MsTabbyKats Posted September 22, 2015 Report Share Posted September 22, 2015 I think I am having a "senior moment"....or just never did this before.Client is hiring a nanny. If I do a Schedule H....he ends up paying 100% of the social security/medicare.If he withholds from her...he needs to do a 941 and a W-2, correct?He can issue a 1099-Misc...and then she will be responsible for everything (he can re-reimburse her if that's the agreement).Am I wrong....missing something....forgetting something? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted September 22, 2015 Report Share Posted September 22, 2015 (edited) W-2. Schedule H. He can withhold employee FICA/Medicare. Or, pay all of it and add "her" half to her salary in Box 1. State version of 941, probably annually in January. NO 1099. Read latest issue of EA Journal. Edited September 22, 2015 by Lion EA 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted September 22, 2015 Report Share Posted September 22, 2015 (edited) 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 Edited September 22, 2015 by RitaB 5 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted September 22, 2015 Report Share Posted September 22, 2015 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_publink100086752Schedule H also serves as the 940; complete page 2 if the employee meets the requirement to pay FUTA. 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted September 22, 2015 Report Share Posted September 22, 2015 Schedule H also serves as the 940; complete page 2 if the employee meets the requirement to pay FUTA. Good catch, Gail! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.