I'm using QuickBooks Online payroll. How do I indicate that I am a Household Employer?

There's a specific part of the worker's setup where you need to select if the employee is a head of household, mjuby.

I'd be glad to share these steps with you:

1. Go to the Payroll menu and proceed to the Employees tab. 
2. Click Add an employee.
3. Enter all required information and click Enter W-4 form in the What are this employee's withholdings? section. 
4. Select 2020 or later.
5. Proceed to the Federal filing status and select Head of Household.
6. Scroll-down to the state taxes section and select Head of Household in the drop-down list for Filing status.
7. Click Done. 

Let me also share these articles with you for more details about managing employees in QBO:

• Employee Withholding Allowances
• Add A New Employee To Your Payroll

You can always reply or visit us again anytime you need help while doing tasks in QBO. 

Sorry, I don't think my question was clear enough. I'm not referring to an employer. I have an employer who is a household employer (someone who pays wages to someone who works in their home for personal reasons). Household employers don't file a Form 941; instead, they complete a Schedule H when they file their individual income tax return. However, they do file W-2's.

Because of these differences I can't expect QBO to handle the employment forms correctly if they don't know the employer is a household employer.

Good afternoon, @mjuby. 

Thanks for reaching back out to the Community and adding some clarification on this issue. I'd be glad to provide you with some additional insight into a household employer. 

I can see how beneficial this would be for your business. However, the annual 1040 form Schedule H isn't available in your QuickBooks Online Payroll account. Although this form isn't available, you can still file or print your W-2's from your account. 

In addition, here's an article that can give you some more details about the 1040 form: File quarterly tax forms. 

Let me know if you have any other questions or concerns. I want to make sure all of your concerns are addressed. I'm only a few clicks away if you need me. Wishing you and your business continued success. 

Can I get QBO to stop notifying me that the Form 941 is due?

Hello there, mjuby.

Yes, you can. To stop you from notifying the due form, you'll have to record the payment or archive the form. These are the only options that we can do to get this thing done. It notifies for reminding the upcoming filing deadline and dues.

Here's how to archive the form:

1. From the Taxes menu, select Payroll Tax.
2. Choose the form 941. Then, select the liability period.
3. Select Archive.

For additional information on this, please see the following link: Archive Old Forms. Also, you may want to view the lists of payroll reports in the program. 

I'll be right here if you need further help. Keep safe always!

In the left menu I have four options:
Payroll
Reports
Payroll Tax
My Accounting
Time

When I click on Payroll Tax I don't see where to select form 941. It shows up under "Upcoming taxes," but what I'm wanting is to let QBO know it doesn't need to show the 941 as upcoming, since we don't need to file a 941.

Hello there, mjuby.

We can remove the 941 overdue notification by entering the payment in QBO. Then, archive the tax forms.

The tax notifications will show in QBO if you have transactions that need your attention such as payroll tax forms, payroll tax payments, etc. If you’re unable to record the liability payment for your federal taxes, let’s go to the Prior Tax Payments screen to input the entry.

1. Go to Taxes on the left panel to choose Payroll Tax.
2. Click the Enter Prior Tax History link to open the Prior Tax Payments page.
3. Type the correct date in the field boxes and select Update List.
4. Next, hit the Add Payment button.
5. From the Tax Type drop-down, pick Federal Taxes (941/944).
6. Fill in the fields with the correct information.
7. Click OK to return to the Prior Tax Payments report screen.

Check out this guide for more insights about the procedure: Recording prior tax payments.

Then, look for the 941 form you're working on and archive it. Let me show you the steps to get there.

1. Hit the Dashboard menu on the left panel and go to the Get thing done tab.
2. Find the 941 form and click on the File now link to open the Employer’s Quarterly Tax Return page.
3. From there, click the Archive button.

For future reference, this article provides detailed instructions on how to prepare for the year-end filing for taxes and forms: Year-end checklist for QuickBooks Online Payroll.

If you have any clarifications or other QuickBooks concerns, leave a comment below. I’ll get back to answer them for you. Have a great day ahead.

Okay I am having the same issues but from a desktop using the Accountant 2019 version. Client is a household employer and not required to file a 940/941. All of a sudden, these forms have come up for 2019, 2020 stating they are due. They have been doing it this way for as long as I can remember and then some and it has never been required. So it must be a glitch on Quickbooks end. I have tried going in and removing the need to even file and it won't allow me to. All I want or need is the ability to efile SSA forms for W2/W3 at the end of the year. 

Let me share some insights why the system is generating 940/941 forms, crepka.

You can see these forms on your company file when the system detects that household employer is subject for federal taxes. Changing their filing status will remove the due. 

Let me show you how:

1. Go to Employees, then select Employee Center.
2. Double-click the name of the employee.
3. Go to the Payroll Info tab.
4. Select Taxes..
5. Go to the Federal tab. From the Filing Status ▼drop-down, choose Don't Withhold.
   
6. Click OK twice to save your selections.
7. Repeat these steps for each exempt employee.
   
   

Once done, restart QuickBooks for changes to take effect. Then, you can start filing W-2s in QuickBooks.

If there are federal taxes calculated on their paychecks, I recommend contacting our QuickBooks Desktop Payroll Team. They can help correct your payroll so you have accurate returns.

Upon sharing this, I still suggest consulting your tax advisor for specific instructions on how to enter a household employer.

I'm adding these links for future guide:

• Set up tax-exempt employees
• Troubleshooting Form 940 with exempt FUTA wages.
  
  

Keep me posted if you need anything else concerning payroll. I'll be right here to help you.

Thank you for the insight on setting up a tax exempt emplyee. My problem still exist where QB  still wants me to pay previous 941's from 2019 that are currently considered over due and also 2020 and then showing one for 2021. I have never had to pay one for this client. 

Thanks for following up with us, @crepka. 

I recommend contacting our payroll support team. Our payroll support can review your account in a secure environment and remote into your computer. This way, we can get a set of eyes on the issue directly to determine the root cause. I've included the steps to connect with payroll below. 

1. Open QuickBooks.
2. Go to Help, then choose QuickBooks Desktop Help.
3. Select Contact Us.
4. Enter your concern, then tap Continue.
5. Choose a way to connect with us (Callback, Chat, Etc.).

Alternatively, you can use the links below to chat with support directly. Choose your payroll service. 

• Do It Yourself
• Assisted

Please let me know if you have further questions or concerns. You can reach out to the Community any time you need a helping hand. Take care and have a wonderful day ahead! 

How is a Household employee set up in QBO to be able to receive a W2 at the end of the year?  How do these wages stay out of 941 wages for filing purposes?

Thank you for joining this thread, Chrisb1988.

I'm here to point you in the right direction for setting up your household employee.

You'll have to enter the employees' tax and W-4 information into QuickBooks Online (QBO) Payroll. The data showing on the W-2 and 941 forms are from the paychecks, and the option to exclude wages from the 941 is currently unavailable.

Moreover, you can use TurboTax to help set up the household employee, including the tax forms you'll have to complete. Click here to visit the site.

Check out the following resources to learn how to properly handle your W-2 and 941 forms:

• About Form W-2, Wage and Tax Statement
• About Form 941, Employer's Quarterly Federal Tax Return

I've included a link to our QBO Payroll Hub for your convenience. From there, you'll learn about managing employee data, processing taxes, and filling out forms, to name a few topics.

Keep me posted in the comment section below if you need any additional help setting up an employee or have any other payroll-related concerns. I'll jump right back in and assist you further. Have a wonderful day and stay safe.

I have the same issue.  I am a household employer.  I don't want Quickbooks to create a Schedule H, I just want to not get the 941 reminders since household employers can pay taxes Schedule H and do not have to file a 941.

Hello there, HouseholdEmployer.

Yes, you're right. As a household employer, you don't have to file a 941 in QuickBooks Online (QBO).

Currently, the option to disable the 941 reminder isn't available. Instead, ensure automatic e-file and e-pay are turned off so you can record prior tax payments after you've paid the tax.

Here's how:

1. Go to the Gear icon.
2. Select Payroll settings.
3. Select E-file and e-pay.
4. Choose Manually with paper coupons.
5. Hit Next.

If the option isn't available, you might have a different payroll subscription. Go to the Taxes and forms section instead. I'll guide you on how to do it.

1. Go to the Gear icon.
2. Select Payroll settings.
3. In the Taxes and forms section, select the Edit pencil icon.
4. Clear the Automate taxes and forms checkbox.
5. Decide how you plan on making your tax payments and filings.
6. Hit Save, and then Done.

To learn more about managing tax payments and form filings in QBO, consider checking out this article: Manage automatic tax payments and form filings.

For tips and other payroll resources, I recommend visiting our website for reference: QBO Payroll self-help articles.

Let me know if you have follow-up questions about taxes and forms or something else in QuickBooks. I'll be happy to answer them.