Part I. Social Security, Medicare, and Federal Income Taxes
From Schedule H instructions:
Social security and Medicare taxes fund retirement, survivor, disability, and health benefits for workers and their families. You and your employees generally pay these taxes in equal amounts.
You’re not required to withhold federal income tax from wages you pay a household employee. You should withhold federal income tax only if your household employee asks you to withhold it and you agree. The employee must give you a completed Form W-4.
For 2019, the social security tax rate is 6.2% each for you and your employee. The Medicare tax rate is 1.45% each. The limit on wages subject to social security tax is $132,900. There is no limit on wages subject to the Medicare tax. If you didn't deduct the employee's share from his or her wages, you must pay the employee's share of tax and your share of tax, a total of 12.4% for social security and 2.9% for Medicare tax.
If you paid any household employee cash wages of more than $132,900 in 2019, include on line 1 only the first $132,900 of that employee's cash wages.
Line 2.
Multiply the amount on line 1 by 12.4% (0.124) and enter the result on line 2.
Line 3.
Enter on line 3 the total of cash wages (see Cash wages, earlier) paid in 2019 to each employee who meets the $2,100 test, explained earlier. There is no limit on wages subject to the Medicare tax.
Line 4.
Multiply the amount on line 3 by 2.9% (0.029) and enter the result on line 4.
Line 5.
Enter on line 5 the total cash wages (see Cash wages, earlier) paid to each employee in 2019 that exceeded $200,000.
Line 6.
Multiply the amount on line 5 by 0.9% (0.009) and enter the result on line 6.
Line 7.
Enter on line 7 any federal income tax you withheld from the wages you paid to your household employees in 2019. See Pub. 926 and Pub. 15 for information on withholding federal income taxes.
Line 8.
Add lines 2, 4, 6, and 7 and enter the result on line 8.
Line 9.
Review the cash wages you paid to all your household employees for each calendar quarter of 2018 and 2019. Is the total for any quarter in 2018 or 2019 $1,000 or more?
