiscal year filers

17, 2018, is limited to 90% of the credit that would have been

must pay all required contributions for 2017 by the due date of

allowable if the contributions were paid on or before April 17,

their federal income tax returns (not including extensions).

2018.

State unemployment taxes are sometimes called “contribu-

Line 17. Complete all columns that apply. If you don't, you

tions." Contributions are payments that a state requires you, as

won't get a credit. If you need more space, attach a statement

an employer, to make to its unemployment fund for the pay-

using the same format as line 17. Your state will provide the

ment of unemployment benefits. However, contributions don't

experience rate. If you don't know your rate, contact your state

include:

unemployment tax agency.

Any payments deducted or deductible from your employ-

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

ees' pay;

weren't given an experience rate. If you were given an experi-

Penalties, interest, or special administrative taxes; or

ence rate of 5.4% or higher, you must also complete columns

Voluntary contributions you paid to get a lower state ex-

perience rate.

must complete all columns.

If you paid contributions to any credit reduction state, see

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

the instructions for

line

23.

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

Lines 10 through 12. Answer the questions on lines 10

each rate period.

through 12 to see if you should complete Section A or Sec-

tion B of Part II.

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

pay taxes to the unemployment fund of the state shown in col-

Fiscal year filers. If you paid all state unemployment con-

umn (a). If your experience rate is zero percent, enter the

tributions for 2017 by the due date of your return (not includ-

amount of wages you would have had to pay taxes on if that

ing extensions), check the “Yes” box on line 11. Check the

rate hadn't been granted.

“No” box if you didn't pay all of your state contributions by the

due date of your return.

Column (h). Enter the total

contributions

(defined earlier)

you paid to the state unemployment fund for 2017 by April 17,

Section A

2018. Fiscal year filers, enter the total contributions you paid to

the state unemployment fund for 2017 by the due date of your

Line 13. Enter the two-letter abbreviation of the name of the

return (not including extensions). If you’re claiming excess

state (or the District of Columbia, Puerto Rico, or the U.S. Vir-

credits as payments of state unemployment contributions, at-

gin Islands) to which you paid unemployment contributions.

tach a copy of the letter from your state.

For a list of states and their postal abbreviations, see

State

Line 18. Add the amounts in columns (g) and (h) separately

Names and Postal

Abbreviations, later.

and enter the totals in the spaces provided.

Line 14. Enter the total of

contributions

(defined earlier) you

Line 19. Add the amounts shown on line 18 and enter the to-

paid to your state unemployment fund for 2017. If you didn't

tal on line 19.

have to make contributions because your state gave you a zero

Line 20. Enter the total cash wages subject to FUTA tax. See

percent experience rate, enter “0% rate” on line 14.

the

line 15

instructions for details.

Line 15. Enter the total of cash wages (see

Cash

wages, earli-

Line 21. Multiply the wages on line 20 by 6.0% (0.060). En-

er) you paid in 2017 to each household employee, including

ter the result on line 21.

employees paid less than $1,000. However, don't include cash

wages paid in 2017 to any of the following individuals.

Line 22. Multiply the wages on line 20 by 5.4% (0.054). Enter

Your spouse.

the result on line 22.

Your child who was under age 21.

Line 23. Enter the smaller of line 19 or 22. However, if you

Your parent.

paid state unemployment contributions late or you're in a credit

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

reduction state, don't enter the smaller of line 19 or 22, as dis-

2017, include on line 15 only the first $7,000 of that employ-

cussed next. You paid state unemployment contributions late if

ee's cash wages.

you paid any state contributions after the due date for filing

Form 1040 (not including extensions). You're in a credit reduc-

Line 16. Multiply the wages on line 15 by 0.6% (0.006). En-

ter the result on line 16.

tion state if you’re a household employer in a state which has

an amount greater than zero in the “Reduction Rate” column of

Worksheet 2.

H-6

Instructions For Schedule H (Form 1040) - Household Employment Taxes - 2017 Page 6

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