NASSAUSUFFOLK

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  • 1.  Schedule H

    Posted 04-17-2021 01:39 PM
    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

    --
    Shai Tzach, EA
    Shai@shatz-tax.com



  • 2.  RE: Schedule H

    Silver Most Valuable Member
    Posted 04-18-2021 07:07 AM
    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
    ------------------------------



  • 3.  RE: Schedule H

    Bronze Most Valuable Member
    Posted 04-18-2021 11:26 AM
    Hi Shai,
    The payroll company should provide you with a completed Schedule H with all required information.  You must include this information with the 1040 filing.
    Best,


    ------------------------------
    Elizabeth Brown
    ELIZABETH BROWN, CPA
    Ossining NY
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  • 4.  RE: Schedule H

    Posted 04-18-2021 01:37 PM
    Yes, you need to file a Schedule H reporting the Wages, the Fica & Fwt withheld along with the NYS employment(unemployment ) taxes.  If the taxpayer had young children, and both parents are working, there maybe a child care tax credit.  Normally, they have to pay the the(federal) withholding taxes that were withheld and the Fed unemployment on their personal tax retun.






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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.