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Page 1 of 4 Instructions for Form 943 9:09 - 23-SEP-2005

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2005 Department of the Treasury

Internal Revenue Service

Instructions for Form 943

Employer’s Annual Federal Tax Return for Agricultural Employees
Section references are to the Internal Revenue Code unless otherwise noted.

be blank. You can help bring these children home by

What’s New looking at the photographs and calling 1-800-THE-LOST
Alternative signature method. Effective with returns (1-800-843-5678) if you recognize a child.
filed after June 30, 2005, corporate officers or duly
authorized agents may sign Form 943 by rubber stamp,
mechanical device, or computer software program. For
details and required documentation, see Rev. Proc. General Instructions
2005-39. You can find Rev. Proc. 2005-39 on page 82 of Purpose of form. Use Form 943 to report federal
Internal Revenue Bulletin 2005-28 at www.irs.gov/pub/ income tax withheld and employer and employee social
irs-irbs/irb05-28.pdf. security and Medicare taxes on wages paid to
Social security wage base for 2006. Stop withholding farmworkers.
social security tax after an employee reaches the social If you have household employees working in your
security wage base for taxable wages. See What’s New private home on your farm operated for a profit, they are
in Pub. 51 (Circular A), Agricultural Employer’s Tax not considered to be farm employees. To report social
Guide, for the 2006 social security wage base. security, Medicare, and federal income tax withholding on
the wages of household employees, you may either:
Reminders • File Schedule H (Form 1040), Household Employment
Correcting Form 943. If you discover an error on a Taxes, with your Form 1040 or
previously filed Form 943, make the correction using • Include the wages with your farm employees’ wages
Form 943 for the year in which you discovered the error on Form 943.
and attach Form 941c, Supporting Statement to Correct If you paid wages to a household employee in a home
Information. For example, in October 2005, you discover that is not on a for-profit farm, you must report the taxes
that you underreported $10,000 in social security and on Schedule H. If you paid wages to other nonfarm
Medicare wages on your 2004 Form 943. Correct the workers, do not report these on Form 943. Report them
error by showing $1,530 (15.3% × $10,000) on line 8 of on Form 941, Employer’s Quarterly Federal Tax Return.
your 2005 Form 943 and attaching a completed Form See Pub. 926, Household Employer’s Tax Guide, for
941c. For details, see Line 8 —Adjustment to taxes on more information about household employees.
page 3. Who must file. File Form 943 if you paid wages to one
Electronic payment. Now, more than ever before, or more farmworkers and the wages were subject to
businesses can enjoy the benefits of paying their federal social security and Medicare taxes or federal income tax
taxes electronically. Whether you rely on a tax withholding under the tests discussed below. For
professional or handle your own taxes, IRS offers you definitions of farmworkers and wages, see Pub. 51
convenient programs to make it easier. (Circular A), Agricultural Employer’s Tax Guide.
Spend less time and worry on taxes and more time The $150 test or the $2,500 test. All cash wages that
running your business. Use Electronic Federal Tax you pay to farmworkers are subject to social security and
Payment System (EFTPS) to your benefit. Medicare taxes and federal income tax withholding for
For EFTPS, visit www.eftps.gov or call EFTPS any calendar year that you meet either of these tests:
Customer Service at 1-800-555-4477. • You pay an employee cash wages of $150 or more in
a year for farmwork.
Use the electronic options available from IRS and
make paying taxes easier.
• The total (cash and noncash) wages that you pay to all
farmworkers is $2,500 or more.
How to get forms and publications. You can get most
IRS forms and publications by accessing the IRS website If the $2,500-or-more test for the group is not met, the
at www.irs.gov or by calling the IRS at 1-800-TAX-FORM $150-or-more test for an individual still applies.
(1-800-829-3676). Exceptions. Special rules apply to certain
Telephone help. You can call the IRS toll free at hand-harvest laborers who receive less than $150 in
1-800-829-4933 to order FTD coupons (Forms 8109) and annual cash wages. For more information, see section 4
for answers to your questions about completing Form of Pub. 51 (Circular A).
943, tax deposit rules, or obtaining an employer When to file. For 2005, file Form 943 by January 31,
identification number (EIN). 2006. However, if you made deposits on time in full
payment of the taxes due for the year, you may file the
Photographs of Missing Children return as late as February 10, 2006.
The Internal Revenue Service is a proud partner with the Final return. If you stop paying wages during the year
National Center for Missing and Exploited Children. and do not expect to pay wages again, file a final return
Photographs of missing children selected by the Center for 2005. Be sure to mark the box above line 1 on the
may appear in instructions on pages that would otherwise form indicating that you do not have to file returns in the

Cat. No. 25976L

Page 2 of 4 Instructions for Form 943 9:09 - 23-SEP-2005

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future. If you later become liable for any of the taxes, agree with the Form W-2, Wage and Tax Statement,
notify the IRS. totals reported on the 2005 Form W-3, Transmittal of
Forms W-2 and W-3. By January 31, 2006, give Form Wage and Tax Statements. The amounts from Form 943
W-2 to each employee who was working for you at the that should agree with the related boxes on Form W-3
end of 2005. If an employee stops working for you before are: federal income tax withheld (line 6 versus box 2),
the end of the year, give him or her Form W-2 any time social security wages (line 2 versus box 3), Medicare
after employment ends but no later than January 31 of wages and tips (line 4 versus box 5), and advance
the following year. If the employee asks you for Form earned income credit payments (line 10 versus box 9). If
W-2, give him or her the completed form within 30 days the totals do not agree, the IRS may require you to
of the request or the last wage payment, whichever is explain any differences and correct any errors. Keep all
later. records that show why the totals do not match. For more
information, see section 12 of Pub. 51 (Circular A).
Filing on paper forms. By February 28, 2006, send
Copy A of all Forms W-2 with Form W-3 to the Social Depositing taxes. If your net taxes (line 11) are $2,500
Security Administration (SSA) (if less than 250 paper or more for the year, you generally must deposit your tax
forms). The address is in the Instructions for Forms W-2 liabilities at an authorized financial institution using Form
and W-3. 8109, Federal Tax Deposit Coupon, or by using the
Filing electronically. Visit the Social Security Electronic Federal Tax Payment System (EFTPS). See
Administration’s Employer Reporting Instructions and section 7 of Pub. 51 (Circular A), Agricultural Employer’s
Information website at www.socialsecurity.gov/employer Tax Guide, for information and rules concerning federal
for information about electronic filing of Forms W-2. If you tax deposits and to determine your status as a monthly or
file electronically (not magnetic media), the due date is semiweekly schedule depositor.
March 31, 2006. Penalties and interest. There are penalties for filing a
Filing on magnetic media. If you are required to file return late and for paying or depositing taxes late, unless
250 or more Forms W-2, you must file them on magnetic there is reasonable cause. There are also penalties for
diskette (or electronically) instead of filing Copy A of failure to (a) furnish Forms W-2 to employees and file
Form W-2. See the Instructions for Forms W-2 and W-3 copies with the SSA or (b) deposit taxes when required.
for more information. The due date for filing forms with See Pub. 51 (Circular A) for more information. In
the SSA on diskette is February 28, 2006. addition, there are penalties for willful failure to file
returns and pay taxes when due and for filing false
Where to file. Find the state of your legal residence, returns or submitting bad checks. Interest is charged on
principal place of business, office, or agency in the table taxes paid late at the rate set by law.
that follows. Send your return to the “Internal Revenue
Service” at the address listed for your location. No street If federal income, social security, and Medicare
address is needed. ! taxes that must be withheld (that is, trust fund
CAUTION taxes) are not withheld or are not paid to the
Note. Where you file depends on whether or not you are
including a payment. Be sure to use the correct address. United States Treasury, the trust fund recovery penalty
may apply. The penalty is 100% of the unpaid trust fund
tax. This penalty may apply to you if these unpaid taxes
Connecticut, Delaware, District of Columbia, Illinois, Indiana, cannot be immediately collected from the employer or
Kentucky, Maine, Maryland, Massachusetts, Michigan, New business. The trust fund recovery penalty may be
Hampshire, New Jersey, New York, North Carolina, Ohio,
Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, imposed on all persons who are determined by the IRS to
West Virginia, Wisconsin be responsible for collecting, accounting for, and paying
Return without payment: Return with payment: over these taxes, and who acted willfully in not doing so.
P.O. Box 105094 See section 7 of Pub. 51 (Circular A) for more
Cincinnati, OH 45999-0008 Atlanta, GA 30348-5094 information.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,
Preprinted name, EIN, and address. If your preprinted
Georgia, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, name, EIN, or address on Form 943 is not correct, cross
Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, it out and type or print the correct information. However,
North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, do not change any of the preprinted information on your
Utah, Washington, Wyoming Form 943-V, Payment Voucher.
Return without payment: Return with payment:
P.O. Box 660587 Zero Wage return. If you received a preprinted Form
Ogden, UT 84201-0008 Dallas, TX 75266-0587 943 in the mail from the IRS and are not required to file
because you paid no wages subject to social security or
If you have no legal residence or principal place of business in any Medicare tax and withheld no federal income tax, write
state: “NONE” on line 11, sign the return, and file it with the
Return without payment: Return with payment: IRS. If you will not have to file Form 943 in the future,
Philadelphia, PA 19255-8526 P.O. Box 80107 also check the box above line 1 at the left of your name
Cincinnati, OH 45280-0007
and address.
Exception for exempt organizations and government
entities. If you are filing Form 943 for an exempt
organization or government entity (federal, state, local, or Specific Instructions
Indian tribal government), use the following addresses State code. If you made your deposits by FTD coupon
regardless of your location: (Form 8109) or by using an EFTPS bank account in a
• Return without payment: Ogden, UT 84201-0008 state other than that shown in your address on Form 943,
• Return with payment: P.O. Box 660587, Dallas, TX enter the state code for the state where you made
75266-0587 deposits or initiated EFTPS transfers in the box provided
Reconciliation of Form 943 to Forms W-2 and W-3. in the upper-left corner of Form 943. Use the Postal
Certain amounts reported on Form 943 for 2005 should Service two-letter state abbreviation as the state code.
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Page 3 of 4 Instructions for Form 943 9:09 - 23-SEP-2005

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Enter the code “MU” in the state code box if you deposit Federal Tax Liability, see the instructions for line 15,
in more than one state. If you deposit in the same state later, or the instructions for Form 943-A.
as shown in your address, do not make an entry in this Explain any prior year adjustments on Form 941c,
box. Supporting Statement To Correct Information, or attach a
Line 1 —Number of agricultural employees. Enter the statement that shows the same information. Enter on
number of agricultural employees on your payroll during Form 941c or include in the statement the total wages for
the pay period that included March 12, 2005. Do not all of your employees as previously reported and as
include household employees, persons who received no corrected. Do not file Form 941c (or statement)
pay during the pay period, pensioners, or members of the separately from Form 943.
Armed Forces. If you are adjusting an employee’s social security or
An entry of 250 or more on line 1 indicates that you Medicare wages for a prior year, you must also file Form
must file Forms W-2 electronically or on magnetic W-2c, Corrected Wage and Tax Statement, and Form
diskette. Call the SSA at 1-800-772-6270 or access the W-3c, Transmittal of Corrected Wage and Tax
SSA’s Employer Reporting Instructions and Information Statements, with the Social Security Administration. You
website at www.socialsecurity.gov/employer for more can get these from the IRS by calling 1-800-829-3676.
information on electronic or diskette filing requirements. Federal income tax adjustments. Generally, you
Line 2 —Total wages subject to social security tax. cannot adjust amounts reported as federal income tax
Enter the total cash wages subject to social security tax withheld in a prior calendar year unless it is to correct an
that you paid to your employees for farmwork during the administrative error. An administrative error occurs if the
calendar year. Enter the amount before deductions. Cash amount that you entered on the return is not the amount
wages include checks, money orders, etc. Do not include that you actually withheld. See section 9 of Pub. 51
(a) the value of noncash items such as food or lodging or (Circular A) for details.
(b) pay for services other than farmwork. See section 3 of
Pub. 51 (Circular A) for more information. Do not report Line 9 —Total taxes. Combine lines 7 and 8; enter the
an employee’s social security wages over $90,000 for result on line 9.
2005. Line 10 —Advance earned income credit (EIC)
Line 4 —Total wages subject to Medicare tax. Enter payments made to employees. Employees who are
the total cash wages subject to Medicare tax that you eligible can receive advance earned income credit (EIC)
paid to your employees for farmwork during the calendar payments with their wages by giving you Form W-5,
year. Enter the amount before deductions. Do not include Earned Income Credit Advance Payment Certificate,
(a) the value of noncash items such as food or lodging or annually. For more information, see sections 6 and 14 of
(b) pay for services other than farmwork. There is no limit Pub. 51 (Circular A).
on the amount of wages subject to Medicare tax. Line 12 —Total deposits. Enter the total amount
Line 6 —Federal income tax withheld. Enter federal deposited for the year, including any overpayment from
income tax withheld on wages paid to your employees. 2004, as shown in your records.
Generally, you must withhold federal income tax from Line 13 —Balance due. You do not have to pay if line
employees from whom you withhold social security and 13 is under $1.
Medicare taxes. See sections 5 and 13 of Pub. 51 Generally, you should show a balance due on line 13
(Circular A) for more information on withholding rules. only if your net tax liability for the year (line 11) is less
Line 8 —Adjustment to taxes. Use line 8 to: than $2,500. However, see section 7 of Pub. 51
• Adjust for rounding of fractions of cents, (Circular A) regarding payments made under the
• Correct errors in social security and Medicare taxes “accuracy of deposits” rule.
reported on a prior year return, and
• Correct an administrative error in reporting federal If you fail to make deposits as required and
income tax withholding on a prior year return. See !
CAUTION
instead pay the taxes with Form 943, you may be
subject to a penalty.
section 9 in Pub. 51 (Circular A). Use parentheses (if
possible) to show a decrease to the amounts reported on Line 14 —Overpayment. If you deposited more than the
lines 3 or 5. correct amount for the year, you can have the
Fractions of cents. If there is a small difference overpayment refunded or applied to your next return.
between net taxes (line 11) and total deposits (line 12), it
may be caused by rounding to the nearest cent each time If line 14 is under $1, we will send you a refund or
you computed payroll. This rounding occurs when you TIP apply it to your next return only on written request.
figure the amount of social security and Medicare tax to
be withheld from each employee’s wages. See Pub. 51 Line 15 —Monthly Summary of Federal Tax Liability.
(Circular A) for details. If the fractions of cents adjustment This is a summary of your yearly tax liability, not a
is the only entry on line 8, write “Fractions Only” in the summary of deposits made. If line 11 is less than $2,500,
margin of Form 943. do not complete line 15 or Form 943-A.
Prior year adjustments. Prior year adjustments Complete line 15 only if you were a monthly
include errors in social security and Medicare taxes schedule depositor for the entire year and line 11 is
reported on earlier returns. If you report both an $2,500 or more. The amount entered on line 15M must
underpayment and an overpayment, show only the equal the amount reported on line 11. See section 7 of
difference. Pub. 51 (Circular A) for details on the deposit rules. You
Because any amount shown on line 8 increases or are a monthly schedule depositor for the calendar year if
decreases your tax liability, the adjustment must also be the amount of your Form 943 taxes (line 9) reported for
included on your Monthly Summary of Federal Tax the lookback period is not more than $50,000. The
Liability on Form 943 (line 15) or Form 943-A, Agricultural lookback period is the second calendar year preceding
Employer’s Record of Federal Tax Liability. For details on the current calendar year. For example, the lookback
how to report adjustments on the Monthly Summary of period for 2006 is 2004.
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Page 4 of 4 Instructions for Form 943 9:09 - 23-SEP-2005

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If you were a semiweekly schedule depositor • Partnership (including an LLC treated as a

! during any part of the year, do not complete line
CAUTION 15. Instead, complete Form 943-A.
partnership) or unincorporated organization — A
responsible and duly authorized member or officer having
Reporting adjustments on line 15. If your net knowledge of its affairs.
adjustment during a month is negative (for example, • Single member limited liability company (LLC)
correcting an overreported liability in a prior period) and it treated as a disregarded entity — The owner of the
exceeds your total liability for the month, do not enter a limited liability company (LLC).
negative amount for the month. Instead, enter “-0-” for • Trust or estate —The fiduciary.
the month and carry over the unused portion of the Form 943 may also be signed by a duly authorized
adjustment to the next month. agent of the taxpayer if a valid power of attorney has
For example, Pine Tree Farm discovered on February been filed.
6, 2005, that it overreported social security tax on its
2004 Form 943 by $2,500. Its Form 943 taxes for the first Privacy Act and Paperwork Reduction Act Notice.
3 months of 2005 were: January —$2,000; February — We ask for the information on Forms 943, 943-A, and
$2,000; and March —$2,000. Pine Tree Farm should 943-V to carry out the Internal Revenue laws of the
complete line 15 by entering “2,000” on line A, “-0-” on United States. We need it to figure and collect the right
line B, and “1,500” on line C. amount of tax. Subtitle C, Employment Taxes, of the
The prior period adjustment ($2,500) offsets the Internal Revenue Code imposes employment taxes on
$2,000 liability for February and the excess $500 must be wages, including income tax withholding. These forms
used to offset the March liabilities. Since the error was are used to report the amount of taxes that you owe.
not discovered until February, it does not affect January Section 6011 requires you to provide the requested
liabilities reported on line A. information if the tax applies to you. Section 6109
Additional information. Pub. 51 (Circular A) has requires you to provide your employer identification
information that you may need about social security, number (EIN). If you fail to provide this information in a
Medicare, federal unemployment (FUTA), withheld timely manner, you may be subject to penalties and
federal income taxes, and the advance earned income interest.
credit. It includes tables showing the federal income tax You are not required to provide the information
to withhold from an employee’s wages. requested on a form that is subject to the Paperwork
Third-Party Designee. If you want to allow any Reduction Act unless the form displays a valid OMB
individual, corporation, firm, organization, or partnership control number. Books or records relating to a form or its
to discuss your 2005 Form 943 with the IRS, check the instructions must be retained as long as their contents
“Yes” box in the Third-Party Designee section of the may become material in the administration of any Internal
return. Also, enter the name, phone number, and any five Revenue law.
numbers that the designee chooses as his or her Generally, tax returns and return information are
personal identification number (PIN). The authorization confidential, as required by Code section 6103. However,
applies only to the tax form upon which it appears. section 6103 allows or requires the Internal Revenue
By checking the “Yes” box, you are authorizing the Service to disclose or give the information shown on your
IRS to call the designee to answer any questions relating return to others as described in the Code. For example,
to the information reported on your tax return. You are we may disclose your tax information to the Department
also authorizing the designee to: of Justice for civil and criminal litigation, and to cities,
• Exchange information concerning your tax return with states, and the District of Columbia for use in
the IRS and administering their tax laws. We may also disclose this
• Request and receive written tax return information information to federal and state agencies to enforce
relating to your tax return including copies of specific federal nontax criminal laws, or to federal law
notices, correspondence, and account transcripts. enforcement and intelligence agencies to combat
terrorism.
You are not authorizing the designee to receive any
refund check, bind you to anything (including additional The time needed to complete and file these forms will
tax liability), or otherwise represent you before the IRS. If vary depending on individual circumstances. The
you want to expand the designee’s authorization or estimated average time for Form 943 is: Recordkeeping,
desire automatic issuances of copies of notices, see Pub. 10 hr., 31 min.; Learning about the law or the form, 40
947, Practice Before the IRS and Power of Attorney. min.; Preparing the form, 1 hr., 47 min.; Copying,
assembling, and sending the form to the IRS, 16 min.
The Third-Party Designee authorization is substantially The estimated average time for Form 943-A is:
equivalent to Form 8821, Tax Information Authorization, Recordkeeping, 8 hr., 22 min.; Preparing and sending the
but automatically expires one year from the due date form to the IRS, 8 min. The estimated average time for
(without regard to extensions) for filing your 2005 Form Form 943-V is 20 min. If you have comments concerning
943. If you or your designee desire to terminate the the accuracy of these time estimates or suggestions for
authorization, a written statement conveying your wish to making these forms simpler, we would be happy to hear
revoke the authorization should be submitted to the IRS from you. You can write to the Internal Revenue Service,
service center where the return was processed. Tax Products Coordinating Committee,
Who must sign. Form 943 must be signed as follows: SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW,
• Sole proprietorship —The individual who owns the IR-6406, Washington, DC 20224. Do not send Form 943
business. to this address. Instead, see Where to file on page 2.
• Corporation (including an LLC treated as a
corporation)— The president, vice president, or other
principal officer.

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