What Forms Must You File?

You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay any of the following wages to the employee.

• Social security and Medicare wages.
• FUTA wages.
• Wages from which you withhold federal income tax.

The employment tax forms and instructions you need for 2002 will be sent to you automatically in January 2003 if you reported employment taxes for 2001 on Schedule H (Form 1040), Household Employment Taxes. Otherwise, for information on ordering these forms, see How To Get Tax Help, later.

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. It is not the same as a social security number.

You ordinarily will have an EIN if you previously paid taxes for employees, either as a household employer or as a sole proprietor of a business you own. 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.

Form W-2. File a separate 2002 Form W-2, Wage and Tax Statement, for each household employee to whom you pay either of the following wages during the year.

• Social security and Medicare wages of $1,300 or more.
• 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, 2003. 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, 2003 (March 31, 2003, if you file your Form W-2 electronically).

Employee who leaves during the year. If an employee stops working for you before the end of 2002, you can file Form W-2 and provide copies to your employee immediately after you make your final payment of wages. You do not need to wait until 2003. If the employee asks you for Form W-2, give it to him or her within 30 days after the request or the last wage payment, whichever is later.

Schedule H. Use Schedule H (Form 1040), Household Employment Taxes, to report household employment taxes if you pay any of the following wages to the employee.

• Cash wages of $1,300 or more.
• FUTA wages.
• Wages from which you withhold federal income tax.

File Schedule H with your 2002 federal income tax return by April 15, 2003. If you get an extension to file your return, the extension will also apply to your Schedule H.

Filing options when no return is required. If you are not required to file a 2002 tax return, you have the following two options.

1. You can file Schedule H by itself. See the Schedule H instructions for details.
2. If, besides your household employee, you have other employees for whom you report employment taxes on Form 941 or Form 943 and on Form 940 (or 940-EZ), you can include your taxes for your household employee on those forms. See Business employment tax returns, next.

Employers having the options listed above include certain tax-exempt organizations that do not have to file a tax return, such as churches that pay a household worker to take care of a minister's home.

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. (See Payment option for business employers, earlier.) Instead, include the social security, Medicare, and withheld federal income taxes for the employee on the Form 941, Employer's Quarterly Federal Tax Return, you file for your business or on the Form 943, Employer's Annual Tax Return for Agricultural Employees, 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 that employee with the Forms W-2 and Form W-3 for your business or farm employees.

For information on filing Form 941, get Publication 15. For information on filing Form 943, get Publication 51, Circular A, Agricultural Employer's Tax Guide. Both of these publications also provide information about filing Form 940 (or 940-EZ).

Previous| First | Next

Publication Index | IRS-Forms Main | Home