Schedule H

[MsTabbyKats]

I think I am having a "senior moment"....or just never did this before.

Client is hiring a nanny.  If I do a Schedule H....he ends up paying 100% of the social security/medicare.

If he withholds from her...he needs to do a 941 and a W-2, correct?

He can issue a 1099-Misc...and then she will be responsible for everything (he can re-reimburse her if that's the agreement).

Am I wrong....missing something....forgetting something?

[Lion EA]

W-2.  Schedule H.  He can withhold employee FICA/Medicare.  Or, pay all of it and add "her" half to her salary in Box 1.  State version of 941, probably annually in January.  NO 1099.  Read latest issue of EA Journal.

Edited September 22, 2015 by Lion EA

[RitaB]

I'm just going to be lazy and say check out Publication 926.  Agree with the other Rita.     Basically, Sch H serves as the 941 (or 943, as it were).  Don't complete 941 or 943.  Prepare W-2 and W-3, 940, and state unemployment if wages are above the limits.  Wages paid to some individuals don't count.  Agree, a nanny is not a subcontractor.

 

http://www.irs.gov/publications/p926/ar02.html#en_US_2014_publink100086752

Edited September 22, 2015 by RitaB

[Gail in Virginia]

I'm just going to be lazy and say check out Publication 926.  Agree with the other Rita.     Basically, Sch H serves as the 941 (or 943, as it were).  Don't complete 941 or 943.  Prepare W-2 and W-3, 940, and state unemployment if wages are above the limits.  Wages paid to some individuals don't count.  Agree, a nanny is not a subcontractor.

 

http://www.irs.gov/publications/p926/ar02.html#en_US_2014_publink100086752

Schedule H also serves as the 940; complete page 2 if the employee meets the requirement to pay FUTA. 

[RitaB]

Schedule H also serves as the 940; complete page 2 if the employee meets the requirement to pay FUTA. 

Good catch, Gail!