W-2 Household Employees

Suzette Ciplickas Updated by Suzette Ciplickas

Household Employees

Household employer filing under Schedule H. Employee does domestic work.

• The sum of Social Security Wages and Social Security Tips must be equal to or greater than the yearly minimum to be covered.

• If the sum is less than the tax year minimum, report zeros in the Social Security Wages and Social Security Tips

➢ Note: If the sum is nonzero and less than the tax year minimum, SSA will reject your submission.

• Medicare Wages and Tips must be equal to or greater than the tax year minimum to be covered.

If Medicare Wages and Tips is less than the Household tax year minimum, report zeros.

➢ Note: If Medicare Wages and Tips are nonzero and less than the tax year minimum, SSA will reject your submission.

• If you have a Household employee, you may need to withhold and pay Social Security and Medicare Taxes, pay Federal unemployment tax or both. To find out, please see IRS Publication 926.

• If you pay the employee less than the minimum Household amount for the reported tax year, none of the wages you pay the employee are Social Security or Medicare Wages and neither you nor your employee will owe Social Security or Medicare Tax on those wages.

• You aren't required to withhold Federal Income Tax from wages you pay a Household employee. You should withhold Federal Income Tax only if your Household employee asks you to withhold it and you agree. The employee must give you a completed Form W-4. See Do You Need To Withhold Federal Income Tax, in IRS Publication 926.

• For additional information, please refer to IRS Publication 926, Household Employer’s Tax Guide at www.irs.gov/pub/irs-pdf/p926.pdf.

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