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Department of the Treasury
Internal Revenue Service
Instructions for Form 943-A

(Rev. December 2023)

Use with the December 2020 revision of Form 943-A
Agricultural Employer's Record of Federal Tax Liability

Section references are to the Internal Revenue Code Section 9501 of the American Rescue Plan Act of 2021
unless otherwise noted. (the ARP) provided for COBRA premium assistance in the
form of a full reduction in the premium otherwise payable
Future Developments by certain individuals and their families who elected
COBRA continuation coverage due to a loss of coverage
For the latest information about developments related to as the result of a reduction in hours or an involuntary
Form 943-A and its instructions, such as legislation termination of employment (assistance eligible
enacted after they were published, go to IRS.gov/ individuals). This COBRA premium assistance was
Form943A. available for periods of coverage beginning on or after
April 1, 2021, through periods of coverage beginning on or
What’s New before September 30, 2021. A premium payee was
entitled to the COBRA premium assistance credit at the
Qualified small business payroll tax credit for in- time an eligible individual elected coverage. Therefore,
creasing research activities. For tax years beginning due to the COBRA notice and election period
before January 1, 2023, a qualified small business may requirements (generally, employers had 60 days to
elect to claim up to $250,000 of its credit for increasing provide notice and assistance eligible individuals had 60
research activities as a payroll tax credit. The Inflation days to elect coverage), the first quarter of 2022 was the
Reduction Act of 2022 (the IRA) increases the election last quarter in which most employers may have been
amount to $500,000 for tax years beginning after eligible to claim the COBRA premium assistance credit.
December 31, 2022. The payroll tax credit election must
be made on or before the due date of the originally filed Reminders
income tax return (including extensions). The portion of
the credit used against payroll taxes is allowed in the first Adjusting tax liability for nonrefundable credits
calendar quarter beginning after the date that the qualified claimed on Form 943, lines 12a, 12b, and 12d. See
small business filed its income tax return. The election Adjusting Tax Liability for Nonrefundable Credits Claimed
and determination of the credit amount that will be used on Form 943, Lines 12a, 12b, and 12d, later, for
against the employer's payroll taxes are made on Form instructions on how to report on Form 943-A adjustments
6765, Credit for Increasing Research Activities. The to your tax liabilities for the qualified small business payroll
amount from Form 6765, line 44, must then be reported tax credit for increasing research activities; the
on Form 8974, Qualified Small Business Payroll Tax Credit nonrefundable portion of the credit for qualified sick and
for Increasing Research Activities. family leave wages paid in 2023 for leave taken after
Starting in the first quarter of 2023, the payroll tax credit March 31, 2020, and before April 1, 2021; and the
is first used to reduce the employer share of social nonrefundable portion of the credit for qualified sick and
security tax up to $250,000 per quarter and any remaining family leave wages paid in 2023 for leave taken after
credit reduces the employer share of Medicare tax for the March 31, 2021, and before October 1, 2021.
quarter. Any remaining credit, after reducing the employer Reporting prior period adjustments. Prior period
share of social security tax and the employer share of adjustments are reported on Form 943-X, Adjusted
Medicare tax, is then carried forward to the next quarter. Employer's Annual Federal Tax Return for Agricultural
Form 8974 is used to determine the amount of the credit Employees or Claim for Refund, and aren’t taken into
that can be used in the current year. The amount from account when figuring the tax liability for the current year.
Form 8974, line 12 or, if applicable, line 17, is reported on When you file Form 943-A with your Form 943,
Form 943, line 12a. For more information about the payroll Employer's Annual Federal Tax Return for Agricultural
tax credit, see the Instructions for Form 8974 and go to Employees, don’t change your current year tax liability by
IRS.gov/ResearchPayrollTC. Also see Adjusting Tax adjustments reported on any Form 943-X.
Liability for Nonrefundable Credits Claimed on Form 943,
Lines 12a, 12b, and 12d, later. Amended Form 943-A. If you have been assessed a
failure-to-deposit (FTD) penalty, you may be able to file an
Adjusting tax liability for the nonrefundable portion amended Form 943-A. See Correcting Previously
of the COBRA premium assistance credit. The Reported Tax Liability, later.
instructions for adjusting tax liability for the nonrefundable
portion of the COBRA premium assistance credit reported
on Form 943, line 12e, have been deleted because the
first quarter of 2022 was the last quarter in which most
employers may have been eligible to claim the COBRA
premium assistance credit.

Sep 13, 2023 Cat. No. 74487J

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When Must You File?
General Instructions
Form 943-A is filed with Form 943. Therefore, the due date
Purpose of Form 943-A of Form 943-A is the same as the due date for the
applicable Form 943. See the Instructions for Form 943 for
These instructions tell you about Form 943-A. Use Form
due dates. In some situations, Form 943-A may be filed
943-A to report your tax liability if you're a semiweekly
with Form 943-X. See Form 943-X, later, for details.
schedule depositor. To determine if you're a semiweekly
schedule depositor, see section 7 of Pub. 51, Agricultural
Employer's Tax Guide. Specific Instructions
On Form 943-A, list your tax liability for each day. Your
tax liability is based on the dates wages were paid. Your Completing Form 943-A
liability includes:
Enter Your Business Information
• The federal income tax you withheld from your Carefully enter your employer identification number (EIN)
employees' pay, and and name at the top of the form. Make sure that they
• Both the employer and employee share of social exactly match the name of your business and the EIN that
security and Medicare taxes. the IRS assigned to your business and also agree with the
Don’t use Form 943-A to show federal tax deposits. name and EIN shown on the attached Form 943 or Form
The IRS gets deposit data from electronic funds transfers. 943-X.

Don't report taxes on wages paid to nonfarm workers Calendar Year
on this form. Taxes on wages paid to nonfarm workers are Enter the calendar year of the Form 943 or Form 943-X to
reported on Form 941/941-SS, Employer’s QUARTERLY which Form 943-A is attached.
Federal Tax Return; or Form 944, Employer’s ANNUAL
Federal Tax Return. Don't attach Form 943-A to your Form Enter Your Tax Liability by Month
941/941-SS or Form 944. Instead, use Schedule B (Form Enter your tax liabilities in the spaces that correspond to
941) or Form 945-A, Annual Record of Federal Tax the dates you paid wages to your employees, not the date
Liability (with Form 944). payroll liabilities were accrued or deposits were made.
The IRS uses Form 943-A to determine if you’ve The total tax liability for the year (line M) must equal total
taxes after adjustments and nonrefundable credits on
! deposited your Form 943 tax liabilities on time. If
CAUTION you're a semiweekly schedule depositor and you Form 943 (line 13). Enter the monthly totals on lines A, B,
don’t properly complete and file your Form 943-A with C, D, E, F, G, H, I, J, K, and L. Enter the total for the year
Form 943, the IRS may propose an “averaged” FTD on line M.
penalty. See Deposit Penalties in section 7 of Pub. 51 for For example, if your payroll period ended on December
more information. 31, 2022, and you paid the wages for that period on
January 6, 2023, you would:
Who Must File? • Go to January on Form 943-A filed with your 2023 Form
943, and
File Form 943-A if you’re a semiweekly schedule
depositor. Monthly schedule depositors who accumulate • Enter your tax liability on line 6 because line 6
represents the sixth day of the month.
$100,000 or more of tax liability on any day of a calendar
month become semiweekly schedule depositors on the Make sure you have checked the appropriate box
next day and remain so for at least the remainder of the TIP above line 17 of Form 943 to show that you're a
year and for the next year, and must also complete and file semiweekly schedule depositor.
Form 943-A for the entire year. The $100,000 tax liability
Example 1. Fir Co. is a semiweekly schedule
threshold requiring a next-day deposit is determined
depositor. Fir Co. accumulated a federal tax liability of
before you consider any reduction of your liability for
$3,000 on its January 11 and January 25 paydays. In the
nonrefundable credits. For more information, including an
January column, Fir Co. must enter $3,000 on lines 11
example, see frequently asked question 17 at IRS.gov/
and 25.
ETD.
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 7 of Pub. 51 and in
December on the last day of the month. On December 25,
the Instructions for Form 943.
2023, Cedar Co. also paid its employees year-end
Don't complete Form 943-A if your net tax liability bonuses (subject to employment taxes). Because Cedar
! for the year (Form 943, line 13) is less than Co. is a semiweekly schedule depositor, it must record
CAUTION $2,500. Don't file this form if you're a monthly employment tax liabilities on Form 943-A.
schedule depositor unless you accumulated a tax liability
of $100,000 during any month of the year.

If you use Form 943-A, don’t complete Form 943,
TIP line 17.

-2- Instructions for Form 943-A (Rev. 12-2023)

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Month                Lines for dates wages were paid              includes payments of wages subject to social security tax 
October              line 31 (payday, last day of the month)      to your employees until you use up to $250,000 of credit 
November             line 30 (payday, last day of the month)      against the employer share of social security tax and you 
December             line 25 (bonus paid December 25, 2023)       then take into account any remaining payroll tax credit 
December             line 31 (payday, last day of the month)      against the liability for the employer share of Medicare tax 
                                                                  starting with the first payroll payment of the quarter that 
                                                                  includes payments of wages subject to Medicare tax to 
                                                                  employees. Consistent with the entries on Form 943-A, 
Example 3. Elm Co. is a new business and monthly                  the payroll tax credit should be taken into account in 
schedule depositor for 2023. Elm Co. pays wages every             making deposits of employment tax. If any payroll tax 
Friday. Elm Co. incurred a $2,000 employment tax liability        credit is remaining at the end of the quarter that hasn't 
on October 6, 2023. Elm Co. incurred a $110,000 tax               been used completely because it exceeds $250,000 of 
liability on October 13, 2023, and on every subsequent            the employer share of social security tax and the employer 
Friday during 2023. Under the deposit rules, employers            share of Medicare tax for the quarter, the excess credit 
become semiweekly schedule depositors on the day after            may be carried forward to the succeeding quarter and 
any day they accumulate $100,000 or more of tax liability         allowed as a payroll tax credit for the succeeding quarter. 
in a deposit period.                                              The payroll tax credit may not be taken as a credit against 
Because Elm Co. had an accumulated tax liability of               income tax withholding, the employee share of social 
$112,000 on October 13, 2023, it became a semiweekly              security tax, or the employee share of Medicare tax.
schedule depositor on October 14, 2023, and must                  Also, the remaining payroll tax credit may not be carried 
complete Form 943-A and file it with Form 943. No entries         back and taken as a credit against wages paid from 
should be made on Form 943, line 17, even though Elm              preceding quarters that are reported on the same Form 
Co. was a monthly schedule depositor until October 14,            943 or on Forms 943 for preceding years. If an amount of 
2023.                                                             payroll tax credit is unused at the end of the calendar year 
                                                                  because it is in excess of the applicable employer share of 
Month        Lines for dates wages were paid Amount to report     social security tax and employer share of Medicare tax on 
October      line 6                          $2,000               wages paid during the applicable quarters in the calendar 
October      lines 13, 20, and 27            $110,000             year, the remaining payroll tax credit may be carried 
November     lines 3, 10, 17, and 24         $110,000             forward to the first quarter of the succeeding calendar 
December     lines 1, 8, 15, 22, and 29      $110,000             year as a payroll tax credit against the applicable 
                                                                  employer share of social security tax and employer share 
                                                                  of Medicare tax paid on wages paid in that quarter. For 
        Your total liability for the year must equal line 13      more information about the payroll tax credit, go to 
                                                                  IRS.gov/ResearchPayrollTC.
CAUTION liability reported on Form 943-A by the refundable 
!       on Form 943; therefore, don't reduce your total           Example. Rose Co. is an employer with a calendar tax 
portion of the credit for qualified sick and family leave         year that filed its timely 2022 income tax return on April 
wages. See the Instructions for Form 943 for more                 18, 2023. Rose Co. elected to take the qualified small 
information.                                                      business payroll tax credit for increasing research 
                                                                  activities on Form 6765. The third quarter of 2023 is the 
                                                                  first quarter that begins after Rose Co. filed the income tax 
Adjusting Tax Liability for Nonrefundable 
                                                                  return making the payroll tax credit election. Therefore, the 
Credits Claimed on Form 943, Lines 12a, 12b,                      payroll tax credit applies against Rose Co.'s share of 
and 12d                                                           social security tax (up to $250,000) and Medicare tax on 
Semiweekly schedule depositors must account for                   wages paid to employees in the third quarter of 2023. 
nonrefundable credits claimed on Form 943, lines 12a,             Rose Co. completes Form 943-A by reducing the amount 
12b, and 12d, when reporting their tax liabilities on Form        of liability entered for the first payroll payment in the third 
943-A. The total tax liability for the year must equal the        quarter of 2023 that includes wages subject to social 
amount reported on Form 943, line 13. Failure to account          security tax by the lesser of (1) its share of social security 
for the nonrefundable credits on Form 943-A may cause             tax (up to $250,000) on the wages, or (2) the available 
Form 943-A to report more than the total tax liability            payroll tax credit. If the payroll tax credit elected is more 
reported on Form 943, line 13. Don't reduce your daily tax        than Rose Co.'s share of social security tax on the first 
liability reported on Form 943-A below zero.                      payroll payment of the quarter, the excess payroll tax 
                                                                  credit would be carried forward to succeeding payroll 
Qualified small business payroll tax credit for in-
                                                                  payments in the third quarter until it is used against up to 
creasing research activities (line 12a).     Beginning with 
                                                                  $250,000 of Rose Co.'s share of social security tax for the 
the first quarter of 2023, the qualified small business 
                                                                  quarter. If the amount of the payroll tax credit exceeds 
payroll tax credit for increasing research activities is first 
                                                                  Rose Co.'s share of social security tax (up to $250,000) on 
used to reduce the employer share of social security tax 
                                                                  wages paid to its employees in the third quarter, any 
(up to $250,000) for the quarter and any remaining credit 
                                                                  remaining credit is used against Rose Co.'s share of 
is then used to reduce the employer share of Medicare tax 
                                                                  Medicare tax on the first payroll payment of the quarter 
for the quarter until it reaches zero. In completing Form 
                                                                  and then the excess payroll tax credit would be carried 
943-A, you take into account the payroll tax credit against 
                                                                  forward to succeeding payroll payments in the third 
the liability for the employer share of social security tax 
                                                                  quarter until it is used against Rose Co.'s share of 
starting with the first payroll payment of the quarter that 

Instructions for Form 943-A (Rev. 12-2023)                     -3-

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Medicare tax for the quarter. If Rose Co. still has credit leave taken after March 31, 2021, and before October 1,
remaining after reducing its share of social security tax (up 2021, is limited to the employer share of Medicare tax on
to $250,000) and Medicare tax for the third quarter, the wages paid during the year that is remaining after that
remainder would be treated as a payroll tax credit against share is first reduced by any credit claimed against the
its share of social security tax (up to $250,000) and employer share of Medicare tax on Form 8974, line 16, for
Medicare tax on wages paid in the fourth quarter. If the the qualified small business payroll tax credit for
amount of the payroll tax credit remaining exceeded Rose increasing research activities. In completing Form 943-A,
Co.'s share of social security tax (up to $250,000) and you take into account the nonrefundable portion of the
Medicare tax on wages paid in the fourth quarter, it could credit for qualified sick and family leave wages paid in
be carried forward and treated as a payroll tax credit for 2023 against the liability for the first payroll payment of the
the first quarter of 2024. year, but not below zero. Then reduce the liability for each
successive payroll payment in the year until the
Nonrefundable portion of credit for qualified sick and
nonrefundable portion of the credit is used. Any credit for
family leave wages for leave taken after March 31,
qualified sick and family leave wages paid in 2023 for
2020, and before April 1, 2021 (Form 943, line 12b).
leave taken after March 31, 2021, and before October 1,
The nonrefundable portion of the credit for qualified sick
and family leave wages paid in 2023 for leave taken after 2021, that is remaining at the end of the year because it
March 31, 2020, and before April 1, 2021, is limited to the exceeds the employer share of Medicare tax for the year is
claimed on Form 943, line 14f, as a refundable credit. The
employer share of social security tax on wages paid
refundable portion of the credit doesn't reduce the liability
during the year that is remaining after that share is first
reported on Form 943-A. For more information about the
reduced by any credit claimed against the employer share
credit for qualified sick and family leave wages, go to
of social security tax on Form 8974, line 12, for the
IRS.gov/PLC.
qualified small business payroll tax credit for increasing
research activities; any credit to be claimed on Form You may reduce your deposits by the amount of
5884-C, line 11, for the work opportunity credit for TIP the nonrefundable and refundable portions of the
qualified tax-exempt organizations hiring qualified credit for qualified sick and family leave wages.
veterans; and/or any credit to be claimed on Form 5884-D For more information on reducing deposits, see Notice
for the disaster credit for qualified tax-exempt 2020-22, 2020-17 I.R.B. 664, available at IRS.gov/irb/
organizations. In completing Form 943-A, you take into 2020-17_IRB#NOT-2020-22; and Notice 2021-24,
account the nonrefundable portion of the credit for 2021-18 I.R.B. 1122, available at IRS.gov/irb/
qualified sick and family leave wages paid in 2023 against 2021-18_IRB#NOT-2021-24.
the liability for the first payroll payment of the year, but not
below zero. Then reduce the liability for each successive Correcting Previously Reported Tax Liability
payroll payment in the year until the nonrefundable portion
of the credit is used. Any credit for qualified sick and Semiweekly schedule depositors. If you’ve been
family leave wages paid in 2023 for leave taken after assessed an FTD penalty and you made an error on Form
March 31, 2020, and before April 1, 2021, that is 943-A and the correction won’t change the total liability for
remaining at the end of the year because it exceeds the the year you reported on Form 943-A, you may be able to
employer share of social security tax for the year is reduce your penalty by filing an amended Form 943-A.
claimed on Form 943, line 14d, as a refundable credit. The Example. You reported a liability of $3,000 on January
refundable portion of the credit doesn’t reduce the liability 1. However, the liability was actually for March. Prepare an
reported on Form 943-A. For more information about the amended Form 943-A showing the $3,000 liability on
credit for qualified sick and family leave wages, go to March 1. Also, you must enter the liabilities previously
IRS.gov/PLC. reported for the year that didn’t change. Write “Amended”
Example. Maple Co. is a semiweekly schedule at the top of Form 943-A. The IRS will refigure the penalty
depositor that pays employees every Friday. Maple Co. and notify you of any change in the penalty.
had pay dates every Friday of 2023 starting January 6,
Monthly schedule depositors. You can file Form 943-A
2023. Maple Co. paid qualified sick and family leave
if you have been assessed an FTD penalty and you made
wages on March 10 and March 17 for leave taken after
an error on the monthly tax liability section of Form 943.
March 31, 2020, and before April 1, 2021. The
When completing Form 943-A for this situation, only enter
nonrefundable portion of the credit for qualified sick and
the monthly totals. The daily entries aren't required.
family leave wages for the year is $10,000. On Form
943-A, Maple Co. will use the $10,000 to reduce the Where to file. File your amended Form 943-A or, for
liability for the January 6 pay date, but not below zero. If monthly schedule depositors, your original Form 943-A at
any nonrefundable portion of the credit remains, Maple the address provided in the penalty notice you received. If
Co. applies it to the liability for the January 13 pay date, you're filing an amended Form 943-A, you don't have to
then the January 20 pay date, and so forth until the entire submit your original Form 943-A.
$10,000 is used.
Form 943-X
Nonrefundable portion of credit for qualified sick and
You may need to file an amended Form 943-A with Form
family leave wages for leave taken after March 31,
943-X to avoid or reduce an FTD penalty.
2021, and before October 1, 2021 (Form 943,
line 12d). The nonrefundable portion of the credit for
qualified sick and family leave wages paid in 2023 for

-4- Instructions for Form 943-A (Rev. 12-2023)

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Tax decrease. If you're filing Form 943-X, you can file an Revenue laws of the United States. You’re required to give
amended Form 943-A with Form 943-X if both of the us the information. We need it to ensure that you’re
following apply. complying with these laws and to allow us to figure and
collect the right amount of tax.
1. You have a tax decrease.
2. You were assessed an FTD penalty. You’re not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
File your amended Form 943-A with Form 943-X. The total unless the form displays a valid OMB control number.
liability reported on your amended Form 943-A must equal Books or records relating to a form or its instructions must
the corrected amount of tax reported on Form 943-X. If be retained as long as their contents may become
your penalty is decreased, the IRS will include the penalty material in the administration of any Internal Revenue law.
decrease with your tax decrease. Generally, tax returns and return information are
Tax increase—Form 943-X filed timely. If you're filing a confidential, as required by Code section 6103.
timely Form 943-X showing a tax increase, don't file an The time needed to complete and file Form 943-A will
amended Form 943-A, unless you were assessed an FTD vary depending on individual circumstances. The
penalty caused by an incorrect, incomplete, or missing estimated average time is:
Form 943-A. If you're filing an amended Form 943-A, don't
include the tax increase reported on Form 943-X. Recordkeeping. . . . . . . . . . . . . . . . . . . . . 6 hr., 42 min.
Tax increase—Form 943-X filed late. If you owe tax and Learning about the law or the form. . . . . . . . 6 min.
are filing a late Form 943-X, that is, after the due date of Preparing and sending the form to the IRS . . 16 min.
the Form 943 for the year in which you discovered the
error, you must file an amended Form 943-A with Form
943-X. Otherwise, the IRS may assess an “averaged” FTD If you have comments concerning the accuracy of
penalty. these time estimates or suggestions for making Form
The total tax reported on line M of the amended Form 943-A simpler, we would be happy to hear from you. You
943-A must match the corrected tax (Form 943, line 13, can send us comments from IRS.gov/FormComments. Or
combined with any correction reported on Form 943-X, you can send your comments to Internal Revenue Service,
line 20) for the year, less any previous abatements and Tax Forms and Publications Division, 1111 Constitution
interest-free tax assessments. Ave. NW, IR-6526, Washington, DC 20224. Don't send
Form 943-A to this address. Instead, see Where Should
Paperwork Reduction Act Notice. We ask for the You File? in the Form 943 instructions.
information on Form 943-A to carry out the Internal

Instructions for Form 943-A (Rev. 12-2023) -5-

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