HELP how to report schedule H for a grantor trust

[turboNancy2]

As trustee, I paid wages to an Aide for my disabled son from his First Party (self-settled) Special Needs Trust.  As this is a household employee, I need to file a Schedule H and pay federal payroll taxes, also from the Trust.  Because this is a "Grantor-type" trust, per 1041 Instructions, my son's income is reported on his 1040 and I file an informational 1041 along with a Grantor Trust Information Letter detailing income/expenses.  Per questions I asked last year, I was told that Schedule H needs to be filed with the Informational Form 1041, since it is the trust, not my son, that is paying the wages (see my previous question.)

My question is this:  Should I enter the Household employment tax amount on 1041 Schedule G, Part I, line 7 and carry it forward to line 24 "Total Tax" on form 1041?  Or should I leave these amounts blank and just attach the Schedule H with a payment voucher and check for the payroll taxes due?  Per the IRS 1041 instructions for Grantor Type Trusts, "If the entire trust is a grantor trust, fill in only the entity information of Form 1041. Don't show any dollar amounts on the form itself; show dollar amounts only on an attachment to the form." Based on those instructions, it sounds like I shouldn't even fill in amounts for Household employment taxes.

[DavidD66]

You are correct, you should not put the household employment taxes on Form 1041.  When a revocable (grantor) trust pays the expenses for a household employee the employment taxes should be filed in the Grantor's name using Schedule H on the Grantor's form 1040. The state employment tax accounts (for  Unemployment and Withholding taxes) will should also be in the Grantor's name.  In other words, the Schedule H goes is filed with your son's tax return, not the Form 1041.