W-2 Guide for Household Employers
Form W-2 — Wage and Tax Statement
How to prepare, complete, and file Form W-2 for each household employee you paid during the tax year.
Gather the following for each household employee:
- Employee's full legal name and Social Security Number (SSN)
- Employee's current mailing address
- Total cash wages paid during the tax year
- Federal income tax withheld (if any)
- Social Security wages and tax withheld
- Medicare wages and tax withheld
- State wages and state income tax withheld (if applicable)
- Your Employer Identification Number (EIN) and business name/address
Filing Deadline: January 31
Step-by-Step Guide
Before completing the W-2, collect your employee's Social Security Number, full legal name, and current mailing address. Also total up all cash wages paid and taxes withheld during the tax year. If you used payroll software or kept detailed pay records, pull the year-end totals.
Tips
- Verify the employee's name and SSN match their Social Security card exactly.
- If the employee moved during the year, use their current address.
- Keep your payroll records for at least 4 years in case of an IRS audit.
These are the core fields for household employment. Box 1 is total taxable wages paid. Box 2 is federal income tax withheld (may be $0 if you did not withhold). Box 3 is Social Security wages (same as Box 1, up to the wage base). Box 4 is Social Security tax withheld (employee's share). Box 5 is Medicare wages (same as Box 1, no cap). Box 6 is Medicare tax withheld (employee's share).
| Box | Name | What to Enter |
|---|---|---|
| 1 | Wages, tips, other compensation | Total cash wages paid during the year |
| 2 | Federal income tax withheld | Amount withheld (enter $0 if none withheld) |
| 3 | Social Security wages | Same as Box 1 (up to wage base limit) |
| 4 | Social Security tax withheld | Employee's 6.2% share of SS tax |
| 5 | Medicare wages and tips | Same as Box 1 (no cap) |
| 6 | Medicare tax withheld | Employee's 1.45% share of Medicare tax |
For most household employers, Boxes 7 (Social Security tips) and 8 (allocated tips) will be blank -- these apply to tipped employees in restaurants, not typical nannies or housekeepers. Boxes 15-20 are for state and local tax information: your state employer ID, state wages, and state income tax withheld.
Tips
- Box 13 checkboxes: Check 'Statutory employee' only if applicable (rare for household workers). Leave 'Retirement plan' and 'Third-party sick pay' unchecked for most household employees.
- Boxes 15-20 are only needed if your state requires income tax withholding for household employees. Check your state's requirements.
Form W-2 comes in multiple copies, each serving a different purpose. You must distribute them correctly and on time.
| Copy | Recipient | Purpose |
|---|---|---|
| A | Social Security Administration | Filed with Form W-3 (transmittal). Submit electronically via BSO or mail. |
| B | Employee | For the employee to file with their federal tax return. |
| C | Employee | For the employee's personal records. |
| D | Employer (you) | Your copy for employer records. Keep for at least 4 years. |
| 1 | State/local tax agency | If your state requires W-2 reporting (check state requirements). |
| 2 | Employee | For the employee to file with their state/local tax return. |
W-2s must be provided to employees AND filed with the SSA by January 31 following the tax year. The SSA strongly encourages electronic filing through Business Services Online (BSO). You must also file Form W-3 (Transmittal of Wage and Tax Statements) as a summary when submitting W-2s to the SSA.
Tips
- Electronic filing is free through SSA's BSO portal and provides instant confirmation.
- If filing 10 or more W-2s, electronic filing is mandatory.
- Late filing penalties range from $60 to $310 per W-2 depending on how late, with higher penalties for intentional disregard.
- If you need more time, you can request an extension using Form 8809, but only for filing with the SSA -- employee copies are still due January 31.