EIN for household employees

[jasdlm]

Client is a new client. He is paying people round the clock to care for his disabled wife. In reviewing his year-end information and preparing W2s, W3s, 941, etc., I discovered that the EIN he is planning to use (just started paying people 4th quarter after bringing wife home from nursing home) is the EIN of an S-Corp he use to run some consulting business through. I think that I need to apply online for a new EIN before preparing the required documents. This is the first time I've ever had a client with household employees who were not independent contractors. Any advice would be appreciated.

Thanks.

jas

[jasdlm]

A note: I have read the information on 1040H, but my client has 3 full-time employees and he is withholding Federal/State taxes from their checks. It doesn't seem to me that 1040H is the best way to handle this. Again, any advice is appreciated.

[catax]

I prepare one Sch H. They have there own EIN. I know that in one of my update classes this year they said in the case of a SCH C you could use the same EIN for household employees. I would have to go back and review the exact details of that. However, I would think that there is no way that you could pay personal expenses from a corporation. If you are using an S Corp EIN it seems as if you would be mixing the business with the personal expenses. So my opinion is use a separate number. However, this is my opinion only.

[RoyDaleOne]

Generally, the instruction to Schedule H state that you need a EIN

for workers in your home.

FYI

You can include in medical expenses wages and other

amounts you pay for nursing services. The services need

not be performed by a nurse as long as the services are

a kind generally performed by a nurse. This includes services

connected with caring for the patient’s condition, such as giving medication or changing dressings,

bathing and grooming the patient. These services can be

provided in your home or another care facility.

Pub 502

[JohnH]

You can prepare an SS-4 and have the client sign it.

With that in hand, you can get an EIN in about 5 minutes online.

(Or you can have him come to your office and you can apply for it with him standing there)

[jasdlm]

Thanks, all. Very sound advice, as usual.