Department of the Treasury Contents
Internal Revenue Service
What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Reminder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Publication 926 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Cat. No. 64286A
Do You Have a Household Employee? . . . . . . . . . 2
Household Can Your Employee Legally Work
in the United States? . . . . . . . . . . . . . . . . . . . . 2
Employer’s Do You Need To Pay Employment Taxes? . . . . . .
Social Security and Medicare Taxes . . . . . . . . . .
3
3
Tax Guide Federal Unemployment (FUTA) Tax . . . . . . . . . .
Do You Need To Withhold
5
Federal Income Tax? . . . . . . . . . . . . . . . . . . . . 6
For Wages Paid in 2008 What Do You Need To Know About
the Earned Income Credit? . . . . . . . . . . . . . . . 7
For use in 2008 How Do You Make Tax Payments? . . . . . . . . . . . . 7
What Forms Must You File? . . . . . . . . . . . . . . . . . . 8
What Records Must You Keep? . . . . . . . . . . . . . . . 9
Can You Claim a Credit for Child and
Dependent Care Expenses? . . . . . . . . . . . . . . 9
How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 10
Appendix: State Unemployment Tax
Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Employee Social Security and Medicare
Tax Withholding Table . . . . . . . . . . . . . . . . . . . 17
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
What’s New
Change to social security and Medicare wage thresh-
old. The social security and Medicare wage threshold is
$1,600 for 2008. This means that if you pay a household
employee cash wages of less than $1,600 in 2008, you do
not have to report and pay social security and Medicare
taxes on that employee’s 2008 wages. For more informa-
tion, see Social security and Medicare wages on page 4.
Reminder
Photographs of missing children. The Internal Reve-
nue Service is a proud partner with the National Center for
Missing and Exploited Children. Photographs of missing
Get forms and other information children selected by the Center may appear in this publica-
faster and easier by: tion on pages that would otherwise be blank. You can help
bring these children home by looking at the photographs
Internet • www.irs.gov and calling 1-800-THE-LOST (1-800-843-5678) if you rec-
ognize a child.
Example. You pay Betty Shore to babysit your child and
Introduction do light housework 4 days a week in your home. Betty
follows your specific instructions about household and
The information in this publication applies to you only if you child care duties. You provide the household equipment
have a household employee. If you have a household and supplies that Betty needs to do her work. Betty is your
employee in 2008, you may need to pay state and federal household employee.
employment taxes for 2008. You generally must add your
federal employment taxes to the income tax that you will Household work. Household work is work done in or
report on your 2008 federal income tax return. around your home. Some examples of workers who do
This publication will help you decide whether you have a household work are:
household employee and, if you do, whether you need to • Babysitters
pay federal employment taxes (social security tax, Medi-
care tax, federal unemployment tax, and federal income • Caretakers
tax withholding). It explains how to figure, pay, and report • Cleaning people
these taxes for your household employee. It also explains
what records you need to keep. • Domestic workers
This publication also tells you where to find out whether • Drivers
you need to pay state unemployment tax for your house-
hold employee.
• Health aides
• Housekeepers
Comments and suggestions. We welcome your com-
ments about this publication and your suggestions for • Maids
future editions. • Nannies
You can write to us at the following address: • Private nurses
• Yard workers
Internal Revenue Service
Business Forms and Publications Branch
SE:W:CAR:MP:T:B:C Workers who are not your employees. If only the
1111 Constitution Ave. NW, IR-6526 worker can control how the work is done, the worker is not
Washington, DC 20224 your employee but is self-employed. A self-employed
worker usually provides his or her own tools and offers
services to the general public in an independent business.
We respond to many letters by telephone. Therefore, it
would be helpful if you would include your daytime phone A worker who performs child care services for you in his
number, including the area code, in your correspondence. or her home generally is not your employee.
You can email us at *taxforms@irs.gov. (The asterisk If an agency provides the worker and controls what work
must be included in the address.) Please put “Publications is done and how it is done, the worker is not your em-
Comment” on the subject line. Although we cannot re- ployee.
spond individually to each email, we do appreciate your
feedback and will consider your comments as we revise Example. You made an agreement with John Peters to
our tax products. care for your lawn. John runs a lawn care business and
offers his services to the general public. He provides his
Tax questions. If you have a tax question, check the own tools and supplies, and he hires and pays any helpers
information available on www.irs.gov or call he needs. Neither John nor his helpers are your household
1-800-829-1040. We cannot answer tax questions sent to employees.
either of the above addresses.
More information. More information about who is an em-
ployee is in Publication 15-A, Employer’s Supplemental
Tax Guide.
Do You Have a Household
Employee?
Can Your Employee Legally
You have a household employee if you hired someone to
do household work and that worker is your employee. The Work in the United States?
worker is your employee if you can control not only what
work is done, but how it is done. If the worker is your
It is unlawful for you knowingly to hire or continue
employee, it does not matter whether the work is full time
or part time or that you hired the worker through an agency !
CAUTION
to employ an alien who cannot legally work in the
United States.
or from a list provided by an agency or association. It also
does not matter whether you pay the worker on an hourly, When you hire a household employee to work for you on
daily, or weekly basis, or by the job. a regular basis, you and the employee must complete the
Page 2 Publication 926 (2008)
U.S. Citizenship and Immigration Services (USCIS) Form
I-9, Employment Eligibility Verification. No later than the
first day of work, the employee must complete the em-
Do You Need To Pay
ployee section of the form by providing certain required Employment Taxes?
information and attesting to his or her current work eligibil-
ity status in the United States. You must complete the If you have a household employee, you may need to
employer section by examining documents presented by withhold and pay social security and Medicare taxes, pay
the employee as evidence of his or her identity and em- federal unemployment tax, or both. To find out,
ployment eligibility. Acceptable documents to establish read Table 1.
identity and employment eligibility are listed on Form I-9. You do not need to withhold federal income tax from
You should keep the completed Form I-9 in your own your household employee’s wages. But if your employee
records. Do not submit it to the IRS, the USCIS, or any asks you to withhold it, you can. See Do You Need To
other government or other entity. The form must be kept Withhold Federal Income Tax? on page 6.
available for review upon notice by an authorized U.S.
Government official. If you need to pay social security, Medicare, or federal
Two copies of Form I-9 are contained in the Handbook unemployment tax or choose to withhold federal income
for Employers (Form M-274) published by the USCIS. tax, read Table 2 on page 4 for an overview of what you
may need to do.
Call the USCIS at 1-800-870-3676 to order the
Handbook for Employers. If you have questions If you do not need to pay social security, Medi-
about the employment eligibility verification pro- TIP care, or federal unemployment tax and do not
cess or other immigration-related employment matters, choose to withhold federal income tax, read
contact the USCIS Office of Business Liaison at State employment taxes, next. The rest of this publication
1-800-357-2099. does not apply to you.
You also can visit the USCIS website at State employment taxes. You should contact your state
www.uscis.gov to get Form I-9. unemployment tax agency to find out whether you need to
pay state unemployment tax for your household employee.
For the address and phone number, see the Appendix
For more information, see Employee’s Social Security near the end of the publication. You should also determine
Number (SSN) in Publication 15 (Circular E), Employer’s if you need to pay or collect other state employment taxes
Tax Guide. or carry workers’ compensation insurance.
Social Security and Medicare Taxes
The social security tax pays for old-age, survivors, and
disability benefits for workers and their families. The Medi-
care tax pays for hospital insurance.
Table 1. Do You Need To Pay Employment Taxes?
IF you ... THEN you need to ...
A– Pay cash wages of $1,600 or more in 2008 to any one Withhold and pay social security and Medicare taxes.
household employee. • The taxes are 15.3% of cash wages.
Do not count wages you pay to — • Your employee’s share is 7.65%.
• Your spouse, (You can choose to pay it yourself and not
• Your child under the age of 21, withhold it.)
• Your parent (see page 4 for an exception), or • Your share is a matching 7.65%.
• Any employee under the age of 18 at any time in
2008 (see page 4 for an exception).
B– Pay total cash wages of $1,000 or more in any Pay federal unemployment tax.
calendar quarter of 2007 or 2008 to household • The tax is usually 0.8% of cash wages.
employees.
• Wages over $7,000 a year per employee are not
Do not count wages you pay to — taxed.
• Your spouse, • You also may owe state unemployment tax.
• Your child under the age of 21, or
• Your parent.
Note. If neither A nor B above applies, you do not need to pay any federal employment taxes. But you may still need to
pay state employment taxes.
Publication 926 (2008) Page 3
Both you and your household employee may owe social give your employee in place of these items is included in
security and Medicare taxes. Your share is 7.65% (6.2% cash wages.
for social security tax and 1.45% for Medicare tax) of the
State disability payments treated as wages. Certain
employee’s social security and Medicare wages. Your em-
state disability plan payments that your household em-
ployee’s share is the same.
ployee may receive are treated as social security and
You can use Table 3 on page 17 to figure the Medicare wages. For more information about these pay-
TIP amount of social security and Medicare taxes to ments, see Instructions for Schedule H (Form 1040),
withhold from each wage payment. Household Employers, and the notice issued by the state.
You are responsible for payment of your employee’s Wages not counted. Do not count wages you pay to
share of the taxes as well as your own. You can either any of the following individuals as social security and
withhold your employee’s share from the employee’s Medicare wages, even if these wages are $1,600 or more
wages or pay it from your own funds. If you decide to pay during the year.
the employee’s share from your own funds, see Not with-
holding the employee’s share on page 5. Pay the taxes as 1. Your spouse.
discussed under How Do You Make Tax Payments? on 2. Your child who is under the age of 21.
page 7. Also, see What Forms Must You File? on page 8.
3. Your parent. Exception: Count these wages if both
Social security and Medicare wages. You figure social the following conditions apply.
security and Medicare taxes on the social security and
Medicare wages you pay your employee. a. Your parent cares for your child who is either of
If you pay your household employee cash wages of the following.
$1,600 or more in 2008, all cash wages you pay to that i. Under the age of 18, or
employee in 2008 (regardless of when the wages were
earned) are social security and Medicare wages. However, ii. Has a physical or mental condition that re-
any noncash wages you pay do not count as social secur- quires the personal care of an adult for at least
ity and Medicare wages. 4 continuous weeks in a calendar quarter.
If you pay the employee less than $1,600 in cash wages
in 2008, none of the wages you pay the employee are b. Your marital status is one of the following.
social security and Medicare wages and neither you nor
i. You are divorced and have not remarried,
your employee will owe social security or Medicare tax on
those wages. ii. You are a widow or widower, or
Cash wages. Cash wages include wages you pay by iii. You are living with a spouse whose physical or
check, money order, etc. Cash wages do not include the mental condition prevents him or her from car-
value of food, lodging, clothing, and other noncash items ing for your child for at least 4 continuous
you give your household employee. However, cash you weeks in a calendar quarter.
Table 2. Household Employer’s Checklist
You may need to do the following things when you have a household employee.
When you hire a household ❏ Find out if the person can legally work in the United States.
employee: ❏ Find out if you need to pay state taxes.
When you pay your household ❏ Withhold social security and Medicare taxes.
employee: ❏ Withhold federal income tax.
❏ Make advance payments of the earned income credit.
❏ Decide how you will make tax payments.
❏ Keep records.
By February 2, 2009: ❏ Get an employer identification number (EIN).
❏ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax
Statement.
By March 2, 2009 (March 31, 2009 ❏ Send Copy A of Form W-2 to the Social Security Administration (SSA).
if you file Form W-2
electronically):
By April 15, 2009: ❏ File Schedule H (Form 1040), Household Employment Taxes, with your
2008 federal income tax return (Form 1040). If you do not have to file a
return, use one of the other filing options, such as the option to file Schedule
H by itself.
Page 4 Publication 926 (2008)
4. An employee who is under the age of 18 at any time Not withholding the employee’s share. If you prefer to
during the year. Exception: Count these wages if pay your employee’s social security and Medicare taxes
providing household services is the employee’s prin- from your own funds, do not withhold them from your
cipal occupation. If the employee is a student, provid- employee’s wages. The social security and Medicare
ing household services is not considered to be his or taxes you pay to cover your employee’s share must be
her principal occupation. included in the employee’s wages for income tax pur-
poses. However, they are not counted as social security
Also, if your employee’s cash wages reach $102,000 in
and Medicare wages or as federal unemployment (FUTA)
2008, do not count any wages you pay that employee
wages.
during the rest of the year as social security wages to
figure social security tax. (Continue to count the em-
Example. You hire a household employee (who is an
ployee’s cash wages as Medicare wages to figure Medi-
unrelated individual over age 18) to care for your child and
care tax.)
agree to pay cash wages of $100 every Friday. You expect
If you provide your employee transit passes to commute
to pay your employee $1,600 or more for the year. You
to your home, do not count the value of the transit passes
decide to pay your employee’s share of social security and
(up to $115 per month for 2008) as wages. A transit pass
Medicare taxes from your own funds. You pay your em-
includes any pass, token, fare card, voucher, or similar
ployee $100 every Friday without withholding any social
item entitling a person to ride on mass transit, such as a
security or Medicare taxes.
bus or train.
For social security and Medicare tax purposes, your
If you provide your employee parking at or near your employee’s wages each payday are $100. For each wage
home or at or near a location from which your employee payment, you will pay $15.30 when you pay the taxes. This
commutes to your home, do not count the value of parking is $7.65 ($6.20 for social security tax + $1.45 for Medicare
(up to $220 per month for 2008) as wages. tax) to cover your employee’s share plus a matching $7.65
If you reimburse your employee for transit passes or for your share. For income tax purposes, your employee’s
parking, you may be able to exclude the reimbursement wages each payday are $107.65 ($100 + the $7.65 you will
amounts. See Publication 15-B, Employer’s Tax Guide to pay to cover your employee’s share of social security and
Fringe Benefits, for special requirements for this exclusion. Medicare taxes).
Withholding the employee’s share. You should with-
hold the employee’s share of social security and Medicare Federal Unemployment (FUTA) Tax
taxes if you expect to pay your household employee cash
wages of $1,600 or more in 2008. However, if you prefer to The federal unemployment tax is part of the federal and
pay the employee’s share yourself, see Not withholding the state program under the Federal Unemployment Tax Act
employee’s share, next. (FUTA) that pays unemployment compensation to workers
You can withhold the employee’s share of the taxes who lose their jobs. Like most employers, you may owe
even if you are not sure your employee’s cash wages will both the federal unemployment tax (the FUTA tax) and a
be $1,600 or more in 2008. If you withhold the taxes but state unemployment tax. Or, you may owe only the FUTA
then actually pay the employee less than $1,600 in cash tax or only the state unemployment tax. To find out
wages for the year, you should repay the employee. whether you will owe state unemployment tax, contact your
state’s unemployment tax agency. See the list of state
Withhold 7.65% (6.2% for social security tax and 1.45%
unemployment agencies in the Appendix for the address.
for Medicare tax) from each payment of social security and
The FUTA tax is 6.2% of your employee’s FUTA wages.
Medicare wages. You can use Table 3, on page 17, to
However, you may be able to take a credit of up to 5.4%
figure the proper amount to withhold. You will pay the
against the FUTA tax, resulting in a net tax of 0.8%. Your
amount withheld to the IRS with a matching amount for
credit for 2008 is limited unless you pay all the required
your share of the taxes. Do not withhold any social security
contributions for 2008 to your state unemployment fund by
tax after your employee’s social security wages for the
April 15, 2009. The credit you can take for any contribu-
year reach $102,000.
tions for 2008 that you pay after April 15, 2009, is limited to
If you make an error by withholding too little, you should
90% of the credit that would have been allowable if the
withhold additional taxes from a later payment. If you
contributions were paid by April 15, 2009. (If you did not
withhold too much, you should repay the employee.
pay all the required contributions for 2007 by April 15,
2008, see Credit for 2007, later.)
Example. You hire a household employee (who is an
Pay the tax as discussed under How Do You Make Tax
unrelated individual over age 18) to care for your child and
Payments? on page 7. Also, see What Forms Must You
agree to pay cash wages of $100 every Friday. You expect
File, later.
to pay your employee $1,600 or more for the year. You
should withhold $7.65 from each $100 wage payment and Do not withhold the FUTA tax from your em-
pay your employee the remaining $92.35. The $7.65 is the
sum of $6.20 ($100 × 6.2%) for your employee’s share of
!
CAUTION
ployee’s wages. You must pay it from your own
funds.
social security tax and $1.45 ($100 × 1.45%) for your
employee’s share of Medicare tax. Match the $7.65 you FUTA wages. Figure the FUTA tax on the FUTA wages
withhold with $7.65 from your own funds when you pay the you pay. If you pay cash wages to all of your household
taxes. employees totaling $1,000 or more in any calendar quarter
Publication 926 (2008) Page 5
of 2007 or 2008, the first $7,000 of cash wages you pay to
each household employee in 2008 is FUTA wages. (A Do You Need To Withhold
calendar quarter is January through March, April through
June, July through September, or October through De- Federal Income Tax?
cember.) If your employee’s cash wages reach $7,000
during the year, do not figure the FUTA tax on any wages You are not required to withhold federal income tax from
you pay that employee during the rest of the year. For an wages you pay a household employee. You should with-
explanation of cash wages, see the discussion on Social hold federal income tax only if your household employee
security and Medicare wages on page 4. asks you to withhold it and you agree. The employee must
give you a completed Form W-4, Employee’s Withholding
Wages not counted. Do not count wages you pay to Allowance Certificate.
any of the following individuals as FUTA wages.
If you and your employee have agreed to withholding,
• Your spouse. either of you may end the agreement by letting the other
know in writing.
• Your child who is under the age of 21. If you agree to withhold federal income tax, you are
• Your parent. responsible for paying it to the IRS. Pay the tax as dis-
cussed under How Do You Make Tax Payments? on page
7. Also, see What Forms Must You File? on page 8.
Example. You hire a household employee (who is not
Use the income tax withholding tables in Publication 15
related to you) on January 1, 2008, and agree to pay cash
(Circular E) to find out how much to withhold. Figure
wages of $200 every Friday. During January, February,
federal income tax withholding on wages before you de-
and March you pay the employee cash wages of $2,600.
duct any amounts for other withheld taxes. Withhold fed-
You pay cash wages of $1,000 or more in a calendar
eral income tax from each payment of wages based on the
quarter of 2008, so the first $7,000 of cash wages you pay
filing status and exemptions shown on your employee’s
the employee (or any other employee) in 2008 or 2009 is
Form W-4. Circular E contains detailed instructions.
FUTA wages. The FUTA wages you pay may also be
subject to your state’s unemployment tax. Wages. Figure federal income tax withholding on both
During 2008, you pay your household employee cash cash and noncash wages you pay. Measure wages you
wages of $10,400. You pay all the required contributions pay in any form other than cash by the fair market value of
for 2008 to your state unemployment fund by April 15, the noncash item.
2009. Your FUTA tax for 2008 is $56 ($7,000 × 0.8%). Do not count as wages any of the following items.
Credit for 2007. The credit you can take for any state • Meals provided to your employee at your home for
unemployment fund contributions for 2007 that you pay your convenience.
after April 15, 2008, is limited to 90% of the credit that
would have been allowable if the contributions were paid • Lodging provided to your employee at your home for
on or before April 15, 2008. your convenience and as a condition of employment.
You must complete Worksheet A to figure the • Up to $115 a month for 2008 for transit passes you
credit for late contributions if you paid any state give your employee (or for any cash reimbursement
contributions after the due date for filing you make for the amount your employee pays for
Form 1040. transit passes used to commute to your home if you
qualify for this exclusion). A transit pass includes any
pass, token, fare card, voucher, or similar item enti-
tling a person to ride on mass transit, such as a bus
or train. See Publication 15-B for special require-
ments for this exclusion.
• Up to $220 a month for 2008 for the value of parking
you provide your employee or for any cash reim-
bursement you make for the amount your employee
Worksheet A. Worksheet for Credit for Late Contributions Keep for Your Records
1. Enter the amount from Schedule H, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from Schedule H, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Subtract line 2 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter total contributions paid to the state(s) after the Form 1040 due date . . . . . . .
5. Enter the smaller of line 3 or 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Multiply line 5 by .90 (90%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Add lines 2 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. Enter the smaller of the amount on line 1or 7 here and on Schedule H, line 24 . . .
Page 6 Publication 926 (2008)
pays and substantiates for parking at or near your must give the employee Notice 797 or your written state-
home or at or near a location from which your em- ment about the 2008 EIC by February 2, 2009. If Form W-2
ployee commutes to your home. is not required, you must notify the employee by
February 9, 2009.
See Publication 15 (Circular E) for more information on You must give your household employee a notice about
cash and noncash wages. the EIC if you agree to withhold federal income tax from the
Paying tax without withholding. Any income tax you employee’s wages (as discussed earlier under Do You
pay for your employee without withholding it from the Need To Withhold Federal Income Tax?) and the income
employee’s wages must be included in the employee’s tax withholding tables show that no tax should be withheld.
wages for federal income tax purposes. It also must be Even if not required, you are encouraged to give the
included in social security and Medicare wages and in employee a notice about the EIC if his or her 2008 wages
federal unemployment (FUTA) wages. are less than the EIC eligible maximum amount (see the
Form W-5 instructions for the 2008 maximum amount).
What Do You Need To Know
How Do You Make
About the Earned Income
Tax Payments?
Credit?
When you file your 2008 federal income tax return in 2009,
Certain workers can take the earned income credit (EIC) attach Schedule H (Form 1040), Household Employment
on their federal income tax return. This credit reduces their Taxes, to your Form 1040. Use Schedule H to figure your
tax or allows them to receive a payment from the IRS. You total household employment taxes (social security, Medi-
may have to make advance payment of part of your house- care, FUTA, and withheld federal income taxes). Add
hold employee’s EIC along with the employee’s wages. these household employment taxes to your income tax.
You also may have to give your employee a notice about Pay the amount due by April 15, 2009. (For more informa-
the EIC. tion about using Schedule H, see Schedule H under What
Advance EIC payments. You must make advance EIC Forms Must You File? on page 9.)
payments if your employee gives you a properly completed You can avoid owing tax with your return if you pay
Form W-5, Earned Income Credit Advance Payment Cer- enough tax during the year to cover your household em-
tificate. Use the advance EIC payment tables in Publica- ployment taxes, as well as your income tax. You can pay
tion 15 (Circular E), to find out how much to pay your the additional tax in any of the following ways.
employee. • Ask your employer to withhold more federal income
Reduce the social security and Medicare taxes and tax from your wages in 2008.
withheld federal income tax you need to pay to the IRS by
any advance EIC payments you make. See Publication 15 • Ask the payer of your pension or annuity to withhold
(Circular E), for more information about making advance more federal income tax from your benefits.
EIC payments. • Make estimated tax payments for 2008 to the IRS.
Notice about the EIC. Copy B of the 2008 Form W-2, • Increase your payments if you already make esti-
Wage and Tax Statement, has a statement about the EIC mated tax payments.
on the back. If you give your employee that copy by
February 2, 2009 (as discussed under Form W-2, on page
8), you do not have to give the employee any other notice You may be subject to the estimated tax un-
about the EIC. ! derpayment penalty if you did not pay enough
income and household employment taxes during
If you do not give your employee Copy B of the Form CAUTION
W-2, your notice about the EIC can be any of the following the year. (See Publication 505, Tax Withholding and Esti-
items. mated Tax, for information about the underpayment pen-
alty.) However, you will not be subject to the penalty if both
1. A substitute Form W-2 with the same EIC information of the following situations apply to you.
on the back of the employee’s copy that is on Copy B
of the Form W-2. • You will not have federal income tax withheld from
wages, pensions, or any other payments you re-
2. Notice 797, Possible Federal Tax Refund Due to the ceive.
Earned Income Credit (EIC).
• Your income taxes, excluding your household em-
3. Your own written statement with the same wording ployment taxes, would not be enough to require pay-
as in Notice 797. ment of estimated taxes.
If a substitute Form W-2 is given on time but does not have
the required EIC information, you must notify the employee Asking for more federal income tax withholding. If you
within one week of the date the substitute Form W-2 is are employed and want more federal income tax withheld
given. If Form W-2 is required but is not given on time, you from your wages to cover your household employment
Publication 926 (2008) Page 7
taxes, give your employer a new Form W-4, Employee’s
Withholding Allowance Certificate. Complete it as before,
but show the additional amount you want withheld from
What Forms Must You File?
each paycheck on line 6. You must file certain forms to report your household em-
If you receive a pension or annuity and want more ployee’s wages and the federal employment taxes for the
federal income tax withheld to cover household employ- employee if you pay any of the following wages to the
ment taxes, give the payer a new Form W-4P, Withholding employee.
Certificate for Pension or Annuity Payments (or a similar
form provided by the payer). Complete it as before, but • Social security and Medicare wages.
show the additional amount you want withheld from each • FUTA wages.
benefit payment on line 3.
Get Publication 919, How Do I Adjust My Tax Withhold- • Wages from which you withhold federal income tax.
ing?, to make sure you will have the right amount withheld.
It will help you compare your total expected withholding for The employment tax forms and instructions you need for
2008 with the combined income tax and employment taxes 2008 will be sent to you automatically in January 2009 if
that you can expect to figure on your 2008 return. you reported employment taxes for 2007 on Schedule H.
Otherwise, for information on ordering these forms, see
Paying estimated tax. If you want to make estimated tax How To Get Tax Help on page 10.
payments to cover household employment taxes, get Form
1040-ES, Estimated Tax for Individuals. You can use its Employer identification number (EIN). You must in-
payment vouchers to make your payments by check or clude your employer identification number (EIN) on the
money order. You may be able to pay by Electronic Funds forms you file for your household employee. An EIN is a
Withdrawal (EFW) or credit card. For details, see the form 9-digit number issued by the IRS. It is not the same as a
instructions and visit www.irs.gov and click on the elec-
social security number.
tronic irs link.
You can pay all the employment taxes at once or you You ordinarily will have an EIN if you previously
can pay them in installments. If you have already made TIP paid taxes for employees, either as a household
estimated tax payments for 2008, you can increase your employer or as a sole proprietor of a business you
remaining payments to cover the employment taxes. Esti- own. If you already have an EIN, use that number.
mated tax payments for 2008 are due April 15, June 16, If you do not have an EIN, get Form SS-4, Application
and September 15, 2008, and January 15, 2009. for Employer Identification Number. The instructions for
Payment option for business employers. If you own a Form SS-4 explain how you can get an EIN immediately by
business as a sole proprietor or your home is on a farm telephone or in about 4 weeks if you apply by mail. In
operated for profit, you can choose either of two ways to addition, the IRS is now accepting applications through its
pay your 2008 household employment taxes. You can pay website at www.irs.gov/businesses/small.
them with your federal income tax as previously described,
or you can include them with your federal employment tax Form W-2. File a separate 2008 Form W-2, Wage and
deposits or other payments for your business or farm Tax Statement, for each household employee to whom you
employees. For information on depositing employment pay either of the following wages during the year.
taxes, see Publication 15 (Circular E). • Social security and Medicare wages of $1,600 or
If you pay your household employment taxes with your more.
business or farm employment taxes, you must report your
household employment taxes with those other employ- • Wages from which you withhold federal income tax.
ment taxes on Form 941, Employer’s QUARTERLY Fed- You must complete Form W-2 and give Copies B, C, and 2
eral Tax Return, Form 944, Employer’s ANNUAL Federal to your employee by February 2, 2009. You must send
Tax Return, or Form 943, Employer’s Annual Federal Tax Copy A of Form W-2 with Form W-3, Transmittal of Wage
Return for Agricultural Employees, and on Form 940, Em-
and Tax Statements, to the Social Security Administration
ployer’s Annual Federal Unemployment (FUTA) Tax Re-
by March 2, 2008 (March 31, 2009, if you file your Form
turn. See Business employment tax returns, later.
W-2 electronically). Electronic filing is available to all em-
The deduction that can be taken on Schedules C ployers and is free, fast, secure, and offers a later filing
!
CAUTION
and F (Form 1040) for wages and employment
taxes applies only to wages and taxes paid for
deadline. Visit the SSA’s Employer Reporting and Informa-
tion website at www.socialsecurity.gov/employer for
business and farm employees. You cannot deduct the guidelines on filing electronically.
wages and employment taxes paid for your household
employees on your Schedule C or F. Employee who leaves during the year. If an em-
ployee stops working for you before the end of 2008, you
More information. For more information about paying can file Form W-2 and provide copies to your employee
taxes through federal income tax withholding and esti- immediately after you make your final payment of wages.
mated tax payments, and figuring the estimated tax pen- You do not need to wait until 2009. If the employee asks
alty, get Publication 505, Tax Withholding and Estimated you for Form W-2, give it to him or her within 30 days after
Tax. the request or the last wage payment, whichever is later.
Page 8 Publication 926 (2008)
Schedule H. Use Schedule H to report household em- • Your employee’s cash and noncash wages.
ployment taxes if you pay any of the following wages to the
employee.
• Any employee social security tax you withhold or
agree to pay for your employee.
• Cash wages of $1,600 or more. • Any employee Medicare tax you withhold or agree to
• FUTA wages. pay for your employee.
• Wages from which you withhold federal income tax. • Any federal income tax you withhold.
File Schedule H with your 2008 federal income tax return • Any advance EIC payments you make.
by April 15, 2009. If you get an extension to file your return,
the extension also will apply to your Schedule H.
• Any state employment taxes you withhold.
Filing options when no return is required. If you are
Employee’s social security number. You must keep a
not required to file a 2008 tax return, you have the following
record of your employee’s name and social security num-
two options.
ber exactly as they appear on his or her social security card
1. You can file Schedule H by itself. See the Schedule if you pay the employee either of the following.
H instructions for details. • Social security and Medicare wages of $1,600 or
2. If, besides your household employee, you have other more.
employees for whom you report employment taxes • Wages from which you withhold federal income tax.
on Form 941, Form 944, or Form 943 and on Form
940, you can include your taxes for your household You must ask for your employee’s social security number
employee on those forms. See Business employ- no later than the first day on which you pay the wages. You
ment tax returns, next. may wish to ask for it when you hire your employee. You
should ask your employee to show you his or her social
Employers having the options listed above include cer- security card. The employee may show the card if it is
tain tax-exempt organizations that do not have to file a tax available. You may, but are not required to, photocopy the
return, such as churches that pay a household worker to card if the employee provides it.
take care of a minister’s home.
An employee who does not have a social security num-
Business employment tax returns. Do not use Sched- ber must apply for one on Form SS-5, Application for a
ule H if you choose to pay the employment taxes for your Social Security Card. An employee who has lost his or her
household employee with business or farm employment social security card or whose name is not correctly shown
taxes. (See Payment option for business employers, ear- on the card should apply for a new card.
lier.) Instead, include the social security, Medicare, and
Employees can get Form SS-5 from any Social
withheld federal income taxes for the employee on the
Security Administration office or by calling
Form 941, or Form 944, you file for your business or on the
1-800-772-1213.
Form 943, you file for your farm. Include the FUTA tax for
the employee on your Form 940.
You also can download Form SS-5 from the So-
If you report the employment taxes for your household
cial Security Administration website,
employee on Form 941, Form 944, or Form 943, file Form
www.socialsecurity.gov/online/ss-5.pdf.
W-2 for that employee with the Forms W-2 and Form W-3
for your business or farm employees.
For information on filing Form 941 or Form 944, get How long to keep records. Keep your employment tax
Publication 15 (Circular E). For information on filing Form records for at least 4 years after the due date of the return
943, get Publication 51 (Circular A), Agricultural Em- on which you report the taxes or the date the taxes were
ployer’s Tax Guide. Both of these publications also provide paid, whichever is later.
information about filing Form 940.
Can You Claim a Credit for
What Records Must You Keep? Child and Dependent Care
Keep your copies of Schedule H or other employ- Expenses?
ment tax forms you file and related Forms W-2,
RECORDS W-3, W-4, and W-5. You must also keep records If your household employee cares for your dependent who
to support the information you enter on the forms you file. If is under age 13 or for your spouse or dependent who is not
you must file Form W-2, you will need to keep a record of capable of self-care, you may be able to take an income
your employee’s name, address, and social security num- tax credit of up to 35% of your expenses. To qualify, you
ber. must pay these expenses so you can work or look for work.
If you can take the credit, you can include in your qualifying
Wage and tax records. On each payday, you should expenses your share of the federal and state employment
record the date and amounts of all the following items. taxes you pay, as well as the employee’s wages. For
Publication 926 (2008) Page 9
information about the credit, see Publication 503, Child Internet. You can access the IRS website at
and Dependent Care Expenses. www.irs.gov 24 hours a day, 7 days a week to:
• E-file your return. Find out about commercial tax
How To Get Tax Help preparation and e-file services available free to eligi-
ble taxpayers.
You can get help with unresolved tax issues, order free
publications and forms, ask tax questions, and get informa- • Check the status of your 2007 refund. Click on
tion from the IRS in several ways. By selecting the method Where’s My Refund. Wait at least 6 weeks from the
that is best for you, you will have quick and easy access to date you filed your return (3 weeks if you filed elec-
tronically). Have your 2007 tax return available be-
tax help.
cause you will need to know your social security
number, your filing status, and the exact whole dollar
Contacting your Taxpayer Advocate. The Taxpayer amount of your refund.
Advocate Service (TAS) is an independent organization
within the IRS whose employees assist taxpayers who are
• Download forms, instructions, and publications.
experiencing economic harm, who are seeking help in • Order IRS products online.
resolving tax problems that have not been resolved • Research your tax questions online.
through normal channels, or who believe that an IRS
system or procedure is not working as it should. • Search publications online by topic or keyword.
You can contact the TAS by calling the TAS toll-free • View Internal Revenue Bulletins (IRBs) published in
case intake line at 1-877-777-4778 or TTY/TDD the last few years.
1-800-829-4059 to see if you are eligible for assistance. • Figure your withholding allowances using the with-
You can also call or write to your local taxpayer advocate, holding calculator online at www.irs.gov/individuals.
whose phone number and address are listed in your local
telephone directory and in Publication 1546, Taxpayer • Determine if Form 6251 must be filed using our Al-
ternative Minimum Tax (AMT) Assistant.
Advocate Service – Your Voice at the IRS. You can file
Form 911, Request for Taxpayer Advocate Service Assis- • Sign up to receive local and national tax news by
tance (And Application for Taxpayer Assistance Order), or email.
ask an IRS employee to complete it on your behalf. For • Get information on starting and operating a small
more information, go to www.irs.gov/advocate. business.
Taxpayer Advocacy Panel (TAP). The TAP listens to
taxpayers, identifies taxpayer issues, and makes sugges-
tions for improving IRS services and customer satisfaction. Phone. Many services are available by phone.
If you have suggestions for improvements, contact the
TAP, toll free at 1-888-912-1227 or go to
www.improveirs.org.
• Ordering forms, instructions, and publications. Call
Low Income Taxpayer Clinics (LITCs). LITCs are in- 1-800-829-3676 to order current-year forms, instruc-
dependent organizations that provide low income taxpay- tions, and publications, and prior-year forms and in-
ers with representation in federal tax controversies with the structions. You should receive your order within 10
IRS for free or for a nominal charge. The clinics also days.
provide tax education and outreach for taxpayers with • Asking tax questions. Call the IRS with your tax
limited English proficiency or who speak English as a questions at 1-800-829-1040.
second language. Publication 4134, Low Income Taxpayer
Clinic List, provides information on clinics in your area. It is • Solving problems. You can get face-to-face help
available at www.irs.gov or at your local IRS office. solving tax problems every business day in IRS Tax-
payer Assistance Centers. An employee can explain
IRS letters, request adjustments to your account, or
Free tax services. To find out what services are avail- help you set up a payment plan. Call your local
able, get Publication 910, IRS Guide to Free Tax Services. Taxpayer Assistance Center for an appointment. To
It contains a list of free tax publications and describes other find the number, go to www.irs.gov/localcontacts or
free tax information services, including tax education and look in the phone book under United States Govern-
assistance programs and a list of TeleTax topics. ment, Internal Revenue Service.
Accessible versions of IRS published products are • TTY/TDD equipment. If you have access to TTY/
available on request in a variety of alternative formats for TDD equipment, call 1-800-829-4059 to ask tax
people with disabilities. questions or to order forms and publications.
Page 10 Publication 926 (2008)
• TeleTax topics. Call 1-800-829-4477 to listen to
pre-recorded messages covering various tax topics. Department of the Treasury
• Refund information. To check the status of your National Distribution Center
2007 refund, call 1-800-829-4477 and press 1 for P.O. Box 8903
automated refund information or call Bloomington, IL 61702-8903
1-800-829-1954. Be sure to wait at least 6 weeks
CD/DVD for tax products. You can order Publi-
from the date you filed your return (3 weeks if you
cation 1796, IRS Tax Products CD/DVD, and
filed electronically). Have your 2007 tax return avail-
obtain:
able because you will need to know your social se-
curity number, your filing status, and the exact whole • Current-year forms, instructions, and publications.
dollar amount of your refund.
• Prior-year forms, instructions, and publications.
• Bonus: Historical Tax Products DVD - Ships with the
Evaluating the quality of our telephone services. To
final release.
ensure IRS representatives give accurate, courteous, and
professional answers, we use several methods to evaluate • Tax Map: an electronic research tool and finding aid.
the quality of our telephone services. One method is for a
second IRS representative to listen in on or record random
• Tax law frequently asked questions.
telephone calls. Another is to ask some callers to complete • Tax Topics from the IRS telephone response sys-
a short survey at the end of the call. tem.
• Fill-in, print, and save features for most tax forms.
Walk-in. Many products and services are avail-
able on a walk-in basis. • Internal Revenue Bulletins.
• Toll-free and email technical support.
• Products. You can walk in to many post offices, • The CD which is released twice during the year.
libraries, and IRS offices to pick up certain forms, – The first release will ship the beginning of January
instructions, and publications. Some IRS offices, li- 2008.
braries, grocery stores, copy centers, city and county – The final release will ship the beginning of March
government offices, credit unions, and office supply
2008.
stores have a collection of products available to print
from a CD or photocopy from reproducible proofs.
Purchase the CD/DVD from National Technical Informa-
Also, some IRS offices and libraries have the Inter-
tion Service (NTIS) at www.irs.gov/cdorders for $35 (no
nal Revenue Code, regulations, Internal Revenue
Bulletins, and Cumulative Bulletins available for re- handling fee) or call 1-877-CDFORMS (1-877-233-6767)
search purposes. toll free to buy the CD/DVD for $35 (plus a $5 handling
fee). Price is subject to change.
• Services. You can walk in to your local Taxpayer
Assistance Center every business day for personal, CD for small businesses. Publication 3207, The
face-to-face tax help. An employee can explain IRS Small Business Resource Guide CD for 2007, is a
letters, request adjustments to your tax account, or must for every small business owner or any tax-
help you set up a payment plan. If you need to payer about to start a business. This year’s CD includes:
resolve a tax problem, have questions about how the • Helpful information, such as how to prepare a busi-
tax law applies to your individual tax return, or you’re
ness plan, find financing for your business, and
more comfortable talking with someone in person,
much more.
visit your local Taxpayer Assistance Center where
you can spread out your records and talk with an • All the business tax forms, instructions, and publica-
IRS representative face-to-face. No appointment is tions needed to successfully manage a business.
necessary, but if you prefer, you can call your local
Center and leave a message requesting an appoint-
• Tax law changes for 2007.
ment to resolve a tax account issue. A representa- • Tax Map: an electronic research tool and finding aid.
tive will call you back within 2 business days to
schedule an in-person appointment at your conve-
• Web links to various government agencies, business
nience. To find the number, go to associations, and IRS organizations.
www.irs.gov/localcontacts or look in the phone book • “Rate the Product” survey —your opportunity to sug-
under United States Government, Internal Revenue gest changes for future editions.
Service.
• A site map of the CD to help you navigate the pages
of the CD with ease.
Mail. You can send your order for forms, instruc-
tions, and publications to the address below. You • An interactive “Teens in Biz” module that gives prac-
should receive a response within 10 days after tical tips for teens about starting their own business,
your request is received. creating a business plan, and filing taxes.
Publication 926 (2008) Page 11
An updated version of this CD is available each year in
early April. You can get a free copy by calling
1-800-829-3676 or by visiting www.irs.gov/smallbiz.
Page 12 Publication 926 (2008)
Appendix: State Unemployment Tax Agencies
area, you can use the name of the For the most up-to-date ad-
The following list of state un- agency to look for a local number in dresses and telephone num-
employment tax agencies your telephone book. The addresses bers for these agencies, visit
was provided to the IRS by and telephone numbers of the agen- the U.S. Department of Labor’s web-
the U.S. Department of Labor. If the cies, which were current at the time site at
telephone number listed for your state this publication was prepared for print, www.workforcesecurity.doleta.gov.
would be a long distance call from your are subject to change.
State Address Telephone number / Website
Alabama Department of Industrial Relations (334) 242-8830
649 Monroe Street www.dir.alabama.gov
Montgomery, AL 36131-0099
Alaska Department of Labor and Workforce Development (888) 448-3527
Employment Security Tax www.labor.state.ak.us
P.O. Box 115509
Juneau, AK 99811-5509
Arizona Department of Economic Security (602) 771-6601
Unemployment Tax - 911B www.de.state.az.us
P.O. Box 6028
Phoenix, AZ 85005-6028
Arkansas Department of Workforce Services (501) 682-3798
P.O. Box 2981 www.state.ar.us/esd
Little Rock, AR 72203-2981
California Employment Development Department (888) 745-3886
Account Services Group, MIC 28 www.edd.cahwnet.gov
P.O. Box 826880
Sacramento, CA 94280-0001
Colorado Department of Labor and Employment (800) 480-8299
Unemployment Insurance Operations www.coworkforce.com
P.O. Box 8789
Denver, CO 80201-8789
Connecticut Labor Department (860) 263-6550
Employment Security Division www.ctdol.state.ct.us
200 Folly Brook Blvd.
Wethersfield, CT 06109-1114
Delaware Department of Labor (302) 761-8484
P.O. Box 9953 www.delawareworks.com
Wilmington, DE 19809-0953
District of Department of Employment Services (202) 698-7550
Columbia Office of Unemployment www.dcnetworks.org
Compensation Tax Division
609 H Street NE, 3rd Floor
Washington, DC 20002-4347
Florida Unemployment Tax (800) 482-8293
Florida Department of Revenue http://dor.myflorida.com/dor/uc
5050 W. Tennessee Street
Tallahassee, FL 32399-0180
Georgia Department of Labor (404) 232-3301
P.O. Box 740234 www.dol.state.ga.us
Atlanta, GA 30374-0234
Hawaii Department of Labor and Industrial Relations (808) 586-8913
830 Punchbowl Street www.hawaii.gov/labor
Room 437
Honolulu, HI 96813-5096
Publication 926 (2008) Page 13
State Address Telephone number / Website
Idaho Department of Labor (800) 448-2977
317 Main Street http://labor.idaho.gov
Boise, ID 83735-0002
Illinois Department of Employment Security (800) 247-4984
33 South State Street www.ides.state.il.us
Chicago, IL 60603-2802
Indiana Department of Workforce Development (317) 232-7436
10 North Senate Avenue www.in.gov/dwd
Room SE 106
Indianapolis, IN 46204-2277
Iowa Workforce Development (515) 281-5339
1000 East Grand Avenue www.iowaworkforce.org/ui
Des Moines, IA 50319-0209
Kansas Department of Labor (785) 296-5025
401 SW Topeka Blvd. www.dol.ks.gov
Topeka, KS 66603-3182
Kentucky Department of Employment Services (502) 564-2272
P.O. Box 948 www.oet.ky.gov
Frankfort, KY 40602-0948
Louisiana Department of Labor (225) 342-2944
P.O. Box 94186 www.ldol.state.la.us
Baton Rouge, LA 70804-9186
Maine Department of Labor (207) 287-3176
P.O. Box 259 www.state.me.us/labor
Augusta, ME 04332-0259
Maryland Department of Labor, Licensing & Regulation (800) 492-5524
1100 North Eutaw Street www.dllr.state.md.us
Room 414
Baltimore, MD 21201-2201
Massachusetts Division of Employment and Training (617) 626-5050
19 Staniford Street www.detma.org
Boston, MA 02114-2589
Michigan Department of Labor and Economic Growth (313) 456-2180
3024 West Grand Blvd. www.michigan.gov/uia
Detroit, MI 48202-6024
Minnesota Department of Employment and Economic Development (651) 296-6141
390 Robert Street North www.uimn.org/tax
St. Paul, MN 55101-1805
Mississippi Department of Employment Security (601) 321-6228
P.O. Box 1699 www.mdes.ms.gov
Jackson, MS 39225-1699
Missouri Division of Employment Security (573) 751-3340
P.O. Box 59 www.dolir.mo.gov
Jefferson City, MO 65104-0059
Montana Unemployment Insurance Division (406) 444-3834
P.O. Box 6339 www.uid.dli.mt.gov
Helena, MT 59604-6339
Nebraska Department of Labor (402) 471-9935
Box 94600 www.dol.state.ne.us
State House Station
Lincoln, NE 68509-4600
Nevada Department of Employment Training and Rehabilitation (775) 687-4545
500 East Third Street www.detr.state.nv.us
Carson City, NV 89713-0030
New Hampshire Department of Employment Security (603) 228-4033
32 South Main Street www.nhes.state.nh.us
Concord, NH 03301-4857
Page 14 Publication 926 (2008)
State Address Telephone number / Website
New Jersey Department of Labor and Workforce Development (609) 633-6400
P.O. Box 947 http://lwd.dol.state.nj.us
Trenton, NJ 08625-0947
New Mexico Department of Labor (505) 841-8576
P.O. Box 2281 www.dws.state.nm.us
Albuquerque, NM 87103-2281
New York Department of Labor (518) 457-4179
State Campus, Building 12 www.labor.state.ny.us
Room 542
Albany, NY 12240-0339
North Carolina Employment Security Commission (919) 733-7396
P.O. Box 26504 www.ncesc.com
Raleigh, NC 27611-6504
North Dakota Job Service of North Dakota (800) 472-2952
P.O. Box 5507 www.jobsnd.com
Bismarck, ND 58506-5507
Ohio Department of Job and Family Services (614) 466-2319
P.O. Box 182404 www.jfs.ohio.gov
Columbus, OH 43218-2404
Oklahoma Employment Security Commission (405) 557-7170
P.O. Box 52003 www.oesc.state.ok.us
Oklahoma City, OK 73152-2003
Oregon Employment Department (503) 947-1488, option 5
875 Union Street NE www.employment.oregon.gov
Room 107
Salem, OR 97311-0030
Pennsylvania Department of Labor and Industry (717) 787-7679
7th and Forster Street www.dli.state.pa.us
Harrisburg, PA 17121-0001
Puerto Rico Department of Labor and Human Resources (787) 754-5262
P.O. Box 1020
San Juan, PR 00919
Rhode Island Division of Taxation (401) 222-3696
One Capitol Hill, Suite 36 www.uitax.ri.gov
Providence, RI 02908-5829
South Carolina Employment Security Commission (803) 737-3075
P.O. Box 995 www.sces.org
Columbia, SC 29202-0995
South Dakota Department of Labor (605) 626-2312
P.O. Box 4730 www.state.sd.us
Aberdeen, SD 57402-4730
Tennessee Department of Labor and Workforce Development (615) 741-2486
500 James Robertson Parkway http://state.tn.us/labor-wfd
8th Floor
Nashville, TN 37245-3555
Texas Workforce Commission (512) 463-2731
P.O. Box 149037 www.twc.state.tx.us
Austin, TX 78714-9037
Utah Department of Workforce Services (801) 526-9400
P.O. Box 45288 www.jobs.utah.gov
Salt Lake City, UT 84145-0288
Vermont Department of Labor (802) 828-4252
P.O. Box 488 www.labor.vermont.gov
Montpelier, VT 05601-0488
Virginia Employment Commission (804) 371-7159
P.O. Box 1358 www.VAEmploy.com
Richmond, VA 23218-1358
Publication 926 (2008) Page 15
State Address Telephone number / Website
Virgin Islands Department of Labor (340) 776-3700
P.O. Box 302608 www.vidol.gov
St. Thomas, VI 00803-2608
Washington Employment Security Department (360) 902-9360
P.O. Box 9046 http://fortress.wa.gov/esd/portal
Olympia, WA 98507-9046
West Virginia Bureau of Employment Programs (304) 558-2676
112 California Avenue www.wvbep.org/bep/uc
Building 4
Charleston, WV 25305-0016
Wisconsin Department of Workforce Development (608) 261-6700
P.O. Box 7942 www.dwd.state.wi.us
Madison, WI 53707-7942
Wyoming Unemployment Tax Division (307) 235-3217
P.O. Box 2760 http://wydoe.state.wy.us
Casper, WY 82602-2760
Page 16 Publication 926 (2008)
Table 3. Employee Social Security (6.2%) and Medicare (1.45%) Tax Withholding Table
(See Circular E for income tax withholding tables.)
Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. For example, on a wage payment of $180, the employee social security tax is $11.16
($6.20 tax on $100 plus $4.96 on $80 wages). The employee Medicare tax is $2.61 ($1.45 tax on $100 plus $1.16 on $80 wages).
The social The Medicare The social The Medicare
If wage security tax to tax to be If wage security tax to tax to be
payment is: be withheld is: withheld is: payment is: . . . . . be withheld is: withheld is:
$ 1.00 . . . . . . . . . $.06 $.01 $ 51.00 . . . . . . . . . $ 3.16 $.74
2.00 . . . . . . . . . .12 .03 52.00 . . . . . . . . . 3.22 .75
3.00 . . . . . . . . . .19 .04 53.00 . . . . . . . . . 3.29 .77
4.00 . . . . . . . . . .25 .06 54.00 . . . . . . . . . 3.35 .78
5.00 . . . . . . . . . .31 .07 55.00 . . . . . . . . . 3.41 .80
6.00 . . . . . . . . . .37 .09 56.00 . . . . . . . . . 3.47 .81
7.00 . . . . . . . . . .43 .10 57.00 . . . . . . . . . 3.53 .83
8.00 . . . . . . . . . .50 .12 58.00 . . . . . . . . . 3.60 .84
9.00 . . . . . . . . . .56 .13 59.00 . . . . . . . . . 3.66 .86
10.00 . . . . . . . . . .62 .15 60.00 . . . . . . . . . 3.72 .87
11.00 . . . . . . . . . .68 .16 61.00 . . . . . . . . . 3.78 .88
12.00 . . . . . . . . . .74 .17 62.00 . . . . . . . . . 3.84 .90
13.00 . . . . . . . . . .81 .19 63.00 . . . . . . . . . 3.91 .91
14.00 . . . . . . . . . .87 .20 64.00 . . . . . . . . . 3.97 .93
15.00 . . . . . . . . . .93 .22 65.00 . . . . . . . . . 4.03 .94
16.00 . . . . . . . . . .99 .23 66.00 . . . . . . . . . 4.09 .96
17.00 . . . . . . . . . 1.05 .25 67.00 . . . . . . . . . 4.15 .97
18.00 . . . . . . . . . 1.12 .26 68.00 . . . . . . . . . 4.22 .99
19.00 . . . . . . . . . 1.18 .28 69.00 . . . . . . . . . 4.28 1.00
20.00 . . . . . . . . . 1.24 .29 70.00 . . . . . . . . . 4.34 1.02
21.00 . . . . . . . . . 1.30 .30 71.00 . . . . . . . . . 4.40 1.03
22.00 . . . . . . . . . 1.36 .32 72.00 . . . . . . . . . 4.46 1.04
23.00 . . . . . . . . . 1.43 .33 73.00 . . . . . . . . . 4.53 1.06
24.00 . . . . . . . . . 1.49 .35 74.00 . . . . . . . . . 4.59 1.07
25.00 . . . . . . . . . 1.55 .36 75.00 . . . . . . . . . 4.65 1.09
26.00 . . . . . . . . . 1.61 .38 76.00 . . . . . . . . . 4.71 1.10
27.00 . . . . . . . . . 1.67 .39 77.00 . . . . . . . . . 4.77 1.12
28.00 . . . . . . . . . 1.74 .41 78.00 . . . . . . . . . 4.84 1.13
29.00 . . . . . . . . . 1.80 .42 79.00 . . . . . . . . . 4.90 1.15
30.00 . . . . . . . . . 1.86 .44 80.00 . . . . . . . . . 4.96 1.16
31.00 . . . . . . . . . 1.92 .45 81.00 . . . . . . . . . 5.02 1.17
32.00 . . . . . . . . . 1.98 .46 82.00 . . . . . . . . . 5.08 1.19
33.00 . . . . . . . . . 2.05 .48 83.00 . . . . . . . . . 5.15 1.20
34.00 . . . . . . . . . 2.11 .49 84.00 . . . . . . . . . 5.21 1.22
35.00 . . . . . . . . . 2.17 .51 85.00 . . . . . . . . . 5.27 1.23
36.00 . . . . . . . . . 2.23 .52 86.00 . . . . . . . . . 5.33 1.25
37.00 . . . . . . . . . 2.29 .54 87.00 . . . . . . . . . 5.39 1.26
38.00 . . . . . . . . . 2.36 .55 88.00 . . . . . . . . . 5.46 1.28
39.00 . . . . . . . . . 2.42 .57 89.00 . . . . . . . . . 5.52 1.29
40.00 . . . . . . . . . 2.48 .58 90.00 . . . . . . . . . 5.58 1.31
41.00 . . . . . . . . . 2.54 .59 91.00 . . . . . . . . . 5.64 1.32
42.00 . . . . . . . . . 2.60 .61 92.00 . . . . . . . . . 5.70 1.33
43.00 . . . . . . . . . 2.67 .62 93.00 . . . . . . . . . 5.77 1.35
44.00 . . . . . . . . . 2.73 .64 94.00 . . . . . . . . . 5.83 1.36
45.00 . . . . . . . . . 2.79 .65 95.00 . . . . . . . . . 5.89 1.38
46.00 . . . . . . . . . 2.85 .67 96.00 . . . . . . . . . 5.95 1.39
47.00 . . . . . . . . . 2.91 .68 97.00 . . . . . . . . . 6.01 1.41
48.00 . . . . . . . . . 2.98 .70 98.00 . . . . . . . . . 6.08 1.42
49.00 . . . . . . . . . 3.04 .71 99.00 . . . . . . . . . 6.14 1.44
50.00 . . . . . . . . . 3.10 .73 100.00 . . . . . . . . . 6.20 1.45
■
Publication 926 (2008) Page 17
To help us develop a more useful index, please let us know if you have ideas for index entries.
Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
A 1040-ES . . . . . . . . . . . . . . . . . . . . . . . . . 8 Self-employed workers (See
Advance EIC payments . . . . . . . . . . . 7 I-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Nonemployees)
Assistance (See Tax help) M-274 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Social security and Medicare:
SS-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SS-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
B W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 8 Social security number,
Baby sitters (See Household W-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 8 employee’s . . . . . . . . . . . . . . . . . . . . . 9
employee) W-4P . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 State:
Baby-sitting costs (See Child and W-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Disability payments . . . . . . . . . . . . . . 4
dependent care expenses) Forms you must file . . . . . . . . . . . . . . 8 Employment taxes . . . . . . . . . . . . . . . 3
Business employers, employment Free tax services . . . . . . . . . . . . . . . . 10 Unemployment tax
tax payment option . . . . . . . . . . . . . 8 FUTA (See Federal unemployment agencies . . . . . . . . . . . . . . . . . . . . . 13
(FUTA) tax) Suggestions for publication . . . . . 2
C
Caretakers (See Household H T
employee) Handbook for Employers . . . . . . . . . 3 Tax credits:
Child and dependent care Health aides (See Household Child and dependent care
expenses, credit for . . . . . . . . . . . . 9 employee) expenses . . . . . . . . . . . . . . . . . . . . . . 9
Cleaning people (See Household Help (See Tax help) Earned income . . . . . . . . . . . . . . . . . . 7
employee) FUTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Household employee . . . . . . . . . . . . . 2
Comments on publication . . . . . . . . 2 Tax help . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Housekeepers (See Household
employee) Taxes:
D How to increase withholding . . . . . 7 How to make payments . . . . . . . . . . 7
Dependent care expenses . . . . . . . . 9 How to pay estimated tax . . . . . . . . 8 Medicare . . . . . . . . . . . . . . . . . . . . . . . . 3
Disability payments, state . . . . . . . . 4 Social security . . . . . . . . . . . . . . . . . . . 3
Domestic worker (See Household Taxpayer Advocate . . . . . . . . . . . . . . 10
I
employee) TTY/TDD information . . . . . . . . . . . . 10
Income tax withholding, increasing
Drivers (See Household employee) (See How to increase withholding)
U
E L Unemployment tax agencies . . . . 13
Earned income credit (EIC) . . . . . . . 7 Legal employee . . . . . . . . . . . . . . . . . . . 2 Unemployment taxes:
EIC notice . . . . . . . . . . . . . . . . . . . . . . . . . 7 Federal . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Employer identification number State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
(EIN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
M USCIS website . . . . . . . . . . . . . . . . . . . . 3
Maids (See Household employee)
Employing an alien legally (See
Legal employee) Medicare (See Social security and
Medicare taxes)
W
Employment eligibility verification Wages:
form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 More information (See Tax help)
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employment taxes: FUTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Need to pay . . . . . . . . . . . . . . . . . . . . . 3 N Medicare . . . . . . . . . . . . . . . . . . . . . . . . 4
Payment options . . . . . . . . . . . . . . . . . 8 Nannies (See Household employee) Social security . . . . . . . . . . . . . . . . . . . 4
Tax returns . . . . . . . . . . . . . . . . . . . . . . 9 Nonemployees . . . . . . . . . . . . . . . . . . . . 2 State disability payments . . . . . . . . 4
Estimated tax, paying . . . . . . . . . . . . 8 Nurses, private (See Household Withholding:
employee) Employee’s share . . . . . . . . . . . . . . . 5
F Federal income tax . . . . . . . . . . . . . . 6
Federal income tax withholding, P How to increase . . . . . . . . . . . . . . . . . 7
increasing (See How to increase Publications (See Tax help) Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
withholding)
Federal unemployment (FUTA) R Y
tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Records you must keep . . . . . . . . . . 9 Yard workers (See Household
Form: employee)
940 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
941 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
S ■
Schedule H (Form 1040) . . . . . . . . 7, 9
943 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
944 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Page 18 Publication 926 (2008)
See How To Get Tax Help for a variety of ways to get publications, including
Tax Publications for Individual Taxpayers by computer, phone, and mail.
General Guides 531 Reporting Tip Income 908 Bankruptcy Tax Guide
1 Your Rights as a Taxpayer 536 Net Operating Losses (NOLs) for 915 Social Security and Equivalent
17 Your Federal Income Tax (For Individuals, Estates, and Trusts Railroad Retirement Benefits
Individuals) 537 Installment Sales 919 How Do I Adjust My Tax Withholding?
334 Tax Guide for Small Business (For 541 Partnerships 925 Passive Activity and At-Risk Rules
Individuals Who Use Schedule C or 544 Sales and Other Dispositions of Assets 926 Household Employer’s Tax Guide For
C-EZ) 547 Casualties, Disasters, and Thefts Wages Paid in 2008
509 Tax Calendars for 2008 550 Investment Income and Expenses 929 Tax Rules for Children and
553 Highlights of 2007 Tax Changes (Including Capital Gains and Losses) Dependents
910 IRS Guide to Free Tax Services 551 Basis of Assets 936 Home Mortgage Interest Deduction
552 Recordkeeping for Individuals 946 How To Depreciate Property
Specialized Publications 554 Tax Guide for Seniors 947 Practice Before the IRS and
3 Armed Forces’ Tax Guide 555 Community Property Power of Attorney
54 Tax Guide for U.S. Citizens and 556 Examination of Returns, Appeal Rights, 950 Introduction to Estate and Gift Taxes
Resident Aliens Abroad and Claims for Refund 967 The IRS Will Figure Your Tax
225 Farmer’s Tax Guide 559 Survivors, Executors, and 969 Health Savings Accounts and Other
463 Travel, Entertainment, Gift, and Car Administrators Tax-Favored Health Plans
Expenses 561 Determining the Value of Donated 970 Tax Benefits for Education
501 Exemptions, Standard Deduction, and Property 971 Innocent Spouse Relief
Filing Information 564 Mutual Fund Distributions 972 Child Tax Credit
502 Medical and Dental Expenses (Including 570 Tax Guide for Individuals With Income 1542 Per Diem Rates (For Travel Within the
the Health Coverage Tax Credit) From U.S. Possessions Continental United States)
503 Child and Dependent Care Expenses 571 Tax-Sheltered Annuity Plans (403(b) 1544 Reporting Cash Payments of Over
504 Divorced or Separated Individuals Plans) For Employees of Public $10,000 (Received in a Trade or
505 Tax Withholding and Estimated Tax Schools and Certain Tax-Exempt Business)
514 Foreign Tax Credit for Individuals Organizations 1546 Taxpayer Advocate Service – Your
516 U.S. Government Civilian Employees 575 Pension and Annuity Income Voice at the IRS
Stationed Abroad 584 Casualty, Disaster, and Theft Loss
517 Social Security and Other Information Workbook (Personal-Use Property) Spanish Language Publications
for Members of the Clergy and 587 Business Use of Your Home (Including
Use by Daycare Providers) 1SP Derechos del Contribuyente
Religious Workers
590 Individual Retirement Arrangements 579SP Cómo Preparar la Declaración de
519 U.S. Tax Guide for Aliens Impuesto Federal
521 Moving Expenses (IRAs)
593 Tax Highlights for U.S. Citizens and 594SP Que es lo que Debemos Saber sobre
523 Selling Your Home el Proceso de Cobro del IRS
Residents Going Abroad
524 Credit for the Elderly or the Disabled 596SP Crédito por Ingreso del Trabajo
594 The IRS Collection Process
525 Taxable and Nontaxable Income 850 English-Spanish Glossary of Words
526 Charitable Contributions 596 Earned Income Credit (EIC)
and Phrases Used in Publications
527 Residential Rental Property (Including 721 Tax Guide to U.S. Civil Service Issued by the Internal Revenue
Rental of Vacation Homes) Retirement Benefits Service
901 U.S. Tax Treaties 1544SP Informe de Pagos en Efectivo en
529 Miscellaneous Deductions
530 Tax Information for First-Time 907 Tax Highlights for Persons with Exceso de $10,000 (Recibidos en
Homeowners Disabilities una Ocupación o Negocio)
Commonly Used Tax Forms See How To Get Tax Help for a variety of ways to get forms, including by computer, phone, and mail.
Form Number and Title Form Number and Title
1040 U.S. Individual Income Tax Return 2106 Employee Business Expenses
Sch A&B Itemized Deductions & Interest and 2106-EZ Unreimbursed Employee Business
Ordinary Dividends Expenses
Sch C Profit or Loss From Business 2210 Underpayment of Estimated Tax by
Sch C-EZ Net Profit From Business Individuals, Estates, and Trusts
Sch D Capital Gains and Losses 2441 Child and Dependent Care Expenses
Sch D-1 Continuation Sheet for Schedule D 2848 Power of Attorney and Declaration of
Sch E Supplemental Income and Loss Representative
Sch EIC Earned Income Credit 3903 Moving Expenses
Sch F Profit or Loss From Farming 4562 Depreciation and Amortization
Sch H Household Employment Taxes 4868 Application for Automatic Extension of Time
Sch J Income Averaging for Farmers and Fishermen To File U.S. Individual Income Tax Return
4952 Investment Interest Expense Deduction
Sch R Credit for the Elderly or the Disabled
Sch SE Self-Employment Tax 5329 Additional Taxes on Qualified Plans (Including
IRAs) and Other Tax-Favored Accounts
1040A U.S. Individual Income Tax Return
6251 Alternative Minimum Tax—Individuals
Sch 1 Interest and Ordinary Dividends for
Form 1040A Filers 8283 Noncash Charitable Contributions
Sch 2 Child and Dependent Care 8582 Passive Activity Loss Limitations
Expenses for Form 1040A Filers 8606 Nondeductible IRAs
Sch 3 Credit for the Elderly or the 8812 Additional Child Tax Credit
Disabled for Form 1040A Filers 8822 Change of Address
1040EZ Income Tax Return for Single and 8829 Expenses for Business Use of Your Home
Joint Filers With No Dependents 8863 Education Credits (Hope and Lifetime Learning
1040-ES Estimated Tax for Individuals Credits)
1040X Amended U.S. Individual Income Tax Return 9465 Installment Agreement Request
Publication 926 (2008) Page 19