Is my Au Pair a household employee and do I need to file a schedule H 1040 if I didn't withhold taxes?

[ryanrlb90]

The Au Pair I hired, whom lived with me in my household and performed the duties as I directed with my provided materials, and received over $10K. No taxes were withheld.

[CatinaT1]

It depends. There may be more that you need to do than file a schedule H.

What kind of visa do they hold? Did you issue a W2 for the wages paid?

This IRS article gives further information Au Pair Taxation.

[ryanrlb90]

Thank you for taking the time to respond Catina. 

Your statement implies that I do have to file a schedule H. Why is that? 

All Au Pairs enter via a J-1 visa. No W-2 was given and no funds where withheld. 

[CatinaT1 · Accepted solution]

No schedule H is needed unless the Au pair has been in the US previously or is considered a resident alien. 

From the link I provided earlier:

Social Security and Medicare Taxes

Au pair wages are not usually subject to social security and Medicare taxes because of the au pair's status as a J-1 nonimmigrant and as a nonresident alien. However, if the au pair had previously been in the United States as a student, teacher, trainee, or researcher in F, J, M, or Q nonimmigrant status, then the au pair might be a resident alien during their current stay in the United States, and might be subject to social security and Medicare taxes if their annual au pair wages exceed the applicable dollar threshold found in Publication 926. Please refer to Alien Liability for Social Security and Medicare Tax.

If the au pair is a resident alien and their annual au pair wages exceed the applicable dollar threshold, then the host family must withhold social security and Medicare taxes and report them on Schedule H, Household Employment Taxes, of Form 1040 and on Form W-2. The host family will need to apply for an Employer Identification Number (EIN) if it is required to withhold tax and file Form W-2. The au pair will need to apply for a U.S. Social Security number.