Get SCHEDULE H (Form 1040) Department Of The Treasury Internal Revenue Service (99) Household

If you're a household employer with a business that has employees, you may pay your household employment taxes with your business or farm employment taxes, and you must include your household employment taxes with the other employment taxes that you file on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, ...

About Schedule H (Form 1040), Household Employment Taxes.

When hiring household employees, a household employer will be a sole proprietorship. They will be able to use their SSN on any 1099 forms that they give out. But if they elect to withhold tax from their employee's wages, they are going to need to acquire an EIN.

If you don't file Schedule H with your personal income tax return, or you don't withhold the required taxes from your employees' wages, you may be in arrears and could face penalties.

Your tax return must include Schedule H only if you pay any single employee at least $2,600 in the 2023 tax year, or cash wages to all household employees totaling $1,000 or more during any three-month calendar quarter during either the current or previous tax year.

The Schedule H is an annual filing, prepared in conjunction with the employer's personal income tax return. Form 941 however, must be filed and paid every quarter. Even if there was no household payroll in a quarter, the family using a form 941 return must file every quarter.

Both you and your household employee may owe social security and Medicare taxes. Your share is 7.65% (6.2% for social security tax and 1.45% for Medicare tax) of the employee's social security and Medicare wages. Your employee's share is also 7.65% (6.2% for social security tax and 1.45% for Medicare tax).

If you employed a person to perform work in your household and you had control over the what the person did and how they did it, then you must complete Schedule H. You must file Schedule H even if you don't file an individual income tax return.