Pacun Posted March 17, 2012 Report Share Posted March 17, 2012 Client paid $100 per week to a babysitter and decided to pay taxes using Schedule H. Should I prepare her W-2 also or I just do Schedule H and I am done with this? Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 17, 2012 Report Share Posted March 17, 2012 A W-2 is required for the sitter to report income. Did the client withhold SS and MC taxes or was the $100 net? I have had a client for about 10 years with multiple caregivers as she has MS. She pays quarterly estimated taxes to cover the payroll taxes and I put the information on her Schedule H and issue a W-2 to the caregivers. Here they are required to be covered also by Workers' Comp paid twice yearly and unemployment insurance which is paid quarterly. I prepare those reports and client pays with vouchers as needed. Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 17, 2012 Report Share Posted March 17, 2012 Don't forget the issues involved when employers decide to be nice and pay the employee portion of SS/Medi tax: that amount gets added in Box 1 (but NOT Box 3 and Box 5) of the W-2. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 17, 2012 Report Share Posted March 17, 2012 Good reminder, Catherine. My client withheld so wasn't an issue. Pacun's client may not be happy with the additional amounts 'paid.' Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 17, 2012 Report Share Posted March 17, 2012 and your client may have disability, workers compensation insurance and state unemployment tax issues too. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 17, 2012 Report Share Posted March 17, 2012 And, you can't take care of state withholdings on a federal Schedule H, so you have quarterly employer filings with her state and annual SUTA and any other employer requirements. And, send the W-2 to the state with the state version of W-3. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 18, 2012 Author Report Share Posted March 18, 2012 No withholding took place. Do I have to prepare a W-2 and send it to the SS administration or sch H is enough? In any event, I do need to prepare a W-2 to give it to the employee but I am not sure if I need to send the W-2 to the SS adminitration. SUTA has been paid and FUTA was include on Schedule H with 1040. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 18, 2012 Report Share Posted March 18, 2012 Doesn't the W-2 have to go to the SSA so employee gets credit? The rest depends on your state. (CT wants ALL W-2s but only 1099s w/CT w/h; although, that has changed more than once since I've lived here). Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 18, 2012 Report Share Posted March 18, 2012 Yes you must send W-2's to Social Security. and give to employees Quote Link to comment Share on other sites More sharing options...
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