to your household employee in 2014, less any advance earned income credit payments you make to the employee, to your income tax. The amount you owe with your return is due to the IRS by April 15, 2015.
Tip: You can avoid owing tax with your return if you pay enough federal income tax before you file to cover the employment taxes for your household employee, as well as your income tax. If you are employed, you can ask your employer to withhold more federal income tax from your wages in 2014. If you get a pension or annuity, you can ask for more federal income tax withholding from your benefits. Or you can make estimated tax payments for 2014 to the IRS, or increase your payments if you already make them.
Asking for More Federal Income Tax Withholding
If you are employed and want more federal income tax withheld from your wages to cover the employment taxes for your household employee, give your employer a new Form W-4, Employee's Withholding Allowance Certificate. Complete it as before, but show the additional amount you want withheld from each paycheck on line 6.
If you get a pension or annuity and want more federal income tax withheld to cover the employment taxes for your household employee, give the payer a new Form W-4P, Withholding Certificate for Pension or Annuity Payments (or a similar form provided by the payer). Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3.
Paying Estimated Tax
If you want to make estimated tax payments to cover the employment taxes for your household employee, get Form 1040-ES, Estimated Tax for Individuals. Use its payment vouchers to make your payments. You can pay all of the employment taxes at once or in installments. If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. Estimated tax payments for 2014 are ordinarily due April 15, June 16, September 15, 2014 and January 15, 2015.
Payment Option for Business Employers
If you own a business as a sole proprietor or your home is on a farm operated for profit, you can choose either of two ways to pay the 2014 federal employment taxes for your household employee. You can pay them with your federal income tax as described above, or you can include them with your federal employment tax deposits or other payments for your business or farm employees.
If you pay the employment taxes for your household employee with business or farm employment taxes, you must report them with those taxes on Form 941 or Form 943 and on Form 940 (or 940-EZ).
You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay the employee:
- Social Security and Medicare wages,
- FUTA wages, or
- Wages from which you withhold federal income tax.
The employment tax forms and instructions you need for 2014 will be sent to you automatically in January 2015 if you reported employment taxes for 2013 on Schedule H (Form 1040), Household Employment Taxes.
Employer Identification Number (EIN)
You must include your employer identification number (EIN) on the forms you file for your household employee. An EIN is a 9-digit number issued by the IRS--not the same as a Social Security number.
Tip: You ordinarily will have an EIN if you previously paid taxes for employees, either as a household employer or in a business you own as a sole proprietor, or if you have a Keogh Plan. If you already have an EIN, use that number. If you do not have an EIN, get Form SS-4, Application for Employer Identification Number. The instructions for Form SS-4 explain how you can get an EIN immediately by telephone or in about 4 weeks if you apply by mail.
A separate 2014 Form W-2, Wage and Tax Statement, must be filed for each household employee to whom you pay:
- Social Security and Medicare wages of $1,900 or more, or
- Wages from which you withhold federal income tax.
You must complete Form W-2 and give Copies B, C, and 2 to your employee by January 31, 2015. You must send Copy A of Form W-2 with Form W-