ole 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-3, Transmittal of Wage and Tax Statements, to the Social Security Administration by February 28, 2015 (March 31, 2015, if you file your Form W-2 electronically).
Use Schedule H (Form 1040), Household Employment Taxes, to report the federal employment taxes for your household employee if you pay the employee:
- Social Security and Medicare wages of $1,900 or more in 2014,
- FUTA wages, or
- Wages from which you withhold federal income tax.
File Schedule H with your 2014 federal income tax return by April 15, 2015. If you get an extension to file your return, the extension will also apply to your Schedule H.
If you are not required to file a 2014 tax return, you must file Schedule H by itself. See the Schedule H instructions for details.
Business Employment Tax Returns
Do not use Schedule H (Form 1040) if you choose to pay the employment taxes for your household employee with business or farm employment taxes. Instead, include the Social Security, Medicare, and withheld federal income taxes for the employee on the Forms 941, Employer's Quarterly Federal Tax Return, that you file for your business or on the Form 943, Employer's Annual Tax Return for Agricultural Employees, that you file for your farm. Include the FUTA tax for the employee on your Form 940 (or 940-EZ), Employer's Annual Federal Unemployment (FUTA) Tax Return.
If you report the employment taxes for your household employee on Form 941 or Form 943, file Form W-2 for the employee with the Forms W-2 and Form W-3 for your business or farm employees.
Keep your copies of Schedule H or other employment tax forms you file and related Forms W-2, W-3, W-4, and W-5. You must also keep records to support the information you enter on the forms you file. If you are required to file Form W-2, you will need to keep a record of your employee's name, address, and Social Security number.
Wage and Tax Records
On each payday you should record the date and amounts of:
- Your employee's cash and non-cash wages,
- Any employee Social Security tax you withhold or agree to pay 