W-2 for Household Employee

[Burke]

My client has had a household employee for a number of years. Last year, employee only worked a couple of weeks. Total 2020 salary less than $200. As in years past, client did not withhold SS/MC taxes, but paid them for the employee and reported them annually on Sche H. Since this year, the employee's wages are not sufficient to qualify for SS/MC earnings, the amount is not shown in Boxes 3 or 5, but is left blank. Schedule H indicates the employer does not have to file Schedule H, therefore does not pay any SS/MC taxes to the IRS. In the past, I have included these taxes on the employee's W-2 in Box 1, but not Boxes 3 & 5. So this year, on the W-2, you show only the actual wages paid in Box 1, correct? Client had no other employees during the year.

[TaxGuyBill]

Total 2020 salary less than $200.

So this year, on the W-2, you show only the actual wages paid in Box 1, correct? Client had no other employees during the year.

Correct. Only Box 1.

Technically, you don't even need to file a W-2 if (a) it was under $600, (b) no wages subject to SS/Medicare and (c) no income tax withholding was done. But it can be more challenging for the employee to enter the Household Wages when preparing his own tax return if there isn't a W-2, so filing a W-2 would make it easier for the employee.

[Burke]

Yes, I saw some reference to that elsewhere, but couldn't find it in the instructions for filing the W-2. There were no income taxes withheld. But the employee still has to report the wages on their personal Form 1040. Also they probably had earnings from other jobs. So we are doing the W-2.