Update to the 2012 Publications 926, Household Employer's Tax Guide -- 24-Jan-2012
After Publication 926 (for wages paid in 2012 to household employees) was released, the 4.2% employee social security tax rate that was scheduled to revert to 6.2% on January 1, 2012, was extended to cover wages paid in January and February 2012. Household employers should use Table 3, Employee Social Security (4.2%) and Medicare (1.45%) Tax Withholding Table, to figure the 4.2% employee social security tax for employee wages paid in January and February 2012.
The employee social security tax rate is currently scheduled to increase to 6.2% for wages paid after February 29, 2012. However, Congress is discussing an extension of the 4.2% rate beyond February 29, 2012. If the 4.2% rate is extended, an update will be posted at www.IRS.gov/pub926.
If you withheld the employee social security tax from your household employee's wages at the 6.2% rate (instead of the 4.2% rate) for wages paid in January or February 2012, you should repay the excess withholding to the employee.
A 2012 revision of Publication 926 to address these changes will be available shortly at www.IRS.gov/pub926.
