Schedule H question, Household Employee had a sub come in to cover a weekend.

[nwtaxlady]

Elderly client is bed ridden and has a household employee, his care giver, which he issues her a W-2 every year. However, she needed a weekend off and had someone come in for 2 days. The elderly man paid the lady to cover the caregiver for the weekend $100. So does he need to do a W-2 for the other lady as well for the $100. IF so, then does he have to pay social security taxes and FUTA on her $100?
Thanks

[Kram BergGold]

No W-2

Since the person received under $2,000 no W-2 is required and no payroll taxes were needed to be withheld. See TTB page 14-3.

[ToddFogelberg]

Household employee

Household employees are a can of worms. Does your client carry worker's comp insurance? Requirements vary by state, in MN it is required in most cases.

[FEDUKE404]

Low income household help

Since the person received under $2,000 no W-2 is required and no payroll taxes were needed to be withheld. See TTB page 14-3.

You may wish to carefully review Question B and/or Question C at the top of 2016 Schedule H. . .

https://www.irs.gov/pub/irs-pdf/f1040sh.pdf

As ToddFogelberg stated, it is indeed a can of worms. "No" answer to >$2k for substitute but "yes" answer for $1k in any quarter.

Your client may be able to avoid a second W2 but will likely need to include temp's wages on Schedule H ? ?

FE

[nwtaxlady]

Looking at TTB 14-3

Looking at TTB page 14-3 my understanding is that the wages under $2,000 is not subject to Social Security or Medicare Tax. But IS subject to Futa tax.
So the $100 would be on the Sch H for FUTA but not for Soc Sec & Med. Is that correct?

The next question is.... do we do a W-2 for the $100 for Box 1 wages and zeros in all the other boxes?

He also had another gal cover for a vacation and paid $700 to this other gal.

So the scenario is Primary Caregiver was paid $15,000
1 weekend cover gal was paid $100.
Another gal was paid while primary caregiver was on vacation $700.

Do we need to issue a W-2 for the 2 gals?

Thanks everyone!

[Burke]

IMO, yes. It is still taxable income to the recipient on the 1040, assuming there is other income sufficient to meet the filing threshold for that recipient. The client may or may not be privy to that information.

[Lion]

Household employee means W-2 and Schedule H and whatever your state requires. Their is a floor under which no FICA/Medicare has to be withheld.

NOT 1099.