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All,
Have a client that paid a nanny over $5000 in 2022 and filed a 1099-NEC accordingly using their SSN
When completing Sched H, the form is requiring a. Employer ID number which the client doesn't have.
Any ideas on how to proceed?
TIA
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A. It probably should have been a W-2.
B. Schedule H is for Household Employers to report and pay taxes on the wages paid to their household employees
C. Schedule H requires an EIN. Can't use SSN.
jinx
The more I know the more I don’t know.
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Thank you all! Unfortunately, I am stuck with the situation that the person filed a 1099 for a Nanny. Any ideas how to handle this?
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@JML222 wrote:
Thank you all! Unfortunately, I am stuck with the situation that the person filed a 1099 for a Nanny. Any ideas how to handle this?
Disengage?
Or have the client apply for an EIN, amend the 1099 to $0 and issue a W-2.
See Pub 926:
https://www.irs.gov/pub/irs-prior/p926--2022.pdf
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It probably would take few minutes to get an EIN
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I disagree.... you aren't stuck. Your client created the problem, they need to fix it. Or as suggested, disengage. Otherwise you'd be signing a return with a known error.
Do not let client errors/mistakes/disregard for the tax law become 'your' problem.
