Schedule H

Description

Schedule H is used to report payroll taxes for household employee's wages. Schedule H needs to be filed if you answer yes to any of the following three questions:

1. Did you pay any one household employee cash wages of $1,400 or more in 2005?
2. Did you withhold Federal income tax during 2005 for any household employee?
3. Did you pay total cash wages of $1,000 or more in any calendar quarter of 2004 or 2005 to household employees? (Do not count cash wages paid in 2004 or 2005 to your spouse, your child under age 21, or your parent.)

You do not need to file Schedule H if the household help are employees of a company that specializes in household services such as "Molly Maids Inc.". In that case, the household employees are considered to be employees of the company and not your employees.

Also, you don't have to pay Social Security or Medicare taxes on the wages of a household employee who is under the age of 18 and a student.

Besides Schedule H, you need to give your household employees W-2s and file a copy of the W-2s along with a Form W-3 with the Social Security Administration.

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