I realize this issue may have been resolved, but I wanted to offer my experience with this issue.
Estimated tax entry is not where you state the payments you made for household employment taxes. I thought that was the correct location, but the IRS came back and did not allow the entries. The payments need to be held throughout the year (except for possibly the state tax withholding) and paid through the Schedule-H form with the annual Form 1040. The schedule-H asks questions which should accurately calculate the required tax debt requirement for the total annual employee salary payments. I keep my employee payments with Quickbooks payroll, and the Schedule-H was within a few dollars of the payment calculated by the Schedule-H.
See my comments below.....
I've been on this merry-go-round with the Schedule-H and filing employee and employer taxes.
You MUST file the full amount of annual taxes with your Form 1040. The schedule H instructions states this in a single line statement, so it is easily missed. Completing the Schedule-H form with TBTx calculates those taxes for you and allows for your state unemployment payments. It does NOT allow for the state withholding taxes on the form. My state, Virginia, requires me to pay withholding taxes on a quarterly basis, but the federal taxes, need to be withheld and paid with the Form 1040 filing.
Believe, me, I payed employee and employer quarterly federal taxes for two years, and also had to pay the entire tax amount with the Form 1040, Schedule-H submission. This was basically a "double-taxation". I finally had to hire a CPA to work with the IRS and develop a way to recoup/refund the quarterly takes I paid for two years. The process is slow, and I've currently been refunded for 2 of the 8 quarters.
