Publication 926 - Household Employer'S Tax Guide

them with your federal income tax as described above, or

•

Social security and Medicare wages of $1,400 or

you can include them with your federal employment tax

more.

deposits or other payments for your business or farm

•

employees. For information on depositing employment

Wages from which you withhold federal income tax.

taxes, see Publication 15.

You must complete Form W – 2 and give Copies B, C, and

If you pay your household employment taxes with your

2 to your employee by February 2, 2004. You must send

business or farm employment taxes, you must report your

Copy A of Form W – 2 with Form W –3, Transmittal of Wage

household employment taxes with those other employ-

and Tax Statements, to the Social Security Administration

ment taxes on Form 941 or Form 943 and on Form 940 (or

by March 1, 2004 (March 31, 2004, if you file your Form

940 –EZ). See Business employment tax returns, later.

W–2 electronically).

The deduction that can be taken on Schedules C

Employee who leaves during the year. If an em-

and F (Form 1040) for wages and employment

ployee stops working for you before the end of 2003, you

taxes applies only to wages and taxes paid for

CAUTION

can file Form W –2 and provide copies to your employee

business and farm employees. You cannot deduct the

immediately after you make your final payment of wages.

wages and employment taxes paid for your household

You do not need to wait until 2004. If the employee asks

employees on your Schedule C or F.

you for Form W –2, give it to him or her within 30 days after

the request or the last wage payment, whichever is later.

Schedule H. Use Schedule H (Form 1040), Household

More information. For more information about paying

Employment Taxes, to report household employment

taxes through federal income tax withholding and esti-

taxes if you pay any of the following wages to the em-

mated tax payments, and figuring the estimated tax pen-

ployee.

alty, get Publication 505, Tax Withholding and Estimated

Tax.

•

Cash wages of $1,400 or more.

•

FUTA wages.

What Forms Must You File?

•

Wages from which you withhold federal income tax.

File Schedule H with your 2003 federal income tax return

You must file certain forms to report your household

by April 15, 2004. If you get an extension to file your return,

employee’s wages and the federal employment taxes for

the extension also will apply to your Schedule H.

the employee if you pay any of the following wages to the

employee.

Filing options when no return is required. If you are

•

not required to file a 2003 tax return, you have the following

Social security and Medicare wages.

two options.

•

FUTA wages.

•

1) You can file Schedule H by itself. See the Schedule

Wages from which you withhold federal income tax.

H instructions for details.

The employment tax forms and instructions you need for

2) If, besides your household employee, you have other

2003 will be sent to you automatically in January 2004 if

employees for whom you report employment taxes

you reported employment taxes for 2002 on Schedule H

on Form 941 or Form 943 and on Form 940 (or

(Form 1040), Household Employment Taxes. Otherwise,

940 – EZ), you can include your taxes for your house-

for information on ordering these forms, see How To Get

hold employee on those forms. See Business em-

Tax Help, later.

ployment tax returns, next.

Employers having the options listed above include cer-

Employer identification number (EIN). You must in-

tain tax-exempt organizations that do not have to file a tax

clude your employer identification number (EIN) on the

return, such as churches that pay a household worker to

forms you file for your household employee. An EIN is a

take care of a minister’s home.

9-digit number issued by the IRS. It is not the same as a

social security number.

Business employment tax returns. Do not use Sched-

You ordinarily will have an EIN if you previously

ule H (Form 1040) if you choose to pay the employment

TIP

paid taxes for employees, either as a household

taxes for your household employee with business or farm

employer or as a sole proprietor of a business you

employment taxes. (See Payment option for business em-

own. If you already have an EIN, use that number.

ployers, earlier.) Instead, include the social security, Medi-

care, and withheld federal income taxes for the employee

on the Form 941, Employer’s Quarterly Federal Tax Re-

If you do not have an EIN, get Form SS –4, Application

turn, you file for your business or on the Form 943,

for Employer Identification Number. The instructions for

Employer’s Annual Tax Return for Agricultural Employees,

Form SS – 4 explain how you can get an EIN immediately

you file for your farm. Include the FUTA tax for the em-

by telephone or in about 4 weeks if you apply by mail.

ployee on your Form 940 (or 940 –EZ), Employer’s Annual

Federal Unemployment (FUTA) Tax Return.

Form W – 2. File a separate 2003 Form W –2, Wage and

Tax Statement, for each household employee to whom you

If you report the employment taxes for your household

pay either of the following wages during the year.

employee on Form 941 or Form 943, file Form W –2 for

Page 8

Publication 926 - Household Employer'S Tax Guide - 2003 Page 8

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