Household Employment Taxes 2011 Checklist
Schedule H 2011 reports Social Security and Medicare taxes owed on household employee wages for the calendar year 2011. This form applies only to employers of domestic workers and requires separate filing with Form 1040 rather than integration into standard wage reporting schedules.
Understanding Schedule H 2011 Filing Requirements
You must file Schedule H 2011 if you paid cash wages of $1,700 or more to any one household employee during 2011. The form also applies if you withheld federal income tax for any household employee during the year, regardless of the wage amount.
Filing becomes necessary when you paid total cash wages of $1,000 or more in any calendar quarter of 2010 or 2011 to all household employees combined. These threshold amounts determine whether you must report employment taxes for domestic workers such as nannies, housekeepers, caretakers, and yard workers.
Form Structure and Organization
Schedule H 2011 contains four distinct parts that organize different types of household
employment taxes
- Part I addresses Social Security, Medicare, and federal income taxes for household
employees.
- Part II covers Federal Unemployment (FUTA) Tax obligations and includes two sections
for different reporting scenarios.
- Part III calculates total household employment taxes by combining amounts from
previous parts.
- Part IV requires address and signature information only when you file Schedule H
separately rather than attaching it to another tax return.
Employer Identification Information
The header section of Schedule H requires your name, Social Security number, and Employer
Identification Number. You must enter your Social Security number in the designated space at the top of the form.
An Employer Identification Number becomes necessary when you employ household workers, and you cannot substitute your Social Security number for this nine-digit identifier. There are several ways to get an EIN from the Internal Revenue Service, including online applications that produce results right away.
Part I: Social Security and Medicare Tax Calculations
Part I calculates both employee and employer portions of Social Security tax and Medicare tax on qualifying wages. You must report total cash wages subject to Social Security taxes on line 1, then multiply this amount by 10.4 percent to determine the combined tax liability on line 2.
In 2011, the Social Security wage base limit was $106,800 per worker. Line 3 requires total cash wages subject to Medicare taxes, which have no wage limit.
On line 4, Medicare taxes are computed by multiplying line 3 by 2.9 percent. Line 5 reports any federal income tax you withheld from household employee wages during 2011, which applies only when you and the employee agreed to withholding arrangements.
The combined Social Security and Medicare tax rate of 10.4 percent for 2011 reflects the temporary reduction in the employee portion of Social Security tax from 6.2 percent to 4.2 percent. Line 6 totals the amounts from lines 2, 4, and 5 to show your complete household employment tax obligation.
Part II: Federal Unemployment Tax Requirements
Part II determines your federal unemployment tax liability based on cash wages paid to household employees. The FUTA tax rate changed during 2011, starting at 6.2 percent from
January through June and decreasing to 6.0 percent from July through December.
You may claim a credit for state unemployment contributions that reduces the effective FUTA tax rate to 0.8 percent before July 1 and 0.6 percent after June 30. Lines 8 through 10 contain yes-or-no questions that determine whether you complete Section A or Section B of Part II.
Section A Calculations
Section A applies when you paid unemployment contributions to only one state, paid all contributions by the return due date, and all FUTA-taxable wages were also taxable for state unemployment purposes. Line 13 requires total cash wages subject to FUTA tax, limited to the first $7,000 paid to each household employee during 2011.
Line 14 calculates your FUTA tax by applying the reduced rate separately to wages paid before
July 1 and after June 30. Section B provides a more detailed calculation for employers who answered no to any question on lines 8 through 10.
Part III and Part IV Completion
Part III combines your household employment tax obligations from previous sections into one total amount. Line 23 carries forward the amount from line 6, or you enter zero if you checked yes on line C of page 1.
Line 24 adds your FUTA tax from either line 14 or line 22 to the amount on line 23. This total represents your complete household employment tax liability for 2011 that you report on your annual return.
When to Complete Part IV
Part IV requires completion only when you file Schedule H separately without attaching it to another tax return. You must provide your complete address and signature under penalties of perjury when filing as a standalone form.
Most household employers attach Schedule H to their individual income tax returns and do not complete Part IV. The separate filing option applies primarily to taxpayers whose income falls below normal filing thresholds.
Filing Methods and Deadlines
You must file Schedule H 2011 with your Form 1040, Form 1040NR, Form 1040-SS, or Form
1041 by April 17, 2012, for calendar year taxpayers. Electronic filing is available when you attach Schedule H to these forms and submit them through approved e-file providers.
Extensions of time to file your main tax return also extend the Schedule H filing deadline to the same date. Fiscal year filers must submit Schedule H by their fiscal year return due date, including any approved extensions.
Standalone Filing Requirements
Taxpayers who are not required to file an individual income tax return must file Schedule H separately by April 17, 2012. You must include payment for the household employment taxes owed when submitting the standalone form.
Required Supporting Documentation
You must file Form W-2 for each household employee to whom you paid $1,700 or more of cash wages in 2011. The wages must be subject to Social Security and Medicare taxes under the threshold requirements established for household employment.
When sending any Forms W-2 to the Social Security Administration, you also need to submit
Form W-3. Form W-2 becomes necessary even when wages fall below the Social Security threshold if you withheld federal income tax from any household employee.
The deadline for providing Form W-2 to employees is January 31, 2012. You must send Copy A of all Forms W-2 with Form W-3 to the Social Security Administration by February 29, 2012, or by April 2, 2012, if you file electronically.
Common Filing Scenarios
Step 1: Determine Your Filing Obligation
Calculate the total cash wages you paid to each household employee during 2011. Compare this amount to the $1,700 threshold for Social Security and Medicare tax obligations.
Check whether you withheld federal income tax from any employee, regardless of wage amounts. Review your quarterly wage totals to determine if you paid $1,000 or more in any quarter of 2010 or 2011.
Step 2: Calculate Social Security and Medicare Taxes
Enter total cash wages subject to Social Security taxes on line 1, excluding amounts over
$106,800 per employee. Multiply line 1 by 10.4 percent and enter the result on line 2.
Record total cash wages subject to Medicare taxes on line 3 without any wage limit. Multiply line
3 by 2.9 percent and enter the result on line 4.
Step 3: Report Withheld Income Tax
Enter any federal income tax you withheld from household employee wages on line 5. This line applies only when you and the employee agreed to withholding arrangements in advance. Add lines 2, 4, and 5 to calculate your total tax obligation for Part I.
Step 4: Calculate FUTA Tax
Answer the questions on lines 8 through 10 to determine which section to complete. Enter total cash wages subject to FUTA tax on line 13 in Section A, limited to $7,000 per employee.
Calculate the FUTA tax separately for wages paid before July 1 and after June 30 using the applicable rates.
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Step 5: Complete Part III and Finalize
Enter the amount from line 6 on line 23 of Part III. Add your FUTA tax from line 14 or line 22 to the line 23 amount. Transfer the line 24 total to the appropriate line on your Form 1040, Form
1040NR, Form 1040-SS, or Form 1041.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
