Page 277 - Individual Forms & Instructions Guide

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Contents Fileid: … 1040-sch-h/2022/a/xml/cycle07/source 9:30 - 6-Dec-2022
tion, see the instructions for line 8b, line 8c, line 8e, and
Worksheet 3. Credit for Qualified Sick and Family line 8f, later.
Leave Wages Paid in 2022 for Leave Taken After Use Worksheet 3 to figure the credit for leave taken after
March 31, 2020, and Before April 1, 2021 . . . . . . . . 10 March 31, 2020, and before April 1, 2021. Use Worksheet 4 to
Worksheet 4. Credit for Qualified Sick and Family figure the credit for leave taken after March 31, 2021, and be-
Leave Wages Paid in 2022 for Leave Taken After fore October 1, 2021. For more information about the credit for
March 31, 2021, and Before October 1, 2021 . . . . . . 10 qualified sick and family leave wages, go to IRS.gov/PLC.
Estimated Tax Penalty . . . . . . . . . . . . . . . . . . . . . . . . 15 Qualified parking exclusion and commuter transportation
What Records To Keep . . . . . . . . . . . . . . . . . . . . . . . 15 benefit. For 2022, the monthly exclusion for qualified parking
What Is the Earned Income Credit (EIC)? . . . . . . . . . . . 16 is $280 and the monthly exclusion for commuter highway vehi-
cle transportation and transit passes is $280.
Rules for Business Employers . . . . . . . . . . . . . . . . . . . 16 Credit reduction state. A state that hasn't repaid money it
How To Correct Schedule H . . . . . . . . . . . . . . . . . . . . 16 borrowed from the federal government to pay unemployment
How To Get Forms and Publications . . . . . . . . . . . . . . 16 benefits is a “credit reduction state.” The Department of Labor
Privacy Act and Paperwork Reduction Act Notice . . . . . . 16 determines these states. If an employer pays wages that are
subject to the unemployment tax laws of a credit reduction
state, that employer must pay additional federal unemployment
Future Developments tax.

For 2022, there are credit reduction states. If you paid any
For the latest information about developments related to Sched- wages that are subject to the unemployment compensation laws
ule H and its instructions, such as legislation enacted after they of a credit reduction state, your credit against federal unem-
were published, go to IRS.gov/ScheduleH. ployment tax will be reduced based on the credit reduction rate
What's New for that credit reduction state. Use Worksheet 2 to figure your
credit reduction for 2022.
Social security and Medicare tax for 2022. The rate of social Reminders
security tax on taxable wages, including qualified sick leave
wages and qualified family leave wages paid in 2022 for leave Deferral of the employer share of social security tax ex-
taken after March 31, 2021, and before October 1, 2021, is pired. The CARES Act allowed employers to defer the depos-
6.2% each for the employer and employee or 12.4% for both. it and payment of the employer share of social security tax. The
Qualified sick leave wages and qualified family leave wages deferred amount of the employer share of social security tax
paid in 2022 for leave taken after March 31, 2020, and before was only available for deposits due on or after March 27, 2020,
April 1, 2021, aren't subject to the employer share of social se- and before January 1, 2021, as well as deposits and payments
curity tax; therefore, the tax rate on these wages is 6.2%. The due after January 1, 2021, that were required for wages paid on
social security wage base limit is $147,000. or after March 27, 2020, and before January 1, 2021. See Pay-
The Medicare tax rate is 1.45% each for the employee and ing the deferred amount of the employer share of social securi-
employer, unchanged from 2021. There is no wage base limit ty tax and How to pay the deferred amount of the employer
for Medicare tax. share of social security tax, later, for information about paying
Social security and Medicare taxes apply to the wages of the deferred amount of the employer share of social security
household workers you pay $2,400 or more in cash wages in tax.
2022. For more information, see Cash wages and $2,400 test, Paying the deferred amount of the employer share of social
later. security tax. One-half of the employer share of social security
For information about the rates and wage threshold that will tax was due by December 31, 2021, and the remainder is due
apply in 2023, see Pub. 926. by December 31, 2022. Because both December 31, 2021, and
December 31, 2022, are nonbusiness days, payments made on
The COVID-19 related credit for qualified sick and family the next business day will be considered timely. Any payments
leave wages is limited to leave taken after March 31, 2020, you made before December 31, 2021, were first applied against
and before October 1, 2021. Generally, the credit for quali- your payment due on December 31, 2021, and then applied
fied sick and family leave wages, as enacted under the Families against your payment due on December 31, 2022. For addition-
First Coronavirus Response Act (FFCRA) and amended and al information, go to IRS.gov/ETD.
extended by the COVID-related Tax Relief Act of 2020, for
leave taken after March 31, 2020, and before April 1, 2021, How to pay the deferred amount of the employer share of
and the credit for qualified sick and family leave wages under social security tax. You may pay the amount you owe elec-
sections 3131, 3132, and 3133 of the Internal Revenue Code, tronically using the Electronic Federal Tax Payment System
as enacted under the American Rescue Plan Act of 2021 (the (EFTPS), by credit or debit card, or by a check or money order.
ARP), for leave taken after March 31, 2021, and before Octo- The preferred method of payment is EFTPS. For more informa-
ber 1, 2021, have expired. However, employers that pay quali- tion, go to EFTPS.gov, or call 800-555-4477. To contact
fied sick and family leave wages in 2022 for leave taken after EFTPS using Telecommunications Relay Services (TRS) for
March 31, 2020, and before October 1, 2021, are eligible to people who are deaf, hard of hearing, or have a speech disabili-
claim a credit on Schedule H filed for 2022. For more informa- ty, dial 711 and then provide the TRS assistant the

H-2