Form 942 used to be a tax form for household employers. If you hired someone like a nanny, housekeeper, or caregiver and paid them wages, this was how you reported that to the IRS—every quarter. But it’s no longer around. The IRS retired it and moved everything to a yearly system to make things simpler.
Who had to file Form 942?
If you paid a domestic worker a certain amount in cash wages during the quarter, you had to file it. This wasn’t for companies—just individuals who employed people in their homes. So if you had someone on payroll helping around the house, you probably needed to report those wages using Form 942. It covered things like Social Security, Medicare, and income tax withholding.
When did the IRS stop using Form 942?
The IRS stopped using it after 1994. Starting in 1995, household employers didn’t have to file quarterly reports anymore. Instead, the IRS rolled those taxes into the regular annual tax process. Why? The quarterly system was complicated, especially for individuals. The change made things less of a headache.
What form replaced Form 942?
That would be Schedule H, which you attach to your Form 1040. Now, instead of reporting every few months, household employers just do it once a year when they file their personal taxes. Schedule H covers the same stuff—Social Security, Medicare, and federal unemployment taxes.
How do household employers report wages now?
If you pay someone who works in your home and they earn more than the IRS yearly limit (check for updates), you’ll file Schedule H with your annual tax return. That’s where you report what you paid them and what taxes are owed.
You may also need to:
Register for state unemployment taxes
Give your worker a W-2
Send a W-3 to the Social Security Administration
Sounds like a lot, but it’s easier than quarterly forms. Plus, payroll software or a household employer service can handle most of this for you. Just keep your paperwork organized and stay on top of IRS guidelines.
