Instructions For Schedule H (Form 1040) - 2016 (Page 9 of 12) in pdf

How To Get Forms and Publications

A substitute Form W-2 with the same EIC information on

the back of the employee's copy that is on Copy B of the offi-

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

cial IRS Form W-2.

structions (including Notice 797), visit

Notice 797, Possible Federal Tax Refund Due to the

Earned Income Credit (EIC).

Your written statement with the same wording as Notice

Completed Examples of

797.

Schedule H, Form W-2, and Form

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

you must provide the notification by February 7, 2017.

W-3

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

On February 12, 2016, Susan Green hired Helen Maple to

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

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

How do my employees claim the EIC? Eligible employees

hold employee in 2015 and had no household employees other

claim the EIC on their 2016 tax returns.

than Helen during 2016.

Rules for Business Employers

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

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

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

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

for your household employees along with your other employ-

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

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

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

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

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

Agricultural Employees; or Form 944, Employer's ANNUAL

holding is otherwise required.

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

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

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

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

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

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

State Disability Payments

W-3.

Certain state disability plan payments to household employees

are treated as wages subject to social security and Medicare

Helen's total cash wages

$2,300.00

. . . . . . . .

taxes. If your employee received payments from a plan that

($50 x 46 weeks)

withheld the employee's share of social security and Medicare

Helen's share of the:

taxes, include the payments on lines 1 and 3 of Schedule H and

Social security tax

$142.60

. . . . . .

complete the rest of Part I through line 7. Add lines 2, 4, 6, and

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

7. From that total, subtract the amount of these taxes withheld

Medicare tax

$33.35

. . . . . . . . .

by the state. Enter the result on line 8. Also, enter “disability”

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

and the amount subtracted on the dotted line next to line 8. See

Helen's total cash wages each quarter:

the notice issued by the state for more details.

1st quarter

$350.00 ($50 x 7 weeks)

. . . . . . . . . .

How To Correct Schedule H

2nd quarter

$650.00 ($50 x 13 weeks)

. . . . . . . . .

3rd quarter

$650.00 ($50 x 13 weeks)

. . . . . . . . . .

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

4th quarter

$650.00 ($50 x 13 weeks)

. . . . . . . . . .

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

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

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

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

Cash wages

$2,300.00

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

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

Helen's share of social security tax paid by

Susan

142.60

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

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

Helen's share of Medicare tax paid by Susan

33.35

. . . .

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

Total

$2,475.95

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

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

the corrected information. In the top margin of your corrected

Schedule H write (in red ink if possible) “CORRECTED” fol-

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

lowed by the date you discovered the error.

hold employees during 2015 (no employees) and 2016 (see

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

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

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

See Pub. 926 for an example showing how to complete

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

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

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

TIP

security and Medicare taxes from the employee's wa-

bursed the employee's share of social security and Medicare

ges.

taxes, or that you have obtained consents from your employees

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

complete instructions.

H-9

Instructions For Schedule H (Form 1040) - 2016 Page 9

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