Federal Form 1040 Schedule H - Household Employment Taxes Instructions

Introduction

Here is a list of forms you need to complete:

• Schedule H for figuring your household employment taxes.
• Form W-2 for reporting wages paid to your employees.
• Form W-3 for sending Copy A of Form W-2 to the Social Security Administration.

For more information, see What Forms Must You File? in Pub. 926, Household Employer's Tax Guide.

No household employees in 2010? If you did not have any household employees in 2010, you do not have to file Schedule H (Form 1040) for 2010.

We have been asked:

What do I do after I fill in Schedule H? Enter the taxes from Schedule H on the " Household employment taxes" line of your Form 1040, 1040NR, 1040-SS, or 1041. You do this because these taxes are added to your income taxes.

How do I file Schedule H? File Schedule H with your Form 1040, 1040NR, 1040-SS, or 1041. If you are not filing a 2010 tax return, file Schedule H by itself.

Do I make a separate payment? No. You pay all the taxes to the United States Treasury, even the social security taxes.

When do I pay? Most filers must pay by April 18, 2011.

How many copies of Form W-3 do I send to the Social Security Administration (SSA)? Send one copy of Form W-3 with Copy A of Form(s) W-2 to the SSA, and keep one copy of Form W-3 for your records. Instructions for filing Forms W-2 and Form W-3 electronically are available at www.socialsecurity.gov/employer.

Important Dates!

 

By ..........	You must .........
January 31, 2011	Give your employee Form W-2.
February 28, 2011 (March 31, 2011, if you file electronically)	Send Copy A of Form W-2 with Form W-3 to the Social Security Administration. Visit www.socialsecurity.gov/employer for details.
April 18, 2011 (see page H-3 for exceptions)	File Schedule H and pay your household employment taxes with your 2010 tax return.

The Basics

What's New

Credit reduction state. A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a " credit reduction state." The Department of Labor determines these states. If an employer pays wages that are subject to the unemployment tax laws of a credit reduction state, that employer must pay additional federal unemployment tax. For 2010, Indiana, Michigan, and South Carolina are credit reduction states. If you paid any wages in Indiana and South Carolina that are subject to the unemployment compensation laws of these states, you are not allowed .003 of the regular .054 credit. If you paid any wages in Michigan that are subject to the unemployment compensation laws of Michigan, you are not allowed .006 of the regular .054 credit. See the instructions for line 23 on page H-5 for more information.

Reminders

Paid preparers are required to sign Schedule H. Your paid preparer must sign Schedule H in Part IV unless you are attaching Schedule H to Form 1040, 1040NR, 1040-SS, or Form 1041. A paid preparer must sign Schedule H and provide the information requested in the Paid Preparer Use Only section if the preparer was paid to prepare Schedule H and is not your employee. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS.

If you must file a 2010 Form W-2, Wage and Tax Statement, for any household employee, you must also send Form W-3, Transmittal of Wage and Tax Statement, with Copy A of Form(s) W-2 to the Social Security Administration. You are encouraged to file your Forms W-2 and W-3 electronically. Visit the Social Security website at www.socialsecurity.gov/employer to learn about electronic filing.

Who Needs To File Schedule H?

You must file Schedule H if you answer " Yes" to any of the questions on lines A, B, or C of Schedule H.

Did you have a household employee? If you hired someone to do household work and you were able to control what work he or she did and how he or she did it, you had a household employee. This is true even if you gave the employee freedom of action. What matters is that you had the right to control the details of how the work was done.

Example.You paid Betty Oak to babysit your child and do light housework 4 days a week in your home. Betty followed your specific instructions about household and child care duties. You provided the household equipment and supplies Betty needed to do her work. Betty is your household employee.

Household work is work done in or around your home. Some examples of workers who do household work are:

Babysitters	Drivers	Nannies
Caretakers	Health aides	Private nurses
Cleaning people	Housekeepers	Yard workers

If a worker is your employee, it does not matter whether the work is full or part-time or that you hired the worker through an agency or from a list provided by an agency or association. Also, it does not matter if the wages paid are for work done hourly, daily, weekly, or by the job.

Note. If a government agency or third party agent reports and pays the employment taxes on wages paid to your household employee under its employer identification number (EIN), you do not need to file Schedule H to report those taxes.

If you are a home care service recipient receiving home care services through a program administered by a federal, State, or local government agency, you can designate an agent under section 3404 to report, file, and pay all federal employment taxes, including FUTA taxes, on your behalf.

Workers who are not your employees. Workers you get from an agency are not your employees if the agency is responsible for who does the work and how it is done. Self-employed workers are also not your employees. A worker is self-employed if only he or she can control how the work is done. A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business.

Example.You made an agreement with Paul Brown to care for your lawn. Paul runs a lawn care business and offers his services to the general public. He hires his own helpers, instructs them how to do their jobs, and provides his own tools and supplies. Neither Paul nor his helpers are your employees.

For more information, see Pub. 926.

Who Needs To File Form W-2 and Form W-3?

You must file Form W-2 for each household employee to whom you paid $1,700 or more of cash wages in 2010 that are subject to social security and Medicare taxes. To find out if the wages are subject to these taxes, see the instructions for Schedule H, lines 1 and 3, on page H-4. If the wages are not subject to these taxes but you withheld federal income tax from the wages of any household employee, you must file Form W-2 for that employee.

If you file one or more Forms W-2, you must also file Form W-3.

Do You Have an Employer Identification Number (EIN)?

If you have household employees, you will need an EIN to file Schedule H. If you do not have an EIN, see Form SS-4, Application for Employer Identification Number. The Instructions for Form SS-4 explain how you can get an EIN immediately over the internet or by telephone, in 4 business days by fax, or in about 4 weeks if you apply by mail. See How To Get Forms and Publications on page H-7 for details on how to get forms and publications including Form SS-4. Do not use a social security number in place of an EIN. To get an EIN over the internet, visit IRS.gov and click on " Apply for an Employer Identification Number (EIN) Online."

Can Your Employee Legally Work in the United States?

It is unlawful to employ an alien who cannot legally work in the United States. When you hire a household employee to work for you on a regular basis, you and the employee must each complete part of the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You must verify that the employee is either a U.S. citizen or an alien who can legally work and you must keep Form I-9 for your records. You can get the form and the USCIS Handbook for Employers by calling 1-800-870-3676, or by visiting the USCIS website at
www.uscis.gov.

What About State Employment Taxes?

If you employed a household employee in 2010, you probably have to pay contributions to your state unemployment fund for 2010. To find out if you do, contact your state unemployment tax agency right away. See page H-11 for some helpful contact information for each state. You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance.

See the Appendix in Pub. 926 for a complete listing of contact information for state unemployment tax agencies.

When and Where To File

Schedule H

If you file Forms 1040, 1040NR, 1040-SS, or 1041 for 2010, remember to attach Schedule H to it. Mail your return, by April 18, 2011, to the address shown in your tax return booklet.

Exceptions. If you get an extension of time to file your return, file it with Schedule H by the extended due date. If you are a fiscal year filer, file your return and Schedule H by the due date of your fiscal year return, including extensions.

Note. If you are a calendar year taxpayer and have no household employees for 2010, you do not have to file Schedule H for 2010.

If you are not required to file a 2010 tax return (for example, because your income is below the amount that requires you to file), you must file Schedule H by April 18, 2011. Complete Schedule H and put it in an envelope with your check or money order. Do not send cash. See the list of filing addresses on page H-12. Mail your completed Schedule H and payment to the address listed for the place where you live. Make your check or money order payable to the " United States Treasury" for the total household employment taxes due. Enter your name, address, social security number, daytime phone number, and " 2010 Schedule H" on your check or money order. Household employers that are tax-exempt, such as churches, may also file Schedule H by itself.

Form W-2 and Form W-3

By January 31, 2011, you must give Copies B, C, and 2 of Form W-2 to each employee. You will meet this requirement if the form is properly addressed, mailed, and postmarked no later than
January 31, 2011.

By February 28, 2011 (March 31, 2011 if you file electronically), send Copy A of all Forms W-2 with Form W-3 to the Social Security Administration (SSA). Mail Copy A of all Forms W-2 with Form W-3 to:

Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001

For certified mail, the ZIP code is 18769-0002. If you use a carrier other than the U.S. Postal Service, add " ATTN: W-2 Process, 1150 E. Mountain Dr." to the address and change the ZIP code to " 18702-7997."

CAUTION! If you file Forms W-2 and W-3 electronically, do not mail the paper Forms W-2 and W-3 to the Social Security Administration.

For additional information, visit the website for Social Security at www.socialsecurity.gov/employer/whereto.htm.

Note. Check with your state, city, or local tax department to find out if you must file Copy 1 of Form W-2.

Penalties. You may have to pay a penalty if you do not give Forms W-2 to your employees or file Copy A of the forms with the SSA by the due dates shown above. You may also have to pay a penalty if you do not show your employee's social security number on Form W-2 or do not provide correct information on the form.

How To Fill In Schedule H, Form W-2, and Form W-3

Schedule H

CAUTION! If you were notified that your household employee received payments from a state disability plan, see page H-7.

Social security number. Enter your social security number. (Form 1041 filers, do not enter a number in this space. But be sure to enter your EIN in the space provided.)

Employer identification number (EIN). An EIN is a nine-digit number assigned by the IRS. The digits are arranged as follows: 00-0000000. Enter your EIN in the space provided. If you do not have an EIN, see Do You Have an Employer Identification Number (EIN)? earlier. If you applied for an EIN but have not received it, enter " Applied For." Do not use your social security number as an EIN.

Line A. To figure the total cash wages you paid in 2010 to each household employee, do not count amounts paid to any of the following individuals.

• Your spouse.
• Your child who was under age 21.
• Your parent. (See Exception for parents below.)
• Your employee who was under age 18 at any time during 2010. If the employee was not a student, see Exception for employees under age 18 below.

Exception for parents. Count the cash wages you paid your parent for work in or around your home if both 1 and 2 below apply.

1. Your child who lived with you was under age 18 or had a physical or mental condition that required the personal care of an adult for at least 4 continuous weeks in a calendar quarter. A calendar quarter is January through March, April through June, July through September, or October through December.
2. You were divorced and not remarried, a widow or widower, or married to and living with a person whose physical or mental condition prevented him or her from caring for the child during that 4-week period.

Exception for employees under age 18. Count the cash wages you paid to a person who was under age 18 and not a student if providing household services was his or her principal occupation.

Cash wages. Cash wages include wages paid by check, money order, etc. Cash wages do not include the value of food, lodging, clothing or other noncash items you give a household employee. See Wages in Pub. 926.

Transportation (commuting) benefits. For 2010, you can generally give your employee transportation benefits such as transit passes worth up to $230 per month without the benefits counting as cash. However, the value of benefits over $230 a month is included as wages. (See Transportation (Commuting) Benefits in Pub. 15-B, Employer's Tax Guide to Fringe Benefits, for more information.)

Part I. Social Security, Medicare, and Federal Income Taxes

Social security and Medicare taxes fund retirement, survivor, disability, and health benefits for workers and their families. You and your employees pay these taxes in equal amounts.

For social security, the tax rate is 6.2% each for you and your employee. For Medicare, the tax rate is 1.45% each. For 2010, the limit on wages subject to social security tax is $106,800. There is no limit on wages subject to the Medicare tax. If you did not deduct the employee's share from his or her wages, you must pay the employee's share and your share (a total of 12.4% for social security and 2.9% for Medicare tax) of tax. See Form W-2 and Form W-3 on page H-6 for more information.

$1,700 test. If you pay a household employee $1,700 or more in cash wages during 2010, you must report and pay social security and Medicare taxes on all the wages. The test applies to cash wages paid in 2010 regardless of when the wages were earned. See Pub. 926 for more information. Or, visit the website for Social Security at www.socialsecurity.gov/pubs/10021.html.

Line 1. Enter on line 1 the total of cash wages (see Cash wages above) paid in 2010 to each household employee who meets the $1,700 test, explained above.

CAUTION! If you paid any household employee cash wages of more than $106,800 in 2010, include on line 1 only the first $106,800 of that employee's cash wages.

Line 2. Multiply the amount on line 1 by 12.4% (.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 2010 to each employee who meets the $1,700 test. There is no limit on wages subject to the Medicare tax.

Line 4. Multiply the amount on line 3 by 2.9% (.029) and enter the result on line 4.

Line 5. Enter on line 5 any federal income tax you withheld from the wages you paid to your household employees in 2010. See Pub. 15 (Circular E), Employer's Tax Guide, for information on withholding federal income taxes.

Line 6. Add lines 2, 4, and 5 and enter the result on line 6.

Line 7. Enter on line 7 any advance EIC payments you made to your household employees in 2010.

Line 8. Subtract the amount on line 7 from the amount on line 6 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 2009 and 2010. Is the total for any quarter in 2009 or 2010 $1,000 or more?

Yes. Complete Part II of Schedule H.

No. Follow the instructions in the chart below.

If you file Form. . .	Then enter the amount from Schedule H, line 8, on. . .
1040	line 59 and check box b
1040NR	line 58
1040-SS	Part I, line 4
1041	Schedule G, line 6

If you do not file any of the above forms, complete Part IV of Schedule H and follow the instructions under When and Where To File on page H-3.

Part II. Federal Unemployment (FUTA) Tax

FUTA tax, with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and state unemployment tax.

The FUTA tax rate is 6.2%. But see Credit for contributions paid to state below. Do not deduct the FUTA tax from your employee's wages. You must pay it from your own funds. See page H-11 for a listing of some helpful contact information for each state.

Credit for contributions paid to state. You may be able to take a credit of up to 5.4% against the FUTA tax, resulting in a net FUTA tax rate of 0.8%. But to do so, you must pay all the required contributions for 2010 to your state unemployment fund by
April 18, 2011. Fiscal year filers must pay all required contributions for 2010 by the due date of their federal income tax returns (not including extensions).

Contributions are payments that a state requires you, as an employer, to make to its unemployment fund for the payment of unemployment benefits. However, contributions do not include:

• Any payments deducted or deductible from your employees' pay;
• Penalties, interest, or special administrative taxes not included in the contributions rate the state gave you; and
• Voluntary contributions you paid to get a lower experience rate.

If you paid contributions to the states of Indiana, Michigan, or South Carolina, see the instructions for line 23.

Lines 10 through 12. Answer the questions on lines 10 through 12 to see if you should complete Section A or Section B of Part II.

Fiscal year filers. If you paid all state unemployment contributions for 2010 by the due date of your return (not including extensions), check the " Yes" box on line 11. Check the " No" box if you did not pay all of your state contributions by the due date of your return.

Line 13. Enter the two-letter abbreviation of the name of the state (or the District of Columbia, Puerto Rico, or the U.S. Virgin Islands) to which you paid unemployment contributions.

Line 14. Enter the total of contributions (defined earlier) you paid to your state unemployment fund for 2010. If you did not have to make contributions because your state gave you a zero percent experience rate, enter " 0% rate" on line 14.

Line 15. Enter the total of cash wages (see Cash wages on page H-4) you paid in 2010 to each household employee, including employees paid less than $1,000. However, do not include cash wages paid in 2010 to any of the following individuals.

• Your spouse.
• Your child who was under age 21.
• Your parent.

If you paid any household employee more than $7,000 in 2010, include on line 15 only the first $7,000 of that employee's cash wages.

CAUTION! Complete lines 17 through 24 only if you checked a " No " box on lines 10, 11, or 12.

Line 17. Complete all columns that apply. If you do not, you will not get a credit. If you need more space, attach a statement using the same format as line 17. Your state will provide the experience rate. If you do not know your rate, contact your state unemployment tax agency. See page H-11 for a listing of some helpful contact information for each state.

You must complete columns (a), (b), and (h), even if you were not given an experience rate. If you were given an experience rate of 5.4% or higher, you must also complete columns (c) and (d). If you were given a rate of less than 5.4%, you must complete all columns.

If you were given a rate for only part of the year, or the rate changed during the year, you must complete a separate line for each rate period.

Column (b). Enter the taxable wages on which you must pay taxes to the unemployment fund of the state shown in column (a). If your experience rate is zero percent, enter the amount of wages you would have had to pay taxes on if that rate had not been granted.

Column (h). Enter the total of contributions (defined earlier) you paid to the state unemployment fund for 2010 by April 18, 2011. Fiscal year filers, enter the total contributions you paid to the state unemployment fund for 2010 by the due date of your return (not including extensions). If you are claiming excess credits as payments of state unemployment contributions, attach a copy of the letter from your state.

Line 18. Add the amounts in columns (g) and (h) separately and enter the totals in the spaces provided.

Line 19. Add the amounts shown on line 18 and enter the total on line 19.

Line 23. Complete the worksheet below only if you are a household employer in the states of Indiana, Michigan, or South Carolina.

Worksheet for Household Employers in a Credit Reduction State - Line 23

1. Enter the smaller of the amount from Schedule H, line 19 or line 22	1 __________
2. Enter the total taxable FUTA wages from Schedule H, line 20	2 __________
3. If you paid wages in any of these states:
3a. Indiana. Total taxable FUTA wages paid in IN ________x .003 =	3a __________
3b. Michigan. Total taxable FUTA wages paid in MI ________ x .006 =	3b __________
3c. South Carolina. Total taxable FUTA wages paid in SC ________ x .003 =	3c __________
4. Total credit reduction (Lines 3a + 3b + 3c = line 4)	4 __________
5. Subtract line 4 of this worksheet from line 1 of this worksheet and enter the result here and on Schedule H, line 23.	5 __________

Part III. Total Household Employment Taxes

Line 25. Enter the amount from line 8. If there is no entry on line 8, enter -0-.

Line 26. Add the amounts on lines 16 and 25. If you were required to complete Section B of Part II, add the amounts on lines 24 and 25 and enter the total on line 26.

Line 27. Follow the instructions in the chart below.

If you file Form. . .	Then do not complete Part IV but enter the amount from Schedule H, line 26, on . . .
1040	line 59 and check box b
1040NR	line 58
1040-SS	Part I, line 4
1041	Schedule G, line 6

If you do not file any of the above forms, complete Part IV of Schedule H and follow the instructions under When and Where To File on page H-3.

Paid Preparers

Paid preparer use only. You must complete this part if you were paid to prepare Schedule H, and are not an employee of the filing entity, and are not attaching Schedule H to Form 1040, 1040NR, 1040-SS, or Form 1041. You must sign in the space provided and give the filer a copy of the return in addition to the copy to be filed with the IRS.

Form W-2 and Form W-3

If you file one or more Forms W-2, you must also file Form W-3.

You must report both cash and noncash wages in box 1, as well as tips and other compensation. The completed Forms W-2 and W-3 in the example (see page H-10) show how the entries are made. For detailed information on preparing these forms, see the Instructions for Forms W-2 and W-3, Wage and Tax Statement and Transmittal of Wages and Tax Statements.

Employee's portion of taxes paid by employer. If you paid all of your employee's share of social security and Medicare taxes, without deducting them from the employee, follow steps 1 through 3. (See the example on pages H-8, H-9, and H-10.)

• Enter the amounts you paid on your employee's behalf in boxes 4 and 6 (do not include your share of these taxes).
• Add the amounts in boxes 3, 4, and 6. (However, if box 5 is greater than box 3, then add the amounts in boxes 4, 5, and 6.)
• Enter the total in box 1.

TIP: On Form W-3, put an " X" in the " Hshld. emp." box located in box b, Kind of Payer.

For information on filing Forms W-2 and W-3 electronically, visit the website for Social Security, Business Services Online, at www.socialsecurity.gov/bso/bsowelcome.htm.

You Should Also Know

What's New for 2011

Changes to tax rates and wage threshold. The tax rates mentioned in the instructions for Part I and Part II of Schedule H will not change. Also, the cash wage threshold that you pay to any one household employee remains at $1,700 for 2011. The 2011 Employee Social Security and Medicare Tax Withholding Table is in Pub. 926.

Limit on wages subject to social security tax. The limit on wages subject to social security tax remains at $106,800 for 2011.

Advance payment of earned income credit (EIC). The option of receiving advance payroll payments of EIC expires on December 31, 2010. Individuals eligible for EIC in 2011 can still claim the credit when they file their federal income tax return.

Estimated Tax Penalty

You may need to increase the federal income tax withheld from your pay, pension, annuity, etc. or make estimated tax payments to avoid an estimated tax penalty based on your household employment taxes shown on line 26 of Schedule H. You may increase your federal income tax withheld by filing a new Form W-4, Employee's Withholding Allowance Certificate, or Form W-4P, Withholding Certificate for Pension or Annuity Payments. Make estimated tax payments by filing Form 1040-ES, Estimated Tax for Individuals. For more information, see Pub. 505, Tax Withholding and Estimated Tax.

CAUTION! Estimated tax payments must be made as the tax liability is incurred: by April 15, June 15, September 15, and the following January 15. If you file your Form 1040 by January 31 and pay the rest of the tax that you owe, you do not need to make the payment due on January 15.

Exception. You will not be penalized for failure to make estimated tax payments if both 1 and 2 below apply for the year.

1. You will not have federal income tax withheld from wages, pensions, or any other payments you receive.
2. Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes.

What Records To Keep

You must keep copies of Schedule H and related Forms W-2, W-3, W-4, and W-5, Earned Income Credit Advance Payment Certificate, for at least 4 years after the due date for filing Schedule H or the date the taxes were paid, whichever is later. If you have to file Form W-2, also keep a record of each employee's name and social security number. Each payday, you should record the dates and amounts of:

• Cash and noncash wage payments.
• Any employee social security tax withheld.
• Any employee Medicare tax withheld.
• Any federal income tax withheld.
• Any advance EIC payments you made.

What Is the Earned Income Credit (EIC)?

The EIC is a refundable tax credit for certain workers.

Which employees must I notify about the EIC? You must notify your household employee about the EIC if you agreed to withhold federal income tax from the employee's wages but did not do so because the income tax withholding tables showed that no tax should be withheld.

Note. You are encouraged to notify each employee whose wages for 2010 were less than $43,352 ($48,372 if married filing jointly) that he or she may be eligible for the EIC.

How and when must I notify my employees? You must give the employee one of the following:

• The official IRS Form W-2, which has the required information about the EIC on the back of Copy B.
• A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the official IRS Form W-2.
• Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC).
• Your written statement with the same wording as Notice 797.

If you are not required to give the employee a Form W-2, you must provide the notification by February 10, 2011.

You must hand the notice directly to the employee or send it by First-Class Mail to the employee's last known address.

How do my employees claim the EIC? Eligible employees claim the EIC on their 2010 tax returns.

Rules for Business Employers

Do not use Schedule H if you chose to report employment taxes for your household employees along with your other employees on Form 941, Employer's QUARTERLY Federal Tax Return; Form 943, Employer's Annual Federal Tax Return for Agricultural Employees; or Form 944, Employer's ANNUAL Federal Tax Return. If you report this way, be sure to include your household employees' wages on your Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.

State Disability Payments

Certain state disability plan payments to household employees are treated as wages subject to social security and Medicare taxes. If your employee received payments from a plan that withheld the employee's share of social security and Medicare taxes, include the payments on lines 1 and 3 of Schedule H and complete the rest of Part I through line 5. Add lines 2, 4, and 5. From that total, subtract the amount of these taxes withheld by the state. Enter the result on line 6. Also, enter " disability" and the amount subtracted on the dotted line next to line 6. See the notice issued by the state for more details.

How To Correct Schedule H

If you discover an error on a Schedule H that you previously filed with Form 1040, Form 1040NR, or Form 1040-SS, file Form 1040X and attach a corrected Schedule H. If you discover an error on a Schedule H that you previously filed with Form 1041, file an " Amended" Form 1041 and attach a corrected Schedule H.

If you discover an error on a Schedule H that you filed as a stand-alone return, file another stand-alone Schedule H with the corrected information. In the top margin of your corrected Schedule H write (in red ink if possible) " CORRECTED" followed by the date you discovered the error.

If you owe tax, pay in full with your Form 1040X, Form 1041, or stand-alone Schedule H. If you overpaid tax on a previously filed Schedule H, then depending on whether you adjust or claim a refund, you must certify that you repaid or reimbursed the employee's share of social security and Medicare taxes, or that you have obtained consents from your employees to file a claim for refund for the employee tax. See Pub. 926 for complete instructions.

How To Get Forms and Publications

To get the IRS forms and publications mentioned in these instructions (including Notice 797), visit IRS.gov or call 1-800-TAX-FORM (1-800-829-3676).

Privacy Act and Paperwork Reduction Act Notice

We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. If you do not provide the information we ask for, or provide false or fraudulent information, you may be subject to penalties.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

Subtitle C, Employment Taxes, of the Internal Revenue Code imposes employment taxes on wages, including income tax withholding. This form is used to determine the amount of the taxes that you owe. Section 6011 requires you to provide the requested information if the tax is applicable to you. Section 6109 requires you to provide your identification number.

Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions to administer their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below.

Recordkeeping, 1 hr., 38 min.;
Learning about the law or the form, 1 hr., 1 min.;
Preparing the form, 1 hr., 9 min.;
Copying, assembling, and sending the form to the IRS, 34 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to: Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Schedule H (Form 1040) to this address. Instead, see When and Where To File on page H-3.