Household Employment Taxes
When to fill out Schedule H of 1040 Form?
You must complete Form 1040 Schedule H, Household Employment Taxes, if any of the following
You paid any one household employee cash wages of $1,500 or more in the tax year
You withheld federal income tax during the tax year for any household employee
You paid total cash wages of $1,000 or more in any calendar quarter of the tax year or the previous tax
year to all household employees
Household employment taxes are entered on line 62 of Form 1040.
Note: do not include amounts paid to an employee who was under age 18 at any time during the
year and was also a student.
Definition of a household employee
A household employee is defined as any person who does household work where you control
what will be done and how it will be done. This would include babysitters, nannies, health aides, maids, yard
If the worker controls how the work is done, the worker is generally not an employee.
You are not required to withhold federal income tax from a household employee's wages. You are
required, however, to provide each household employee with a W-2 form when you do agree to withhold social
security and Medicare taxes of federal income tax.
Employers are required to obtain an EIN to file Form W-2 and Schedule H. Do not use your
social security number as an EIN.