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The Schedule H

The tax deadline is rapidly approaching and the scramble to assemble a year’s worth of tax forms, financial statements, and receipts is on.  A crucial tax form for household employers is the Schedule H (https://www.irs.gov/pub/irs-pdf/f1040sh.pdf).  Some household employers get confused and prepare quarterly 941 filings and year-end 940 or 944 forms – these forms are not correct for household employers and are intended for businesses.

The Schedule H is used by all employers of household employees to report the payroll taxes for the year.  If federal taxes were not paid or over/underpaid, they can be reconciled through the Schedule H on the 1040 (there may be penalties and interest assessed by the IRS for not making federal estimated tax payments during the year – consult NannyChex or your tax professional for more information).    

A household employee is not limited to nannies and caregivers.  Gardeners, chefs, chauffeurs, private nurses, babysitters, housekeepers, house managers, and private aides are all examples of in-home workers who may be household employees as defined by the IRS which means they should receive a W-2 from their employer and the employer should include a Schedule H with their 1040 tax return.

The Schedule H is a form that is provided to all NannyChex clients who employ household workers and meet the IRS requirements for preparing the form.  If you employed a household employee in 2016 and have Schedule H questions or if you want to avoid the administrative headaches of preparing a Schedule H yourself, please contact us – we’re here to help! 



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