Instructions For Schedule H (Form 1040) - Household Employment Taxes - 2007 Page 4

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Your employee who was under age 18 at any time during
Line 9.
Add the cash wages you paid to all your household employ-
2007. If the employee was not a student, see Exception for employ-
ees for each calendar quarter of 2006 and 2007. Is the total for any
ees under age 18 below.
quarter in 2006 or 2007 $1,000 or more?
Exception for parents. Count the cash wages you paid your
Yes. Complete Part II of Schedule H.
parent for work in or around your home if both 1 and 2 below apply.
No. Follow the instructions in the chart below.
1. Your child who lived with you was under age 18 or had a
physical or mental condition that required the personal care of an
If you file
Then enter the amount from
adult for at least 4 continuous weeks in a calendar quarter.
Form. . .
Schedule H, line 8, on. . .
2. You were divorced and not remarried, a widow or widower,
1040
line 62
or married to and living with a person whose physical or mental
condition prevented him or her from caring for the child during that
1040NR
line 57
4-week period.
1040-SS
Part I, line 4
Exception for employees under age 18. Count the cash wages
you paid to a person who was under age 18 and not a student if
1041
Schedule G, line 6
providing household services was his or her principal occupation.
If you do not file any of the above forms, complete Part IV of
Part I. Social Security, Medicare, and Income
Schedule H and follow the instructions under When and Where To
Taxes
File on page H-3.
Social security and Medicare taxes pay for retirement, disability,
and health benefits for workers and their families. You and your
Part II. Federal Unemployment (FUTA) Tax
employees pay these taxes in equal amounts.
FUTA tax, with state unemployment systems, provides for pay-
For social security, the tax rate is 6.2% each for you and your
ments of unemployment compensation to workers who have lost
employee. For Medicare, the rate is 1.45% each. For 2007, the limit
their jobs. Most employers pay both a federal and state unemploy-
on wages subject to social security tax is $97,500. There is no limit
ment tax.
on wages subject to the Medicare tax. If you did not deduct the
The FUTA tax rate is 6.2%. But see Credit for contributions paid
employee’s share from his or her wages, you must pay the
to state below. Do not deduct the FUTA tax from your employee’s
employee’s share and your share (a total of 12.4% for social secur-
wages. You must pay it from your own funds. See page H-10 for a
ity and 2.9% for Medicare). See Form W-2 and Form W-3 on page
listing of some helpful contact information for each state.
H-5 for more information.
$1,500 test. Any household employee to whom you paid cash
Credit for contributions paid to state.
You may be able to take a
wages of $1,500 or more in 2007 meets this test. The test applies to
credit of up to 5.4% against the FUTA tax, resulting in a net tax rate
cash wages paid in 2007 regardless of when the wages were earned.
of 0.8%. But to do so, you must pay all the required contributions
See Pub. 926 for more information. Or, visit the website for Social
for 2007 to your state unemployment fund by April 15, 2008. Fiscal
Security at .
year filers must pay all required contributions for 2007 by the due
date of their federal income tax returns (not including extensions).
Enter on line 1 the total of cash wages (see Cash wages on
Line 1.
Contributions are payments that a state requires you, as an
page H-2) paid in 2007 to each household employee who meets the
employer, to make to its unemployment fund for the payment of
$1,500 test, explained above.
unemployment benefits. However, contributions do not include:
If you paid any household employee cash wages of
Any payments deducted or deductible from your employees’
more than $97,500 in 2007, include on line 1 only the
pay;
!
first $97,500 of that employee’s cash wages.
Penalties, interest, or special administrative taxes not included
CAUTION
in the contributions rate the state gave you; and
Multiply the amount on line 1 by 12.4% (.124) and enter the
Line 2.
Voluntary contributions you paid to get a lower experience
result on line 2.
rate.
Enter on line 3 the total of cash wages (see Cash wages on
Line 3.
Answer the questions on lines 10 through 12
Lines 10 through 12.
page H-2) paid to each employee in 2007. There is no limit on
to see if you should complete Section A or Section B of Part II.
wages subject to the Medicare tax.
Fiscal year filers. If you paid all state unemployment contribu-
tions for 2007 by the due date of your return (not including exten-
Multiply the amount on line 3 by 2.9% (.029) and enter the
Line 4.
sions), check the “Yes” box on line 11. Check the “No” box if you
result on line 4.
did not pay all of your state contributions by the due date of your
Enter on line 5 any federal income tax you withheld from
Lines 5.
return.
the wages you paid your household employees in 2007.
Enter the two-letter abbreviation of the name of the state
Line 13.
Add lines 2, 4, and 5 and enter the result on line 6.
Line 6.
(or the District of Columbia, Puerto Rico, or the Virgin Islands) to
which you paid unemployment contributions.
Line 7.
Enter on line 7, any advance EIC payments you made to
your household employees in 2007.
Enter your state reporting number. If you do not have one,
Line 14.
Subtract the amount on line 7 from the amount on line 6 and
contact your state’s unemployment tax agency. See the Appendix in
Line 8.
enter the result on line 8.
Pub. 926 for your state’s contact information.
H-4

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