Filing W-2 Forms for Household Employees
Yearli is a perfect solution for filing W-2 forms for any employee, including household employees or caregivers. The IRS requires payroll tax filing by an employer who pays a household employee more than $2,800 cash wages in a calendar year. The government also requires the Payer to have a valid EIN when filing for their household employee. Refer to IRS Publication 926, Household Employer's Tax Guide for more information.
Payroll tax obligations may include:
- Employee portion of Social Security & Medicare taxes withheld from wages.
- Employer portion of Social Security & Medicare taxes.
- Federal Unemployment Tax (FUTA).
- Advance payment of the Earned Income Credit for eligible employees.
- State Unemployment and disability insurance taxes levied on the employer.
Using an ITIN to File Form W-2
An ITIN (Individual Taxpayer Identification Number) cannot be used to file paper or electronic W-2 forms. ITINs are formatted similar to an SSN but begin with the number 9 and have the number 7 or 8 as the fourth digit. Because these are not accepted, the Yearli site will flag ITINs as invalid data. For more information, see section 4 of IRS Publication 15 (Circular E).