determine covered status

Your are required to file federal returns and pay federal payroll taxes for domestic employees if:

1. you meet the definition of household employer/employee (see our definitions at left)
2. you reach any one of these wage thresholds
   • Social Security:$1400 wages to any worker in year 2004
   • Unemployment:$1000 combined household wages any calendar quarter of 2004 or the prior year

if you meet BOTH conditions, proceed to Federal Summary below

 federal summary

• comply with your state requirements (see our welcome page)
• register for ID using form SS-4
• for each employee verify employment eligibility using INS form I-9
• if (optionally) deducting income taxes get completed form W-4 from worker
• deduct Social Security taxes from each paycheck on wages to $87,900 each worker (2004)
• deduct Medicare taxes from each paycheck on all wages
• deducting income taxes is optional
• increase your personal income tax payments throughout the year to cover your accumulated employment tax liabilities
• annually file employment tax return on Schedule H, form 1040
• pay all withheld amounts
• pay employer's matching amount for social security tax
• pay employer's matching amount for medicare tax
• pay federal unemployment (FUTA) on wages to $7000 each worker (2004)
• annually file forms W-2 and transmittal form W-3 with Social Security Administration
• give each worker form W-2 by January 31 or after termination
• see Federal Forms at left