2022 Publication 926

1 Department of the Treasury Contents Internal Revenue Service What's New .. 1. Reminders .. 2. Publication 926. Cat. No. 64286A Introduction .. 3. Household Do You Have a Household Employee? .. 3. Can Your Employee Legally Work in the United States? .. 4. Employer's Do You Need To Pay Employment Taxes? .. 4. Social Security and Medicare Taxes .. 5. Tax Guide Federal Unemployment (FUTA) Tax .. 7. Do You Need To Withhold Federal Income Tax? .. 9. For use in 2022 What Do You Need To Know About the Earned Income Credit? .. 9. How Do You Make Tax Payments? .. 10. What Forms Must You File? .. 11. What Records Must You Keep? .. 11. Can You Claim a Credit for Child and Dependent Care Expenses? .. 12. How Can You Correct Schedule H? .. 12. How To Get Tax Help .. 13. Index .. 18. Future Developments For the latest information about developments related to Pub. 926, such as legislation enacted after it was published, go to What's New The COVID-19 related credit for qualified sick and family leave wages is limited to leave taken after March 31, 2020, and before October 1, 2021.

2 Gener- ally, the credit for qualified sick and family leave wages, as enacted under the Families First Coronavirus Re- sponse Act (FFCRA) and amended and extended by the COVID-related Tax relief Act of 2020, for leave taken after March 31, 2020, and before April 1, 2021, and the credit for qualified sick and family leave wages under sections 3131, 3132, and 3133 of the Internal Revenue Code, as enacted under the American Rescue Plan Act of 2021 (the ARP), for leave taken after March 31, 2021, and before October 1, 2021, have expired. However, employers that pay qualified sick and family leave wages in 2022 for Get forms and other information faster and easier at: leave taken after March 31, 2020, and before October 1, (English) ( ) 2021, are eligible to claim a credit for qualified sick and (Espa ol) (Pусский). ( ) (Ti ng Vi t). family leave wages in 2022. See the 2022 revision of Feb 09, 2022. Instructions for Schedule H (Form 1040) for more informa- 2021, as well as deposits and payments due after January tion.

3 1, 2021, that were required for wages paid on or after Social security and Medicare tax for 2022. The rate of March 27, 2020, and before January 1, 2021. One-half of social security tax on taxable wages, including qualified the employer share of social security tax was due by De- sick leave wages and qualified family leave wages paid in cember 31, 2021, and the remainder is due by December 2022 for leave taken after March 31, 2021, and before Oc- 31, 2022. Because both December 31, 2021, and Decem- tober 1, 2021, is each for the employer and em- ber 31, 2022, are nonbusiness days, payments made on ployee or for both. Qualified sick leave wages and the next business day will be considered timely. Any pay- qualified family leave wages paid in 2022 for leave taken ments or deposits you made before December 31, 2021, after March 31, 2020, and before April 1, 2021, aren't sub- are first applied against your payment due on December ject to the employer share of social security tax; therefore, 31, 2021, and then applied against your payment due on the tax rate on these wages is The social security December 31, 2022.

4 For more information, go to wage base limit is $147,000. ETD. Also see the Instructions for Schedule H (Form The Medicare tax rate is each for the employee 1040), including how to pay the deferred amount. and employer, unchanged from 2021. There is no wage Disaster tax relief. Disaster tax relief is available for base limit for Medicare tax. those impacted by disasters. For more information about Social security and Medicare taxes apply to the wages disaster relief, go to of household workers you pay $2,400 or more in cash wa- Qualified bicycle commuting reimbursement suspen- ges in 2022. For more information, see Cash wages, later. ded. Section 11047 of 115-97, Tax Cuts and Jobs Qualified parking exclusion and commuter transpor- Act, suspends the exclusion of qualified bicycle commut- tation benefit. For 2022, the monthly exclusion for quali- ing reimbursements from your employee's income for any fied parking is $280 and the monthly exclusion for com- tax years beginning after 2017 and before 2026.

5 Muter highway vehicle transportation and transit passes is Certification program for professional employer or- $280. ganizations (PEOs). The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 required the IRS to es- tablish a voluntary certification program for PEOs. PEOs handle various payroll administration and tax reporting re- Reminders sponsibilities for their business clients and are typically paid a fee based on payroll costs. To become and remain 2022 withholding tables. The federal income tax with- certified under the certification program, certified profes- holding tables are included in Pub. 15-T, Federal Income sional employer organizations (CPEOs) must meet vari- Tax Withholding Methods, available at ous requirements described in sections 3511 and 7705. You may also use the Income Tax Withholding Assistant and related published guidance. Certification as a CPEO. for Employers at to help you figure federal may affect the employment tax liabilities of both the CPEO.

6 Income tax withholding; however, this transitional tool will and its customers. A CPEO is generally treated for em- no longer be available after 2022. ployment tax purposes as the employer of any individual 2022 federal income tax withholding. The household who performs services for a customer of the CPEO and is employer rules for federal income tax withholding have covered by a contract described in section 7705(e)(2) be- not changed. That is, you're not required to withhold fed- tween the CPEO and the customer (CPEO contract), but eral income tax from wages you pay a household em- only for wages and other compensation paid to the indi- ployee. You should withhold federal income tax only if vidual by the CPEO. To become a CPEO, the organization your household employee asks you to withhold it and you must apply through the IRS Online Registration System. agree. Employers will figure withholding based on the in- For more information or to apply to become a CPEO, go to formation from the employee's most recently submitted Also, see Revenue Procedure 2017-14, Form W-4, Employee's Withholding Certificate.

7 Similarly, 2017-3 426, available at any employees hired prior to 2021 who wish to adjust their 2017-03_IRB#RP-2017-14. withholding must use the redesigned form. For the latest Outsourcing payroll duties. Generally, as an employer, information about developments related to Form W-4, go you're responsible to ensure that tax returns are filed and to deposits and payments are made, even if you contract Filing due date for 2022 Forms W-2 and W-3. Both pa- with a third party to perform these acts. You remain re- per and electronically filed 2022 Forms W-2, Wage and sponsible if the third party fails to perform any required ac- Tax Statement, and W-3, Transmittal of Wage and Tax tion. Before you choose to outsource any of your payroll Statements, must be filed with the Social Security Admin- and related tax duties (that is, withholding, reporting, and istration (SSA) by January 31, 2023. paying over social security, Medicare, federal unemploy- Paying the deferred amount of the employer share of ment (FUTA), and income taxes) to a third-party payer, social security tax.

8 The Coronavirus Aid, Relief, and such as a payroll service provider or reporting agent, go to Economic Security (CARES) Act allowed employers to for helpful information defer the deposit and payment of the employer share of on this topic. If a CPEO pays wages and other compensa- social security tax. The deferred amount of the employer tion to an individual performing services for you, and the share of social security tax was only available for deposits services are covered by a contract described in section due on or after March 27, 2020, and before January 1, 7705(e)(2) between you and the CPEO (CPEO contract), Page 2 Publication 926 (2022). then the CPEO is generally treated as the employer, but Internal Revenue Service only for wages and other compensation paid to the indi- Tax Forms and Publications vidual by the CPEO. However, with respect to certain em- 1111 Constitution Ave. NW, IR-6526. ployees covered by a CPEO contract, you may also be Washington, DC 20224. treated as an employer of the employees and, conse- quently, may also be liable for federal employment taxes Although we can't respond individually to each com- imposed on wages and other compensation paid by the ment received, we do appreciate your feedback and will CPEO to such employees.

9 For more information on the consider your comments and suggestions as we revise different types of third-party payer arrangements, see sec- our tax forms, instructions, and publications. Don't send tion 16 of Pub. 15. tax questions, tax returns, or payments to the above ad- dress. Credit reduction states. A state that hasn't repaid money it borrowed from the federal government to pay un- Getting answers to your tax questions. If you have employment benefits is a credit reduction state. The De- a tax question not answered by this Publication or the How partment of Labor determines these states. If you paid wa- To Get Tax Help section at the end of this Publication , go ges that are subject to the unemployment tax laws of a to the IRS Interactive Tax Assistant page at credit reduction state, your FUTA tax credit is reduced. where you can find topics by using the search feature or See the Instructions for Schedule H (Form 1040) for more viewing the categories listed. information.

10 Getting tax forms, instructions, and publications. Medicaid waiver payments. Notice 2014-7 provides Go to to download current and prior-year that certain Medicaid waiver payments are excludable forms, instructions, and publications. from income for federal income tax purposes. See Notice 2014-7, 2014-4 445, available at Ordering tax forms, instructions, and publications. 2014-04_IRB#NOT-2014-7. For more information, includ- Go to to order current forms, instruc- ing questions and answers related to Notice 2014-7, go to tions, and publications; call 800-829-3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Photographs of missing children. The IRS is a proud Don't resubmit requests you've already sent us. You can partner with the National Center for Missing & Exploited get forms and publications faster online. Children (NCMEC). Photographs of missing children se- lected by the Center may appear in this Publication on pa- ges that would otherwise be blank.