What is a household employee, and what tax form is used to report wages for such employees?

• A. A domestic worker in a private home; wages reported on Schedule H with Form 1040; may also require W-2 for employee.
• B. A corporate executive; wages reported on Form W-2 only.
• C. A freelancer; wages reported on Form 1099-NEC.
• D. A government employee; wages reported on Form 941.

Answer: (A)

A household employee is someone who works in a private home performing domestic services, such as cleaning, cooking, child care, or elder care, and is treated as an employee of the household owner for payroll tax purposes. When you hire and supervise such a worker, you handle your payroll taxes as the employer and report and remit them accordingly. The wages paid to a household employee are reported on Schedule H, which is filed with your Form 1040. Schedule H covers the household employment taxes, including Social Security and Medicare taxes and any applicable unemployment taxes. In addition, you typically issue a Form W-2 to the employee to report wages paid and taxes withheld. This distinguishes a household employee from a contractor, who would usually be reported with Form 1099-NEC if treated as an independent worker.