Household Employer Withholding Tax (Nanny Tax)
Employers of certain family employees have the choice of report and paying the Virginia income tax withhold from those employees on an annual basis. For the employer to qualify, the use must consist entirely of domestic service in the private home of the employer, as defined in the Federal Employment Tax Regulations .
The annual file provision is a filing option for certified employers. It does not establish a new requirement for withholding. Unlike the federal “ nanny tax, ” the Virginia family employer ‘s withhold tax is filed on a separate render, and is not included in the employer ‘s personal income tax file. If you choose to register for this annual file choice, you will be required to file Form VA-6H, the Virginia Household Employer ‘s Annual Summary of Income Tax Withheld, by Jan. 31 each class to report and pay the Virginia income tax withhold for the precede calendar year. You must file Form VA-6H on-line, either through your on-line services report or through eForms .
Basic Instructions for Household Employers
Before you begin, make certain you are liable to withhold Virginia income tax from the wages of your family employee ( second ). If the wages are not subject to union withhold, they are not subject to Virginia withholding .
accomplished instructions for withholding Virginia income tax from wages, salaries, and other payments are contained in the Virginia Employer Withholding Instructions. information on corresponding federal requirements is available from the IRS, and unemployment tax information, including an annual filing option, is provided by the Virginia Employment Commission.
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To register for a family employer ‘s withhold tax account, complete Form R-1H, or register on-line. If you are already filing for a domestic employee under a regular quarterly or monthly withhold tax bill, be sure to close that account when you register for your modern family employer ‘s account, and request that any payments made for the current class be transferred to the newly report. For aid, contact us at 804.367.8037 .
once you register for a family employer ‘s withholding tax tax explanation, you must file a Form VA-6H for each year that you keep the explanation open, even if you have no tax to report. failure to file could result in penalties of up to 30 % of the tax due .
How to File and Pay
Form VA-6H must be filed by Jan. 31 each year, with copies of each W-2 issued to a family employee during the previous calendar year and requital for the tax ascribable .
To file W-2 information and pay the tax due, file Form VA-6H through your online services account.
If you do n’t have an account, you can file using eForms :
To compute the withhold tax, use the Virginia Employer Withholding Tables .
Frequently Asked Questions
Qualified Employers and Employees
What is a household employer? What does it mean to have household employer status?
A family employer is an individual who employs 1 or more people entirely for the function of domestic service in the family of the employer. For Virginia purposes, “ family employer status ” means that you meet this requirement and have registered for a Virginia family employer ‘s withholding tax tax account. This adjustment allows you to file your withholding tax on an annual basis, rather than using the quarterly or monthly charge status required for most other employers .
How do I know if an employee qualifies as a household employee?
The employee must be classified as an employee performing domestic service under federal definitions. This class includes employees such as nannies, babysitters, housekeepers, gardeners, elder-care workers, in-home nurse manage providers, and others who provide domestic services. For details, refer to the Federal Employment Tax Regulations, which are available at www.irs.gov .
If I have a household employee and other business employees, can I include tax for all of them on my annual Virginia Household Employer’s return?
No. You must report information on non-household employees under a separate withhold tax report for your business .
I have a small business that I run from my home with only 1 or 2 employees. Can I sign up for household employer status?
No. The family employer annual filing option is available only to employers whose employees provide domestic serve in the base. You should register for an employer withholding tax account to report the taxes for your occupation employees .
Who Should Register
Federal law allows me to file my “nanny tax” on an annual basis, and I would like to do that for Virginia. Should I register for a household employer’s withholding account?
ampere retentive as you meet the federal requirements, you may register as a family employer for Virginia purposes. Keep in mind, however, that the coverage and requital is done on a separate return, Form VA-6H .
I just hired a nanny. Do I have to register for a household employer’s withholding tax account?
not inevitably. As described under basic Instructions for Household Employers, you need to determine whether you are required to withhold Virginia income tax from your employee ‘s wages. If withhold is required, you may register for a family employer ‘s history, which allows you to file annually, or you may register for an employer withholding tax score, which will require quarterly file .
I have a gardener who has always handled his own taxes, because the wage amounts are too low for withholding to be required. Do I need to sign up for a household employer’s account?
No. You do n’t need to register for an account unless you are actually required to withhold Virginia income tax from your employee ‘s wages .
I already file withholding taxes for my household employees on a quarterly basis, and I prefer to keep my books that way. Am I required to register for a household employer’s account?
No. The family employer status offers an annual file option for qualifying employers. You may continue to file on a quarterly footing under your existing report .
Filing and Payment
How do I file and pay the tax due for my household employees?
You may file Form VA-6H through your on-line services account to report the tax due and remit your tax payment, angstrom well as copies of the W-2s for your employees. You can besides file using eForms .
When are the return and payment due?
Form VA-6H must be filed on-line by Jan. 31 of each year, along with payment for the tax due and copies of any W-2s issued to your family employees for the predate year .
Can I report and pay the tax due with my individual income tax return?
No. You must make a separate file on Form VA-6-H by Jan. 31 .
I registered for a household employer withholding tax account, but I didn’t have any employees this year. Do I still need to file a return?
Yes. You will silent need to file your annual return, Form VA-6H, by Jan. 31. If you do n’t anticipate hiring family employees in the future, you should request that your score be closed. differently, you will need to file annual returns a hanker as the report remains open .
What should I do if I stop having employees during the year?
You will still need to file your annual return, Form VA-6H, by Jan. 31 of the following year, along with copies of the W-2s issued to your employees. If you do n’t anticipate hiring family employees in the future, you should request that your report be closed. otherwise, you will need to file annual returns a long as the account remains open .
What will happen if I file Form VA-6H or pay the tax due after Jan. 31?
late filing or late requital of the tax may result in the assessment of penalties and interest. The minimum penalty is $ 10, and the maximum penalty is 30 % of the tax due. Interest accrues on the tax due until the tax is paid .
Can payroll service providers file the annual returns (Form VA-6H) for household employers?
Yes. The service providers need to be surely to reference the proper explanation total, peculiarly the suffix. Although many accounts will carry a suffix of F001, this will not always be the encase. For case, if you have accounts for both business and family employees, or if you switched to the annual filing condition from a previously existing quarterly account, your family employer explanation may carry a suffix of F002, F003, etc. It is important to use the correct suffix to make sure that payments are applied correctly. To invalidate errors, check both the name and the account number of the come back being submitted. For fast march, the supplier may wish to use our Web Upload overhaul .