Publication 926 - Household Employer'S Tax Guide - Internal Revenue Service

Example. You made an agreement with John Peters to

available for review upon notice by an authorized U.S.

Government official.

care for your lawn. John runs a lawn care business and

offers his services to the general public. He provides his

Two copies of Form I-9 are contained in the Handbook

own tools and supplies, and he hires and pays any helpers

for Employers (Form M-274) published by the USCIS.

he needs. Neither John nor his helpers are your household

Call the USCIS at 1-800-870-3676 to order the

employees.

Handbook for Employers; or you may download

the handbook at If you have

More information. More information about who is an em-

questions about the employment eligibility verification pro-

ployee is in Publication 15-A, Employer’s Supplemental

cess or other immigration-related employment matters,

Tax Guide.

contact the USCIS Office of Business Liaison at

1-800-357-2099.

Can Your Employee Legally

You also can visit the USCIS website at

to get Form I-9.

Work in the United States?

For more information, see Employee’s Social Security

It is unlawful for you knowingly to hire or continue

Number (SSN) in Publication 15 (Circular E), Employer’s

Tax Guide.

to employ an alien who cannot legally work in the

United States.

CAUTION

When you hire a household employee to work for you on

Do You Need To Pay

a regular basis, you and the employee must complete the

U.S. Citizenship and Immigration Services (USCIS) Form

Employment Taxes?

I-9, Employment Eligibility Verification. No later than the

first day of work, the employee must complete the em-

If you have a household employee, you may need to

ployee section of the form by providing certain required

withhold and pay social security and Medicare taxes, pay

information and attesting to his or her current work eligibil-

federal unemployment tax, or both. To find out,

ity status in the United States. You must complete the

read Table 1.

employer section by examining documents presented by

You do not need to withhold federal income tax from

the employee as evidence of his or her identity and em-

your household employee’s wages. But if your employee

ployment eligibility. Acceptable documents to establish

asks you to withhold it, you can. See Do You Need To

identity and employment eligibility are listed on Form I-9.

Withhold Federal Income Tax, later.

You should keep the completed Form I-9 in your own

records. Do not submit it to the IRS, the USCIS, or any

If you need to pay social security, Medicare, or federal

other government or other entity. The form must be kept

unemployment tax or choose to withhold federal income

Table 1. Do You Need To Pay Employment Taxes?

IF you ...

THEN you need to ...

A–

Pay cash wages of $1,800 or more in 2012 to any one Withhold and pay social security and Medicare taxes.

household employee.

•

The taxes are 13.3% of cash wages.

Do not count wages you pay to—

•

Your employee’s share is 5.65%.

•

(You can choose to pay it yourself and not

Your spouse,

•

withhold it.)

Your child under the age of 21,

•

Your share is 7.65%.

Your parent (see Social Security and Medicare

Taxes, later, for an exception), or

•

Any employee under the age of 18 at any time in

2012 (see Social Security and Medicare Taxes,

later, for an exception).

B–

Pay total cash wages of $1,000 or more in any

Pay federal unemployment tax.

calendar quarter of 2011 or 2012 to household

•

The tax is 0.6% of cash wages.

employees.

•

Wages over $7,000 a year per employee are not

Do not count wages you pay to—

taxed.

•

Your spouse,

You also may owe state unemployment tax.

•

Your child under the age of 21, or

•

Your parent.

Note. If neither A nor B above applies, you do not need to pay any federal employment taxes. But you may still need to

pay state employment taxes.

Publication 926 (March 2012)

Page 3

Publication 926 - Household Employer'S Tax Guide - Internal Revenue Service - 2012 Page 3

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