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Category: Federal

Household Employment Tax (Schedule H)

If you hired someone to do household work and you could control what work he or she did and how he or she did it, you had a household employee. This is true even if you gave the employee freedom of action. What matters is that you had the right to control the details of how the work was done.

 

If a worker is your employee, it does not matter whether the work is full or part-time or that you hired the worker through an agency or from a list provided by an agency or association. Also, it does not matter if the wages paid are for work done hourly, daily, weekly, or by the job.

 

You must file Schedule H if you answer “Yes” to any of the following questions:

 

  • Did you pay any one household employee cash wages of $1,800 or more in 2013? (If any household employee was your spouse, your child under age 21, your parent, or anyone under age 18, see the line A instructions before you answer this question.)

 

  • Did you withhold federal income tax during 2013 for any household employee?

 

  • Did you pay total cash wages of $1,000 or more in any calendar quarter of 2012 or 2013 to all household employees? (Do not count cash wages paid in 2012 or 2013 to your spouse, your child under age 21, or your parent.)

 

Report your Schedule H employment taxes on your current year individual tax return. If you are not filing a current year tax return, you must file Schedule H by itself and mail it to the IRS.

 

If you have household employees, you will need an EIN to file Schedule H. If you do not have an EIN, see IRS Form SS-4, http://www.irs.gov/pub/irs-pdf/fss4.pdf, Application for Employer Identification Number. Do not use a social security number in place of an EIN.

 

The Instructions for IRS Form SS-4, http://www.irs.gov/pub/irs-pdf/iss4.pdf, explain how you can get an EIN immediately over the internet or by telephone, in 4 business days by fax, or in about 4 weeks if you apply by mail. See How To Get Forms and Publications for details on how to get forms and publications including Form SS-4.To get an EIN over the internet, visit IRS.gov and click on the Apply for an EIN Online link under Tools or click here.