§3510 Coordination of Collection of Domestic Service Employment Taxes with Collection of Income Taxes

Summary

Employers must report taxes for household workers on a calendar-year basis and file the return by the 15th day of the fourth month after the end of the employer’s tax year that starts in that calendar year. They do not have to make regular deposits or pay installment payments under section 6157 for those household-worker taxes. For estimated-tax rules (section 6654), those household-worker taxes count as a chapter 2 tax for the employer’s tax year that begins in the same calendar year, unless two things both happen: the employer gets no wage-withholding credit under section 31 for that year, and no addition under section 6654(e) would apply. The Secretary will make rules to adjust how annualization works and may issue other regulations, including treating these taxes as chapter 1 for coordination with income tax collection. The law covers taxes under chapters 21 or 23 on pay for domestic work in the employer’s private home and amounts withheld under section 3402(p). The Secretary may also agree with a State to collect that State’s unemployment taxes for household workers and must send those collections to the State’s Unemployment Trust Fund account.