Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 3:42:26 AM

As an employer do you add social security and medicare taxes paid to your federal taxes from a credit perspective?

I work with a payroll company and they make payments on my behalf each quarter for our nanny.  These payments include Social Security, Medicare, and Federal Income Tax withholdings as well as Federal Unemployment Tax.  When entering credits do I just put in the Federal Income Tax Withheld or do I put the total amount of all of this?  Any assistance would be greatly appreciated.

0 4 805
4 Replies
Intuit Alumni
Jun 6, 2019 3:42:28 AM

"If you pay your household employment taxes with your business employment taxes, you must report your household employment taxes with those other employment taxes on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return."

You can skip or delete your Schedule H from your return as long as your payroll company has filed all required federal returns associated with your domestic employee.  The purpose of the Schedule H is to ensure the payroll taxes are paid and the income is reported to the IRS.  Since filing Forms 941, 940, and W-2 accomplishes this goal you are not required to also file a Schedule H.  You will need to enter the amounts you paid quarterly; see part II below:

__________________________________

If the payroll company is not doing all this for your nanny taxes, you would complete Schedule H to calculate taxes due and then take credit for what you remitted via 1040-ES in the ''Estimates and other Taxes Paid'' section.

To enter Household Employee Taxes on Schedule H, sign in and click ''Take Me To My Return'' if not already in your return.  Click on:

  • Sign in to your account
  • Click on 'Take Me to My Return'
  • Federal Taxes
  • Other Tax Situations
  • Nanny and Household Employee Tax - Start
  • Go through the interview to report your tax payments on Schedule H

If the amount withheld were paid to the IRS through 1040-ES payments, enter the amount of your withholding for your domestic employee in Estimates and Other Taxes Paid.

After you finish entering your information in the Nanny Tax section (if necessary), enter your estimated payments (Part II):

  • Federal Taxes >>
  • Deductions & Credits >>
  • I'll choose what I work on >>
  • Estimates and Other Taxes Paid >>
  • Estimates
  • Federal Estimated taxes for 2016 (Form 1040-ES)

Images attached.

New Member
Jun 6, 2019 3:42:28 AM

Thanks for the reponse.  Am I able to to add the full payment voucher amount which includes social security and Medicare or do I just put the federal tax portion in as a payment.

Intuit Alumni
Jun 6, 2019 3:42:28 AM

You are welcome; full payment voucher - amount you paid from 1040-ES.

New Member
Jun 6, 2019 3:42:30 AM

Wow thank you for that!  I'll include the full amount including Medicare and social security instead of just the federal tax.