[US] Household Tax Service FAQ

Household employers can take advantage of all the self-serve features of Wave Payroll. In states where payroll tax services is available, household employers are not supported

IRS Household Employers employ one or more employees whose work is done in or around the employer's home. Examples include babysitters, housekeepers and nannies. More details, including who qualifies as a household employee, are available in IRS Publication 926 (2020), Household Employer's Tax Guide.

You are not considered a household employer if you provide a service to clients from your home, such as running a daycare, or if you work from home and pay yourself through payroll.

Household employers can use all of Wave Payroll's self-serve features, including paying employees via direct deposit, calculating tax liabilities and generating IRS Form W-2. In states where Wave Payroll offers payroll tax service, automated payments and filings are not available for household employers. This is because Wave's payroll tax service submits tax payments against and files Forms 940 and 941 rather than Schedule H, which is the form the IRS requires household employers to deposit against and file. 

 


The details below only apply to Wave Payroll customers in the United States who are IRS Household Employers and who authorized automatic payroll tax payments and filings before January 1, 2019. 

 

For paydays on or after January 1, 2021 Wave will no longer automate payroll tax payments and filings for existing household employers.

Your automated payments and filings for paydays in 2020, including W-2s, applicable October-December (Q4) state filings, and Schedule H will be generated as long as your subscription remains active in January, 2021 when filings are produced. You will be responsible for depositing payroll taxes and completing all filings for paydays on or after January 1, 2021.

How can I be sure Wave still completes my 2020 payments and filings?

Wave will complete payments and filings for payrolls with a 2020 payday as long as your subscription remains active now through January, 2021. If you choose to end your tax service or payroll subscription before then, Wave will not generate your 2020 tax forms.

When will my 2020 filings be ready?

January 18, 2021

  • Employee copies of Form W-2 available to download in your Wave Account

February 1, 2021

  • Employer copies of state forms available to download in your Wave Account

March 1, 2021

  • Wave will send you your IRS Schedule H by email

What is included in Wave Payroll once my tax service ends?

Wave continues to support household employers on our self-serve platform, which allows you to pay your employee(s) via direct deposit, calculate your tax liabilities and generate IRS Form W-2; you will be responsible for making payroll tax payments, as well as producing and filing all state and federal forms yourself.

Who can I reach if I have questions?

If you have additional questions submit a support request and we'll be happy to help.

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