Your question is interesting because I've generally had a few of household employee situations each year for many many years and it differs from yours. You mention a payroll service that "specializes" in this. I have no idea who that would be and why someone like ADP and Paychex, or any of the many others, couldn't do this properly. Also, I typically file quarterly STATE unemployment tax returns. No 941s. At year end, I prepare W2 and W3 forms. I then include Schedule H on the personal tax return, where taxpayer remits the social security taxes and FUI. There is generally no withholding tax.
------------------------------
Larry Prosky CPA
Prosky & Rosenfeld LLP
1025 Old Country Road
Suite 403W
Westbury, NY 11590
(516) 873-9600 X1
(516) 661-6020
------------------------------
Original Message:
Sent: 04-17-2021 01:38 PM
From: Shai Tzach
Subject: Schedule H
The taxpayer employed a household employee in 2020.
They paid her through a payroll service that specializes in household employees. the taxpayer had a tax ID#, withheld FICA from the employee, paid employer FICA, issued W-2, W-3, 940, and 941.
Does my client need to file Schedule H?
If yes, to report what?
Thank you,
Shai
--