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

whether you will owe state unemployment tax, contact your

Credit for 2011. The credit you can take for any state

state’s unemployment tax agency. See the list of state

unemployment fund contributions for 2011 that you pay

unemployment agencies in the Appendix for the address.

after April 17, 2012, is limited to 90% of the credit that

would have been allowable if the contributions were paid

The FUTA tax is 6.0% of your employee’s FUTA wages.

on or before April 17, 2012.

However, you may be able to take a credit of up to 5.4%

against the FUTA tax, resulting in a net tax rate of 0.6%.

You must complete Worksheet A to figure the

Your credit for 2012 is limited unless you pay all the

credit for late contributions if you paid any state

required contributions for 2012 to your state unemploy-

contributions after the due date for filing

ment fund by April 15, 2013. The credit you can take for

Form 1040.

any contributions for 2012 that you pay after April 15, 2013,

is limited to 90% of the credit that would have been allowa-

ble if the contributions were paid by April 15, 2013. (If you

Do You Need To Withhold

did not pay all the required contributions for 2011 by April

17, 2012, see Credit for 2011, later.)

Federal Income Tax?

Note. If a due date falls on a Saturday, Sunday, or legal

You are not required to withhold federal income tax from

holiday, payments are considered timely if made by the

wages you pay a household employee. You should with-

next business day. Pay the tax as discussed under How

hold federal income tax only if your household employee

Do You Make Tax Payments, later. Also, see What Forms

asks you to withhold it and you agree. The employee must

Must You File, later.

give you a completed Form W-4, Employee’s Withholding

Note. The 5.4% credit is reduced for wages paid in a

Allowance Certificate.

credit reduction state. See the Instructions for Schedule H

If you and your employee have agreed to withholding,

(Form 1040).

either of you may end the agreement by letting the other

know in writing.

Do not withhold the FUTA tax from your em-

If you agree to withhold federal income tax, you are

ployee’s wages. You must pay it from your own

responsible for paying it to the IRS. Pay the tax as dis-

funds.

CAUTION

cussed under How Do You Make Tax Payments, later.

FUTA wages. Figure the FUTA tax on the FUTA wages

Also, see What Forms Must You File, later.

you pay. If you pay cash wages to all of your household

Use the income tax withholding tables in Publication 15

employees totaling $1,000 or more in any calendar quarter

(Circular E) to find out how much to withhold. Figure

of 2011 or 2012, the first $7,000 of cash wages you pay to

federal income tax withholding on wages before you de-

each household employee in 2012 is FUTA wages. (A

duct any amounts for other withheld taxes. Withhold fed-

calendar quarter is January through March, April through

eral income tax from each payment of wages based on the

June, July through September, or October through De-

filing status and exemptions shown on your employee’s

cember.) If your employee’s cash wages reach $7,000

Form W-4. Publication 15 (Circular E) contains detailed

during the year, do not figure the FUTA tax on any wages

instructions.

you pay that employee during the rest of the year. For an

Wages. Figure federal income tax withholding on both

explanation of cash wages, see the discussion on Social

cash and noncash wages you pay. Measure wages you

security and Medicare wages under Social Security and

Medicare Taxes, earlier.

pay in any form other than cash by the fair market value of

the noncash item.

Wages not counted. Do not count wages you pay to

Do not count as wages any of the following items.

any of the following individuals as FUTA wages.

•

Meals provided to your employee at your home for

•

Your spouse.

your convenience.

•

Your child who is under the age of 21.

•

Lodging provided to your employee at your home for

•

Your parent.

your convenience and as a condition of employment.

Worksheet A. Worksheet for Credit for Late Contributions

Keep for Your Records

Enter the amount from Schedule H, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the amount from Schedule H, line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtract line 2 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . .

Enter total contributions paid to the state(s) after the Form 1040 due date . . . . . . .

Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Multiply line 5 by .90 (90%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Add lines 2 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the smaller of the amount on line 1 or line 7 here and on Schedule H, line

21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Publication 926 (March 2012)

Page 7

Publication 926 - Household Employer'S Tax Guide - Internal Revenue Service - 2012 Page 7

Related Articles

Related forms

Related Categories