PDF document

- 1 -

Userid: CPM Schema: Leadpct: 100% Pt. size: 10 Draft Ok to Print
instrx
AH XSL/XML Fileid: … rm-943-a/202412/a/xml/cycle04/source (Init. & Date) _______

Page 1 of 4 14:23 - 21-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for Form 943-A

(Rev. December 2024)
Agricultural Employer's Record of Federal Tax Liability

Section references are to the Internal Revenue Code share of social security tax and the employer share of
unless otherwise noted. Medicare tax, is then carried forward to the next quarter.
Form 8974 is used to determine the amount of the credit
Future Developments that can be used in the current year. The amount from
Form 8974, line 12 or, if applicable, line 17, is reported on
For the latest information about developments related to Form 943, line 12. For more information about the payroll
Form 943-A and its instructions, such as legislation tax credit, see the Instructions for Form 8974 and go to
enacted after they were published, go to IRS.gov/ IRS.gov/ResearchPayrollTC. Also see Adjusting Tax
Form943A. Liability for the Qualified Small Business Payroll Tax Credit
for Increasing Research Activities (Form 943, line 12),
later.
What’s New
Reporting prior period adjustments. Prior period
The COVID-19 related credit for qualified sick and adjustments are reported on Form 943-X, Adjusted
family leave wages is limited to leave taken after Employer's Annual Federal Tax Return for Agricultural
March 31, 2020, and before October 1, 2021, and may Employees or Claim for Refund, and aren’t taken into
no longer be claimed on Form 943. Effective for tax account when figuring the tax liability for the current year.
years beginning after 2023, the lines used to claim the
credit for qualified sick and family leave wages have been When you file Form 943-A with your Form 943, don’t
removed from Form 943, Employer's Annual Federal Tax change your current year tax liability by adjustments
Return for Agricultural Employees, because it would be reported on any Form 943-X.
extremely rare for an employer to pay wages in 2024 for Amended Form 943-A. If you have been assessed a
qualified sick and family leave taken after March 31, 2020, failure-to-deposit (FTD) penalty, you may be able to file an
and before October 1, 2021. Therefore, the instructions on amended Form 943-A. See Correcting Previously
adjusting your tax liability for the nonrefundable portion of Reported Tax Liability, later.
this credit have been removed from these instructions.
See the Instructions for Form 943 if you're eligible to claim
the credit for qualified sick and family leave wages General Instructions
because you paid the wages in 2024 for an earlier
applicable leave period. Purpose of Form 943-A
These instructions tell you about Form 943-A. Use Form
Reminders 943-A to report your tax liability if you're a semiweekly
schedule depositor. To determine if you're a semiweekly
Qualified small business payroll tax credit for in- schedule depositor, see section 11 of Pub. 15, Employer's
creasing research activities. For tax years beginning Tax Guide.
before January 1, 2023, a qualified small business may
elect to claim up to $250,000 of its credit for increasing Federal law requires you, as an employer, to withhold
research activities as a payroll tax credit. The Inflation certain taxes from your employees' pay. Each time you
Reduction Act of 2022 (the IRA) increases the election pay wages, you must withhold—or take out of your
amount to $500,000 for tax years beginning after employees' pay—certain amounts for federal income tax,
December 31, 2022. The payroll tax credit election must social security tax, and Medicare tax. You must also
be made on or before the due date of the originally filed withhold Additional Medicare Tax from wages you pay to
income tax return (including extensions). The portion of an employee in excess of $200,000 in a calendar year.
the credit used against payroll taxes is allowed in the first Under the withholding system, taxes withheld from your
calendar quarter beginning after the date that the qualified employees are credited to your employees in payment of
small business filed its income tax return. The election their tax liabilities.
and determination of the credit amount that will be used
against the employer's payroll taxes are made on Form Federal law also requires employers to pay any liability
6765, Credit for Increasing Research Activities. The for the employer share of social security and Medicare
amount from Form 6765 must then be reported on Form taxes. This share of social security and Medicare taxes
8974, Qualified Small Business Payroll Tax Credit for isn't withheld from employees.
Increasing Research Activities.
On Form 943-A, list your tax liability for each day. Your
Starting in the first quarter of 2023, the payroll tax credit tax liability is based on the dates wages were paid. Your
is first used to reduce the employer share of social liability includes:
security tax up to $250,000 per quarter and any remaining
credit reduces the employer share of Medicare tax for the • The federal income tax you withheld from your
quarter. Any remaining credit, after reducing the employer employees' pay, and
Instructions for Form 943A (Rev. 12-2024) Catalog Number 74487J
Jul 22, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

- 2 -

Enlarge image

Page 2 of 4 Fileid: … rm-943-a/202412/a/xml/cycle04/source 14:23 - 21-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Both the employer share and employee share of social Calendar Year
security and Medicare taxes. Enter the calendar year of the Form 943 or 943-X to which
Don’t use Form 943-A to show federal tax deposits. Form 943-A is attached.
The IRS gets deposit data from electronic funds transfers.
Don't report taxes on wages paid to nonfarm workers Enter Your Tax Liability by Month
on this form. Taxes on wages paid to nonfarm workers are Enter your tax liabilities in the spaces that correspond to
reported on Form 941, Employer’s QUARTERLY Federal the dates you paid wages to your employees, not the date
Tax Return; or Form 944, Employer’s ANNUAL Federal payroll liabilities were accrued or deposits were made.
Tax Return. Don't attach Form 943-A to your Form 941 or The total tax liability for the year (line M) must equal total
944. Instead, use Schedule B (Form 941) or Form 945-A, taxes after adjustments and nonrefundable credits on
Annual Record of Federal Tax Liability (with Form 944). Form 943 (line 13). Enter the monthly totals on lines A, B,
C, D, E, F, G, H, I, J, K, and L. Enter the total for the year
The IRS uses Form 943-A to determine if you’ve on line M.
! deposited your Form 943 tax liabilities on time. If
CAUTION you're a semiweekly schedule depositor and you For example, if your payroll period ended on December
don’t properly complete and file your Form 943-A with 31, 2023, and you paid the wages for that period on
Form 943, the IRS may propose an “averaged” FTD January 6, 2024, you would:
penalty. See Deposit Penalties in section 11 of Pub. 15 for • Go to January on Form 943-A filed with your 2024 Form
more information. 943, and
• Enter your tax liability on line 6 because line 6
Who Must File? represents the sixth day of the month.
File Form 943-A if you’re a semiweekly schedule Make sure you have checked the appropriate box
depositor. Monthly schedule depositors who accumulate TIP above line 17 of Form 943 to show that you're a
$100,000 or more of tax liability on any day of a calendar semiweekly schedule depositor.
month become semiweekly schedule depositors on the Example 1. Fir Co. is a semiweekly schedule
next day and remain so for at least the remainder of the depositor. Fir Co. accumulated a federal tax liability of
year and for the next year, and must also complete and file $3,000 on its January 11 and January 25 paydays. In the
Form 943-A for the entire year. The $100,000 tax liability January column, Fir Co. must enter $3,000 on lines 11
threshold requiring a next-day deposit is determined and 25.
before you consider any reduction of your liability for
nonrefundable credits. Example 2. Cedar Co. is a semiweekly schedule
The deposit rules, including the $100,000 Next-Day depositor that paid wages in October, November, and
Deposit Rule, are explained in section 11 of Pub. 15 and in December on the last day of the month. On December 25,
the Instructions for Form 943. 2024, Cedar Co. also paid its employees year-end
bonuses (subject to employment taxes). Because Cedar
Don't complete Form 943-A if your net tax liability Co. is a semiweekly schedule depositor, it must record
! for the year (Form 943, line 13) is less than employment tax liabilities on Form 943-A.
CAUTION $2,500. Don't file this form if you're a monthly
schedule depositor unless you accumulated a tax liability Month Lines for dates wages were paid
of $100,000 during any month of the year. October line 31 (payday, last day of the month)
November line 30 (payday, last day of the month)
If you use Form 943-A, don’t complete Form 943,
December line 25 (bonus paid December 25, 2024)
TIP line 17.
December line 31 (payday, last day of the month)

When Must You File?
Form 943-A is filed with Form 943. Therefore, the due date Example 3. Elm Co. is a new business and monthly
of Form 943-A is the same as the due date for the schedule depositor for 2024. Elm Co. pays wages every
applicable Form 943. See the Instructions for Form 943 for Friday. Elm Co. incurred a $2,000 employment tax liability
due dates. In some situations, Form 943-A may be filed on October 4, 2024. Elm Co. incurred a $110,000 tax
with Form 943-X. See Form 943-X, later, for details. liability on October 11, 2024, and on every subsequent
Friday during 2024. Under the deposit rules, employers
become semiweekly schedule depositors on the day after
Specific Instructions any day they accumulate $100,000 or more of tax liability
in a deposit period.
Completing Form 943-A
Elm Co. became a semiweekly schedule depositor on
Enter Your Business Information October 12, 2024, because Elm Co. had a total
Carefully enter your employer identification number (EIN) accumulated employment tax liability of $112,000 on
and name at the top of the form. Make sure that they October 11, 2024. Elm Co. must complete Form 943-A
exactly match the name of your business and the EIN that and file it with Form 943. No entries should be made on
the IRS assigned to your business and also agree with the Form 943, line 17, even though Elm Co. was a monthly
name and EIN shown on the attached Form 943 or 943-X. schedule depositor until October 12, 2024.

2 Instructions for Form 943-A (Rev. 12-2024)

- 3 -

Enlarge image

Page 3 of 4 Fileid: … rm-943-a/202412/a/xml/cycle04/source 14:23 - 21-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Month Lines for dates wages were paid Amount to report year, the remaining payroll tax credit may be carried
October line 4 $2,000 forward to the first quarter of the succeeding calendar
October lines 11, 18, and 25 $110,000 year as a payroll tax credit against the applicable
November lines 1, 8, 15, 22, and 29 $110,000 employer share of social security tax and employer share
December lines 6, 13, 20, and 27 $110,000 of Medicare tax paid on wages paid in that quarter. For
more information about the payroll tax credit, go to
IRS.gov/ResearchPayrollTC.
Your total liability for the year must equal line 13 Example. Rose Co. is an employer with a calendar tax
year that filed its timely 2023 income tax return on April
! on Form 943. 15, 2024. Rose Co. elected to take the qualified small
CAUTION
business payroll tax credit for increasing research
Adjusting Tax Liability for the Qualified Small activities on Form 6765. The third quarter of 2024 is the
Business Payroll Tax Credit for Increasing first quarter that begins after Rose Co. filed the income tax
return making the payroll tax credit election. Therefore, the
Research Activities (Form 943, line 12)
payroll tax credit applies against Rose Co.'s share of
Semiweekly schedule depositors must account for the social security tax (up to $250,000) and Medicare tax on
qualified small business payroll tax credit for increasing wages paid to employees in the third quarter of 2024.
research activities claimed on Form 943, line 12, when Rose Co. completes Form 943-A by reducing the amount
reporting their tax liabilities on Form 943-A. The total tax of liability entered for the first payroll payment in the third
liability for the year must equal the amount reported on quarter of 2024 that includes wages subject to social
Form 943, line 13. Failure to account for the qualified small security tax by the lesser of (1) its share of social security
business payroll tax credit for increasing research tax (up to $250,000) on the wages, or (2) the available
activities on Form 943-A may cause Form 943-A to report payroll tax credit. If the payroll tax credit elected is more
more than the total tax liability reported on Form 943, than Rose Co.'s share of social security tax on the first
line 13. Don't reduce your daily tax liability reported on payroll payment of the quarter, the excess payroll tax
Form 943-A below zero. credit would be carried forward to succeeding payroll
Beginning with the first quarter of 2023, the qualified payments in the third quarter until it is used against up to
small business payroll tax credit for increasing research $250,000 of Rose Co.'s share of social security tax for the
activities is first used to reduce the employer share of quarter. If the amount of the payroll tax credit exceeds
social security tax (up to $250,000) for the quarter and any Rose Co.'s share of social security tax (up to $250,000) on
remaining credit is then used to reduce the employer wages paid to its employees in the third quarter, any
share of Medicare tax for the quarter until it reaches zero. remaining credit is used against Rose Co.'s share of
In completing Form 943-A, you take into account the Medicare tax on the first payroll payment of the quarter
payroll tax credit against the liability for the employer and then the excess payroll tax credit would be carried
share of social security tax starting with the first payroll forward to succeeding payroll payments in the third
payment of the quarter that includes payments of wages quarter until it is used against Rose Co.'s share of
subject to social security tax to your employees until you Medicare tax for the quarter. If Rose Co. still has credit
use up to $250,000 of credit against the employer share of remaining after reducing its share of social security tax (up
social security tax and you then take into account any to $250,000) and Medicare tax for the third quarter, the
remaining payroll tax credit against the liability for the remainder would be treated as a payroll tax credit against
employer share of Medicare tax starting with the first its share of social security tax (up to $250,000) and
payroll payment of the quarter that includes payments of Medicare tax on wages paid in the fourth quarter. If the
wages subject to Medicare tax to employees. Consistent amount of the payroll tax credit remaining exceeded Rose
with the entries on Form 943-A, the payroll tax credit Co.'s share of social security tax (up to $250,000) and
should be taken into account in making deposits of Medicare tax on wages paid in the fourth quarter, it could
employment tax. If any payroll tax credit is remaining at be carried forward and treated as a payroll tax credit for
the end of the quarter that hasn't been used completely the first quarter of 2025.
because it exceeds $250,000 of the employer share of
social security tax and the employer share of Medicare tax Correcting Previously Reported Tax Liability
for the quarter, the excess credit may be carried forward to Semiweekly schedule depositors. If you’ve been
the succeeding quarter and allowed as a payroll tax credit assessed an FTD penalty and you made an error on Form
for the succeeding quarter. The payroll tax credit may not 943-A and the correction won’t change the total liability for
be taken as a credit against income tax withholding, the the year you reported on Form 943-A, you may be able to
employee share of social security tax, or the employee reduce your penalty by filing an amended Form 943-A.
share of Medicare tax. Example. You reported a liability of $3,000 on January
Also, the remaining payroll tax credit may not be carried 1. However, the liability was actually for March. Prepare an
back and taken as a credit against wages paid from amended Form 943-A showing the $3,000 liability on
preceding quarters that are reported on the same Form March 1. Also, you must enter the liabilities previously
943 or on Forms 943 for preceding years. If an amount of reported for the year that didn’t change. Write “Amended”
payroll tax credit is unused at the end of the calendar year at the top of Form 943-A. The IRS will refigure the penalty
because it is in excess of the applicable employer share of and notify you of any change in the penalty.
social security tax and employer share of Medicare tax on
wages paid during the applicable quarters in the calendar

Instructions for Form 943-A (Rev. 12-2024) 3

- 4 -

Enlarge image

Page 4 of 4 Fileid: … rm-943-a/202412/a/xml/cycle04/source 14:23 - 21-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Monthly schedule depositors. You can file Form 943-A the Form 943 for the year in which you discovered the
if you have been assessed an FTD penalty and you made error, you must file an amended Form 943-A with Form
an error on the monthly tax liability section of Form 943. 943-X. Otherwise, the IRS may assess an “averaged” FTD
When completing Form 943-A for this situation, only enter penalty.
the monthly totals. The daily entries aren't required. The total tax reported on line M of the amended Form
Where to file. File your amended Form 943-A or, for 943-A must match the corrected tax (Form 943, line 13,
monthly schedule depositors, your original Form 943-A at combined with any correction reported on Form 943-X,
the address provided in the penalty notice you received. If line 20) for the year, less any previous abatements and
you're filing an amended Form 943-A, you don't have to interest-free tax assessments.
submit your original Form 943-A.
Paperwork Reduction Act Notice. We ask for the
Form 943-X information on Form 943-A to carry out the Internal
You may need to file an amended Form 943-A with Form Revenue laws of the United States. You’re required to give
943-X to avoid or reduce an FTD penalty. us the information. We need it to ensure that you’re
complying with these laws and to allow us to figure and
Tax decrease. If you're filing Form 943-X, you can file an collect the right amount of tax.
amended Form 943-A with Form 943-X if both of the
following apply. You’re not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
1. You have a tax decrease.
unless the form displays a valid OMB control number.
2. You were assessed an FTD penalty. Books or records relating to a form or its instructions must
File your amended Form 943-A with Form 943-X. The total be retained as long as their contents may become
liability reported on your amended Form 943-A must equal material in the administration of any Internal Revenue law.
the corrected amount of tax reported on Form 943-X. If Generally, tax returns and return information are
your penalty is decreased, the IRS will include the penalty confidential, as required by Code section 6103.
decrease with your tax decrease. The time needed to complete and file Form 943-A will
Tax increase—Form 943-X filed timely. If you're filing a vary depending on individual circumstances. The
timely Form 943-X showing a tax increase, don't file an estimated burden for employers filing Form 943-A is
amended Form 943-A, unless you were assessed an FTD approved under OMB control number 1545-0029 and is
penalty caused by an incorrect, incomplete, or missing included in the estimates shown in the Instructions for
Form 943-A. If you're filing an amended Form 943-A, don't Form 943.
include the tax increase reported on Form 943-X.
Tax increase—Form 943-X filed late. If you owe tax and
are filing a late Form 943-X, that is, after the due date of

4 Instructions for Form 943-A (Rev. 12-2024)

PDF file checksum: 602248780

(Plugin #1/10.13/13.0)