Preparation H

[Black Bart]

Sorry (meant to say "Schedule")! I got confused, with all this tax preparation going on around here. Anyway, I discovered one (hand-written) in an upscale professional client's package of junk. They paid a nanny/maid $10K, but never set up an account for unemployment or paid the state doodley squat which, as you know, is necessary to get the credit reducing FUTA from 3 sump'n to .8%.

So...what to do? They've already let nannykins go (apparently Miss Priss will now be scrubbin' her own commode) and I don't want to open a SUTA and close it right back up. They marked all schedule boxes as if state taxes had been paid in full on time and, I suppose, assumed I'd just mail that masterful work of art in, it would fly (after all, they're giving their word that it was paid), and everybody would live happily ever after.

I got one of these some years ago, but can't remember what I did. I'm thinkin' I just paid for the full boat by sending the whole $300 FUTA to IRS, then never heard anything from them or state. It's not according to Hoyle of course, but much preferable to trying to lead these rich, smart dopes through the maze of opening, filing, paying, closing, etc.

Anybody done it before (never mind to those suggesting I simply follow the rules)?

[veritas]

I got one of those too

I think we are going to pay the fica and futa on sch h. Prepare the w2 (will need to get a fed id #) and call it good.

[Koss]

Freudian Slip

Sorry (meant to say "Schedule")! I got confused, with all this tax preparation going on around here.

You used the wrong terminology because you were thinking about your client.

This case is a pain in the butt.

[FEDUKE404]

Dodging the FUTA/SUTA bullets

Definitely sounds like a PITA case (pain in the southern region of a north-bound mule).

Someone is eventually going to have to ante up, but I don't know how well, if at all, the IRS (Sch H), SSA (FUTA), and state (SUTA) agencies interact. My guess is that at some point they will get their act together and come looking for some coinage.

What could really create a stinky is if Miss Priss decides to apply for unemployment. Then certain stuff really hits the aerator. Several years ago the estate of a professional who had for several years a part-time housekeeper (cash all the way, baby!) got some greetings from the appropriate agencies. Had to pay SUTA/FUTA/workmen's comp as far back as the relevant statute of limitations could apply, with a 100% penalty for everything they calculated as being due!

FE

[outwest]

reminded me..

I had a office audit last Tuesday, right in the list of questions was "Do the have any domestic help and did you explain the rules". Yes to both in my case and no we did not have a Sch H filing requirement.

This was a audit of a sole prop trucking co.