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

tax, read Table 2 for an overview of what you may need to

discussed under How Do You Make Tax Payments, later.

Also, see What Forms Must You File, later.

do.

Social security and Medicare wages. You figure social

If you do not need to pay social security, Medi-

care, or federal unemployment tax and do not

security and Medicare taxes on the social security and

TIP

choose to withhold federal income tax, read

Medicare wages you pay your employee.

State employment taxes, next. The rest of this publication

If you pay your household employee cash wages of

$1,800 or more in 2012, all cash wages you pay to that

does not apply to you.

employee in 2012 (regardless of when the wages were

State employment taxes. You should contact your state

earned) up to $110,100 are social security wages and all

unemployment tax agency to find out whether you need to

cash wages are Medicare wages. However, any noncash

pay state unemployment tax for your household employee.

wages you pay do not count as social security and Medi-

For the address and phone number, see the Appendix

care wages.

near the end of this publication. You should also determine

If you pay the employee less than $1,800 in cash wages

if you need to pay or collect other state employment taxes

in 2012, none of the wages you pay the employee are

or carry workers’ compensation insurance.

social security and Medicare wages and neither you nor

your employee will owe social security or Medicare tax on

those wages.

Social Security and Medicare Taxes

Cash wages. Cash wages include wages you pay by

check, money order, etc. Cash wages do not include the

The social security tax pays for old-age, survivors, and

value of food, lodging, clothing, and other noncash items

disability benefits for workers and their families. The Medi-

you give your household employee. However, cash you

care tax pays for hospital insurance.

give your employee in place of these items is included in

Both you and your household employee may owe social

cash wages.

security and Medicare taxes. Your share is 7.65% (6.2%

State disability payments treated as wages. Certain

for social security tax and 1.45% for Medicare tax) of the

state disability plan payments that your household em-

employee’s social security and Medicare wages. Your em-

ployee may receive are treated as social security and

ployee’s share is 5.65% (4.2% for social security tax and

Medicare wages. For more information about these pay-

1.45% for Medicare tax).

ments, see the Instructions for Schedule H (Form 1040),

You can use Table 3 to figure the amount of

Household Employment Taxes, and the notice issued by

social security and Medicare taxes to withhold

TIP

the state.

from each wage payment.

Wages not counted. Do not count wages you pay to

You are responsible for payment of your employee’s

any of the following individuals as social security and

Medicare wages, even if these wages are $1,800 or more

share of the taxes as well as your own. You can either

during the year.

withhold your employee’s share from the employee’s

wages or pay it from your own funds. If you decide to pay

1. Your spouse.

the employee’s share from your own funds, see Not with-

holding the employee’s share, later. Pay the taxes as

2. Your child who is under the age of 21.

Table 2. Household Employer’s Checklist

You may need to do the following things when you have a household employee.

When you hire a household

Find out if the person can legally work in the United States.

employee:

Find out if you need to pay state taxes.

When you pay your household

Withhold social security and Medicare taxes.

employee:

Withhold federal income tax.

Decide how you will make tax payments.

Keep records.

By January 31, 2013:

Get an employer identification number (EIN).

Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax

Statement.

By February 28, 2013 (April 1,

Send Copy A of Form W-2 to the Social Security Administration (SSA).

2013, if you file Form W-2

electronically):

By April 15, 2013:

File Schedule H (Form 1040), Household Employment Taxes, with your

2012 federal income tax return (Form 1040, 1040NR, 1040-SS, or Form

1041).

If you do not have to file a return, file Schedule H by itself.

Page 4

Publication 926 (March 2012)

Publication 926 - Household Employer'S Tax Guide - Internal Revenue Service - 2012 Page 4

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