Filing household employment taxes: A timeline for what to do when
Managing the taxes for your caregiver is a year-round responsibility. Learn how to stay on top of it.
If you’ve hired a nanny or senior caregiver, you likely know that with this added help comes responsibility: Having a household employee means you must follow payroll and tax rules.
While this extra paperwork may seem overwhelming, it is possible to do it on your own. (Alternatively you can use Care.com Homepay to handle it for you.) For the DIYers out there, we’ve put together a list of all the important dates you need to know so you don't miss a tax deadline. Remember that your state may require you to file state tax returns on a different schedule. Check your state’s Department of Labor and/or Department of Revenue for details.
Your 2019 month-by-month household employment tax deadlines
15: File the fourth installment of Form 1040-ES (estimated tax payment) with the IRS. This comprises Social Security and Medicare taxes (employer and employee portions), federal unemployment insurance taxes (FUTA) and any federal income taxes withheld from your employee's pay from September through December of last year.
31: File state tax returns for the unemployment insurance taxes you’ve accrued and the income taxes you withheld from your caregiver during the fourth quarter of last year (October - December).
31: Prepare Form W-2 and give it to your caregiver. This is what they’ll use to file their personal income tax return.
31: File Form W-3 and Form W-2 Copy A with the Social Security Administration. This is how your caregiver gets credit for the taxes withheld from their pay that ultimately helps determine their retirement benefits.
After a busy January, you’ve got a month off from taxes. Now may be a good time to conduct a performance review with your caregiver.
Another month of no tax deadlines. If your caregiver has already filed their taxes and did not get the refund they expected, let them know they can change their income tax withholding to have less or more taxes withheld each pay period.
15: Your personal income tax return is due. Make sure you’ve prepared and attached a Schedule H to account for your federal household employment tax liability from last year. And don’t forget about including the Child and Dependent Care Tax Credit as well. You could save up to $1,200!
15: File your first Form 1040-ES for the current tax year. It covers your federal household employment tax liability for January - March.
30: File a state income tax return and a state unemployment insurance tax return for the quarter that ended on March 30.
Nothing is due this month, but remember to keep up with any changes to the law that may affect how you manage your caregiver.
17: File Form 1040-ES with the IRS to cover your federal household employment tax liability for April and May. This will most likely be a smaller payment since it only covers two months.
31: Quarterly state income and unemployment insurance tax returns are due for the taxes withheld from your caregiver and accrued by you respectively during the months of April, May and June.
You’ve got a month off from any tax-related duties. Still, take a few minutes to brush up on the household employment requirements in your state to make sure you’re staying on top of things.
16: File the third Form 1040-ES of the year with the IRS. It’s an accumulation of your federal household employment taxes for the months of June, July and August.
31: File quarterly state tax returns to account for the unemployment insurance taxes you owe and the income taxes you withheld from your caregiver. Taxes are based on the wages you paid your caregiver from July - September.
There are no tax filing deadlines to worry about this month. Use this time to talk to your caregiver about any changes to their schedule during the upcoming holiday season. Both of you need to be on the same page about when care is needed. Also, your company is probably going through Open Enrollment for benefits around this time, so make sure you sign up for a Dependent Care Account. You could save thousands of dollars next year on your care-related expenses.
Again, there are no tax filing deadlines this month. However, most new laws take effect in January so make sure you’ll be in compliance when the New Year begins. It’s also a good time to review the employment contract you have with your caregiver and make any necessary changes.
If all of this seems like a lot of work, don’t worry. Care.com HomePay is here to help if you’d like to offload these tasks. We’ll make sure all your state tax returns and estimated tax payments are accurate and filed on time.
* The tax information contained in this article should not be used for any actual nanny relationship without the advice and guidance of a professional tax advisor who is familiar with all the relevant facts. The information contained herein is general in nature and is not intended as legal, tax or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for your specific circumstances and may require consideration of other matters.
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