Schedule H Equals Less Time for You

IRS Schedule HYour housecleaner will save you a lot of time when it comes to cleaning your home.   Who has the time to clean anymore with all the stress from work, soccer practice and time for basic re-charging?  If you are like most people, you have even less time around tax-time.  Finding all the right paperwork, forms and receipts is very time consuming.

It gets even worse if you hire your own employees around your house, including:

Maids or Housecleaners

Cooks

Landscapers

Nannies

Or any other household employee you paid $1,700 in wages or more.

If you employ assistance in your house, you have to pay the household employment tax.  This means you have another tax form to add to the pile – Schedule H.  This has been known in the past as the “nanny tax.”   During this time when all levels of government are seeking every source of revenue they can, this is a source ripe for the taking.  This is where you are required to pay the missing pieces, such as the employer portion of social security, Medicare and unemployment.  This tends to level the playing field for those homes thinking they are saving money by hiring a household employee.

Your taxes are time consuming enough.  Is it worth making it even more tedious by filing the household employment tax?  Want to avoid the headache?  Easy to do and avoids your tax risk.  Hire a service provider that has its screens and manages their own employees, like More Time for You.

Selecting a provider that employs housecleaners, lawn care, nannies, and other household employees for you, you don’t have to complete the Schedule H.  Select the company like any other contractor, and avoid the obligation of reporting these wages on your taxes.  No one enjoys making things more problematic than they need to be.   It is far simpler to engage a service provider that does its own payroll than to be concerned about payroll and the household employment tax.  A reliable company like More Time for You reduces many risks as you know their reputation and don’t have the burden of ordering background checks, completing random drug tests or completing other hiring assessments.

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