The central tax form for household employers is the Schedule H. 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 2018 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!