U.S. Individual Income Tax Return

Sch H (1040) Instructions

U.S. Individual Income Tax Return

OMB: 1545-0074

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Department of the Treasury
Internal Revenue Service

2013 Instructions for Schedule H (Form 1040)
Household Employment Taxes
Household
Employers

Here is a list of forms you need to complete:
Schedule H for figuring your household employment taxes.
Form W-2, Wage and Tax Statement, for reporting wages paid to your employees.

Form W-3, Transmittal of Wage and Tax Statements, for sending Copy A of
Form(s) W-2 to the Social Security Administration (SSA).
For more information, see What Forms Must You File? in Pub. 926, Household
Employer's Tax Guide.
No household employees in 2013? If you did not have any household employees in
2013, you do not have to file Schedule H (Form 1040) for 2013.

We have been asked:
What do I do after I fill in Schedule H? If you must file a 2013 tax return, enter the
taxes from Schedule H on the “Household employment taxes” line of your Form 1040,
1040NR, 1040-SS, or 1041. You do this because these taxes are added to your income
taxes.
How do I file Schedule H? File Schedule H with your Form 1040, 1040NR,
1040-SS, or 1041. If you are not filing a 2013 tax return, file Schedule H by itself.
Do I make a separate payment? No. You pay both income and employment taxes to
the United States Treasury when you file Schedule H with your return.
When do I pay? Most filers must pay by April 15, 2014.
How many copies of Form W-3 do I send to the SSA? Send one copy of Form W-3
with Copy A of Form(s) W-2 to the SSA, and keep one copy of Form W-3 for your
records. Instructions for filing Forms W-2 and Form W-3 electronically are available
at www.socialsecurity.gov/employer.

Important Dates!
By . . . . . . . . . . . . . . . . . . . .

You must . . . . . . . . . . . . . . . . . . . . . . . . . . .

January 31, 2014
February 28, 2014 (March 31, 2014 if
you file electronically)
April 15, 2014

Give your employee Form W-2.
Send Copy A of Form(s) W-2 with Form W-3 to the SSA.
Visit www.socialsecurity.gov/employer for details.
File Schedule H and pay your household employment taxes
with your 2013 tax return.

Section references are to the Internal Revenue Code unless
otherwise noted.

Contents
What's New . . . . . . . . . . . . . . . . . . . . . . . . . .
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . .
Who Needs To File Schedule H? . . . . . . . . . . . .
Who Needs To File Form W-2 and Form W-3? . .
Do You Have an Employer Identification Number
(EIN)? . . . . . . . . . . . . . . . . . . . . . . . . . .
Can Your Employee Legally Work in the United
States? . . . . . . . . . . . . . . . . . . . . . . . . . .
What About State Employment Taxes? . . . . . . . .

Contents
Page

When and Where To File . . . . . . . . . . . . . . . . . . . . . . . 3
Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Form W-2 and Form W-3 . . . . . . . . . . . . . . . . . . . . 3
How To Fill In Schedule H, Form W-2, and Form W-3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Form W-2 and Form W-3 . . . . . . . . . . . . . . . . . . . . 8
Estimated Tax Penalty . . . . . . . . . . . . . . . . . . . . . . . . . 8
What Records To Keep . . . . . . . . . . . . . . . . . . . . . . . . 8
What Is the Earned Income Credit (EIC)? . . . . . . . . . . . . 8

. . . . . . 2
. . . . . . 2
. . . . . . 2
. . . . . . 3
. . . . . . 3
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. . . . . . 3

H-1
Dec 30, 2013

Page

Cat. No. 21451X

Contents
Rules for Business Employers . . . . . . . . . . . . . . .
State Disability Payments . . . . . . . . . . . . . . . . . .
How To Correct Schedule H . . . . . . . . . . . . . . . .
How To Get Forms and Publications . . . . . . . . . .
Completed Examples of Schedule H, Form W-2, and
Form W-3 . . . . . . . . . . . . . . . . . . . . . . . . .
Privacy Act and Paperwork Reduction Act Notice . .

Reminders

Page

Outsourcing payroll duties. Employers are responsible to ensure that tax returns are filed and deposits and payments are
made, even if the employer contracts with a third party to perform these acts. The employer remains responsible if the third
party fails to perform any required action. If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare,
FUTA, and income taxes) to a third-party payroll service provider, visit IRS.gov and enter “outsourcing payroll duties” in
the search box for helpful information on this topic.
Paid preparers are required to sign Schedule H. Your paid
preparer must sign Schedule H in Part IV unless you are attaching Schedule H to Form 1040, 1040NR, 1040-SS, or Form
1041. A paid preparer must sign Schedule H and provide the
information requested in the Paid Preparer Use Only section
only if the preparer was paid to prepare Schedule H and is not
your employee. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS.
If you are required to file a 2013 Form W-2 for any household employee, you must also send Form W-3 with Copy A of
Form(s) W-2 to the SSA. You are encouraged to file your
Forms W-2 and W-3 electronically. Visit the SSA's Employer
W-2 Filing Instructions & Information website at
www.socialsecurity.gov/employer to learn about electronic filing.

. . . . . 9
. . . . . 9
. . . . . 9
. . . . . 9
. . . . . 9
. . . . 12

Future Developments
For the latest information about developments related to Schedule H (Form 1040) and its instructions, such as legislation
enacted after they were published, go to www.irs.gov/
form1040.

What's New
Changes to tax rates and wage threshold. The employee tax
rate for social security is 6.2%. Previously, the employee tax
rate for social security was 4.2%. The employer tax rate for social security remains unchanged at 6.2%. The social security
wage base limit is $113,700. The Medicare tax rate is 1.45%
each for the employee and employer, unchanged from 2012.
There is no wage base limit for Medicare tax. Social security
and Medicare taxes apply to the wages of household workers
you pay $1,800 or more in cash or an equivalent form of compensation in 2013.
For information about the rates and wage threshold that will
apply in 2014, see Pub. 926 (released in December 2013).
Additional Medicare Tax withholding. In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in
excess of $200,000 in a calendar year. You are required to begin withholding Additional Medicare Tax in the pay period in
which you pay wages in excess of $200,000 to an employee
and continue to withhold it each pay period until the end of the
calendar year. Additional Medicare Tax is only imposed on the
employee. There is no employer share of Additional Medicare
Tax. All wages that are subject to Medicare tax are subject to
Additional Medicare Tax withholding if paid in excess of the
$200,000 withholding threshold.
For more information on Additional Medicare Tax, visit
IRS.gov and enter “Additional Medicare Tax” in the search
box.
Credit reduction state. A state that has not repaid money it
borrowed from the federal government to pay unemployment
benefits is a “credit reduction state.” The Department of Labor
determines these states. If an employer pays wages that are
subject to the unemployment tax laws of a credit reduction
state, that employer must pay additional federal unemployment
tax.
For 2013, there are credit reduction states. If you paid wages
that were subject to the unemployment compensation laws of a
credit reduction state, your credit against federal unemployment tax will be reduced based on the credit reduction rate
(i.e., .003, .006, .009 or .015) for that credit reduction state.

Who Needs To File Schedule H?
You must file Schedule H if you answer “Yes” to any of the
questions on lines A, B, or C of Schedule H.
Did you have a household employee? If you hired someone
to do household work and you could control what work he or
she did and how he or she did it, you had a household employee. This is true even if you gave the employee freedom of action. What matters is that you had the right to control the details of how the work was done.
Example. You paid Betty Oak to babysit your child and do
light housework 4 days a week in your home. Betty followed
your specific instructions about household and child care duties. You provided the household equipment and supplies Betty
needed to do her work. Betty is your household employee.
Household work is work done in or around your home.
Some examples of workers who do household work are:
Babysitters
Caretakers
Cleaning people

Drivers
Health aides
Housekeepers

Nannies
Private nurses
Yard workers

If a worker is your employee, it does not matter whether the
work is full or part-time or that you hired the worker through
an agency or from a list provided by an agency or association.
Also, it does not matter if the wages paid are for work done
hourly, daily, weekly, or by the job.
If you are a home care service recipient receiving home care
services through a program administered by a federal, State, or
local government agency, and the person who provides your
care is your household employee, you can ask the IRS to authorize an agent under section 3504 to report, file, and pay all
federal employment taxes, including FUTA taxes, on your behalf. See Form 2678, Employer/Payer Appointment of Agent,
for more information.

H-2

What About State Employment
Taxes?

Note. If a government agency or third party agent reports and
pays the employment taxes on wages paid to your household
employee on your behalf, you do not need to file Schedule H to
report those taxes.
Workers who are not your employees. Workers you get
from an agency are not your employees if the agency is responsible for who does the work and how it is done. Self-employed
workers are also not your employees. A worker is self-employed if only he or she can control how the work is done. A
self-employed worker usually provides his or her own tools
and offers services to the general public in an independent
business.
Example. You made an agreement with Paul Brown to care
for your lawn. Paul runs a lawn care business and offers his
services to the general public. He hires his own helpers, instructs them how to do their jobs, and provides his own tools
and supplies. Neither Paul nor his helpers are your employees.
For more information, see Pub. 926.

If you employed a household employee in 2013, you probably
have to pay contributions to your state unemployment fund for
2013. To find out if you do, contact your state unemployment
tax agency. For a list of state unemployment tax agencies, visit
the
U.S.
Department
of
Labor's
website
at
www.workforcesecurity.doleta.gov/unemploy/agencies.asp.
You should also find out if you need to pay or collect other
state employment taxes or carry workers' compensation insurance.

When and Where To File
Schedule H
If you file Form 1040, 1040NR, 1040-SS, or 1041 for 2013, remember to attach Schedule H to it. Mail your return, by April
15, 2014, to the address shown in your tax return instructions.
Exceptions. If you get an extension of time to file your return,
file it with Schedule H by the extended due date. If you are a
fiscal year filer, file your return and Schedule H by the due
date of your fiscal year return, including extensions.

Who Needs To File Form W-2 and
Form W-3?
You must file Form W-2 for each household employee to
whom you paid $1,800 or more of cash wages in 2013 that are
subject to social security and Medicare taxes. To find out if the
wages are subject to these taxes, see the instructions for Schedule H, lines 1, 3, and 5. Even if the wages are not subject to
these taxes, if you withheld federal income tax from the wages
of any household employee, you must file Form W-2 for that
employee.

Note. If you are a calendar year taxpayer and have no household employees for 2013, you do not have to file Schedule H
for 2013.
If you are not required to file a 2013 tax return (for example,
because your income is below the amount that requires you to
file), you must file Schedule H by itself by April 15, 2014.
Complete Schedule H and put it in an envelope with your
check or money order. Do not send cash. See the list of filing
addresses in these instructions. Mail your completed Schedule H and payment to the address listed for the place where you
live. Make your check or money order payable to the “United
States Treasury” for the total household employment taxes due.
Enter your name, address, social security number, daytime
phone number, and “2013 Schedule H” on your check or money order. Household employers that are tax-exempt, such as
churches, may also file Schedule H by itself.

If you file one or more Forms W-2, you must also file Form
W-3.

Do You Have an Employer
Identification Number (EIN)?
If you have household employees, you will need an EIN to file
Schedule H. If you do not have an EIN, see Form SS-4, Application for Employer Identification Number. Do not use a social
security number in place of an EIN. The Instructions for Form
SS-4 explain how you can get an EIN immediately over the internet or by telephone, in 4 business days by fax, or in about 4
weeks if you apply by mail. See How To Get Forms and Publi
cations for details on how to get forms and publications including Form SS-4.To get an EIN over the internet, visit IRS.gov
and click on the Apply for an EIN Online link under Tools.

Form W-2 and Form W-3
By January 31, 2014, you must give Copies B, C, and 2 of
Form W-2 to each employee. You will meet this requirement if
the form is properly addressed, mailed, and postmarked no later than January 31, 2014.

Can Your Employee Legally Work in
the United States?

By February 28, 2014 (March 31, 2014, if you file Forms
W-2 and W-3 electronically), send Copy A of all Forms W-2
with Form W-3 to the Social Security Administration (SSA).
Mail Copy A of all Forms W-2 with Form W-3 to:

It is unlawful to employ a person who cannot legally work in
the United States. When you hire a household employee to
work for you on a regular basis, you and the employee must
each complete part of the U.S. Citizenship and Immigration
Services (USCIS) Form I-9, Employment Eligibility Verification. You must verify that the employee is either a U.S. citizen
or a person who can legally work in the United States and you
must keep Form I-9 for your records. You can get the form and
the USCIS Handbook for Employers by calling
1-800-870-3676, or by visiting the USCIS website at
www.uscis.gov.

Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001
For certified mail, the ZIP code is 18769-0002. If you use a
carrier other than the U.S. Postal Service, add “ATTN: W-2
Process, 1150 E. Mountain Dr.” to the address and change the
ZIP code to “18702-7997.”

H-3

CAUTION

If you file Forms W2 and W3 electronically, do not
mail the paper Forms W2 and W3 to the Social Se
curity Administration.

Exception for employees under age 18. Include the cash
wages you paid to a person who was under age 18 and not a
student if providing household services was his or her principal
occupation.
Cash wages. Cash wages include wages paid by check, money
order, etc. Cash wages do not include the value of food, lodging, clothing or other noncash items you give a household employee.

For additional information, visit the SSA's Employer W-2
Filing
Instructions
&
Information
website
at
www.socialsecurity.gov/employer.
Note. Check with your state, city, or local tax department to
find out if you must file Copy 1 of Form W-2.
Penalties. You may have to pay a penalty if you do not give
Forms W-2 to your employees or file Copy A of the forms with
the SSA by the due dates. You may also have to pay a penalty
if you do not show your employee's social security number on
Form W-2 or do not provide correct information on the form.

Transportation (commuting) benefits. For 2013, you can
generally give your employee transportation benefits such as
$245 per month for combined commuter highway vehicle
transportation and transit passes; $245 per month for qualified
parking; or for a calendar year, $20 multiplied by the number
of qualified bicycle commuting months during that year for
qualified bicycle commuting reimbursement of expenses incurred during the year, without the benefits counting as cash.
However, the value of benefits over the specified amounts a
month is included as wages. See Transportation (Commuting)
Benefits in Pub. 15-B, Employer's Tax Guide to Fringe Benefits, for more information.

How To Fill In Schedule H, Form
W-2, and Form W-3

Part I. Social Security, Medicare, and
Federal Income Taxes

Schedule H

CAUTION

If you were notified that your household employee
received payments from a state disability plan, see
State Disability Payments, later.

Social security and Medicare taxes fund retirement, survivor,
disability, and health benefits for workers and their families.
You and your employees generally pay these taxes in equal
amounts.
You are not required to withhold federal income tax from
wages you pay a household employee. You should withhold
federal income tax only if your household employee asks you
to withhold it and you agree. The employee must give you a
completed Form W-4, Employee's Withholding Allowance
Certificate.
For 2013, the social security tax rate is 6.2% each for you
and your employee. The Medicare tax rate is 1.45% each. The
limit on wages subject to social security tax is $113,700. There
is no limit on wages subject to the Medicare tax. If you did not
deduct the employee's share from his or her wages, you must
pay the employee's share and your share (a total of 12.4% for
social security and 2.9% for Medicare tax) of tax. See Form
W2 and Form W3 in these instructions for more information.
In addition to withholding Medicare tax at 1.45%, you must
withhold a 0.9% Additional Medicare Tax from wages you pay
to an employee in excess of $200,000 in a calendar year. You
are required to begin withholding Additional Medicare Tax in
the pay period in which you pay wages in excess of $200,000
to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of
Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if
paid in excess of the $200,000 withholding threshold.
For more information on Additional Medicare Tax, visit
IRS.gov and enter “Additional Medicare Tax” in the search
box.

Social security number. Enter your social security number.
Form 1041 filers, do not enter a number in this space. But be
sure to enter your EIN in the space provided.
Employer identification number (EIN). An EIN is a
nine-digit number assigned by the IRS. The digits are arranged
as follows: 00-0000000. Enter your EIN in the space provided.
If you do not have an EIN, see Do You Have an Employer
Identification Number (EIN), earlier. If you applied for an EIN
but have not received it, enter “Applied For” and the date you
applied. Do not use your social security number as an EIN.
Line A. To figure the total cash wages you paid in 2013 to
each household employee, do not include amounts paid to any
of the following individuals.
Your spouse.
Your child who was under age 21.
Your parent. (See Exception for parents below.)
Your employee who was under age 18 at any time during
2013. If the employee was not a student, see Exception for em
ployees under age 18 below.
Exception for parents. Include the cash wages you paid
your parent for work in or around your home if both 1 and 2
below apply.
1. Your child who lived with you was under age 18 or had
a physical or mental condition that required the personal care
of an adult for at least 4 continuous weeks during the calendar
quarter in which services were performed. A calendar quarter is
January through March, April through June, July through September, or October through December.
2. You were divorced and not remarried, a widow or widower, or married to and living with a person whose physical or
mental condition prevented him or her from caring for the child
during that 4-week period.

$1,800 test. If you pay a household employee $1,800 or
more in cash wages during 2013, you must report and pay social security and Medicare taxes on all the wages. The test applies to cash wages paid in 2013 regardless of when the wages
were earned. See Pub. 926 for more information. Or, visit the
SSA's website at www.socialsecurity.gov/pubs/10021.html.

H-4

of unemployment benefits. However, contributions do not include:
Any payments deducted or deductible from your employees' pay;
Penalties, interest, or special administrative taxes not included in the contributions rate the state gave you; or
Voluntary contributions you paid to get a lower experience rate. See the instructions for line 17 for more information.
If you paid contributions to any credit reduction state, see
the instructions for line 23.
Lines 10 through 12. Answer the questions on lines 10
through 12 to see if you should complete Section A or Section B of Part II.

Line 1. Enter on line 1 the total of cash wages (see Cash wa
ges, earlier) paid in 2013 to each household employee who
meets the $1,800 test, explained earlier.

CAUTION

If you paid any household employee cash wages of
more than $113,700 in 2013, include on line 1 only
the first $113,700 of that employee's cash wages.

Line 2. Multiply the amount on line 1 by 12.4% (.124) and
enter the result on line 2.
Line 3. Enter on line 3 the total of cash wages (see Cash wa
ges earlier) paid in 2013 to each employee who meets the
$1,800 test. There is no limit on wages subject to the Medicare
tax.
Line 4. Multiply the amount on line 3 by 2.9% (.029) and enter the result on line 4.
Line 5. Enter on line 5 the total cash wages (see Cash wages
earlier) paid to each employee in 2013 that exceeded $200,000.
Line 6. Multiply the amount on line 5 by 0.9% (.009) and enter the result on line 6.
Line 7. Enter on line 7 any federal income tax you withheld
from the wages you paid to your household employees in 2013.
See Pub. 926 and Pub. 15 (Circular E), Employer's Tax Guide,
for information on withholding federal income taxes.
Line 8. Add lines 2, 4, 6, and 7 and enter the result on line 8.
Line 9. Review the cash wages you paid to all your household
employees for each calendar quarter of 2012 and 2013. Is the
total for any quarter in 2012 or 2013 $1,000 or more?
Yes. Complete Schedule H, Part II.
No. Follow the instructions in the chart below.
If you file
Form. . .

Then enter the amount from
Schedule H, line 8, on. . .

1040

line 59a

1040NR

line 58a

1040-SS

Part I, line 4

1041

Schedule G, line 6

Fiscal year filers. If you paid all state unemployment contributions for 2013 by the due date of your return (not including extensions), check the “Yes” box on line 11. Check the
“No” box if you did not pay all of your state contributions by
the due date of your return.
Line 13. Enter the two-letter abbreviation of the name of the
state (or the District of Columbia, Puerto Rico, or the U.S. Virgin Islands) to which you paid unemployment contributions.
Line 14. Enter the total of contributions (defined earlier) you
paid to your state unemployment fund for 2013. If you did not
have to make contributions because your state gave you a zero
percent experience rate, enter “0% rate” on line 14.
Line 15. Enter the total of cash wages (see Cash wages, earlier) you paid in 2013 to each household employee, including
employees paid less than $1,000. However, do not include cash
wages paid in 2013 to any of the following individuals.
Your spouse.
Your child who was under age 21.
Your parent.
If you paid any household employee more than $7,000 in
2013, include on line 15 only the first $7,000 of that employee's cash wages.
Credit for 2013. The credit you can take for any state unemployment fund contributions for 2013 that you pay after April
15, 2014, is limited to 90% of the credit that would have been
allowable if the contributions were paid on or before April 15,
2014.

If you do not file any of the above forms, complete Schedule H, Part IV and follow the instructions under When and
Where To File.

Use Worksheet A in Pub. 926 to figure the credit for
late contributions if you paid any state contributions
after the due date for filing Form 1040.

Part II. Federal Unemployment (FUTA) Tax
FUTA tax, with state unemployment systems, provides for payments of unemployment compensation to workers who have
lost their jobs. Most employers pay both a federal and state unemployment tax.

Line 16. Multiply the wages on line 15 by .6% (.006). Enter
the result on line 16.

The FUTA tax rate is 6.0% (.060). But see Credit for contri
butions paid to state below. Do not deduct the FUTA tax from
your employee's wages. You must pay it from your own funds.
Credit for contributions paid to state. You may be able to
take a credit of up to 5.4% against the FUTA tax, resulting in a
net FUTA tax rate of 0.6% (.006). But to do so, you must pay
all the required contributions for 2013 to your state unemployment fund by April 15, 2014. Fiscal year filers must pay all required contributions for 2013 by the due date of their federal
income tax returns (not including extensions).
Contributions are payments that a state requires you, as an
employer, to make to its unemployment fund for the payment

Complete lines 17 through 24 only if you checked a
“No” box on lines 10, 11, or 12.

CAUTION

Line 17. Complete all columns that apply. If you do not, you
will not get a credit. If you need more space, attach a statement
using the same format as line 17. Your state will provide the
experience rate. If you do not know your rate, contact your
state unemployment tax agency.
You must complete columns (a), (b), and (h), even if you
were not given an experience rate. If you were given an experience rate of 5.4% or higher, you must also complete columns

H-5

(c) and (d). If you were given a rate of less than 5.4%, you
must complete all columns.
If you were given a rate for only part of the year, or the rate
changed during the year, you must complete a separate line for
each rate period.

Line 18. Add the amounts in columns (g) and (h) separately
and enter the totals in the spaces provided.
Line 19. Add the amounts shown on line 18 and enter the total on line 19.
Line 20. Enter the total cash wages subject to FUTA tax. See
the line 15 instructions for details.
Line 21. Multiply the wages on line 20 by 6.0% (.060). Enter
the result on line 21.
Line 22. Multiply the wages on line 20 by 5.4% (.054). Enter
the result on line 22.
Line 23. Complete the Worksheet for Household Employers in
a Credit Reduction State—Line 23 in these instructions only if
you are a household employer in any of the credit reduction
states. A state is a credit reduction state if the amount in the
“Reduction Rate” column for the state in the worksheet is
greater than zero.

Column (b). Enter the taxable wages on which you must
pay taxes to the unemployment fund of the state shown in column (a). If your experience rate is zero percent, enter the
amount of wages you would have had to pay taxes on if that
rate had not been granted.
Column (h). Enter the total of contributions (defined earlier) you paid to the state unemployment fund for 2013 by April
15, 2014. Fiscal year filers, enter the total contributions you
paid to the state unemployment fund for 2013 by the due date
of your return (not including extensions). If you are claiming
excess credits as payments of state unemployment contributions, attach a copy of the letter from your state.

State Names and Postal Abbreviations
State

Postal Abbreviation

State

Postal Abbreviation

Alabama

Nebraska

Alaska

Nevada

Arizona

New Hampshire

Arkansas

New Jersey

California

New Mexico

Colorado

New York

Connecticut

North Carolina

Delaware

North Dakota

District of Columbia

Ohio

Florida

Oklahoma

Georgia

Oregon

Hawaii

Pennsylvania

Idaho

Rhode Island

Illinois

South Carolina

Indiana

South Dakota

Iowa

Tennessee

Kansas

Texas

Kentucky

Utah

Louisiana

Vermont

Maine

Virginia

Maryland

Washington

Massachusetts

West Virginia

Michigan

Wisconsin

Minnesota

Wyoming

Mississippi

Puerto Rico

Missouri

U.S. Virgin Islands

Montana

H-6

Worksheet for Household Employers in a Credit Reduction State—Line 23
1. Enter the smaller of the amount from Schedule H, line 19 or line 22

Keep for Your Records

...............................

2. Enter the total taxable FUTA wages from Schedule H, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Place an “X” in the box of EVERY state in which you had to pay state unemployment tax this year. If all of the states you check have a credit
reduction rate of zero, do not enter an amount on line 23. For each state with a credit reduction rate greater than zero, enter the FUTA taxable wages,
multiply by the reduction rate, and then enter the credit reduction amount. Do not include in the FUTA Taxable Wages box wages that were excluded
from state unemployment tax. If any states do not apply to you, leave them blank.
Postal Abbreviation

FUTA Taxable
Wages

Reduction
Rate

Credit Reduction

Postal Abbreviation

FUTA Taxable
Wages

Reduction
Rate

Credit Reduction

x .000

x .009

x .000

x .009

x .000

x .009

x .000

x .009

x .000

x .009

x .006

x .009

x .000

x .009

x .000

x .009

x .000

x .012

x .000

x .009

x .000

x .009

x .000

x .009

x .000

x .012

x .000

4. Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total here. . . . . . . . .

5. Subtract line 4 of this worksheet from line 1 of this worksheet and enter the result here and on Schedule H,
line 23.

Part III. Total Household Employment Taxes

Line 27. Follow the instructions in the chart.

Line 25. Enter the amount from line 8. If there is no entry on
line 8, enter -0-.
Line 26. Add the amounts on lines 16 and 25. If you were required to complete Section B of Part II, add the amounts on
lines 24 and 25 and enter the total on line 26.

H-7

If you file
Form. . .

Then do not complete Part IV but
enter the amount from Schedule H,
line 26, on . . .

1040

line 59a

1040NR

line 58a

1040-SS

Part I, line 4

1041

Schedule G, line 6

sion a new Form W-4P, Withholding Certificate for Pension or
Annuity Payments. Make estimated tax payments by filing
Form 1040-ES, Estimated Tax for Individuals. For more information, see Pub. 505, Tax Withholding and Estimated Tax.
Estimated tax payments must be made as the tax lia
bility is incurred: by April 15, June 17, September
16 and the following January 15. If you file your
CAUTION
Form 1040 by January 31 and pay the rest of the tax
that you owe with the form, you do not need to make the pay
ment due on January 15.

If you do not file any of the above forms, complete Schedule H, Part IV and follow the instructions under When and
Where To File.

Exception. You will not be penalized for failure to make estimated tax payments if both 1 and 2 below apply for the year.
1. You will not have federal income tax withheld from wages, pensions, or any other payments you receive.
2. Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes.

Paid Preparers
Paid preparer use only. You must complete this part if you
were paid to prepare Schedule H, and are not an employee of
the filing entity, and are not attaching Schedule H to Form
1040, 1040NR, 1040-SS, or Form 1041. You must sign in the
space provided and give the filer a copy of the return in addition to the copy to be filed with the IRS.

What Records To Keep

Form W-2 and Form W-3

You must keep copies of Schedule H and related Forms W-2,
W-3, and W-4 for at least 4 years after the due date for filing
Schedule H or the date the taxes were paid, whichever is later.
If you have to file Form W-2, also keep a record of each employee's name and social security number. Each payday, you
should record and keep the dates and amounts of:
Cash and noncash wage payments,
Any employee social security tax withheld,
Any employee Medicare tax withheld, and
Any federal income tax withheld.

If you file one or more Forms W-2, you must also file Form
W-3.
You must report both cash and noncash wages in box 1, as
well as tips and other compensation. The completed Forms
W-2 and W-3 in the example (in these instructions) show how
the entries are made. For detailed information on preparing
these forms, see the General Instructions for Forms W-2 and
W-3.
Employee's portion of taxes paid by employer. If you paid
all of your employee's share of social security and Medicare
taxes, without deducting the amounts from the employee's pay,
the employee's wages are increased by the amount of that tax
for income tax withholding purposes. Follow steps 1 through 3,
below. (See the example in these instructions.)
1. Enter the amounts you paid on your employee's behalf
in boxes 4 and 6 (do not include your share of these taxes).
2. Add the amounts in boxes 3, 4, and 6. (However, if
box 5 is greater than box 3, then add the amounts in boxes 4, 5,
and 6.)
3. Enter the total in box 1.

TIP

What Is the Earned Income Credit
(EIC)?
The EIC is a refundable tax credit for certain workers.
Which employees must I notify about the EIC? You must
notify your household employee about the EIC if you agreed to
withhold federal income tax from the employee's wages but did
not do so because the income tax withholding tables showed
that no tax should be withheld.
Note. You are encouraged to notify each employee whose
wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that he or she may be eligible for the EIC for 2013.
How and when must I notify my employees? You must give
the employee one of the following items.
The official IRS Form W-2, which has the required information about the EIC on the back of Copy B.
A substitute Form W-2 with the same EIC information on
the back of the employee's copy that is on Copy B of the official IRS Form W-2.
Notice 797, Possible Federal Tax Refund Due to the
Earned Income Credit (EIC).
Your written statement with the same wording as Notice
797.
If you are not required to give the employee a Form W-2,
you must provide the notification by February 7, 2014.
If the notification is not given on Form W-2 in a timely
manner, you must hand the notice directly to the employee or
send it by First-Class Mail to the employee's last known address.

On Form W3, put an “X” in the “Hshld. emp.” box
located in box b, Kind of Payer.

For information on filing Forms W-2 and W-3 electronically, visit the SSA's Employer W-2 Filing Instructions & Information website at www.socialsecurity.gov/employer.

You Should Also Know
Estimated Tax Penalty
You may need to increase the federal income tax withheld from
your pay, pension, annuity, etc., or make estimated tax payments to avoid an estimated tax penalty based on your household employment taxes shown on Schedule H, line 26. You
may increase your federal income tax withheld by giving your
employer a new Form W-4, or by giving the payor of your pen-

H-8

How do my employees claim the EIC? Eligible employees
claim the EIC on their 2013 tax returns.

Completed Examples of
Schedule H, Form W-2, and Form
W-3

Rules for Business Employers
Do not use Schedule H if you chose to report employment taxes for your household employees along with your other employees on Form 941, Employer's QUARTERLY Federal Tax
Return; Form 943, Employer's Annual Federal Tax Return for
Agricultural Employees; or Form 944, Employer's ANNUAL
Federal Tax Return. If you report this way, be sure to include
your household employees' wages on your Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.

On February 12, 2013, Susan Green hired Helen Maple to
clean her house every Wednesday. Susan did not have a household employee in 2012 and had no household employees other
than Helen during 2013.
Susan paid Helen $50 every Wednesday for her day's work.
Susan decided not to withhold Helen's share of the social security and Medicare taxes from the wages she paid Helen. Instead, she will pay Helen's share of these taxes from her own
funds. Susan did not withhold federal income tax because Helen did not give her a Form W-4 to request withholding and no
withholding is otherwise required.

State Disability Payments
Certain state disability plan payments to household employees
are treated as wages subject to social security and Medicare
taxes. If your employee received payments from a plan that
withheld the employee's share of social security and Medicare
taxes, include the payments on lines 1 and 3 of Schedule H and
complete the rest of Part I through line 7. Add lines 2, 4, 6, and
7. From that total, subtract the amount of these taxes withheld
by the state. Enter the result on line 8. Also, enter “disability”
and the amount subtracted on the dotted line next to line 8. See
the notice issued by the state for more details.

Helen was employed by Susan for the rest of the year (a total of 46 weeks). The following is some of the information Susan will need to complete Schedule H, Form W-2, and Form
W-3.
Helen's total cash wages . . . . . . . .

How To Correct Schedule H

Helen's share of the:
Social security tax . . . . . .

If you discover an error on a Schedule H that you previously
filed with Form 1040, Form 1040NR, or Form 1040-SS, file
Form 1040X, Amended U.S. Individual Income Tax Return,
and attach a corrected Schedule H. If you discover an error on
a Schedule H that you previously filed with Form 1041, file an
“Amended” Form 1041 and attach a corrected Schedule H.

Medicare tax . . . . . . . . .
Helen's total cash wages each quarter:
1st quarter . . . . . . . . . .
2nd quarter . . . . . . . . .
3rd quarter . . . . . . . . . .
4th quarter . . . . . . . . . .

If you discover an error on a Schedule H that you filed as a
stand-alone return, file another stand-alone Schedule H with
the corrected information. In the top margin of your corrected
Schedule H write (in red ink if possible) “CORRECTED” followed by the date you discovered the error.

$2,300.00
($50 x 46 weeks)
$142.60
($2,300 x 6.2% (.062))
$33.35
($2,300 x 1.45% (.0145))
$350.00 ($50 x 7weeks)
$650.00 ($50 x 13 weeks)
$650.00 ($50 x 13 weeks)
$650.00 ($50 x 13 weeks)

Amount included in box 1 of Form W-2 and Form W-3:
Cash wages . . . . . . . . . . . . . . . . . . . . . . .
Helen's share of social security tax paid by
Susan . . . . . . . . . . . . . . . . . . . . . . . . . .
Helen's share of Medicare tax paid by Susan . . . .

If you owe tax, pay in full with your Form 1040X, Form
1041, or stand-alone Schedule H. If you overpaid tax on a previously filed Schedule H, then depending on whether you adjust or claim a refund, you must certify that you repaid or reimbursed the employee's share of social security and Medicare
taxes, or that you have obtained consents from your employees
to file a claim for refund for the employee tax. See Pub. 926 for
complete instructions.

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,300.00
142.60
33.35
$2,475.95

Because Susan paid less than $1,000 per quarter to household employees during 2012 (no employees) and 2013 (see
above), she is not liable for FUTA tax.

How To Get Forms and Publications

TIP

To get the IRS forms and publications mentioned in these instructions (including Notice 797), visit www.irs.gov/formspubs
or call 1-800-TAX-FORM (1-800-829-3676).

H-9

See Pub. 926 for an example showing how to com
plete Forms W2 and W3 if the employer withheld
social security and Medicare taxes from the employ
ee's wages.

Household Employment Taxes

SCHEDULE H
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)

OMB No. 1545-1971

(For Social Security, Medicare, Withheld Income, and Federal Unemployment (FUTA) Taxes)
▶

▶ Attach to Form 1040, 1040NR, 1040-SS, or 1041.
Information about Schedule H and its separate instructions is at www.irs.gov/form1040.

2013

Attachment
Sequence No. 44
Social security number

Name of employer

001-11-1111
Employer identification number

Susan Green

0 0 1 2 3 4 5 6 7

Calendar year taxpayers having no household employees in 2013 do not have to complete this form for 2013.
A Did you pay any one household employee cash wages of $1,800 or more in 2013? (If any household employee was your
spouse, your child under age 21, your parent, or anyone under age 18, see the line A instructions before you answer this
question.)
√

Part I

Yes. Skip lines B and C and go to line 1.
No. Go to line B.

Social Security, Medicare, and Federal Income Taxes

1 Total cash wages subject to social security tax .

2 Social security tax. Multiply line 1 by 12.4% (.124) .

3 Total cash wages subject to Medicare tax .

1
.

4 Medicare tax. Multiply line 3 by 2.9% (.029) .

5 Total cash wages subject to Additional Medicare Tax withholding .

6 Additional Medicare Tax withholding. Multiply line 5 by 0.9% (.009)

7 Federal income tax withheld, if any .

2,300

285

351

8 Total social security, Medicare, and federal income taxes. Add lines 2, 4, 6, and 7 .

.
5

9 Did you pay total cash wages of $1,000 or more in any calendar quarter of 2012 or 2013 to all household employees?
(Do not count cash wages paid in 2012 or 2013 to your spouse, your child under age 21, or your parent.)
√ No. Stop. Include the amount from line 8 above on Form 1040, line 59a. If you are not required to file Form 1040, see the

line 9 instructions.

H-10

Note: Although not shown, Susan also enters on Form W-2 the
required state or local income tax information in boxes 15
through 20.
22222

For Official Use Only

a Employee’s social security number

Void

000-00-4567

b Employer identification number (EIN)

Visit the SSA website at www.socialsecurity.gov/employer to
file Copy A of Form W-2 electronically.
▶

OMB No. 1545-0008
1 Wages, tips, other compensation

2 Federal income tax withheld

2475.95

00-1234567
c Employer’s name, address, and ZIP code

3 Social security wages

4 Social security tax withheld

2300.00

Susan Green
16 Gray Street
Anyplace, CA 92665

142.60

5 Medicare wages and tips

6 Medicare tax withheld

2300.00

33.35

7 Social security tips

d Control number

8 Allocated tips

e Employee’s first name and initial

Suff. 11 Nonqualified plans

Last name

Helen R.

10 Dependent care benefits

Maple

19 Pine Avenue
Anycity, CA 92666

Statutory
employee

Retirement
plan

12a See instructions for box 12
C
o
d
e

Third-party
sick pay

14 Other

12b
C
o
d
e

12c
C
o
d
e

12d
C
o
d
e

f Employee’s address and ZIP code
15 State

Form

16 State wages, tips, etc.

Employer’s state ID number

W-2

17 State income tax

18 Local wages, tips, etc.

2013

Wage and Tax Statement

a Control number

(Check one)

For Official Use Only ▶

941

Military

CT-1

Hshld.
emp.

c Total number of Forms W-2

✗

943

944

Medicare
govt. emp.

d Establishment number

e Employer identification number (EIN)

00-1234567

f Employer’s name

Susan Green
16 Gray Street
Anyplace, CA 92665

Kind
of
Employer
(Check one)

▲

Kind
of
Payer

Cat. No. 10134D

OMB No. 1545-0008

▲

20 Locality name

Department of the Treasury—Internal Revenue Service
For Privacy Act and Paperwork Reduction
Act Notice, see the separate instructions.

Copy A For Social Security Administration — Send this entire page with
Form W-3 to the Social Security Administration; photocopies are not acceptable.

33333

19 Local income tax

None apply

501c non-govt.

State/local
non-501c

State/local 501c

1 Wages, tips, other compensation

2475.95

Third-party
sick pay
Federal govt.

2 Federal income tax withheld

3 Social security wages

4 Social security tax withheld

5 Medicare wages and tips

6 Medicare tax withheld

2300.00

(Check if
applicable)

142.60

2300.00

33.35

8 Allocated tips

7 Social security tips

10 Dependent care benefits

9
11 Nonqualified plans

12a Deferred compensation

h Other EIN used this year

13 For third-party sick pay use only

12b

15 State

14 Income tax withheld by payer of third-party sick pay

g Employer’s address and ZIP code

Employer’s state ID number

16 State wages, tips, etc.

17 State income tax

18 Local wages, tips, etc.

Contact person

Telephone number

Email address

Fax number

19 Local income tax

(123) 456-7890

For Official Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying documents and, to the best of my knowledge and belief, they are true, correct, and
complete.
Signature ▶
Form

W-3

Date ▶

Title ▶

Transmittal of Wage and Tax Statements

Note: When you fill in Forms W-2 and W-3, please—
• Type entries using black ink.
• Enter all money amounts without the dollar sign and comma, but
with the decimal point (for example, 2475.95 not $2,475.95).

H-11

2013

1/29/14
Department of the Treasury
Internal Revenue Service

• Do not round money amounts—show the cents portion.

Privacy Act and Paperwork Reduction Act Notice
We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the
information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of
tax. If you do not provide the information we ask for, or provide false or fraudulent information, you may be subject to penalties.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books or records relating to a form or instructions must be retained as long as their
contents may become material in the administration of any Internal Revenue law.
Subtitle C, Employment Taxes, of the Internal Revenue Code imposes employment taxes on wages and provides for income tax
withholding. This form is used to determine the amount of the taxes that you owe. Section 6011 requires you to provide the requested information if the tax is applicable to you. Section 6109 requires you to provide your identification number.
Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or
requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we
may disclose your tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of
Columbia, and U.S. commonwealths and possessions to administer their tax laws. We may also disclose this information to other
countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the
instructions for their individual income tax return.
The estimated burden for all other taxpayers who file this form is shown below.
Recordkeeping, 1 hr., 38 min.;
Learning about the law or the form, 39 min.;
Preparing the form, 1 hr.;
Copying, assembling, and sending the form to the IRS, 34 min.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would
be happy to hear from you. You can send us comments from www.irs.gov/formspubs. Click on More Information and then click on
Comment on Tax Forms and Publications. Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Schedule H (Form 1040) to this address. Instead, see When and Where To File, earlier.

H-12

Do You Have To File Form 1040, 1040NR, 1040-SS, or Form 1041?
Yes — Attach Schedule H to that form and mail to the address in your tax return instructions.
No — Mail your completed Schedule H and payment to the Department of the Treasury, Internal Revenue Service, for the place
where you live. No street address is needed. See When and Where To File for the information to enter on your payment.
IF you live in...

THEN use this address...

Florida, Louisiana, Mississippi, Texas

Austin, TX 73301-0002

Alaska, Arizona, California, Colorado, Hawaii, Idaho, Nevada, New Mexico,
Oregon, Utah, Washington, Wyoming

Fresno, CA 93888-0002

Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana,
Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Wisconsin

Fresno, CA 93888-0002

Alabama, Georgia, Kentucky, Missouri, New Jersey, North Carolina, South
Carolina, Tennessee, Virginia

Kansas City, MO 64999-0002

Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts,
New Hampshire, New York, Pennsylvania, Rhode Island, Vermont, West
Virginia

Kansas City, MO 64999-0002

APO, FPO, American Samoa, the Commonwealth of the Northern Mariana
Islands, nonpermanent residents of Guam or the U.S. Virgin Islands*, Puerto
Rico, dual-status aliens, a foreign country

Austin, TX 73301-0215

* Permanent residents of Guam should use: Department of Revenue and Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921;
permanent residents of the U.S. Virgin Islands should use: USVI Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, Thomas, VI
00802.

H-13

File Type	application/pdf
File Title	2013 Instruction 1040 Schedule H
Subject	2013 Instructions for Schedule H (Form 1040)Household Employment Taxes, HouseholdEmployers
Author	W:CAR:MP:FP
File Modified	2014-04-30
File Created	2013-12-30