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Given ATX is not supplying as much reference material (without extra cost) as it has in previous years I share this information. Tax Book http://www.thetaxbook.com/index.asp has been given good reports on this forum many times. Using that, I just finalized my order with "Gabriel" at 866-919-5277 ext. 153 . Currently a 20% discount is offered "E20B" on many products. Give Gabriel a call (if he can put up with me -- he is golden and happy to help). Just wanted to share. Good Season, Ed

From Reg 31.3506, the definition of "sitters" is " For purposes of this section, the term “sitters” means individuals who furnish personal attendance, companionship, or household care services to children or to individuals who are elderly or disabled." and according to this section of the IRC of 1954, "c) Individuals deemed self-employed. Any individual who, by reason of this section, is deemed not to be the employee of a companion sitting placement service shall be deemed to be self-employed for purposes of the tax on self-employment income (see sections 1401–1403 and the regulations thereunder in part 1 of this chapter (Income Tax Regulations))."

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

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