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Update: The updated version of Schedule H<\/a> is now available.<\/strong><\/p>\n Last month, the IRS released a draft version of the 2020 Schedule H<\/a>. As expected, the draft includes several new lines to reconcile the paid leave provisions outlined in the Families First Coronavirus Response Act<\/a>. Household employers are required to provide paid leave to their workers for qualified reasons due to the pandemic. They can take a tax credit to offset the cost of paid leave<\/a>.<\/p>\n Schedule H<\/a> is where you report household employment taxes to the IRS and is filed with your personal tax return. If you paid cash wages to a household employee and the wages were subject to Social Security, Medicare, and\/or unemployment taxes, or if you withheld federal income tax, then you likely need to file Schedule H. Learn more about filing Schedule H for household employment taxes<\/a>.<\/p>\n Some of what you\u2019ll need to know includes:<\/p>\n Now on part one of Schedule H where you indicate Social Security, Medicare, and federal income taxes, you’ll need to indicate:<\/p>\n The 2020 Schedule H draft form points to a Worksheet 3, which would be included in the form’s instructions. Please note that draft forms are not final and are not to be filed by taxpayers<\/strong>.<\/p>\n GTM Payroll Services will complete Schedule H for clients who have signed up for the year-end service.<\/p>\n For certain circumstances related to COVID-19, household employees will be eligible for<\/p>\n The law applies to leave taken between April 1 and December 31, 2020. Learn more about FFCRA paid leave<\/a>.<\/p>\n To help cover the costs of mandated leave, FFCRA provides employers two refundable payroll tax credits that are designed to immediately and fully reimburse them. Employers will be repaid, dollar-for-dollar, for the cost of providing coronavirus leave to their employees. Learn more about FFCRA tax credits<\/a>.<\/p>\n GTM Payroll Services not only can manage your household payroll and taxes throughout the year but offers a year-end package that includes Schedule H as well as Form W-2 for your employee and Form W-3, which we’ll file with the Social Security Administration. That’s a lot less paperwork, fewer potential tax mistakes, and more free time for you for the things you enjoy in life. To learn more, call us at (800) 929-9213 for a free consultation with a household employment expert. Behind on your nanny taxes? Now is the time to catch up. Ask about our back tax service to get compliant before taxes are due.<\/p>\n Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way.\n
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However, instructions for the 2020 Schedule H draft have not been released<\/del>.\u00a0Update: Instructions for Schedule H are now available<\/a>.<\/strong><\/p>\nFFCRA paid leave for household employees<\/h2>\n
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FFCRA tax credits for household employers<\/h2>\n
GTM can help<\/h2>\n
Download The Complete Guide to Household Payroll<\/h2>\n
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