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            Department of the Treasury                        Contents
            Internal Revenue Service
                                                              What's New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    1
                                                              Reminders    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Publication 15
Cat. No. 10000W                                               Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
                                                              Introduction   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11
                                                              1. Employer Identification Number (EIN)                    . . . . . . .   12
(Circular E), 
                                                              2. Who Are Employees? . . . . . . . . . . . . . . . . . . . .              12
Employer's                                                    3. Family Employees          . . . . . . . . . . . . . . . . . . . . . .   15
                                                              4. Employee's Social Security Number (SSN)                         . . .   15
Tax Guide                                                     5. Wages and Other Compensation                    . . . . . . . . . . .   17
                                                              6. Tips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
For use in 2024
                                                              7. Supplemental Wages            . . . . . . . . . . . . . . . . . . . .   22
                                                              8. Payroll Period . . . . . . . . . . . . . . . . . . . . . . . . . .      23
                                                              9. Withholding From Employees' Wages                       . . . . . . .   24
                                                              10. Required Notice to Employees About the 
                                                              Earned Income Credit (EIC) . . . . . . . . . . . . . .                     29
                                                              11. Depositing Taxes         . . . . . . . . . . . . . . . . . . . . . .   30
                                                              12. Filing Form 941, Form 943, Form 944, or 
                                                              Form 945         . . . . . . . . . . . . . . . . . . . . . . . . . . . .   36
                                                              13. Reporting Adjustments to Forms 941, Form 
                                                              943, or Form 944             . . . . . . . . . . . . . . . . . . . . . .   39
                                                              14. Federal Unemployment (FUTA) Tax                      . . . . . . . .   42
                                                              15. Special Rules for Various Types of Services 
                                                              and Payments           . . . . . . . . . . . . . . . . . . . . . . . . .   44
                                                              16. Third-Party Payer Arrangements                   . . . . . . . . . .   51
                                                              17. Federal Agency Certifying Requirements of 
                                                              Federal Income Taxes Withheld From U.S. 
                                                              Government Employees Working in, or 
                                                              Federal Pension Recipients Residing in, 
                                                              American Samoa, the CNMI, and Guam . . . . .                               52
                                                              How To Get Tax Help        . . . . . . . . . . . . . . . . . . . . . . .   54
                                                              Index  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

                                                              Future Developments
                                                              For  the  latest  information  about  developments  related  to 
                                                              Pub.  15,  such  as  legislation  enacted  after  it  was 
                                                              published, go to IRS.gov/Pub15.

                                                              What's New
Get forms and other information faster and easier at:
• IRS.gov (English)         • IRS.gov/Korean (한국어)            Pub. 15 is now for all employers.                Pub. 15 can now be 
• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)       used  by  all  employers,  including  agricultural  employers 
• IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (Tiếng Việt) and employers in the U.S. territories. Pub. 51, Agricultural 

Dec 19, 2023

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Employer's Tax Guide; Pub. 80, Federal Tax Guide for Em- new Form 941 (sp), new Form 943 (sp), and Form 944
ployers in the U.S. Virgin islands, Guam, American Sa- (sp).
moa, and the Commonwealth of the Northern Mariana Is-
lands; and Pub. 179, Guía Contributiva Federal para
Patronos Puertorriqueños, have been discontinued. If you
prefer Pub. 15 in Spanish, there is a new Pub. 15 (sp) Reminders
available for 2024. Qualified small business payroll tax credit for in-
Unless otherwise noted, references throughout this creasing research activities. For tax years beginning
publication to Form W-2 include Forms W-2AS, W-2CM, before January 1, 2023, a qualified small business may
W-2GU, W-2VI, and Form 499R-2/W-2PR; references to elect to claim up to $250,000 of its credit for increasing re-
Form W-2c include Form 499R-2c/W-2cPR; references to search activities as a payroll tax credit. The Inflation Re-
Form W-3 include Form W-3SS and Form W-3PR; and duction Act of 2022 (the IRA) increases the election
references to Form W-3c include Form W-3C (PR). amount to $500,000 for tax years beginning after Decem-
Social security and Medicare tax for 2024. The rate of ber 31, 2022. The payroll tax credit election must be made
social security tax on taxable wages is 6.2% each for the on or before the due date of the originally filed income tax
employer and employee. The social security wage base return (including extensions). The portion of the credit
limit is $168,600. used against payroll taxes is allowed in the first calendar
The Medicare tax rate is 1.45% each for the employee quarter beginning after the date that the qualified small
and employer, unchanged from 2023. There is no wage business filed its income tax return. The election and de-
base limit for Medicare tax. termination of the credit amount that will be used against
the employer’s payroll taxes are made on Form 6765,
Social security and Medicare taxes apply to the wages
Credit for Increasing Research Activities. The amount
of household workers you pay $2,700 or more in cash wa-
from Form 6765, line 44, must then be reported on Form
ges in 2024. Social security and Medicare taxes apply to
8974, Qualified Small Business Payroll Tax Credit for In-
election workers who are paid $2,300 or more in cash or
creasing Research Activities.
an equivalent form of compensation in 2024.
Starting in the first quarter of 2023, the payroll tax credit
The COVID-19 related credit for qualified sick and is first used to reduce the employer share of social secur-
family leave wages is limited to leave taken after ity tax up to $250,000 per quarter and any remaining
March 31, 2020, and before October 1, 2021, and may credit reduces the employer share of Medicare tax for the
no longer be claimed on Form 941. Generally, the quarter. Any remaining credit, after reducing the employer
credit for qualified sick and family leave wages, as enac- share of social security tax and the employer share of
ted under the Families First Coronavirus Response Act Medicare tax, is then carried forward to the next quarter.
(FFCRA) and amended and extended by the COVID-rela- Form 8974 is used to determine the amount of the credit
ted Tax Relief Act of 2020, for leave taken after March 31, that can be used in the current quarter. The amount from
2020, and before April 1, 2021, and the credit for qualified Form 8974, line 12 or, if applicable, line 17, is reported on
sick and family leave wages under sections 3131, 3132, Form 941, Form 943, or Form 944. For more information
and 3133 of the Internal Revenue Code, as enacted under about the payroll tax credit, see IRS.gov/
the American Rescue Plan Act of 2021 (the ARP), for ResearchPayrollTC. Also see the line 16 instructions in the
leave taken after March 31, 2021, and before October 1, Instructions for Form 941 (line 17 instructions in the In-
2021, have expired. However, employers that pay qualified structions for Form 943 or line 13 instructions in the In-
sick and family leave wages in 2024 for leave taken after structions for Form 944) for information on reducing your
March 31, 2020, and before October 1, 2021, are eligible record of tax liability for this credit.
to claim a credit for qualified sick and family leave wages
in 2024. Effective for tax periods beginning after Decem- Disaster tax relief. Disaster tax relief is available for
ber 31, 2023, the lines used to claim the credit for qualified those impacted by disasters. For more information about
sick and family leave wages have been removed from disaster relief, go to IRS.gov/DisasterTaxRelief.
Form 941, Employer’s QUARTERLY Federal Tax Return, Payroll tax credit for certain tax-exempt organiza-
because it would be extremely rare for an employer to pay tions affected by qualified disasters. Section 303(d) of
wages in 2024 for qualified sick and family leave taken af- the Taxpayer Certainty and Disaster Tax Relief Act of 2020
ter March 31, 2020, and before October 1, 2021. Instead, allows for a payroll tax credit for certain tax-exempt organi-
if you’re eligible to claim the credit for qualified sick and zations affected by certain qualified disasters not related
family leave wages because you paid the wages in 2024 to COVID-19. This credit is claimed on Form 5884-D (not
for an earlier applicable leave period, file Form 941-X, Ad- on Form 941, Form 943, or Form 944). Form 5884-D is
justed Employer's QUARTERLY Federal Tax Return or filed after the Form 941 for the quarter, Form 943 for the
Claim for Refund, after filing Form 941, to claim the credit year, or Form 944 for the year for which the credit is being
for qualified sick and family leave wages paid in 2024. Fil- claimed has been filed. For more information about this
ing a Form 941-X before filing a Form 941 for the quarter credit, go to IRS.gov/Form5884D.
may result in errors or delays in processing your Form 2024 withholding tables. The Percentage Method and
941-X. Wage Bracket Method withholding tables, the employer in-
New Forms 941 (sp), 943 (sp), and 944 (sp). If you structions on how to figure employee withholding, and the
prefer your form and instructions in Spanish, you can file amount to add to a nonresident alien employee's wages

2 Publication 15 (2024)

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for figuring income tax withholding are included in Pub. an individual performing services for you, and the services
15-T, Federal Income Tax Withholding Methods, available are covered by a CPEO contract, then the CPEO is gener-
at IRS.gov/Pub15T. ally treated as the employer, but only for wages and other
Moving expense reimbursement. P.L. 115-97 sus- compensation paid to the individual by the CPEO. How-
pends the exclusion for qualified moving expense reim- ever, with respect to certain employees covered by a
bursements from your employee's income for tax years CPEO contract, you may also be treated as an employer
beginning after 2017 and before 2026. However, the ex- of the employees and, consequently, may also be liable for
clusion is still available in the case of a member of the U.S. federal employment taxes imposed on wages and other
Armed Forces on active duty who moves because of a compensation paid by the CPEO to such employees. For
permanent change of station due to a military order. The more information on the different types of third-party payer
exclusion applies only to reimbursement of moving expen- arrangements, see section 16.
ses that the member could deduct if they had paid or in- Aggregate Form 941 or Form 943 filers. Approved
curred them without reimbursement. See Moving Expen- section 3504 agents and CPEOs must complete Sched-
ses in Pub. 3, Armed Forces' Tax Guide, for the definition ule R (Form 941), Allocation Schedule for Aggregate Form
of what constitutes a permanent change of station and to 941 Filers, or Schedule R (Form 943), Allocation Schedule
learn which moving expenses are deductible. for Aggregate Form 943 Filers, as applicable, when filing
Withholding on supplemental wages. P.L. 115-97 low- an aggregate Form 941 or Form 943. An aggregate quar-
ered the withholding rates on supplemental wages for tax terly Form 941 or annual Form 943 is filed by an agent ap-
years beginning after 2017 and before 2026. See section proved by the IRS under section 3504 of the Internal Rev-
7 for the withholding rates. enue Code. To request approval to act as an agent for an
Backup withholding. P.L. 115-97 lowered the backup employer, the agent files Form 2678 with the IRS unless
withholding rate to 24% for tax years beginning after 2017 you're a state or local government agency acting as an
and before 2026. For more information on backup with- agent under the special procedures provided in Revenue
holding, see Backup withholding, later. Procedure 2013-39, 2013-52 I.R.B. 830, available at
IRS.gov/irb/2013-52_IRB#RP-2013-39. An aggregate
Certification program for professional employer or- quarterly Form 941 or annual Form 943 is also filed by
ganizations (PEOs). The Stephen Beck, Jr., Achieving a CPEOs approved by the IRS under section 7705. To be-
Better Life Experience Act of 2014 required the IRS to es- come a CPEO, the organization must apply through the
tablish a voluntary certification program for PEOs. PEOs IRS Online Registration System at IRS.gov/CPEO. CPEOs
handle various payroll administration and tax reporting re- file Form 8973, Certified Professional Employer Organiza-
sponsibilities for their business clients and are typically tion/Customer Reporting Agreement, to notify the IRS that
paid a fee based on payroll costs. To become and remain they’ve started or ended a service contract with a client or
certified under the certification program, certified profes- customer. CPEOs must generally file Form 941 or Form
sional employer organizations (CPEOs) must meet vari- 943 and the applicable Schedule R electronically. For
ous requirements described in sections 3511 and 7705 more information about a CPEO's requirement to file elec-
and related published guidance. Certification as a CPEO tronically, see Revenue Procedure 2023-18.
may affect the employment tax liabilities of both the CPEO
Other third-party payers that file an aggregate quarterly
and its customers. A CPEO is generally treated for em-
Form 941 or annual Form 943, such as non-certified
ployment tax purposes as the employer of any individual
PEOs, must complete and file the applicable Schedule R if
who performs services for a customer of the CPEO and is
they have clients that are claiming any employment tax
covered by a contract described in section 7705(e)(2) be-
credit (for example, the qualified small business payroll tax
tween the CPEO and the customer (CPEO contract), but
credit for increasing research activities).
only for wages and other compensation paid to the indi-
vidual by the CPEO. To become a CPEO, the organization Aggregate Form 940 filers. Approved section 3504
must apply through the IRS Online Registration System. agents and CPEOs must complete Schedule R (Form
For more information or to apply to become a CPEO, go to 940), Allocation Schedule for Aggregate Form 940 Filers,
IRS.gov/CPEO. Also see Revenue Procedure 2023-18, when filing an aggregate Form 940, Employer's Annual
2023-13 I.R.B. 605, available at IRS.gov/irb/ Federal Unemployment (FUTA) Tax Return. Aggregate
2023-13_IRB#REV-PROC-2023-18. Forms 940 can be filed by agents acting on behalf of
Outsourcing payroll duties. Generally, as an employer, home care service recipients who receive home care
you’re responsible to ensure that tax returns are filed and services through a program administered by a federal,
deposits and payments are made, even if you contract state, or local government. To request approval to act as
with a third party to perform these acts. You remain re- an agent on behalf of home care service recipients, the
sponsible if the third party fails to perform any required ac- agent files Form 2678 with the IRS unless you're a state or
tion. Before you choose to outsource any of your payroll local government agency acting as an agent under the
and related tax duties (that is, withholding, reporting, and special procedures provided in Revenue Procedure
paying over social security, Medicare, FUTA, and income 2013-39. Aggregate Forms 940 are also filed by CPEOs
taxes) to a third-party payer, such as a payroll service pro- approved by the IRS under section 7705. CPEOs file Form
vider or reporting agent, go to IRS.gov/ 8973 to notify the IRS that they’ve started or ended a serv-
OutsourcingPayrollDuties for helpful information on this ice contract with a client or customer. CPEOs must gener-
topic. If a CPEO pays wages and other compensation to ally file Form 940 and Schedule R (Form 940)

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electronically. For more information about a CPEO's re- You must receive written notice from the IRS to file
quirement to file electronically, see Revenue Procedure Form 944. If you’ve been filing quarterly Forms 941 and
2023-18. believe your employment taxes for the calendar year will
Work opportunity tax credit for qualified tax-exempt be $1,000 or less, and you would like to file an annual
organizations hiring qualified veterans. Qualified Form 944 instead of quarterly Forms 941, you must con-
tax-exempt organizations that hire eligible unemployed tact the IRS during the first calendar quarter of the tax
veterans may be able to claim the work opportunity tax year to request to file Form 944. You must receive written
credit against their payroll tax liability using Form 5884-C. notice from the IRS to file Form 944 instead of quarterly
For more information, go to IRS.gov/WOTC. Forms 941 before you may file this form. For more infor-
mation on requesting to file Form 944, including the meth-
Medicaid waiver payments. Notice 2014-7 provides ods and deadlines for making a request, see the Instruc-
that certain Medicaid waiver payments are excludable tions for Form 944.
from income for federal income tax purposes. See Notice
2014-7, 2014-4 I.R.B. 445, available at IRS.gov/irb/ Employers can request to file quarterly Forms 941 in-
2014-04_IRB#NOT-2014-7. For more information, includ- stead of an annual Form 944. If you received notice
ing questions and answers related to Notice 2014-7, go to from the IRS to file Form 944 but would like to file quarterly
IRS.gov/MedicaidWaiverPayments. Forms 941 instead, you must contact the IRS during the
first calendar quarter of the tax year to request to file quar-
No federal income tax withholding on disability pay- terly Forms 941. You must receive written notice from the
ments for injuries incurred as a direct result of a ter- IRS to file quarterly Forms 941 instead of Form 944 before
rorist attack directed against the United States. Disa- you may file these forms. For more information on request-
bility payments for injuries incurred as a direct result of a ing to file quarterly Forms 941, including the methods and
terrorist attack directed against the United States (or its al- deadlines for making a request, see the Instructions for
lies) aren't included in income. Because federal income Form 944.
tax withholding is only required when a payment is includi-
ble in income, no federal income tax should be withheld Correcting Form 941, Form 943, or Form 944. If you
from these payments. See Pub. 907, Tax Highlights for discover an error on a previously filed Form 941, make the
Persons With Disabilities; and Pub. 3920, Tax Relief for correction using Form 941-X. If you discover an error on a
Victims of Terrorist Attacks. previously filed Form 943, make the correction using Form
943-X. If you discover an error on a previously filed Form
Voluntary withholding on dividends and other distri- 944, make the correction using Form 944-X. Forms 941-X,
butions by an Alaska Native Corporation (ANC). A 943-X, and 944-X are filed separately from Forms 941,
shareholder of an ANC may request voluntary income tax 943, and 944. Forms 941-X, 943-X, and 944-X are used
withholding on dividends and other distributions paid by by employers to claim refunds or abatements of employ-
an ANC. A shareholder may request voluntary withholding ment taxes, rather than Form 843. See section 13 for more
by giving the ANC a completed Form W-4V. For more in- information.
formation, see Notice 2013-77, 2013-50 I.R.B. 632, availa-
ble at IRS.gov/irb/2013-50_IRB#NOT-2013-77. Zero wage return. If you haven't filed a “final” Form 940
and "final" Form 941, Form 943, or Form 944, or aren't a
Definition of marriage. A marriage of two individuals is “seasonal” employer (Form 941 only), you must continue
recognized for federal tax purposes if the marriage is rec- to file a Form 940 and Forms 941, Form 943, or Form 944,
ognized by the state or territory of the United States in even for periods during which you paid no wages. The IRS
which the marriage is entered into, regardless of legal resi- encourages you to file your “zero wage” Form 940 and
dence. Two individuals who enter into a relationship that is Form 941, Form 943, or Form 944 electronically. Go to
denominated as marriage under the laws of a foreign juris- IRS.gov/EmploymentEfile for more information on elec-
diction are recognized as married for federal tax purposes tronic filing.
if the relationship would be recognized as marriage under
Federal tax deposits must be made by electronic
the laws of at least one state or territory of the United
funds transfer (EFT). You must use EFT to make all fed-
States, regardless of legal residence. Individuals who
eral tax deposits. Generally, an EFT is made using the
have entered into a registered domestic partnership, civil
Electronic Federal Tax Payment System (EFTPS). If you
union, or other similar relationship that isn't denominated
don't want to use EFTPS, you can arrange for your tax
as a marriage under the law of the state or territory of the
professional, financial institution, payroll service, or other
United States where such relationship was entered into
trusted third party to make electronic deposits on your be-
aren't lawfully married for federal tax purposes, regardless
half. Also, you may arrange for your financial institution to
of legal residence.
initiate a same-day wire payment on your behalf. EFTPS is
Differential wage payments. Qualified differential wage a free service provided by the Department of the Treasury.
payments made by employers to individuals serving in the Services provided by your tax professional, financial insti-
U.S. Armed Forces are subject to income tax withholding tution, payroll service, or other third party may have a fee.
but not social security, Medicare, or FUTA tax. See section For more information on making federal tax deposits,
5 for more information. see How To Deposit in section 11. To get more information
Severance payments. Severance payments are wages about EFTPS or to enroll in EFTPS, go to EFTPS.gov or
subject to social security and Medicare taxes, income tax call 800-555-4477, 800-244-4829 (Spanish), or
withholding, and FUTA tax. 303-967-5916 (toll call). To contact EFTPS using

4 Publication 15 (2024)

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Telecommunications Relay Services (TRS) for people who • For electronic filing of Forms W-2, Wage and Tax
are deaf, hard of hearing, or have a speech disability, dial Statement, including Forms W-2AS, W-2CM, W-2GU,
711 and then provide the TRS assistant the 800-555-4477 and W-2VI, and Forms 499R-2/W-2PR, go to
number or 800-733-4829. Additional information about SSA.gov/employer. You may be required to file Forms
EFTPS is also available in Pub. 966. W-2 electronically. For details, see the General
Residents of the Philippines working in the Common- Instructions for Forms W-2 and W-3. If you experience
wealth of the Northern Mariana Islands (CNMI). Em- problems filing electronically, contact the Social
ployers must withhold and pay social security and Medi- Security Administration (SSA) at 800-772-6270. To
care taxes on wages and other compensation paid to speak with the SSA's Regional Employer Services
residents of the Philippines who don't hold an H-2 status Liaison Officer, go to the SSA's Regional Employer
for services performed as employees in the CNMI unless Services Liaison Officers website at SSA.gov/
those workers are eligible for exemption from social secur- employer/wage_reporting_specialists.htm. The
ity and Medicare taxes under an exception listed in sec- Regional Employer Services Liaison Officers are
tion 15. For more information, see Announcement available to provide assistance with all questions
2012-43, 2012-51 I.R.B. 723, available at IRS.gov/irb/ about the SSA's payroll reporting processes and
2012-51_IRB#ANN-2012-43. applications. Employers in the CNMI should contact
Federal employers in the CNMI. The U.S. Treasury De- their local tax department for instructions on
partment and the CNMI Division of Revenue and Taxation completing Form W-2CM. You can get Form W-2CM
entered into an agreement under 5 U.S.C. section 5517 in and its instructions by going to Finance.gov.mp/
December 2006. Under this agreement, all federal em- forms.php, or by calling 670-664-1000.
ployers (including the Department of Defense) are re- If you’re filing your tax return or paying your fed-
quired to withhold CNMI income taxes (rather than federal ! eral taxes electronically, a valid employer identifi-
income taxes) and deposit the CNMI taxes with the CNMI CAUTION cation number (EIN) is required at the time the re-
Treasury for employees who are subject to CNMI taxes turn is filed or the payment is made. If a valid EIN isn't
and whose regular place of federal employment is in the provided, the return or payment won't be processed. This
CNMI. For more information, including details on complet- may result in penalties. See section 1 for information
ing Form W-2, go to IRS.gov/5517Agreements. Federal about applying for an EIN.
employers are also required to file quarterly and annual re-
ports with the CNMI Division of Revenue and Taxation. For Electronic funds withdrawal (EFW). If you file your em-
questions, contact the CNMI Division of Revenue and Tax- ployment tax return electronically, you can e-file and use
ation. EFW to pay the balance due in a single step using tax
Pub. 5146 explains employment tax examinations preparation software or through a tax professional. How-
and appeal rights. Pub. 5146 provides employers with ever, don't use EFW to make federal tax deposits. For
information on how the IRS selects employment tax re- more information on paying your taxes using EFW, go to
turns to be examined, what happens during an exam, and IRS.gov/EFW.
what options an employer has in responding to the results Credit or debit card payments. You can pay the bal-
of an exam, including how to appeal the results. Pub. 5146 ance due shown on your employment tax return by credit
also includes information on worker classification issues or debit card. Your payment will be processed by a pay-
and tip exams. ment processor who will charge a processing fee. Don't
use a credit or debit card to make federal tax deposits. For
more information on paying your taxes with a credit or
Electronic Filing and Payment debit card, go to IRS.gov/PayByCard.
Online payment agreement. You may be eligible to ap-
Businesses can enjoy the benefits of filing and paying
ply for an installment agreement online if you can’t pay the
their federal taxes electronically. Whether you rely on a tax
full amount of tax you owe when you file your employment
professional or handle your own taxes, the IRS offers you
tax return. For more information, see the instructions for
convenient and secure programs to make filing and
your employment tax return or go to IRS.gov/OPA.
payment easier.
Spend less time worrying about taxes and more time
running your business. Use e-file and EFTPS to your
benefit. Forms in Spanish
• For e-file, go to IRS.gov/EmploymentEfile for Many forms and instructions discussed in this publication
additional information. A fee may be charged to file have Spanish-language versions available for employers
electronically. and employees. Some examples include Form 941 (sp),
• For EFTPS, go to EFTPS.gov or call EFTPS Customer Form 944 (sp), Form SS-4 (sp), Form W-4 (sp), and Form
Service at 800-555-4477, 800-244-4829 (Spanish), or W-9 (sp). Although this publication doesn't reference
303-967-5916 (toll call). To contact EFTPS using TRS Spanish-language forms and instructions in each instance
for people who are deaf, hard of hearing, or have a that one is available, you can see Pub. 15 (sp) and go to
speech disability, dial 711 and then provide the TRS IRS.gov to determine if a Spanish-language version is
assistant the 800-555-4477 number or 800-733-4829. available.

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report these on Form W-2. See the General Instructions
for Forms W-2 and W-3 for details about filing Form W-2
Hiring New Employees
and for information about required electronic filing.
Eligibility for employment. You must verify that each Technical Services Operation (TSO). The IRS oper-
new employee is legally eligible to work in the United ates the TSO to answer questions about reporting on
States, including American Samoa, Guam, the CNMI, the Forms W-2, W-3, and 1099, and other information returns.
U.S Virgin Islands (USVI), and Puerto Rico. This includes If you have questions related to reporting on information
completing the U.S. Citizenship and Immigration Services returns, call 866-455-7438 (toll free) or 304-263-8700 (toll
(USCIS) Form I-9, Employment Eligibility Verification. You call). The center can also be reached by email at
can get Form I-9 at USCIS.gov/Forms. For more informa- mccirp@irs.gov. Don't include taxpayer identification num-
tion, go to the USCIS website at USCIS.gov/I-9-Central, or bers (TINs) or attachments in email because email isn't
call 800-375-5283 or 800-767-1833 (TTY). secure.
You may use the Social Security Number Verification
Service (SSNVS) at SSA.gov/employer/ssnv.htm to verify
that an employee name matches an SSN. A person may
have a valid SSN but not be authorized to work in the Uni- Federal Income Tax
ted States. You may use E-Verify at E-Verify.gov to confirm
Withholding
the employment eligibility of newly hired employees.
New hire reporting. All 50 states, and most of the territo- References to federal income tax withholding
ries, have a new hire registry. You’re required to report any ! don't apply to employers in American Samoa,
new employee to a designated state new hire registry. A CAUTION Guam, the CNMI, the USVI, and Puerto Rico, un-
new employee is an employee who hasn't previously been less you have employees who are subject to U.S. income
employed by you or was previously employed by you but tax withholding. Contact your local tax department for in-
has been separated from such prior employment for at formation about income tax withholding.
least 60 consecutive days. Withhold federal income tax from each wage payment
Many states accept a copy of Form W-4 with employer or supplemental unemployment compensation plan
information added. Go to the Office of Child Support En- benefit payment according to the employee's Form W-4
forcement website at acf.hhs.gov/programs/css/employers and the correct withholding table in Pub. 15-T. Farm
for more information. Employers in American Samoa, operators and crew leaders must withhold federal income
Guam, the CNMI, the USVI, and Puerto Rico should con- tax from the wages of farmworkers if the wages are
tact their local government for information on their new subject to social security and Medicare taxes. If you're
hire registry. paying supplemental wages to an employee, see section
W-4 request. Ask each new employee to complete the 7. If you have nonresident alien employees, see
2024 Form W-4. See section 9. Withholding federal income taxes on the wages of
Name and social security number (SSN). Record nonresident alien employees in section 9.
each new employee's name and SSN from their social se- See section 8 of Pub. 15-A, Employer’s Supplemental
curity card if it is available. If an employee can't provide Tax Guide, for information about withholding on pensions
their social security card, you should verify their SSN and (including distributions from tax-favored retirement plans),
their eligibility for employment as discussed under Verifi- annuities, and individual retirement arrangements (IRAs).
cation of SSNs. Any employee without a social security
card should apply for one. See section 4.
Nonpayroll Income Tax

Withholding
Information Returns
Nonpayroll federal income tax withholding (reported on
You must file Forms W-2 to report wages paid to
Forms 1099 and Form W-2G, Certain Gambling Winnings)
employees. You may also be required to file information
must be reported on Form 945, Annual Return of Withheld
returns to report certain types of payments made during
Federal Income Tax. Separate deposits are required for
the year. For example, you must file Form 1099-NEC,
payroll (Form 941, Form 943, or Form 944) and nonpayroll
Nonemployee Compensation, to report payments of $600
(Form 945) withholding. Nonpayroll items include the
or more to persons not treated as employees (for
following.
example, independent contractors) for services performed
for your trade or business. For details about filing Forms • Pensions (including distributions from tax-favored
1099 and for information about required electronic filing, retirement plans, for example, section 401(k), section
see the General Instructions for Certain Information 403(b), and governmental section 457(b) plans),
Returns for general information, and the separate, specific annuities, and IRA distributions.
instructions for each information return you file (for • Military retirement.
example, the Instructions for Forms 1099-MISC and
1099-NEC). Generally, don't use Forms 1099 to report • Gambling winnings.
wages and other compensation you paid to employees;

6 Publication 15 (2024)

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Employer Responsibilities
The following list provides a brief summary of your basic responsibilities. Because the individual circumstances for each employer 
can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. Each item in this list has a 
page reference to a more detailed discussion in this publication.

              New Employees:                                      Page   Annually (see Calendar for due dates):                                    Page
  Verify work eligibility of new employees. . . . . . .           6    File Form 944 if required (pay tax with return if
  Record employees' names and SSNs from                                not required to deposit). . . . . . . . . . . . . . . . . . . . .           36
  social security cards . . . . . . . . . . . . . . . . . . . .   6    Remind employees to submit a new Form W-4
  Ask employees for Form W-4        . . . . . . . . . . . . . .   6    if they need to change their withholding                . . . . . . . . . . 24
                    Each Payday:                                       Ask for a new Form W-4 from employees
  Withhold federal income tax based on each                            claiming exemption from income tax
  employee's Form W-4     . . . . . . . . . . . . . . . . . . .   24   withholding     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
  Withhold employee's share of social security                         Reconcile Forms 941 (Form 943 or Form 944) with
  and Medicare taxes. . . . . . . . . . . . . . . . . . . .       27   Forms W-2 and W-3. . . . . . . . . . . . . . . . . . . . . . .              38
  Deposit:                                                             Furnish each employee a Form W-2. . . . . . . . . . . .                     10
  • Withheld income tax,                                               File Copy A of Forms W-2 and the transmittal
  • Withheld and employer social security taxes,                       Form W-3 with the SSA           . . . . . . . . . . . . . . . . . . . . .   10
  and 
  • Withheld and employer Medicare taxes              . . . . . . 30   Furnish each payee a Form 1099 (for example, 
  Note. Due date of deposit generally depends                          Form 1099-NEC). . . . . . . . . . . . . . . . . . . . . . . . .             10
  on your deposit schedule (monthly or                                 File Forms 1099 and the transmittal Form
  semiweekly).                                                         1096    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
  Quarterly (By April 30, July 31, October 31,                         File Form 940       . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
                  and January 31):                                     File Form 945 for any nonpayroll income tax
  Deposit FUTA tax if undeposited amount                               withholding     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
  is over $500. . . . . . . . . . . . . . . . . . . . . . . . . . 43
  File Form 941 (pay tax with return if not
  required to deposit). . . . . . . . . . . . . . . . . . . . .   36
• Indian gaming profits.                                               commissions,  nonemployee  compensation,  payments 
                                                                       made in settlement of payment card or third-party network 
• Certain government payments on which the recipient 
                                                                       transactions, and certain other payments you make in the 
  elected voluntary income tax withholding.
                                                                       course of your trade or business. In addition, transactions 
• Dividends and other distributions by an ANC on which                 by  brokers  and  barter  exchanges  and  certain  payments 
  the recipient elected voluntary income tax withholding.              made  by  fishing  boat  operators  are  subject  to  backup 
• Payments subject to backup withholding.                              withholding.
For  details  on  depositing  and  reporting  nonpayroll                       Backup withholding doesn't apply to wages, pen-
income tax withholding, see the Instructions for Form 945.             !       sions,  annuities,  IRAs  (including  simplified  em-
                                                                       CAUTION ployee  pension  (SEP)  and  SIMPLE  retirement 
Distributions  from  nonqualified  pension  plans  and                 plans),  section  404(k)  distributions  from  an  employee 
deferred compensation plans.            Because distributions to       stock ownership plan (ESOP), medical savings accounts 
participants  from  some  nonqualified  pension  plans  and            (MSAs), health savings accounts (HSAs), long-term-care 
deferred  compensation  plans  (including  section  457(b)             benefits, or real estate transactions.
plans of tax-exempt organizations) are treated as wages 
and are reported on Form W-2, income tax withheld must                 You can use Form W-9 to request payees to furnish a 
be reported on Form 941, Form 943, or Form 944, not on                 TIN.  Form  W-9  must  be  used  when  payees  must  certify 
Form  945.  However,  distributions  from  such  plans  to  a          that the number furnished is correct, or when payees must 
beneficiary or estate of a deceased employee aren't wa-                certify that they’re not subject to backup withholding or are 
ges  and  are  reported  on  Forms  1099-R,  Distributions             exempt from backup withholding. The Instructions for the 
From  Pensions,  Annuities,  Retirement  or  Profit-Sharing            Requester of Form W-9 include a list of types of payees 
Plans,  IRAs,  Insurance  Contracts,  etc.;  income  tax  with-        who are exempt from backup withholding. For more infor-
held must be reported on Form 945.                                     mation,  see  Pub.  1281,  Backup  Withholding  for  Missing 
                                                                       and Incorrect Name/TIN(s).
Backup withholding.     You must generally withhold 24% 
of certain taxable payments if the payee fails to furnish you 
with  their  correct  TIN.  This  withholding  is  referred  to  as 
“backup withholding.”
Payments subject to backup withholding include inter-
est,  dividends,  patronage  dividends,  rents,  royalties, 

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using the Without a payment address provided in the
instructions for your employment tax return, to notify the
Recordkeeping
IRS of any business name change. See Pub. 1635 to see
Keep all records of employment taxes for at least 4 years. if you need to apply for a new EIN.
These should be available for IRS review. Your records
should include the following information.
• Your EIN. Change of Business Address
• Amounts and dates of all wage, annuity, and pension
payments. or Responsible Party
• Amounts of tips reported to you by your employees. Notify the IRS immediately if you change your business
address or responsible party. Complete and mail Form
• Records of allocated tips. 8822-B to notify the IRS of a business address or
• The fair market value (FMV) of in-kind wages paid. responsible party change. For a definition of “responsible
party,” see the Instructions for Form SS-4.
• Names, addresses, SSNs, and occupations of
employees and recipients.
• Any employee copies of Forms W-2 and W-2c
returned to you as undeliverable. Filing Addresses
• Dates of employment for each employee. Generally, your filing address for Form 940, 941, 943, 944,
945, or CT-1 depends on the location of your residence or
• Periods for which employees and recipients were paid
principal place of business and whether or not you’re
while absent due to sickness or injury and the amount
including a payment with your return. There are separate
and weekly rate of payments you or third-party payers
filing addresses for these returns if you’re a tax-exempt
made to them.
organization or government entity. See the separate
• Copies of employees' and recipients' income tax instructions for Form 940, 941, 943, 944, 945, or CT-1 for
withholding certificates (Forms W-4, W-4P, W-4R, the filing addresses.
W-4S, and W-4V).
• Dates and amounts of tax deposits you made and
acknowledgment numbers for deposits made by Private Delivery Services
EFTPS.
• Copies of returns filed and confirmation numbers. (PDSs)
• Records of fringe benefits and expense You can use certain PDSs designated by the IRS to meet
reimbursements provided to your employees, the “timely mailing as timely filing” rule for tax returns. Go
including substantiation. to IRS.gov/PDS for the current list of PDSs.
The PDS can tell you how to get written proof of the
• Documentation to substantiate any credits claimed.
mailing date.
Records related to qualified sick leave wages and
For the IRS mailing address to use if you're using a
qualified family leave wages for leave taken after
PDS, go to IRS.gov/PDSstreetAddresses. Select the
March 31, 2021, and before October 1, 2021, and
mailing address listed on the webpage that is in the same
records related to qualified wages for the employee
state as the address to which you would mail returns filed
retention credit paid after June 30, 2021, should be
without a payment, as shown in the instructions for your
kept for at least 6 years. For more information on
employment tax return.
substantiation requirements, go to IRS.gov/PLC and
IRS.gov/ERC. PDSs can't deliver items to P.O. boxes. You must
use the U.S. Postal Service to mail any item to an
• Documentation to substantiate the amount of any CAUTION!
IRS P.O. box address.
employer or employee share of social security tax that
you deferred and paid for 2020.
If a crew leader furnished you with farmworkers, you
must keep a record of the name, permanent mailing Dishonored Payments
address, and EIN of the crew leader. If the crew leader
has no permanent mailing address, record their present Any form of payment that is dishonored and returned from
address. a financial institution is subject to a penalty. The penalty is
$25 or 2% of the payment, whichever is more. However,
the penalty on dishonored payments of $24.99 or less is
an amount equal to the payment. For example, a
Change of Business Name dishonored payment of $18 is charged a penalty of $18.
Notify the IRS immediately if you change your business
name. Write to the IRS office where you file your returns,

8 Publication 15 (2024)

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Employers in Puerto Rico must visit Hacienda.gobierno.pr
for additional information.
E-News for Payroll

Professionals
The IRS has a subscription-based email service for payroll Photographs of Missing
professionals. Subscribers will receive periodic updates
from the IRS. The updates may include information Children
regarding recent legislative changes affecting federal The IRS is a proud partner with the National Center for
payroll reporting, IRS news releases and special Missing & Exploited Children® (NCMEC). Photographs of
announcements pertaining to the payroll industry, new missing children selected by the Center may appear in
employment tax procedures, and other information this publication on pages that would otherwise be blank.
specifically affecting federal payroll tax returns. To You can help bring these children home by looking at the
subscribe, go to IRS.gov/Newsroom/E-News- photographs and calling 1-800-THE-LOST
Subscriptions. (1-800-843-5678) if you recognize a child.

Telephone Help Calendar
Tax questions. You can call the IRS Business and Spe- The following is a list of important dates and
cialty Tax Line with your employment tax questions at responsibilities. The dates listed here haven’t been
800-829-4933. adjusted for Saturdays, Sundays, and legal holidays (see
Help for people with disabilities. You may call the TIP next). Pub. 509, Tax Calendars (for use in 2024),
800-829-4059 (TDD/TTY for persons who are deaf, hard adjusts the dates for Saturdays, Sundays, and legal
of hearing, or have a speech disability) with any employ- holidays. See section 11 for information about depositing
ment tax questions. You may also use this number for as- taxes reported on Forms 941, 943, 944, and 945. See
sistance with unresolved tax problems. section 14 for information about depositing FUTA tax. Due
Additional information. Go to IRS.gov/ dates for forms required for health coverage reporting
EmploymentTaxes for additional employment tax informa- aren't listed here. For these dates, see Pub. 509.
tion. For general tax information relevant to agricultural
If any date shown next for filing a return, furnishing
employers, go to IRS.gov/AgricultureTaxCenter. For infor-
TIP a form, or depositing taxes falls on a Saturday,
mation about employer responsibilities under the Afforda-
Sunday, or legal holiday, the due date is the next
ble Care Act, go to IRS.gov/ACA. For information about
business day. The term "legal holiday" means any legal
COVID-19 tax relief, go to IRS.gov/Coronavirus.
holiday in the District of Columbia. A statewide legal holi-
day delays a filing due date only if the IRS office where
you’re required to file is located in that state. However, a
Ordering Employer Tax Forms, statewide legal holiday doesn't delay the due date of fed-
eral tax deposits. See Deposits Due on Business Days
Instructions, and Publications Only in section 11. For any filing due date, you’ll meet the
“file” or “furnish” requirement if the envelope containing
You can view, download, or print most of the forms, the return or form is properly addressed, contains suffi-
instructions, and publications you may need at IRS.gov/ cient postage, and is postmarked by the U.S. Postal Serv-
Forms. Otherwise, you can go to IRS.gov/OrderForms to ice on or before the due date, or sent by an IRS-designa-
place an order and have them mailed to you. The IRS will ted PDS on or before the due date. See Private Delivery
process your order as soon as possible. Don't resubmit Services (PDSs) under Reminders, earlier, for more infor-
requests you've already sent us. You can get forms, mation.
instructions, and publications faster online.
Instead of ordering paper Forms W-2 and W-3, Fiscal year taxpayers. The due dates listed next apply
consider filing them electronically using the SSA's free whether you use a calendar or a fiscal year.
e-file service. Go to the SSA's Employer W-2 Filing
Instructions & Information webpage at SSA.gov/employer By January 31
to register for Business Services Online (BSO). You’ll be
able to create Forms W-2 online and submit them to the File Form 941 or Form 944. File Form 941 for the
SSA by typing your wage information into easy-to-use fourth quarter of the previous calendar year and deposit
fill-in fields. In addition, you can print out completed any undeposited income, social security, and Medicare
copies of Forms W-2 to file with state or local taxes. You may pay these taxes with Form 941 if your to-
governments, distribute to your employees, and keep for tal tax liability for the quarter (Form 941, line 12) is less
your records. Form W-3 will be created for you based on than $2,500. File Form 944 for the previous calendar
your Forms W-2. year instead of Form 941 if the IRS has notified you in
The SSA's BSO is an independent program from the writing to file Form 944. Pay any undeposited income,
Government of Puerto Rico electronic filing system. social security, and Medicare taxes with your Form 944.

Publication 15 (2024) 9

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You may pay these taxes with Form 944 if your total tax 1220, Specifications for Electronic Filing of Forms 1097,
liability for the year (Form 944, line 9) is less than 1098, 1099, 3921, 3922, 5498, and W-2G.
$2,500. For additional rules on when you can pay your
taxes with your return, see Payment with return in sec- By February 15
tion 11. If you timely deposited all taxes when due, you
may file by February 10. Request a new Form W-4 from exempt employees.
Ask for a new Form W-4 from each employee who
File Form 943. Agricultural employers file Form 943 claimed exemption from income tax withholding last
for the previous calendar year and deposit any undepos- year.
ited income, social security, and Medicare taxes. You
may pay these taxes with Form 943 if your total tax liabil-
ity for the year (Form 943, line 13) is less than $2,500. If On February 16
you timely deposited all taxes when due, you may file by Forms W-4 claiming exemption from withholding ex-
February 10. pire. Any Form W-4 claiming exemption from with-
File Form 945. File Form 945 to report any nonpayroll holding for the previous year has now expired. Begin
federal income tax withheld. If you deposited all taxes withholding for any employee who previously claimed
when due, you may file by February 10. See Nonpayroll exemption from withholding but hasn't given you a new
Income Tax Withholding under Reminders, earlier, for Form W-4 for the current year. If the employee doesn't
more information. give you a new Form W-4, withhold tax as if they had
checked the box for Single or Married filing separately in
File Form 940. File Form 940 to report any FUTA tax. Step 1(c) and made no entries in Step 2, Step 3, or Step
However, if you deposited all of the FUTA tax when due, 4 of the 2024 Form W-4. See section 9 for more informa-
you may file by February 10. See section 14 for more in- tion. If the employee gives you a new Form W-4 claiming
formation on FUTA tax. exemption from withholding after February 15, you may
apply the exemption to future wages, but don't refund
Furnish Forms 1099 and W-2. Furnish each em-
taxes withheld while the exempt status wasn't in place.
ployee a completed 2023 Form W-2. Furnish a 2023
Form 1099-NEC to payees for nonemployee compensa-
tion. Most Forms 1099 must be furnished to payees by By February 28
January 31, but some can be furnished by February 15.
File paper 2023 Forms 1099 and 1096. File Copy A
For more information, see the Guide to Information Re-
of all paper 2023 Forms 1099, except Forms 1099-NEC,
turns chart in the General Instructions for Certain Infor-
with Form 1096 with the IRS. For electronically filed re-
mation Returns.
turns, see By March 31, later.
File Form W-2. File with the SSA Copy A of all 2023
paper and electronic Forms W-2 with Form W-3, Trans- By February 29
mittal of Wage and Tax Statements. Forms W-2AS,
W-2CM, W-2GU, and W-2VI are filed with Form W-3SS. File paper Form 8027. File paper Form 8027, Em-
Forms 499R-2/W-2PR are filed with Form W-3PR. For ployer's Annual Information Return of Tip Income and
more information on reporting Form W-2 information to Allocated Tips, with the IRS. See section 6. For electron-
the SSA electronically, go to the SSA’s Employer W-2 ically filed returns, see By March 31 next.
Filing Instructions & Information webpage at SSA.gov/
employer. If filing electronically, via the SSA's Form W-2 By March 31
Online service, the SSA will generate Form W-3 data
from the electronic submission of Form(s) W-2. File electronic 2023 Forms 1099 and 8027. File
electronic 2023 Forms 1099, except Forms 1099-NEC,
Send Copy 1 of Forms W-2AS, W-2CM, W-2GU, and
with the IRS. Also file electronic Form 8027 with the IRS.
W-2VI, and Form W-3SS to your local tax department at
For information on filing information returns electroni-
the address shown on Form W-3SS. For more information
cally with the IRS, see Pub. 1220 and Pub. 1239, Speci-
on Copy 1, contact your local tax department. Employers
fications for Electronic Filing of Form 8027, Employer's
in the CNMI should contact their local tax department for
Annual Information Return of Tip Income and Allocated
instructions on how to file Copy 1. For additional informa-
Tips.
tion on how to file Forms 499R-2/W-2PR with the Puerto
Rico Department of Treasury, go to Hacienda.gobierno.pr
or call 787-622-0123. By April 30, July 31, October 31, and
File Form 1099-NEC reporting nonemployee compen- January 31
sation. File with the IRS Copy A of all 2023 paper Deposit FUTA taxes. Deposit FUTA tax for the quar-
and electronic Forms 1099-NEC. Paper forms must be ter (including any amount carried over from other quar-
filed with Form 1096, Annual Summary and Transmittal ters) if over $500. If $500 or less, carry it over to the next
of U.S. Information Returns. For information on filing in- quarter. See section 14 for more information.
formation returns electronically with the IRS, see Pub.

10 Publication 15 (2024)

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File Form 941. File Form 941 and deposit any unde- Additional employment tax information is available in
posited income, social security, and Medicare taxes. Pubs. 15-A, 15-B, and 15-T. Pub. 15-A includes special-
You may pay these taxes with Form 941 if your total tax ized information supplementing the basic employment tax
liability for the quarter (Form 941, line 12) is less than information provided in this publication. Pub. 15-B, Em-
$2,500. If you timely deposited all taxes when due, you ployer's Tax Guide to Fringe Benefits, contains information
may file by May 10, August 10, November 10, or Febru- about the employment tax treatment and valuation of vari-
ary 10, respectively. Don't file Form 941 for these quar- ous types of noncash compensation. Pub. 15-T includes
ters if you have been notified to file Form 944 and you the federal income tax withholding tables and instructions
didn't request and receive written notice from the IRS to on how to use the tables.
file quarterly Forms 941. Most employers must withhold (except FUTA), deposit,
report, and pay the following employment taxes.
Before December 1 • Income tax.
New Forms W-4. Remind employees to submit a new • Social security tax.
Form W-4 if their filing status, other income, deductions, • Medicare tax.
or credits have changed or will change for the next year.
Also remind employees to submit a new Form W-4 if • FUTA tax.
they made a mid-year change to their Form W-4 based There are exceptions to these requirements. See sec-
on their use of the IRS Tax Withholding Estimator availa- tion 15 for guidance. Railroad retirement taxes are ex-
ble at IRS.gov/W4App. Employees that made a plained in the Instructions for Form CT-1.
mid-year change may be underwithheld or overwithheld
once their Form W-4 is applied to the next full calendar Comments and suggestions. We welcome your com-
year. ments about this publication and suggestions for future
editions.
You can send us comments through IRS.gov/
FormComments.
Introduction Or, you can write to:

This publication explains your tax responsibilities as an Internal Revenue Service
employer, including agricultural employers and employers Tax Forms and Publications
whose principal place of business is in American Samoa, 1111 Constitution Ave. NW, IR-6526
Guam, the CNMI, the USVI, or Puerto Rico. It explains the Washington, DC 20224
requirements for withholding, depositing, reporting, pay-
ing, and correcting employment taxes. It explains the Although we can’t respond individually to each com-
forms you must give to your employees, those your em- ment received, we do appreciate your feedback and will
ployees must give to you, and those you must send to the consider your comments and suggestions as we revise
IRS and the SSA. References to “income tax” in this guide our tax forms, instructions, and publications. Don’t send
apply only to federal income tax. Contact your state or lo- tax questions, tax returns, or payments to the above ad-
cal tax department to determine their rules. Whenever the dress.
term "United States" is used in this publication, it includes
American Samoa, Guam, the CNMI, the USVI, and Puerto Getting answers to your tax questions. If you have
Rico, unless otherwise noted. a tax question not answered by this publication, check
When you pay your employees, you don't pay them all IRS.gov and How To Get Tax Help at the end of this publi-
the money they earned. As their employer, you have the cation.
added responsibility of withholding taxes from their pay-
Getting tax forms, instructions, and publications.
checks. The federal income tax and employees' share of
Go to IRS.gov/Forms to download current and prior-year
social security and Medicare taxes that you withhold from
forms, instructions, and publications.
your employees' paychecks are part of their wages that
you pay to the U.S. Treasury instead of to your employees. Ordering tax forms, instructions, and publications.
Your employees trust that you pay the withheld taxes to Go to IRS.gov/OrderForms to order current forms, instruc-
the U.S. Treasury by making federal tax deposits. This is tions, and publications; call 800-829-3676 to order
the reason that these withheld taxes are called trust fund prior-year forms and instructions. The IRS will process
taxes. If federal income, social security, or Medicare taxes your order for forms and publications as soon as possible.
that must be withheld aren't withheld or aren't deposited or Don’t resubmit requests you’ve already sent us. You can
paid to the U.S. Treasury, the trust fund recovery penalty get forms and publications faster online.
may apply. See section 11 for more information.
This publication also provides employers, including em- Federal government employers. The information in this
ployers in the USVI and Puerto Rico, with a summary of publication, including the rules for making federal tax de-
their responsibilities in connection with the tax under the posits, applies to federal agencies.
Federal Unemployment Tax Act, known as FUTA tax. See
State and local government employers. Payments to
section 14 for more information.
employees for services in the employ of state and local

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government employers are generally subject to federal in- If you don’t have an EIN, you may apply for one online
come tax withholding but not FUTA tax. Most elected and by going to IRS.gov/EIN. You may also apply for an EIN by
appointed public officials of state or local governments are faxing or mailing Form SS-4 to the IRS. If the principal
employees under common-law rules. See chapter 3 of business was created or organized outside of the United
Pub. 963, Federal-State Reference Guide. In addition, wa- States or U.S. territories, you may also apply for an EIN by
ges, with certain exceptions, are subject to social security calling 267-941-1099 (toll call). Don't use an SSN in place
and Medicare taxes. See section 15 for more information of an EIN.
on the exceptions. You should have only one EIN. If you have more than
If an election worker is employed in another capacity one and aren't sure which one to use, call 800-829-4933
with the same government entity, see Revenue Ruling or 800-829-4059 (TDD/TTY for persons who are deaf,
2000-6 on page 512 of Internal Revenue Bulletin 2000-6 hard of hearing, or have a speech disability). Give the
at IRS.gov/pub/irs-irbs/irb00-06.pdf. numbers you have, the name and address to which each
You can get information on reporting and social security was assigned, and the address of your main place of busi-
coverage from your local IRS office. If you have any ques- ness. The IRS will tell you which number to use. For more
tions about coverage under a section 218 (Social Security information, see Pub. 1635.
Act) agreement, contact the appropriate state official. To
find your State Social Security Administrator, go to the Na- If you took over another employer's business (see Suc-
tional Conference of State Social Security Administrators cessor employer in section 9), don't use that employer's
website at NCSSSA.org. EIN. If you’ve applied for an EIN but don't have your EIN
by the time a return is due, file a paper return and enter
Indian tribal governments. See Pub. 4268 for employ- “Applied For” and the date you applied for it in the space
ment tax information for Indian tribal governments. shown for the number.
Disregarded entities and qualified subchapter S sub- Always be sure the EIN on the form you file ex-
sidiaries (QSubs). Eligible single-owner disregarded en- ! actly matches the EIN the IRS assigned to your
tities and QSubs are treated as separate entities for em- CAUTION business. Don't use your SSN or individual tax-
ployment tax purposes. Eligible single-member entities payer identification number (ITIN) on forms that ask for an
must report and pay employment taxes on wages paid to EIN. If you used an EIN (including a prior owner's EIN) on
their employees using the entities' own names and EINs. Form 941, Form 943, or Form 944, that is different from
See Regulations sections 1.1361-4(a)(7) and the EIN reported on Form W-3, see Box h—Other EIN
301.7701-2(c)(2)(iv). used this year in the General Instructions for Forms W-2
and W-3. On Form W-3PR for Puerto Rico, “Other EIN
used this year” is reported in box f. The name and EIN on
Useful Items Form 945 must match the name and EIN on your informa-
You may want to see:
tion returns where federal income tax withholding is repor-
ted (for example, backup withholding reported on Form
Publication 1099-NEC). Filing a Form 945 with an incorrect EIN or us-
15-A 15-A Employer's Supplemental Tax Guide ing another business's EIN may result in penalties and de-
lays in processing your return.
15-B 15-B Employer's Tax Guide to Fringe Benefits
15-T 15-T Federal Income Tax Withholding Methods Agricultural employers that have crew leaders. An
225 225 Farmer's Tax Guide agricultural employer must record the crew leader's name,
address, and EIN. See sections and 2 14.
535 535 Business Expenses
583 583 Starting a Business and Keeping Records
1635 1635 Employer Identification Number: 2. Who Are Employees?
Understanding Your EIN
Generally, employees are defined either under common
law or under statutes for certain situations. See Pub. 15-A
for details on statutory employees and nonemployees.
1. Employer Identification
Employee status under common law. Generally, a
Number (EIN) worker who performs services for you is your employee if
you have the right to control what will be done and how it
If you’re required to report employment taxes or give tax
will be done. This is so even when you give the employee
statements to employees or annuitants, you need an EIN.
freedom of action. What matters is that you have the right
The EIN is a nine-digit number the IRS issues. The dig- to control the details of how the services are performed.
its are arranged as follows: 00-0000000. It is used to iden- See Pub. 15-A for more information on how to determine
tify the tax accounts of employers and certain others who whether an individual providing services is an independ-
have no employees. Use your EIN on all of the items you ent contractor or an employee.
send to the IRS and the SSA. For more information, see Generally, people in business for themselves aren't em-
Pub. 1635. ployees. For example, doctors, lawyers, veterinarians, and

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others in an independent trade in which they offer their come and employment taxes. See Pub. 15-A for more in-
services to the public are usually not employees. If the formation.
business is incorporated, corporate officers who work in
the business are employees of the corporation. Farmworkers. In general, you're an employer of farm-
If an employer-employee relationship exists, it doesn't workers if your employees:
matter what it is called. The employee may be called an • Raise or harvest agricultural or horticultural products
agent or independent contractor. It also doesn't matter on your farm (including the raising and feeding of live-
how payments are measured or paid, what they’re called, stock);
or if the employee works full or part time.
• Work in connection with the operation, management,
Statutory employees. If someone who works for you conservation, improvement, or maintenance of your
isn't an employee under the common-law rules discussed farm and its tools and equipment, if the major part of
earlier, don't withhold federal income tax from their pay, such service is performed on a farm;
unless backup withholding applies. Although the following • Provide services relating to salvaging timber, or clear-
persons may not be common-law employees, they’re con- ing land of brush and other debris, left by a hurricane
sidered employees by statute for social security and Medi- (also known as hurricane labor), if the major part of
care tax purposes if the conditions under Tests, later, are such service is performed on a farm;
met.
• Handle, process, or package any agricultural or horti-
a. An agent or commission driver who delivers meat, veg- cultural commodity in its unmanufactured state if you
etable, fruit, or bakery products; beverages (other than produced over half of the commodity (for a group of up
milk); laundry; or dry cleaning for someone else. to 20 unincorporated operators, all of the commodity);
or
b. A full-time life insurance salesperson who sells primar-
ily for one company. • Do work for you related to cotton ginning, turpentine,
gum resin products, or the operation and maintenance
c. A homeworker who works at home or off premises by of irrigation facilities.
the guidelines of the person for whom the work is done, For this purpose, the term “farm” includes stock, dairy,
with materials or goods furnished by and returned to that poultry, fruit, fur-bearing animal, and truck farms, as well
person or to someone that person designates. as plantations, ranches, nurseries, ranges, greenhouses
or other similar structures used primarily for the raising of
d. A traveling or city salesperson (other than an agent or agricultural or horticultural commodities, and orchards.
commission driver) who works full time (except for sideline Farmwork doesn't include reselling activities that don't
sales activities) for one firm or person getting orders from involve any substantial activity of raising agricultural or
customers. The orders must be for merchandise for resale horticultural commodities, such as a retail store or a
or supplies for use in the customer's business. The cus- greenhouse used primarily for display or storage. It also
tomers must be retailers, wholesalers, contractors, or op- doesn’t include processing services which change a com-
erators of hotels, restaurants, or other businesses dealing modity from its raw or natural state, or services performed
with food or lodging. after a commodity has been changed from its raw or natu-
Tests. Withhold social security and Medicare taxes ral state.
from statutory employees' wages if all three of the follow- Crew leaders. If you're a crew leader, you're an em-
ing tests apply. ployer of farmworkers. A crew leader is a person who fur-
1. The service contract states or implies that almost all nishes and pays (either on their own behalf or on behalf of
of the services are to be performed personally by the farm operator) workers to do farmwork for the farm op-
them. erator. If there is no written agreement between you and
the farm operator stating that you're their employee and if
2. They have little or no investment in the equipment and you pay the workers (either for yourself or for the farm op-
property used to perform the services (other than an erator), then you're a crew leader. For FUTA tax rules, see
investment in transportation facilities). section 14.
3. The services are performed on a continuing basis for If you're a crew leader, you're not considered the em-
the same payer. ployee of the farm operator for services you perform in fur-
nishing farmworkers and as a member of the crew.
Persons in or , earlier, are also employees for FUTA a d
tax purposes if tests 1 through 3 are met. H-2A agricultural workers. On Form W-2, don't
Pub. 15-A gives examples of the employer-employee check box 13 (Statutory employee), as H-2A workers
relationship. aren't statutory employees.

Statutory nonemployees. Direct sellers, qualified real Treating employees as nonemployees. You’ll gener-
estate agents, and certain companion sitters are, by law, ally be liable for social security and Medicare taxes and
considered nonemployees. They’re generally treated as withheld income tax if you don't deduct and withhold these
self-employed for all federal tax purposes, including in- taxes because you treated an employee as a nonem-
ployee. You may be able to figure your liability using

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special section 3509 rates for the employee share of so- IRS help. If you want the IRS to determine whether a
cial security and Medicare taxes and federal income tax worker is an employee, file Form SS-8.
withholding. The applicable rates depend on whether you
filed required Forms 1099. You can't recover the employee Voluntary Classification Settlement Program (VCSP).
share of social security tax, Medicare tax, or income tax Employers who are currently treating their workers (or a
withholding from the employee if the tax is paid under sec- class or group of workers) as independent contractors or
tion 3509. You’re liable for the income tax withholding re- other nonemployees and want to voluntarily reclassify
gardless of whether the employee paid income tax on the their workers as employees for future tax periods may be
wages. You continue to owe the full employer share of so- eligible to participate in the VCSP if certain requirements
cial security and Medicare taxes. The employee remains are met. File Form 8952 to apply for the VCSP. For more
liable for the employee share of social security and Medi- information, go to IRS.gov/VCSP.
care taxes. See section 3509 for details. Also see the In-
structions for Form 941-X, the Instructions for Form 943-X, Business Owned and Operated by
or the Instructions for Form 944-X.
Spouses
Section 3509 rates aren't available if you intentionally
disregard the requirement to withhold taxes from the em-
If you and your spouse jointly own and operate a business
ployee or if you withheld income taxes but not social se-
and share in the profits and losses, you may be partners in
curity or Medicare taxes. Section 3509 isn't available for
a partnership, whether or not you have a formal partner-
reclassifying statutory employees. See Statutory employ-
ship agreement. See Pub. 541 for more details. The part-
ees, earlier in this section.
nership is considered the employer of any employees, and
If the employer issued required information returns, the
is liable for any employment taxes due on wages paid to
section 3509 rates are the following.
its employees.
• For social security taxes: employer rate of 6.2% plus
20% of the employee rate of 6.2%, for a total rate of Exception—Qualified joint venture. For tax years be-
7.44% of wages. ginning after 2006, the Small Business and Work Opportu-
nity Tax Act of 2007 (P.L. 110-28) provides that a “qualified
• For Medicare taxes: employer rate of 1.45% plus 20% joint venture,” whose only members are spouses filing a
of the employee rate of 1.45%, for a total rate of 1.74% joint income tax return, can elect not to be treated as a
of wages. partnership for federal tax purposes. A qualified joint ven-
• For Additional Medicare Tax: 0.18% (20% of the em- ture conducts a trade or business where:
ployee rate of 0.9%) of wages subject to Additional The only members of the joint venture are spouses
•
Medicare Tax. who file a joint income tax return,
• For federal income tax withholding, the rate is 1.5% of Both spouses materially participate (see Material par-
•
wages. ticipation in the instructions for Schedule C (Form
If the employer didn't issue required information returns, 1040), line G) in the trade or business (mere joint own-
the section 3509 rates are the following. ership of property isn't enough),
• For social security taxes: employer rate of 6.2% plus • Both spouses elect to not be treated as a partnership,
40% of the employee rate of 6.2%, for a total rate of and
8.68% of wages.
• The business is co-owned by both spouses and isn't
• For Medicare taxes: employer rate of 1.45% plus 40% held in the name of a state law entity such as a part-
of the employee rate of 1.45%, for a total rate of 2.03% nership or limited liability company (LLC).
of wages. To make the election, all items of income, gain, loss,
• For Additional Medicare Tax: 0.36% (40% of the em- deduction, and credit must be divided between the spou-
ployee rate of 0.9%) of wages subject to Additional ses, in accordance with each spouse's interest in the ven-
Medicare Tax. ture, and reported as sole proprietors on a separate
Schedule C (Form 1040) or Schedule F (Form 1040).
• For federal income tax withholding, the rate is 3.0% of
Each spouse must also file a separate Schedule SE (Form
wages.
1040) to pay self-employment taxes, as applicable. See
Relief provisions. If you have a reasonable basis for the Instructions for Form 1040-SS for American Samoa,
not treating a worker as an employee, you may be relieved Guam, the CNMI, the USVI, and Puerto Rico.
from having to pay employment taxes for that worker. To Spouses using the qualified joint venture rules are trea-
get this relief, you must file all required federal tax returns, ted as sole proprietors for federal tax purposes and gener-
including information returns, on a basis consistent with ally don't need an EIN. If employment taxes are owed by
your treatment of the worker. You (or your predecessor) the qualified joint venture, either spouse may report and
must not have treated any worker holding a substantially pay the employment taxes due on the wages paid to the
similar position as an employee for any periods beginning employees using the EIN of that spouse's sole proprietor-
after 1977. See Pub. 1976, Do You Qualify for Relief Un- ship. Generally, filing as a qualified joint venture won't in-
der Section 530. crease the spouses' total tax owed on the joint income tax
return. However, it gives each spouse credit for social

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security earnings on which retirement benefits are based • An estate, even if it is the estate of a deceased parent.
and for Medicare coverage without filing a partnership re- In these situations, the child or spouse is considered to
turn. work for the corporation, partnership, or estate, not you.
Note. If your spouse is your employee, not your partner,
see One spouse employed by another in section 3. Parent employed by their child. When the employer is
For more information on qualified joint ventures, go to a child employing their parent, the following rules apply.
IRS.gov/QJV.
• Payments for the services of a parent in their child’s
Exception—Community income. If you and your (the employer’s) trade or business are subject to in-
spouse wholly own an unincorporated business as com- come tax withholding and social security and Medi-
munity property under the community property laws of a care taxes.
state, foreign country, or U.S. territory, you can treat the • Payments for the services of a parent not in their
business either as a sole proprietorship (of the spouse child’s (the employer’s) trade or business are generally
who carried on the business) or a partnership. You may not subject to social security and Medicare taxes.
still make an election to be taxed as a qualified joint ven-
ture instead of a partnership. See Exception—Qualified Social security and Medicare taxes do apply to
joint venture, earlier in this section. ! payments made to a parent for domestic services
CAUTION if all of the following apply.
• The parent is employed by their child (the employer).
3. Family Employees • The employer has a child or stepchild (including an
adopted child) living in the home.
Child employed by parents. Payments for the services
of a child under age 18 who works for their parent in a • The employer is a surviving spouse, divorced and not
remarried, or living with a spouse who, because of a
trade or business aren't subject to social security and
mental or physical condition, can't care for their child
Medicare taxes if the trade or business is a sole proprie-
or stepchild for at least 4 continuous weeks in the cal-
torship or a partnership in which each partner is a parent
endar quarter in which the service is performed.
of the child. If these payments are for work other than in a
trade or business, such as domestic work in the parent's • The child or stepchild of the employer is either under
private home, they’re not subject to social security and age 18 or, due to a mental or physical condition, re-
Medicare taxes until the child reaches age 21. However, quires the personal care of an adult for at least 4 con-
see Covered services of a child or spouse, later. Pay- tinuous weeks in the calendar quarter in which the
ments for the services of a child under age 21 who works service is performed.
for their parent, whether or not in a trade or business,
aren't subject to FUTA tax. Payments for the services of a Payments made to a parent employed by their child
child of any age who works for their parent are generally aren't subject to FUTA tax, regardless of the type of serv-
subject to income tax withholding unless the payments ices provided.
are for domestic work in the parent's home, or unless the
payments are for work other than in a trade or business
and are less than $50 in the quarter or the child isn't regu- 4. Employee's Social Security
larly employed to do such work.
Number (SSN)
One spouse employed by another. The wages for the
services of an individual who works for their spouse in a You’re required to get each employee's name and SSN
trade or business are subject to income tax withholding and to enter them on Form W-2. An employee's SSN con-
and social security and Medicare taxes, but not to FUTA sists of nine digits arranged as follows: 000-00-0000. This
tax. However, the payments for services of one spouse requirement also applies to resident and nonresident alien
employed by another in other than a trade or business, employees. You should ask your employee to show you
such as domestic service in a private home, aren't subject their social security card, but the employee isn't required
to social security, Medicare, and FUTA taxes. to show the card if it isn't available. However, if an em-
ployee can't provide their social security card, you should
Covered services of a child or spouse. The wages for
verify their SSN and their eligibility for employment as dis-
the services of a child or spouse are subject to income tax
cussed later in this section under Verification of SSNs.
withholding as well as social security, Medicare, and FUTA
taxes if they work for: Don't accept a social security card that says “Not
valid for employment.” An SSN issued with this
• A corporation, even if it is controlled by the child's pa- CAUTION!
legend doesn't permit employment.
rent or the individual's spouse;
• A partnership, even if the child's parent is a partner, You may, but aren't required to, photocopy the social
unless each partner is a parent of the child; security card if the employee provides it. If you don't pro-
vide the correct employee name and SSN on Form W-2,
• A partnership, even if the individual's spouse is a part-
you may owe a penalty unless you have reasonable
ner; or
cause. See Pub. 1586, Reasonable Cause Regulations &

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Requirements for Missing and Incorrect Name/TINs on In- Transmittal of Corrected Wage and Tax Statements, may
formation Returns, for information on the requirement to be filed per session over the Internet, with no limit on the
solicit the employee's SSN. number of sessions. For more information, go to the SSA's
Employer W-2 Filing Instructions & Information webpage
In many cases, a replacement social security card
at SSA.gov/employer. Advise your employee to correct the
TIP can be applied for online without visiting an SSA
SSN on their original Form W-2.
office. In some cases, an SSN application can
also be started online before visiting an SSA office. For Correctly record the employee's name and SSN. Re-
more information, go to SSA.gov/number-card. cord the name and SSN of each employee as they’re
shown on the employee's social security card. If the em-
Applying for a social security card. Any employee ployee's name isn't correct as shown on the card (for ex-
who is legally eligible to work in the United States and ample, because of marriage or divorce), the employee
doesn't have a social security card can get one by com- should request an updated card from the SSA. Continue
pleting Form SS-5, Application for a Social Security Card, to report the employee's wages under the old name until
and submitting the necessary documentation. You can get the employee shows you the updated social security card
Form SS-5 from the SSA website at SSA.gov/forms/ with the corrected name.
ss-5.pdf, at SSA offices, or by calling 800-772-1213 or
800-325-0778 (TTY). The employee must complete and If the SSA issues the employee an updated card after a
sign Form SS-5; it can't be filed by the employer. You may name change, or a new card with a different SSN after a
be asked to supply a letter to accompany Form SS-5 if the change in alien work status, file a Form W-2c to correct
employee has exceeded their yearly or lifetime limit for the the name/SSN reported for the most recently filed Form
number of replacement cards allowed. W-2. It isn't necessary to correct other years if the previ-
ous name and number were used for years before the
Where to get and file Form SS-5 in the U.S. territo- most recent Form W-2.
ries. Below is a list of the U.S. SSA offices located in the
U.S. territories. IRS individual taxpayer identification numbers
(ITINs) for aliens. Don't accept an ITIN in place of an
American Samoa SSN for employee identification or for work. An ITIN is
Centennial Building 3rd Floor, Suite 302 only available to resident and nonresident aliens who
1 Utulei Rd aren't eligible for U.S. employment and need identification
Pago Pago, AS 96799 for other tax purposes. You can identify an ITIN because it
is a nine-digit number, formatted like an SSN, that starts
Guam with the number "9" and has a range of numbers from “50–
Suite 155 65,” “70–88,” “90–92,” and “94–99” for the fourth and fifth
770 East Sunset Blvd digits (for example, 9NN-7N-NNNN). For more information
Barrigada, GU 96913 about ITINs, see the Instructions for Form W-7 or go to
IRS.gov/ITIN.
Commonwealth of the Northern Mariana Islands
MH II Building, Suite 201 An individual with an ITIN who later becomes eli-
Marina Heights Business Park ! gible to work in the United States must obtain an
Saipan, MP 96950 CAUTION SSN. If the individual is currently eligible to work
in the United States, instruct the individual to apply for an
U.S. Virgin Islands SSN and follow the instructions under Applying for an
1st Floor, Suite 14 SSN, earlier in this section. Don't use an ITIN in place of
8000 Nisky Shopping CT an SSN on Form W-2.
St. Thomas, VI 00802
Verification of SSNs. Employers and authorized report-
Additional information is available on the Social Secur- ing agents can use the Social Security Number Verifica-
ity Office Locator page at secure.ssa.gov/ICON. Also go tion Service (SSNVS) to instantly verify that an employee
to this website and enter your ZIP Code to find your near- name matches an SSN for up to 10 names and SSNs (per
est SSA office in Puerto Rico. screen) at a time, or submit an electronic file of up to
250,000 names and SSNs and usually receive the results
Applying for an SSN. If you file Form W-2 on paper and the next business day. Go to SSA.gov/employer/ssnv.htm
your employee applied for an SSN but doesn't have one for more information. A person may have a valid SSN but
when you must file Form W-2, enter “Applied For” on the not be authorized to work in the United States. Employers
form. If you’re filing electronically, enter all zeros may use E-Verify at E-Verify.gov to confirm the employ-
(000-00-0000 if creating forms online or 000000000 if up- ment eligibility of newly hired employees.
loading a file) in the SSN field. When the employee re-
ceives the SSN, file Copy A of Form W-2c, Corrected Accessing the SSNVS. The SSA’s BSO is used to
Wage and Tax Statement, with the SSA to show the em- access the SSNVS. BSO users will need a social security
ployee's SSN. Furnish Copies B, C, and 2 of Form W-2c to online account. You can use your personal my Social Se-
the employee. Up to 25 Forms W-2c for each Form W-3c, curity account that was created before September 18,
2021, or an existing Login.gov credential or ID.me

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credential. If you don’t have a social security online ac- • Employer-provided cell phones,
count, a Login.gov credential, or an ID.me credential,
• Group-term life insurance coverage,
you’ll need to create one. For more information, go to the
SSA’s website at SSA.gov/bso. • Health savings accounts,
• Lodging on your business premises,
• Meals,
5. Wages and Other
• No-additional-cost services,
Compensation • Retirement planning services,
Wages subject to federal employment taxes generally in- • Transportation (commuting) benefits,
clude all pay you give to an employee for services per- • Tuition reduction, and
formed. The pay may be in cash or in other forms. It in-
cludes salaries, vacation allowances, bonuses, • Working condition benefits.
commissions, and taxable fringe benefits. It doesn't matter
Noncash wages, including commodity wages, paid to
how you measure or make the payments. Amounts an em-
farmworkers. Noncash wages include food, lodging,
ployer pays as a bonus for signing or ratifying a contract in
clothing, transportation passes, farm products, or other
connection with the establishment of an employer-em-
goods or commodities. Noncash wages paid to farmwork-
ployee relationship and an amount paid to an employee
ers, including commodity wages, aren't subject to social
for cancellation of an employment contract and relinquish-
security taxes, Medicare taxes, or federal income tax with-
ment of contract rights are wages subject to social secur-
holding. However, you and your employee can agree to
ity, Medicare, and FUTA taxes and income tax withhold-
have federal income tax withheld on noncash wages.
ing. Also, compensation paid to a former employee for
Noncash wages, including commodity wages, are trea-
services performed while still employed is wages subject
ted as cash wages if the substance of the transaction is a
to employment taxes.
cash payment. Noncash wages treated as cash wages
Cash wages paid to farmworkers. Cash wages that are subject to social security taxes, Medicare taxes, and
you pay to employees for farmwork are generally subject federal income tax withholding.
to social security tax and Medicare tax. You may also be Report the value of noncash wages in box 1 of Form
required to withhold, deposit, and report Additional Medi- W-2 (box 7 of Form 499R-2/W-2PR) together with cash
care Tax. See section 9 for more information. If the wages wages. Noncash wages for farmwork are subject to fed-
are subject to social security and Medicare taxes, they’re eral income tax unless a specific exclusion applies. Don't
also subject to federal income tax withholding. You’re lia- show noncash wages in box 3 or 5 of Form W-2 (box 20 or
ble for the payment of these taxes to the federal govern- 22 of Form 499R-2/W-2PR), unless the substance of the
ment whether or not you collect them from your employ- transaction is a cash payment and they’re being treated as
ees. If, for example, you withhold less than the correct tax cash wages.
from an employee's wages, you’re still liable for the full
Share farmers. You don't have to withhold or pay social
amount. You may also be liable for FUTA tax, which isn't
security and Medicare taxes on amounts paid to share
withheld by you or paid by the employee. FUTA tax is dis-
farmers under share-farming arrangements.
cussed in section 14. Cash wages include checks, money
A “share farmer” working for you isn’t your employee.
orders, and any kind of money or cash.
However, the share farmer may be subject to self-employ-
More information. See section 6 for a discussion of tips ment tax. In general, share farming is an arrangement in
and section 7 for a discussion of supplemental wages. which certain commodity products are shared between
Also, see section 15 for exceptions to the general rules for the farmer and the owner (or tenant) of the land. For de-
wages. Pub. 15-A provides additional information on wa- tails, see Regulations section 31.3121(b)(16)-1.
ges, including nonqualified deferred compensation, and
Compensation paid to H-2A visa holders. Report
other compensation. Pub. 15-B provides information on
compensation of $600 or more paid to foreign agricultural
other forms of compensation, including:
workers who entered the country on H-2A visas in box 1 of
• Accident and health benefits, Form W-2 (box 7 of Form 499R-2/W-2PR) but don't report
• Achievement awards, it as social security wages (box 3 of Form W-2 or box 20 of
Form 499R-2/W-2PR) or Medicare wages (box 5 of Form
• Adoption assistance, W-2 or box 22 of Form 499R-2/W-2PR) on Form W-2 be-
• Athletic facilities, cause compensation paid to H-2A workers for agricultural
labor performed in connection with this visa isn't subject to
• De minimis (minimal) benefits, social security and Medicare taxes. On Form W-2, don't
• Dependent care assistance, check box 13 (Statutory employee), as H-2A workers
aren't statutory employees.
• Educational assistance,
An employer isn't required to withhold federal income
• Employee discounts, tax from compensation paid to an H-2A worker for agricul-
• Employee stock options, tural labor performed in connection with this visa but may

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withhold if the worker asks for withholding and the em- Nonaccountable plan. Payments to your employee
ployer agrees. In that case, the worker must give the em- for travel and other necessary expenses of your business
ployer a completed Form W-4. Federal income tax with- under a nonaccountable plan are wages and are treated
held should be reported in box 2 of Form W-2. as supplemental wages and subject to income, social se-
These reporting rules apply when the H-2A worker pro- curity, Medicare, and FUTA taxes. Your payments are trea-
vides their TIN to the employer. If the H-2A worker doesn't ted as paid under a nonaccountable plan if:
provide a TIN and the total annual wages to the H-2A
• Your employee isn't required to or doesn't substantiate
worker are at least $600, the employer is required to
timely those expenses to you with receipts or other
backup withhold. See the Instructions for Forms
documentation,
1099-MISC and 1099-NEC and the Instructions for Form
945. • You advance an amount to your employee for busi-
For more information on foreign agricultural workers on ness expenses and your employee isn't required to or
H-2A visas, go to IRS.gov/H2A. doesn't return timely any amount they don’t use for
business expenses,
Employee business expense reimbursements. A re-
imbursement or allowance arrangement is a system by • You advance or pay an amount to your employee re-
gardless of whether you reasonably expect the em-
which you pay the advances, reimbursements, and
ployee to have business expenses related to your
charges for your employees' business expenses. How you
business, or
report a reimbursement or allowance amount depends on
whether you have an accountable or a nonaccountable • You pay an amount as a reimbursement you would
plan. If a single payment includes both wages and an ex- have otherwise paid as wages.
pense reimbursement, you must specify the amount of the See section 7 for more information on supplemental
reimbursement. wages.
These rules apply to all allowable ordinary and neces-
sary employee business expenses. Per diem or other fixed allowance. You may reim-
burse your employees by travel days, miles, or some other
Accountable plan. To be an accountable plan, your fixed allowance under the applicable revenue procedure.
reimbursement or allowance arrangement must require In these cases, your employee is considered to have ac-
your employees to meet all three of the following rules. counted to you if your reimbursement doesn't exceed
1. They must have paid or incurred allowable expenses rates established by the federal government. The stand-
while performing services as your employees. The re- ard mileage rate for auto expenses is provided in Pub.
imbursement or advance must be payment for the ex- 15-B.
penses and must not be an amount that would have The government per diem rates for meals and lodging
otherwise been paid to the employee as wages. in the continental United States can be found by going to
the U.S. General Services Administration website at
2. They must substantiate these expenses to you within GSA.gov/PerDiemRates. Other than the amount of these
a reasonable period of time. expenses, your employees' business expenses must be
3. They must return any amounts in excess of substanti- substantiated (for example, the business purpose of the
ated expenses within a reasonable period of time. travel or the number of business miles driven). For infor-
mation on substantiation methods, see Pub. 463.
Amounts paid under an accountable plan aren't wages If the per diem or allowance paid exceeds the amounts
and aren't subject to income, social security, Medicare, substantiated, you must report the excess amount as wa-
and FUTA taxes. ges. This excess amount is subject to income tax with-
If the expenses covered by this arrangement aren't sub- holding and payment of social security, Medicare, and
stantiated (or amounts in excess of substantiated expen- FUTA taxes. Show the amount equal to the substantiated
ses aren't returned within a reasonable period of time), the amount (that is, the nontaxable portion) in box 12 of Form
amount paid under the arrangement in excess of the sub- W-2 using code “L.” Employers in Puerto Rico report the
stantiated expenses is treated as paid under a nonac- amount in box 12 (no code needed).
countable plan. This amount is subject to income, social
security, Medicare, and FUTA taxes for the first payroll pe- Wages not paid in money. If in the course of your trade
riod following the end of the reasonable period of time. or business you pay your employees in a medium that is
A reasonable period of time depends on the facts and neither cash nor a readily negotiable instrument, such as a
circumstances. Generally, it is considered reasonable if check, you’re said to pay them “in kind.” Payments in kind
your employees receive their advance within 30 days of may be in the form of goods, lodging, food, clothing, or
the time they pay or incur the expenses, adequately ac- services. Generally, the FMV of such payments at the time
count for the expenses within 60 days after the expenses they’re provided is subject to federal income tax withhold-
were paid or incurred, and return any amounts in excess ing and social security, Medicare, and FUTA taxes.
of expenses within 120 days after the expenses were paid However, noncash payments for household work, agri-
or incurred. Alternatively, it is considered reasonable if you cultural labor, and service not in the employer's trade or
give your employees a periodic statement (at least quar- business are exempt from social security, Medicare, and
terly) that asks them to either return or adequately account FUTA taxes. Withhold income tax on these payments only
for outstanding amounts and they do so within 120 days. if you and the employee agree to do so. Nonetheless,

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noncash payments for agricultural labor, such as com- if it is reasonable to believe at the time of payment of the
modity wages, are treated as cash payments subject to contributions they’ll be excludable from the income of the
employment taxes if the substance of the transaction is a employee. To the extent it isn't reasonable to believe they’ll
cash payment. See Noncash wages, including commodity be excludable, your contributions are subject to these
wages, paid to farmworkers, earlier in this section, for taxes. Employee contributions to their HSAs or MSAs
more information. through a payroll deduction plan must be included in wa-
ges and are subject to social security, Medicare, and
Meals and lodging. The value of meals isn't taxable in- FUTA taxes and income tax withholding. However, HSA
come and isn't subject to federal income tax withholding contributions made under a salary reduction arrangement
and social security, Medicare, and FUTA taxes if the meals in a section 125 cafeteria plan aren't wages and aren't
are furnished for the employer's convenience and on the subject to employment taxes or withholding. For more in-
employer's premises. The value of lodging isn't subject to formation, see the Instructions for Form 8889.
federal income tax withholding and social security, Medi-
care, and FUTA taxes if the lodging is furnished for the Medical care reimbursements. Generally, medical care
employer's convenience, on the employer's premises, and reimbursements paid for an employee under an employ-
as a condition of employment. er's self-insured medical reimbursement plan aren't wages
“For the convenience of the employer” means you have and aren't subject to social security, Medicare, and FUTA
a substantial business reason for providing the meals and taxes, or income tax withholding. See Pub. 15-B for a rule
lodging other than to provide additional compensation to regarding inclusion of certain reimbursements in the gross
the employee. For example, meals you provide at the income of highly compensated individuals.
place of work so that an employee is available for emer-
gencies during their lunch period are generally considered Differential wage payments. Differential wage pay-
to be for your convenience. You must be able to show ments are any payments made by an employer to an indi-
these emergency calls have occurred or can reasonably vidual for a period during which the individual is perform-
be expected to occur, and that the calls have resulted, or ing service in the uniformed services while on active duty
will result, in you calling on your employees to perform for a period of more than 30 days and represent all or a
their jobs during their meal period. portion of the wages the individual would have received
Whether meals or lodging are provided for the conven- from the employer if the individual were performing serv-
ience of the employer depends on all of the facts and cir- ices for the employer.
cumstances. A written statement that the meals or lodging Differential wage payments are wages for income tax
are for your convenience isn't sufficient. withholding, but aren't subject to social security, Medicare,
or FUTA tax. Employers should report differential wage
50% test. If over 50% of the employees who are pro- payments in box 1 of Form W-2 (box 7 of Form 499R-2/
vided meals on an employer's business premises receive W-2PR). For more information about the tax treatment of
these meals for the convenience of the employer, all differential wage payments, see Revenue Ruling 2009-11,
meals provided on the premises are treated as furnished 2009-18 I.R.B. 896, available at IRS.gov/irb/
for the convenience of the employer. If this 50% test is 2009-18_IRB#RR-2009-11.
met, the value of the meals is excludable from income for
all employees and isn't subject to federal income tax with- Fringe benefits. You must generally include fringe bene-
holding or employment taxes. For more information, see fits in an employee's wages (but see Nontaxable fringe
Pub. 15-B. benefits next). The benefits are subject to income tax with-
holding and employment taxes. Fringe benefits include
Health insurance plans. If you pay the cost of an acci- cars you provide, flights on aircraft you provide, free or dis-
dent or health insurance plan for your employees, includ- counted commercial flights, vacations, discounts on prop-
ing an employee's spouse and dependents, your pay- erty or services, memberships in country clubs or other
ments aren't wages and aren't subject to social security, social clubs, and tickets to entertainment or sporting
Medicare, and FUTA taxes, or federal income tax with- events. In general, the amount you must include is the
holding. Generally, this exclusion also applies to qualified amount by which the FMV of the benefit is more than the
long-term-care insurance contracts. However, for income sum of what the employee paid for it plus any amount the
tax withholding, the value of health insurance benefits law excludes. There are other special rules you and your
must be included in the wages of S corporation employ- employees may use to value certain fringe benefits. See
ees who own more than 2% of the S corporation (2% Pub. 15-B for more information.
shareholders). For social security, Medicare, and FUTA
taxes, the health insurance benefits are excluded from the Nontaxable fringe benefits. Some fringe benefits
2% shareholder's wages. See Announcement 92-16 for aren't taxable (or are minimally taxable) if certain condi-
more information. You can find Announcement 92-16 on tions are met. See Pub. 15-B for details. The following are
page 53 of Internal Revenue Bulletin 1992-5. some examples of nontaxable fringe benefits.
Health savings accounts (HSAs) and medical sav- • Services provided to your employees at no additional
ings accounts (MSAs). Your contributions to an employ- cost to you.
ee's HSA or Archer MSA aren't subject to social security, • Qualified employee discounts.
Medicare, or FUTA tax, or federal income tax withholding

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• Working condition fringes that are property or services the fringe benefits at the optional flat 22% supplemental
that would be allowable as a business expense or de- wage rate. However, see Withholding on supplemental
preciation expense deduction to the employee if they wages when an employee receives more than $1 million of
had paid for them. Examples include a company car supplemental wages during the calendar year in section 7.
for business use and subscriptions to business maga- You may choose not to withhold income tax on the
zines. value of an employee's personal use of a vehicle you pro-
vide. You must, however, withhold social security and
• Certain minimal value fringes (including an occasional
Medicare taxes on the use of the vehicle. See Pub. 15-B
cab ride when an employee must work overtime and
for more information on this election.
meals you provide at eating places you run for your
employees if the meals aren't furnished at below cost). Withholding social security and Medicare taxes on
• Qualified transportation fringes subject to specified fringe benefits. You add the value of fringe benefits to
conditions and dollar limitations (including transporta- regular wages for a payroll period and figure social secur-
tion in a commuter highway vehicle, any transit pass, ity and Medicare taxes on the total.
and qualified parking). If you withhold less than the required amount of social
security and Medicare taxes from the employee in a calen-
• The use of on-premises athletic facilities operated by dar year but report and pay the proper amount, you may
you if substantially all of the use is by employees, their recover the taxes from the employee. See Pub. 15-B for
spouses, and their dependent children. more information.
• Qualified tuition reduction an educational organization Depositing taxes on fringe benefits. Once you
provides to its employees for education. For more in- choose when fringe benefits are paid, you must deposit
formation, see Pub. 970. taxes in the same deposit period you treat the fringe bene-
• Employer-provided cell phones provided primarily for fits as paid. To avoid a penalty, deposit the taxes following
a noncompensatory business reason. the general deposit rules for that deposit period.
If you determine by January 31 you overestimated the
However, don't exclude the following fringe benefits
value of a fringe benefit at the time you withheld and de-
from the wages of highly compensated employees unless
posited for it, you may claim a refund for the overpayment
the benefit is available to other employees on a nondiscri-
or have it applied to your next employment tax return. See
minatory basis.
Valuation of fringe benefits, earlier in this section. If you
• No-additional-cost services. underestimated the value and deposited too little, you may
• Qualified employee discounts. be subject to a failure-to-deposit (FTD) penalty. See sec-
tion 11 for information on deposit penalties.
• Meals provided at an employer-operated eating fa- If you deposited the required amount of taxes but with-
cility. held a lesser amount from the employee, you can recover
• Reduced tuition for education. from the employee the social security, Medicare, or in-
come taxes you deposited on their behalf and included in
For more information, including the definition of a highly
the employee's Form W-2. However, you must recover the
compensated employee, see Pub. 15-B.
income taxes before April 1 of the following year.
When taxable fringe benefits are treated as paid.
You may choose to treat certain taxable noncash fringe Back pay. Back pay, including retroactive wage increa-
benefits as paid by the pay period, by the quarter, or on ses (but not amounts paid as liquidated damages), is
any other basis you choose, as long as you treat the bene- taxed as ordinary wages in the year paid. For information
fits as paid at least once a year. You don't have to make a on reporting back pay to the SSA, see Pub. 957.
formal choice of payment dates or notify the IRS of the
Sick pay. In general, sick pay is any amount you pay un-
dates you choose. You don't have to make this choice for
der a plan to an employee who is unable to work because
all employees. You may change methods as often as you
of sickness or injury. These amounts are sometimes paid
like, as long as you treat all benefits provided in a calendar
by a third party, such as an insurance company or an em-
year as paid by December 31 of the calendar year. See
ployees' trust. In either case, these payments are subject
section 4 of Pub. 15-B for more information, including a
to social security, Medicare, and FUTA taxes. These taxes
discussion of the special accounting rule for fringe bene-
don't apply to sick pay paid more than 6 calendar months
fits provided during November and December.
after the last calendar month in which the employee
Valuation of fringe benefits. Generally, you must de- worked for the employer. The payments are always sub-
termine the value of fringe benefits no later than January ject to federal income tax. See section 6 of Pub. 15-A for
31 of the next year. Before January 31, you may reasona- more information.
bly estimate the value of the fringe benefits for purposes For purposes of this publication, all references to
of withholding and depositing on time. TIP "sick pay" mean ordinary sick pay, not "qualified
Withholding federal income tax on fringe benefits. sick leave wages" under the FFCRA, as amended
You may add the value of fringe benefits to regular wages by the COVID-related Tax Relief Act of 2020, and the ARP.
for a payroll period and figure withholding taxes on the to-
tal, or you may withhold federal income tax on the value of

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Identity protection services. The value of identity pro- Medicare taxes for the whole year on all wages and tips.
tection services provided by an employer to an employee You’re responsible for the employer social security tax on
isn't included in an employee's gross income and doesn't wages and tips until the wages (including tips) reach the
need to be reported on an information return (such as limit. You’re responsible for the employer Medicare tax for
Form W-2) filed for an employee. This includes identity the whole year on all wages and tips. Tips are considered
protection services provided before a data breach occurs. to be paid at the time the employee reports them to you.
This exception doesn't apply to cash received instead of Deposit taxes on tips based on your deposit schedule as
identity protection services or to proceeds received under described in section 11. File Form 941 or Form 944 to re-
an identity theft insurance policy. For more information, port withholding and employment taxes on tips.
see Announcement 2015-22, 2015-35 I.R.B. 288, availa-
Ordering rule. If, by the 10th of the month after the
ble at IRS.gov/irb/2015-35_IRB#ANN-2015-22; and An-
month for which you received an employee's report on
nouncement 2016-02, 2016-3 I.R.B. 283, available at
tips, you don't have enough employee funds available to
IRS.gov/irb/2016-03_IRB#ANN-2016-02 .
deduct the employee tax, you no longer have to collect it.
If there aren't enough funds available, withhold taxes in
the following order.
6. Tips
1. Withhold on regular wages and other compensation.
You’re permitted to establish a system for elec-
2. Withhold social security and Medicare taxes on tips.
TIP tronic tip reporting by employees. See Regula-
tions section 31.6053-1(d). 3. Withhold income tax on tips.

Cash tips your employee receives from customers are Reporting tips. Report tips and any collected and uncol-
generally subject to withholding. Your employee must re- lected social security and Medicare taxes on Form W-2
port cash tips to you by the 10th of the month after the (Form 499R-2/W-2PR for employers in Puerto Rico) and
month the tips are received. Cash tips include tips paid by on Form 941, lines 5b, 5c, and, if applicable, 5d (Form
cash, check, debit card, and credit card. The report 944, lines 4b, 4c, and, if applicable, 4d). Report a negative
should include tips you paid over to the employee for adjustment on Form 941, line 9 (Form 944, line 6), for the
charge customers, tips the employee received directly uncollected social security and Medicare taxes. Enter the
from customers, and tips received from other employees amount of uncollected social security tax and Medicare
under any tip-sharing arrangement. Both directly and indi- tax in box 12 of Form W-2 with codes “A” and “B,” respec-
rectly tipped employees must report tips to you. No report tively. On Form 499R-2/W-2PR, enter the amount of un-
is required for months when tips are less than $20. If you collected social security and Medicare taxes in boxes 25
don’t give your employees any specific method to report and 26, respectively. Don't include any uncollected Addi-
tips (for example, an electronic tip reporting system), your tional Medicare Tax in box 12 of Form W-2. For additional
employees must give you a statement reporting their tips. information on reporting tips, see section 13 and the Gen-
The statement must be signed and dated by the employee eral Instructions for Forms W-2 and W-3. Employers in Pu-
and must include: erto Rico, see the Instructions for Form W-3PR.
Revenue Ruling 2012-18 provides guidance for em-
• The employee's name, address, and SSN; ployers regarding social security and Medicare taxes im-
• Your name and address; posed on tips, including information on the reporting of the
employer share of social security and Medicare taxes un-
• The month and year (or the beginning and ending der section 3121(q), the difference between tips and serv-
dates, if the statement is for a period of less than 1 ice charges, and the section 45B credit. See Revenue
calendar month) the report covers; and Ruling 2012-18, 2012-26 I.R.B. 1032, available at
• The total of tips received during the month or period. IRS.gov/irb/2012-26_IRB#RR-2012-18 .

You may also suggest that your employees see Pub. FUTA tax on tips. If an employee reports to you in writ-
531, Reporting Tip Income. ing $20 or more of tips in a month, the tips are also subject
to FUTA tax.
Collecting taxes on tips. You must collect federal in-
come tax, employee social security tax, and employee Allocated tips. If you operate a large food or beverage
Medicare tax on the employee's tips. The withholding establishment, you must report allocated tips under cer-
rules for withholding an employee's share of Medicare tax tain circumstances. However, don't withhold income, so-
on tips also apply to withholding the Additional Medicare cial security, or Medicare taxes on allocated tips.
Tax once wages and tips exceed $200,000 in the calendar A large food or beverage establishment is one that is lo-
year. cated in the 50 states or the District of Columbia, provides
You can collect these taxes from the employee's wages food or beverages for consumption on the premises,
(excluding tips) or from other funds they make available. where tipping is customary, and where there were nor-
See Tips are treated as supplemental wages in section 7 mally more than 10 employees on a typical business day
for more information. Stop collecting the employee social during the preceding year.
security tax when their wages and tips for tax year 2024 The tips may be allocated by one of three meth-
reach $168,600; collect the income and employee ods—hours worked, gross receipts, or good faith

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agreement. For information about these allocation meth- gard to the employee's Form W-4. In determining supple-
ods, and for information about required electronic filing of mental wages paid to the employee during the year, in-
Form 8027, see the Instructions for Form 8027. For more clude payments from all businesses under common
information on filing Form 8027 electronically with the IRS, control. For more information, see Treasury Decision
see Pub. 1239. 9276, 2006-37 I.R.B. 423, available at IRS.gov/irb/
2006-37_IRB#TD-9276.
Tip Rate Determination and Education Program. Em-
ployers may participate in the Tip Rate Determination and Withholding on supplemental wage payments to an
Education Program. The program primarily consists of two employee who doesn't receive $1 million of supple-
voluntary agreements developed to improve tip income re- mental wages during the calendar year. If the supple-
porting by helping taxpayers to understand and meet their mental wages paid to the employee during the calendar
tip reporting responsibilities. The two agreements are the year are less than or equal to $1 million, the following rules
Tip Rate Determination Agreement (TRDA) and the Tip apply in determining the amount of income tax to be with-
Reporting Alternative Commitment (TRAC). A tip agree- held.
ment, the Gaming Industry Tip Compliance Agreement
(GITCA), is available for the gaming (casino) industry. For Supplemental wages combined with regular wages.
more information, see Pub. 3144. If you pay supplemental wages with regular wages but
don't specify the amount of each, withhold federal income
More information. Advise your employees to see Pub. tax as if the total were a single payment for a regular pay-
531 or use the IRS Interactive Tax Assistant at IRS.gov/ roll period.
TipIncome for help in determining if their tip income is tax-
able and for information about how to report tip income. Supplemental wages identified separately from regu-
lar wages. If you pay supplemental wages separately (or
combine them in a single payment and specify the amount
of each), the federal income tax withholding method de-
7. Supplemental Wages pends partly on whether you withhold income tax from
References to federal income tax withholding your employee's regular wages.
! don't apply to employers in American Samoa, 1. If you withheld income tax from an employee's regular
CAUTION Guam, the CNMI, the USVI, and Puerto Rico, un-
wages in the current or immediately preceding calen-
less you have employees who are subject to U.S. income dar year, you can use one of the following methods for
tax withholding. Contact your local tax department for in- the supplemental wages.
formation about income tax withholding.
a. Withhold a flat 22% (no other percentage al-
lowed).
Supplemental wages are wage payments to an em-
ployee that aren't regular wages. They include, but aren't b. If the supplemental wages are paid concurrently
limited to, bonuses, commissions, overtime pay, payments with regular wages, add the supplemental wages
for accumulated sick leave, severance pay, awards, prizes, to the concurrently paid regular wages and with-
back pay, reported tips, retroactive pay increases, and hold federal income tax as if the total were a single
payments for nondeductible moving expenses. However, payment for a regular payroll period. If there are no
employers have the option to treat overtime pay and tips concurrently paid regular wages, add the supple-
as regular wages instead of supplemental wages. Other mental wages to, alternatively, either the regular
payments subject to the supplemental wage rules include wages paid or to be paid for the current payroll pe-
taxable fringe benefits and expense allowances paid un- riod or the regular wages paid for the preceding
der a nonaccountable plan. How you withhold on supple- payroll period. Figure the income tax withholding
mental wages depends on whether the supplemental pay- as if the total of the regular wages and supplemen-
ment is identified as a separate payment from regular tal wages is a single payment. Subtract the tax al-
wages. See Regulations section 31.3402(g)-1 for addi- ready withheld or to be withheld from the regular
tional guidance. Also see Revenue Ruling 2008-29, wages. Withhold the remaining tax from the sup-
2008-24 I.R.B. 1149, available at IRS.gov/irb/ plemental wages. If there were other payments of
2008-24_IRB#RR-2008-29. supplemental wages paid during the payroll period
made before the current payment of supplemental
Withholding on supplemental wages when an em- wages, aggregate all the payments of supplemen-
ployee receives more than $1 million of supplemen- tal wages paid during the payroll period with the
tal wages from you during the calendar year. Special regular wages paid during the payroll period, fig-
rules apply to the extent supplemental wages paid to any ure the tax on the total, subtract the tax already
one employee during the calendar year exceed $1 million. withheld from the regular wages and the previous
If a supplemental wage payment, together with other sup- supplemental wage payments, and withhold the
plemental wage payments made to the employee during remaining tax.
the calendar year, exceeds $1 million, the excess is sub-
ject to withholding at 37% (or the highest rate of income 2. If you didn't withhold income tax from the employee's
tax for the year). Withhold using the 37% rate without re- regular wages in the current or immediately preceding
calendar year, use method 1b.

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Regardless of the method you use to withhold income tax the combined withholding amount ($435 – $79 – $117
on supplemental wages, they’re subject to social security, = $239).
Medicare, and FUTA taxes.
4. Withhold $239 from the second bonus payment.
Example 1. You pay John Peters a base salary on the
Tips are treated as supplemental wages. Withhold in-
1st of each month. John’s most recent Form W-4 is from
come tax on tips from wages earned by the employee or
2018, and John is single, claims one withholding allow-
from other funds the employee makes available. Don't
ance, and didn’t enter an amount for additional withhold-
withhold the income tax due on tips from employee tips. If
ing on Form W-4. In January, John is paid $1,000. You de-
an employee receives regular wages and reports tips, fig-
cide to use the Wage Bracket Method of withholding.
ure income tax withholding as if the tips were supplemen-
Using Worksheet 3 and the withholding tables in section 3
tal wages. If you withheld income tax from the regular wa-
of Pub. 15-T, you withhold $14 from this amount. In Febru-
ges in the current or immediately preceding calendar year,
ary, John receives salary of $1,000 plus a commission of
you can withhold on the tips by method 1a or 1b dis-
$500, which you combine with regular wages and don't
cussed earlier in this section under Supplemental wages
separately identify. You figure the withholding based on
identified separately from regular wages. If you didn’t with-
the total of $1,500. The correct withholding from the tables
hold income tax from the regular wages in the current or
is $66.
immediately preceding calendar year, add the tips to the
Example 2. You pay Sharon Warren a base salary on regular wages and withhold income tax on the total by
the 1st of each month. Sharon submitted a 2024 Form method 1b discussed earlier. Employers also have the op-
W-4 and checked the box for Single or Married filing sepa- tion to treat tips as regular wages rather than supplemen-
rately. Sharon didn’t complete Steps 2, 3, and 4 on Form tal wages. Service charges aren't tips; therefore, withhold
W-4. Sharon’s May 1 pay is $2,000. You decide to use the taxes on service charges as you would on regular wages.
Wage Bracket Method of withholding. Using Worksheet 2
Vacation pay. Vacation pay is subject to withholding as if
and the withholding tables in section 2 of Pub. 15-T, you
it were a regular wage payment. When vacation pay is in
withhold $79. On May 15, Sharon receives a bonus of
addition to regular wages for the vacation period (for ex-
$1,000. Electing to use supplemental wage withholding
ample, an annual lump-sum payment for unused vacation
method 1b, you do the following.
leave), treat it as a supplemental wage payment. If the va-
1. Add the bonus amount to the amount of wages from cation pay is for a time longer than your usual payroll pe-
the most recent base salary pay date (May 1) ($2,000 riod, spread it over the pay periods for which you pay it.
+ $1,000 = $3,000).
2. Determine the amount of withholding on the com-
bined $3,000 amount to be $196 using the wage 8. Payroll Period
bracket tables.
Your payroll period is a period of service for which you
3. Subtract the amount withheld from wages on the most usually pay wages. When you have a regular payroll pe-
recent base salary pay date (May 1) from the com- riod, withhold income tax for that time period even if your
bined withholding amount ($196 – $79 = $117). employee doesn't work the full period.
4. Withhold $117 from the bonus payment.
No regular payroll period. When you don't have a reg-
Example 3. The facts are the same as in Example 2, ular payroll period, withhold the tax as if you paid wages
except you elect to use the flat rate method of withholding for a daily or miscellaneous payroll period. Figure the
on the bonus. You withhold 22% of $1,000, or $220, from number of days (including Sundays and holidays) in the
Sharon's bonus payment. period covered by the wage payment. If the wages are un-
related to a specific length of time (for example, commis-
Example 4. The facts are the same as in Example 2, sions paid on completion of a sale), count back the num-
except you elect to pay Sharon a second bonus of $2,000 ber of days from the payment period to the latest of:
on May 29. Using supplemental wage withholding method
• The last wage payment made during the same calen-
1b, you do the following.
dar year;
1. Add the first and second bonus amounts to the The date employment began, if during the same cal-
•
amount of wages from the most recent base salary endar year; or
pay date (May 1) ($2,000 + $1,000 + $2,000 =
$5,000). • January 1 of the same year.

2. Determine the amount of withholding on the com- Employee paid for period less than 1 week. When
bined $5,000 amount to be $435 using the wage you pay an employee for a period of less than 1 week, and
bracket tables. the employee signs a statement under penalties of perjury
indicating they aren’t working for any other employer dur-
3. Subtract the amounts withheld from wages on the
ing the same week for wages subject to withholding, figure
most recent base salary pay date (May 1) and the
withholding based on a weekly payroll period. If the em-
amounts withheld from the first bonus payment from
ployee later begins to work for another employer for wages

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subject to withholding, the employee must notify you employees who wish to adjust their withholding must use
within 10 days. You then figure withholding based on the the redesigned form.
daily or miscellaneous period. Pub. 15-T provides an optional computational bridge to
treat 2019 and earlier Forms W-4 as if they were 2020 or
later Forms W-4 for purposes of figuring federal income
tax withholding. This computational bridge allows you to
9. Withholding From
use computational procedures and data fields for a 2020
Employees' Wages and later Form W-4 to arrive at the equivalent withholding
for an employee that would have applied using the compu-
References to federal income tax withholding tational procedures and data fields on a 2019 or earlier
! don't apply to employers in American Samoa, Form W-4. See How To Treat 2019 and Earlier Forms W-4
CAUTION Guam, the CNMI, the USVI, and Puerto Rico, un- as if They Were 2020 or Later Forms W-4 under Introduc-
less you have employees who are subject to U.S. income tion in Pub. 15-T.
tax withholding. Contact your local tax department for in-
formation about income tax withholding. More information. For more information about the re-
designed Form W-4 and regulations that provide guidance
for employers concerning income tax withholding from
Federal Income Tax Withholding employees’ wages, see Treasury Decision 9924, 2020-44
I.R.B. 943, available at IRS.gov/irb/2020-44_IRB#TD-
Redesigned Form W-4. The IRS redesigned Form W-4 9924. For information about Form W-4, go to IRS.gov/
for 2020 and subsequent years. Before 2020, the value of FormW4. Employer instructions on how to figure em-
a withholding allowance was tied to the amount of the per- ployee withholding are provided in Pub. 15-T, available at
sonal exemption. Due to changes in the law, taxpayers IRS.gov/Pub15T.
can no longer claim personal exemptions or dependency
Farm operators and crew leaders must withhold
exemptions; therefore, Form W-4 no longer asks an em-
TIP federal income tax from the wages of farmworkers
ployee to report the number of withholding allowances that
if the wages are subject to social security and
they are claiming. The revised Form W-4 is divided into
Medicare taxes.
five steps. Step 1 and Step 5 apply to all employees. In
Step 1, employees enter personal information like their
name and filing status. In Step 5, employees sign the Using Form W-4 to figure withholding. To know how
form. Employees who complete only Step 1 and Step 5 much federal income tax to withhold from employees' wa-
will have their withholding figured based on their filing sta- ges, you should have a Form W-4 on file for each em-
tus's standard deduction and tax rates with no other ad- ployee. Encourage your employees to file an updated
justments. If applicable, in Step 2, employees increase Form W-4 for 2024, especially if they owed taxes or re-
their withholding to account for higher tax rates due to in- ceived a large refund when filing their 2023 tax return.
come from other jobs in their household. Under Step 2, Ask all new employees to give you a signed Form W-4
employees either enter an additional amount to withhold when they start work. Make the form effective with the first
per payroll period in Step 4(c) or check the box in Step wage payment. If a new employee doesn't give you a com-
2(c) for higher withholding rate tables to apply to their wa- pleted Form W-4 in 2024 (including an employee who pre-
ges. In Step 3, employees decrease their withholding by viously worked for you and was rehired in 2024, and who
reporting the annual amount of any credits they will claim fails to furnish a Form W-4), treat the new employee as if
on their income tax return. In Step 4, employees may in- they had checked the box for Single or Married filing sepa-
crease or decrease their withholding based on the annual rately in Step 1(c) and made no entries in Step 2, Step 3,
amount of other income or deductions they will report on or Step 4 of the 2024 Form W-4. An employee who was
their income tax return and they may also request any ad- paid wages before 2020 and who failed to furnish a Form
ditional federal income tax they want withheld each pay W-4 should continue to be treated as single and claiming
period. zero allowances on a 2019 Form W-4. If you use the op-
An employee who submitted Form W-4 in any year be- tional computational bridge, described earlier under Rede-
fore 2020 isn’t required to submit a new form merely be- signed Form W-4, you may treat this employee as if they
cause of the redesign. Employers will continue to figure had checked the box for Single or Married filing separately
withholding based on the information from the employee's in Step 1(c), and made no entries in Step 2 and Step 3, an
most recently submitted Form W-4. The withholding tables entry of $8,600 in Step 4(a), and an entry of zero in Step
in Pub. 15-T allow employers to figure withholding based 4(b) of the 2024 Form W-4.
on a Form W-4 for 2019 or earlier, as well as the rede- Electronic system to receive Form W-4. You may
signed Form W-4. While you may ask your employee first establish a system to electronically receive Forms W-4
paid wages before 2020 that hasn’t yet submitted a rede- from your employees. See Regulations section 31.3402(f)
signed Form W-4 to submit a new Form W-4 using the re- (5)-1(c) and Pub. 15-T for more information.
designed version of the form, you should explain to them
that they’re not required to do this and if they don't submit Effective date of Form W-4. A Form W-4 for 2023 or
a new Form W-4, withholding will continue based on a earlier years remains in effect for 2024 unless the em-
valid Form W-4 previously submitted. All newly hired em- ployee gives you a 2024 Form W-4. When you receive a
ployees must use the redesigned form. Similarly, any other new Form W-4 from an employee, don't adjust withholding

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for pay periods before the effective date of the new form. If making an electronic payment of estimated taxes. Em-
an employee gives you a Form W-4 that replaces an exist- ployees who receive tips may provide funds to their em-
ing Form W-4, begin withholding no later than the start of ployer for withholding on tips; see Collecting taxes on tips
the first payroll period ending on or after the 30th day from in section 6.
the date when you received the replacement Form W-4.
For exceptions, see Exemption from federal income tax Exemption from federal income tax withholding.
withholding IRS review of requested Forms W-4, , and In- Generally, an employee may claim exemption from federal
valid Forms W-4, later in this section. income tax withholding because they had no income tax
liability last year and expect none this year. See the Form
A Form W-4 that makes a change for the next cal- W-4 instructions for more information. However, the wa-
! endar year won't take effect in the current calen- ges are still subject to social security and Medicare taxes.
CAUTION dar year.
See also Invalid Forms W-4, later in this section.
A Form W-4 claiming exemption from withholding is ef-
Successor employer. If you’re a successor employer fective when it is given to the employer and only for that
(see Successor employer, later in this section), secure calendar year. To continue to be exempt from withholding,
new Forms W-4 from the transferred employees unless an employee must give you a new Form W-4 by February
the “Alternative Procedure” in section 5 of Revenue Proce- 15. If the employee doesn't give you a new Form W-4 by
dure 2004-53 applies. See Revenue Procedure 2004-53, February 15, begin withholding as if they had checked the
2004-34 I.R.B. 320, available at IRS.gov/irb/ box for Single or Married filing separately in Step 1(c) and
2004-34_IRB#RP-2004-53. made no entries in Step 2, Step 3, or Step 4 of the 2024
You may advise your employees to use the IRS Form W-4. If the employee provides a new Form W-4
TIP Tax Withholding Estimator available at IRS.gov/ claiming exemption from withholding on February 16 or
W4App for help in determining how to complete later, you may apply it to future wages but don't refund any
their Forms W-4. An employee that makes a mid-year taxes withheld while the exempt status wasn’t in place.
change to their withholding after using the IRS Tax With-
holding Estimator may be underwithheld or overwithheld Withholding federal income taxes on the wages of
once their Form W-4 is applied to the next full calendar nonresident alien employees. In general, you must
year. Therefore, you should remind employees that made withhold federal income taxes on the wages of nonresi-
a mid-year change to revisit the IRS Tax Withholding Esti- dent alien employees. However, see Pub. 515 for excep-
mator in early January and submit a new Form W-4 for the tions to this general rule. See section 5 for more guidance
year. on H-2A visa workers.

Withholding adjustment for nonresident alien em-
Completing Form W-4. The amount of any federal in-
ployees. Nonresident aliens may not claim the standard
come tax withholding must be based on filing status, in-
deduction on their tax returns; therefore, employers must
come (including income from other jobs), deductions, and
add an amount to the wages of nonresident alien employ-
credits. Your employees may not base their withholding
ees performing services within the United States in order
amounts on a fixed dollar amount or percentage. How-
to figure the amount of federal income tax to withhold from
ever, an employee may specify a dollar amount to be with-
their wages. The amount is added to their wages solely for
held each pay period in addition to the amount of with-
calculating federal income tax withholding. The amount
holding based on filing status and other information
isn’t included in any box on the employee's Form W-2 and
reported on Form W-4.
doesn’t increase the income tax liability of the employee.
Employees that are married filing jointly and have spou-
The amount also doesn't increase the social security tax
ses that also currently work, or employees that hold more
or Medicare tax liability of the employer or the employee,
than one job at the same time, should account for their
or the FUTA tax liability of the employer. See Withholding
higher tax rate by completing Step 2 of their 2024 Form
Adjustment for Nonresident Alien Employees under Intro-
W-4. Employees also have the option to report on their
duction in Pub. 15-T for the amount to add to their wages
2024 Form W-4 other income they will receive that isn't
for the payroll period.
subject to withholding and other deductions they will claim
in order to increase the accuracy of their federal income Supplemental wage payment. The adjustment for
tax withholding. determining the amount of income tax withholding for non-
See Pub. 505 for more information about completing resident alien employees doesn't apply to a supplemental
Form W-4. Along with Form W-4, you may wish to order wage payment (see section 7) if the 37% mandatory flat
Pub. 505 for use by your employees. rate withholding applies or if the 22% optional flat rate
Don't accept any withholding or estimated tax pay- withholding is being used to calculate income tax with-
ments from your employees in addition to withholding holding on the supplemental wage payment.
based on their Form W-4. If they require additional with-
holding, they should submit a new Form W-4 and, if nec-
essary, pay estimated tax by filing Form 1040-ES or by

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Nonresident alien employee's Form W-4.        When com-              specifying the employee's permitted filing status and pro-
pleting Forms W-4, nonresident aliens are required to:               viding  withholding  instructions  for  the  specific  employee. 
                                                                     You’ll also receive a copy for the employee that identifies 
•  Not claim exemption from income tax withholding 
                                                                     the  permitted  filing  status  and  provides  a  description  of 
   (even if they meet both of the conditions to claim ex-
                                                                     the  withholding  instructions  you’re  required  to  follow  and 
   emption from withholding listed in the Form W-4 
                                                                     the process by which the employee can provide additional 
   instructions);
                                                                     information to the IRS for purposes of determining the ap-
•  Request withholding as if they’re single, regardless of           propriate withholding and/or modifying the specified filing 
   their actual filing status;                                       status.  You  must  furnish  the  employee  copy  to  the  em-
•  Not claim the child tax credit or credit for other de-            ployee within 10 business days of receipt if the employee 
   pendents in Step 3 of Form W-4 (if the nonresident                is employed by you as of the date of the notice. You may 
   alien is a resident of Canada, Mexico, or South Korea,            follow any reasonable business practice to furnish the em-
   or a student from India, or a business apprentice from            ployee copy to the employee. Begin withholding based on 
   India, they may claim, under certain circumstances                the notice on the date specified in the notice.
   (see Pub. 519), the child tax credit or credit for other          Implementation of lock-in letter.  When you receive 
   dependents); and                                                  the notice specifying the permitted filing status and provid-
•  Write “Nonresident Alien” or “NRA” in the space below             ing withholding instructions, you may not withhold immedi-
   Step 4(c) of Form W-4.                                            ately on the basis of the notice. You must begin withhold-
                                                                     ing tax on the basis of the notice for any wages paid after 
If  you  maintain  an  electronic  Form  W-4  system,  you 
                                                                     the date specified in the notice. The delay between your 
should provide a field for nonresident aliens to enter non-
                                                                     receipt of the notice and the date to begin the withholding 
resident alien status instead of writing “Nonresident Alien” 
                                                                     on  the  basis  of  the  notice  permits  the  employee  time  to 
or “NRA” in the space below Step 4(c) of Form W-4. You 
                                                                     contact the IRS.
should  instruct  nonresident  aliens  to  see  Notice  1392, 
Supplemental Form W-4 Instructions for Nonresident Ali-              Seasonal employees and employees not currently 
ens, before completing Form W-4.                                     performing services.  If you receive a notice for an em-
                                                                     ployee  who  isn't  currently  performing  services  for  you, 
Form 8233.       If a nonresident alien employee claims a 
                                                                     you’re  still  required  to  furnish  the  employee  copy  to  the 
tax treaty exemption from withholding, the employee must 
                                                                     employee and withhold based on the notice if any of the 
submit Form 8233 with respect to the income exempt un-
                                                                     following apply.
der the treaty, instead of Form W-4. For more information, 
see the Instructions for Form 8233 and Pay for Personal              • You’re paying wages for the employee's prior services 
Services  Performed  under     Withholding  on  Specific  In-          and the wages are subject to income tax withholding 
come in Pub. 515.                                                      on or after the date specified in the notice.
IRS review of requested Forms W-4.     When requested                • You reasonably expect the employee to resume serv-
                                                                       ices within 12 months of the date of the notice.
by the IRS, you must make original Forms W-4 available 
for inspection by an IRS employee. You may also be direc-            • The employee is on a leave of absence that doesn't 
ted to send certain Forms W-4 to the IRS. You may receive              exceed 12 months or the employee has a right to re-
a  notice  from  the  IRS  requiring  you  to  submit  a  copy  of     employment after the leave of absence.
Form  W-4  for  one  or  more  of  your  named  employees. 
                                                                     Termination and rehire of employees.           If you must 
Send  the  requested  copy  or  copies  of  Form  W-4  to  the 
                                                                     furnish and withhold based on the notice and the employ-
IRS at the address provided and in the manner directed by 
                                                                     ment relationship is terminated after the date of the notice, 
the notice. The IRS may also require you to submit copies 
                                                                     you must continue to withhold based on the notice if you 
of Form W-4 to the IRS as directed by a revenue proce-
                                                                     continue to pay any wages subject to income tax withhold-
dure or notice published in the Internal Revenue Bulletin.
                                                                     ing. You must also withhold based on the notice or modifi-
After submitting a copy of a requested Form W-4 to the 
                                                                     cation notice (explained next) if the employee resumes the 
IRS, continue to withhold federal income tax based on that 
                                                                     employment relationship with you within 12 months after 
Form W-4 if it is valid (see Invalid Forms W-4, later in this 
                                                                     the termination of the employment relationship.
section).  However,  if  the  IRS  later  notifies  you  in  writing 
that  the  employee  isn't  entitled  to  claim  exemption  from     Modification notice.  After issuing the notice specify-
withholding or a claimed amount of deductions or credits,            ing the permitted filing status and providing withholding in-
withhold federal income tax based on the effective date,             structions, the IRS may issue a subsequent notice (modifi-
employee's  permitted  filing  status,  and  withholding  in-        cation  notice)  that  modifies  the  original  notice.  The 
structions specified in the IRS notice (commonly referred            modification notice may change the permitted filing status 
to as a “lock-in letter”).                                           and withholding instructions. You must withhold federal in-
                                                                     come tax based on the effective date specified in the mod-
Initial lock-in letter.    The IRS uses information repor-
                                                                     ification notice.
ted  on  Form  W-2  to  identify  employees  with  withholding 
compliance problems. In some cases, if a serious under-              New Form W-4 after IRS notice.  After the IRS issues 
withholding problem is found to exist for a particular em-           a  notice  or  modification  notice,  if  the  employee  provides 
ployee, the IRS may issue a lock-in letter to the employer           you  with  a  new  Form  W-4  claiming  complete  exemption 

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from withholding or a completed Form W-4 that results in When you get an invalid Form W-4, don't use it to figure
less withholding than would result under the IRS notice or federal income tax withholding. Tell the employee it is in-
modification notice, disregard the new Form W-4. You valid and ask for another one. If the employee doesn't give
must withhold based on the notice or modification notice you a valid one, and you have an earlier Form W-4 for this
unless the IRS notifies you to withhold based on the new employee that is valid, withhold as you did before. If you
Form W-4. If the employee wants to put a new Form W-4 don't have an earlier Form W-4 that is valid, withhold tax
into effect that results in less withholding than required, as if the employee had checked the box for Single or Mar-
the employee must contact the IRS. ried filing separately in Step 1(c) and made no entries in
If, after you receive an IRS notice or modification notice, Step 2, Step 3, or Step 4 of the 2024 Form W-4. However,
your employee gives you a new completed Form W-4 that an employee who was paid wages in 2019 who never sub-
results in more withholding than would result under the no- mitted a valid Form W-4 and submits an invalid Form W-4
tice or modification notice, you must withhold tax based in 2024 should continue to be treated as single and claim-
on the new Form W-4. Otherwise, disregard any subse- ing zero allowances on a 2019 Form W-4. If you use the
quent Forms W-4 provided by the employee and withhold optional computational bridge, described earlier under Re-
based on the IRS notice or modification notice. designed Form W-4, you may treat this employee as if
they had checked the box for Single or Married filing sepa-
If, in a year before 2020, you received a lock-in
rately in Step 1(c), and made no entries in Step 2 and
! letter for an employee, then for 2024 you should Step 3, an entry of $8,600 in Step 4(a), and an entry of
CAUTION continue to follow the instructions in the lock-in
zero in Step 4(b) of the 2024 Form W-4.
letter. You will use the withholding methods described in
Pub. 15-T for an employee with a Form W-4 from 2019 or Amounts exempt from levy on wages, salary, and
earlier, or you may use the optional computational bridge other income. If you receive a Notice of Levy on Wages,
to treat 2019 and earlier Forms W-4 as if they were 2020 Salary, and Other Income (a notice in the Form 668 ser-
or later Forms W-4 for purposes of figuring federal income ies), you must withhold amounts as described in the in-
tax withholding. See How To Treat 2019 and Earlier Forms structions for these forms. Pub. 1494 has tables to figure
W-4 as if They Were 2020 or Later Forms W-4 under the the amount exempt from levy. If a levy issued in a prior
Introduction in Pub. 15-T. You should continue following year is still in effect and the taxpayer submits a new State-
the instructions in the pre-2020 lock-in letter until you re- ment of Exemptions and Filing Status, use the current
ceive a letter releasing your employee from the lock-in year Pub. 1494 to figure the exempt amount.
procedures, you receive a modification notice, or your em-
ployee gives you a new Form W-4 that results in more
withholding than would result under the notice. Social Security and Medicare Taxes

For additional information about employer withholding The Federal Insurance Contributions Act (FICA) provides
compliance, see IRS.gov/WHC. for a federal system of old-age, survivors, disability, and
hospital insurance. The old-age, survivors, and disability
Substitute Forms W-4. You’re encouraged to have your
insurance part is financed by the social security tax. The
employees use the official version of Form W-4. You may
hospital insurance part is financed by the Medicare tax.
use a substitute version of Form W-4 to meet your busi-
Each of these taxes is reported separately.
ness needs. However, your substitute Form W-4 must
contain language that is identical to the official Form W-4 Generally, you’re required to withhold social security
and your form must meet all current IRS rules for substi- and Medicare taxes from your employees' wages and pay
tute forms. At the time you provide your substitute form to the employer share of these taxes. Certain types of wages
the employee, you must provide them with all tables, in- and compensation aren't subject to social security and
structions, and worksheets from the current Form W-4. For Medicare taxes. See section 5 and section 15 for details.
more information, see Pub. 15-T. Generally, employee wages are subject to social security
You can't accept substitute Forms W-4 developed by and Medicare taxes regardless of the employee's age or
employees. An employee who submits an employee-de- whether they are receiving social security benefits. If the
veloped substitute Form W-4 after October 10, 2007, will employee reported tips, see section 6.
be treated as failing to furnish a Form W-4. However, con-
tinue to honor any valid employee-developed Forms W-4 The $150 test or the $2,500 test for farmwork. All
you accepted before October 11, 2007. cash wages that you pay to an employee during the year
for farmwork are subject to social security and Medicare
Invalid Forms W-4. Any unauthorized change or addition taxes and federal income tax withholding if either of the
to Form W-4 makes it invalid. This includes taking out any two tests below is met.
language by which the employee certifies the form is cor-
rect. A Form W-4 is also invalid if, by the date an em- • You pay cash wages to an employee of $150 or more
ployee gives it to you, they clearly indicate it is false. An in a year for farmwork (count all cash wages paid on a
employee who submits a false Form W-4 may be subject time, piecework, or other basis). The $150 test applies
to a $500 penalty. You may treat a Form W-4 as invalid if separately to each farmworker that you employ. If you
the employee wrote “exempt” below Step 4(c) and employ a family of workers, each member is treated
checked the box in Step 2(c) or entered numbers for separately. Don't count wages paid by other employ-
Steps 3 and 4. ers.

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• The total that you pay for farmwork (cash and non- Medicare Tax withholding if paid in excess of the $200,000
cash) to all your employees is $2,500 or more during withholding threshold.
the year. For more information on what wages are subject to
Medicare tax, see section 15. For more information on Ad-
Exceptions. Annual cash wages of less than $150
ditional Medicare Tax, go to IRS.gov/ADMTfaqs.
you pay to a seasonal farmworker aren't subject to social
security and Medicare taxes, or federal income tax with- Successor employer. When corporate acquisitions
holding, even if you pay $2,500 or more to all your farm- meet certain requirements, wages paid by the predeces-
workers. However, these wages count toward the $2,500 sor are treated as if paid by the successor for purposes of
test for determining whether other farmworkers' wages are applying the social security wage base and for applying
subject to social security and Medicare taxes. the Additional Medicare Tax withholding threshold (that is,
A seasonal farmworker is a worker who: $200,000 in a calendar year). You should determine
• Is employed in agriculture as a hand-harvest laborer, whether or not you should file Schedule D (Form 941), Re-
port of Discrepancies Caused by Acquisitions, Statutory
• Is paid piece rates in an operation that is usually paid Mergers, or Consolidations, by reviewing the Instructions
on a piece-rate basis in the region of employment, for Schedule D (Form 941). See Regulations section
• Commutes daily from their permanent home to the 31.3121(a)(1)-1(b) for more information. Also see Reve-
farm, and nue Procedure 2004-53, 2004-34 I.R.B. 320, available at
IRS.gov/irb/2004-34_IRB#RP-2004-53.
• Had been employed in agriculture less than 13 weeks
in the preceding calendar year. Example. Early in 2024, you bought all of the assets of
Wages paid to a child under 18 working on a farm that a plumbing business from Mr. Martin. Mr. Brown, who had
is a sole proprietorship or a partnership in which each been employed by Mr. Martin and received $2,000 in wa-
partner is a parent of a child aren't subject to social secur- ges before the date of purchase, continued to work for
ity and Medicare taxes. However, these wages count to- you. The wages you paid to Mr. Brown are subject to so-
ward the $2,500 test for determining whether other farm- cial security taxes on the first $166,600 ($168,600 minus
workers' wages are subject to social security and $2,000). Medicare tax is due on all of the wages you pay
Medicare taxes. Mr. Brown during the calendar year. You should include
the $2,000 Mr. Brown received while employed by Mr.
Deducting the tax. Deduct the employee tax from
Martin in determining whether Mr. Brown's wages exceed
each wage payment. If you’re not sure that the wages that
the $200,000 for Additional Medicare Tax withholding
you pay to a farmworker during the year will be taxable,
threshold.
you may either deduct the tax when you make the pay-
ments or wait until the $2,500 test or the $150 test dis- Employee's portion of taxes paid by employer. If you
cussed earlier has been met. pay your employee's social security and Medicare taxes
without deducting them from the employee's pay, you
Tax rates and the social security wage base limit. So-
must include the amount of the payments in the employ-
cial security and Medicare taxes have different rates and
ee's wages for social security and Medicare taxes. This in-
only the social security tax has a wage base limit. The
crease in the employee's wage payment for your payment
wage base limit is the maximum wage subject to the tax
of the employee's social security and Medicare taxes is
for the year. Determine the amount of withholding for so-
also subject to employee social security and Medicare
cial security and Medicare taxes by multiplying each pay-
taxes. This again increases the amount of the additional
ment by the employee tax rate.
taxes that you must pay. For more information, see Reve-
For 2024, the social security tax rate is 6.2% (amount
nue Ruling 86-14, 1986-1 C.B. 304, and Pub. 15-A.
withheld) each for the employer and employee (12.4% to-
tal). The social security wage base limit is $168,600. The Household and agricultural employers. If you
tax rate for Medicare is 1.45% (amount withheld) each for would rather pay a household or agricultural employee's
the employee and employer (2.9% total). There is no wage share of the social security and Medicare taxes without
base limit for Medicare tax; all covered wages are subject withholding them from the employee’s wages, you may do
to Medicare tax. so. If you don't withhold the taxes, however, you must still
pay them on behalf of the employee. Any employee so-
Additional Medicare Tax withholding. In addition to cial security and Medicare taxes that you pay are addi-
withholding Medicare tax at 1.45%, you must withhold a tional income to the employee. Include it in box 1 of the
0.9% Additional Medicare Tax from wages you pay to an employee's Form W-2 (box 7 of Form 499R-2/W-2PR), but
employee in excess of $200,000 in a calendar year. You’re don't count it as social security and Medicare wages and
required to begin withholding Additional Medicare Tax in don't include it in boxes 3 and 5 (boxes 20 and 22 of Form
the pay period in which you pay wages in excess of 499R-2/W-2PR). Also, don't count the additional income
$200,000 to an employee and continue to withhold it each as wages for FUTA tax purposes. Different rules apply to
pay period until the end of the calendar year. Additional employer payments of social security and Medicare taxes
Medicare Tax is only imposed on the employee. There is for non-household and non-agricultural employees. See
no employer share of Additional Medicare Tax. All wages section 7 of Pub. 15-A.
that are subject to Medicare tax are subject to Additional

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Example. Gavrielle operates a small family fruit farm. the following conditions is generally treated as an Ameri-
Gavrielle employs day laborers in the picking season to al- can employer for purposes of paying FICA taxes on wages
low Gavrielle time to get the crops to market. Gavrielle paid to an employee who is a U.S. citizen or resident.
doesn't deduct the employees' share of social security
1. The foreign person is a member of a domestically
and Medicare taxes from their pay; instead, Gavrielle pays
controlled group of entities.
it on their behalf. When Gavrielle prepares the employees'
Forms W-2, Gavrielle adds each employee's share of so- 2. The employee of the foreign person performs services
cial security and Medicare taxes that Gavrielle paid to the in connection with a contract between the U.S. Gov-
employee's wage income (box 1 of Form W-2), but doesn't ernment (or an instrumentality of the U.S. Govern-
include it in box 3 (social security wages) or box 5 (Medi- ment) and any member of the domestically controlled
care wages and tips). group of entities. Ownership of more than 50% consti-
For 2024, Gavrielle paid Dan $1,000 during the year. tutes control.
Gavrielle enters $1,076.50 in box 1 of Dan's Form W-2
($1,000 wages plus $76.50 social security and Medicare Part-Time Workers
taxes paid for Dan). Gavrielle enters $1,000.00 in boxes 3
and 5 of Dan's Form W-2. Part-time workers and workers hired for short periods of
time are treated the same as full-time employees for fed-
Sick pay payments. Social security and Medicare taxes
eral income tax withholding and social security, Medicare,
apply to most payments of sick pay, including payments
and FUTA tax purposes.
made by third parties such as insurance companies. For
details on third-party payers of sick pay, see Pub. 15-A. Generally, it doesn't matter whether the part-time
worker or worker hired for a short period of time has an-
Motion picture project employers. All wages paid by a other job or has the maximum amount of social security
motion picture project employer to a motion picture project tax withheld by another employer. See Successor em-
worker during a calendar year are subject to a single so- ployer, earlier in this section, for an exception to this rule.
cial security tax wage base ($168,600 for 2024) and a sin-
gle FUTA tax wage base ($7,000 for 2024) regardless of Income tax withholding may be figured the same way
the worker's status as a common-law employee of multiple as for full-time workers or it may be figured by the
clients of the motion picture project employer. For more in- part-year employment method explained in section 6 of
formation, including the definition of a motion picture Pub. 15-T.
project employer and a motion picture project worker, see
section 3512.
10. Required Notice to
Withholding social security and Medicare taxes on
nonresident alien employees. In general, if you pay wa- Employees About the Earned
ges to nonresident alien employees, you must withhold
social security and Medicare taxes as you would for a U.S. Income Credit (EIC)
citizen or resident alien. However, see Pub. 515 for excep-
tions to this general rule. One such exception is for foreign You must notify employees, except for employees in
agricultural workers on H-2A visas, who are exempt from American Samoa, Guam, Puerto Rico, the CNMI, and the
social security and Medicare taxes. See Compensation USVI, who have no federal income tax withheld that they
paid to H-2A visa holders in section 5. may be able to claim a tax refund because of the EIC. Al-
though you don't have to notify employees who claim ex-
International social security agreements. The United emption from withholding on Form W-4 about the EIC,
States has social security agreements, also known as to- you’re encouraged to notify any employees whose wages
talization agreements, with many countries that eliminate for 2023 were less than $56,838 ($63,398 if married filing
dual social security coverage and taxation. Compensation jointly) that they may be eligible to claim the credit for
subject to social security and Medicare taxes may be ex- 2023. This is because eligible employees may get a re-
empt under one of these agreements. You can get more fund of the amount of the EIC that is more than the tax
information and a list of agreement countries from the they owe.
SSA at SSA.gov/international. Also see Pub. 519, U.S. Tax
Guide for Aliens. You’ll meet this notification requirement if you issue the
employee Form W-2 with the EIC notice on the back of
Religious exemption. An exemption from social secur- Copy B, or a substitute Form W-2 with the same state-
ity and Medicare taxes is available to members of a recog- ment. You’ll also meet the requirement by providing Notice
nized religious sect opposed to insurance. This exemption 797, Possible Federal Tax Refund Due to the Earned In-
is available only if both the employee and the employer come Credit (EIC), or your own statement that contains
are members of the sect. For more information, see Pub. the same wording.
517.
If a substitute for Form W-2 is given to the employee on
Foreign persons treated as American employers. Un- time but doesn't have the required statement, you must
der section 3121(z), a foreign person who meets both of notify the employee within 1 week of the date the substi-
tute for Form W-2 is given. If Form W-2 is required but isn't

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given on time, you must give the employee Notice 797 or make deposits during the year. See the separate Instruc-
your written statement by the date Form W-2 is required to tions for Form 945 for more information.
be given. If Form W-2 isn't required, you must notify the
employee by February 7, 2024. Separate deposit requirements for employers of both
farm and nonfarm workers. If you employ both farm
and nonfarm workers, you must treat employment taxes
for the farmworkers (Form 943 taxes) separately from em-
11. Depositing Taxes ployment taxes for the nonfarm workers (Form 941/944
taxes). Form 943 taxes and Form 941/944 taxes aren't
Generally, you must deposit federal income tax withheld combined for purposes of applying any of the deposit
and both the employer and employee social security and schedule rules. If a deposit is due, deposit the Form
Medicare taxes. You must use EFT to make all federal tax 941/944 taxes and the Form 943 taxes by making sepa-
deposits. See How To Deposit, later in this section, for in- rate deposits. For example, if you're a monthly schedule
formation on electronic deposit requirements. depositor for both Form 941/944 taxes and Form 943
Payment with return. You may make a payment with a taxes and your tax liability at the end of April is $1,500 re-
timely filed Form 941, Form 943, Form 944, or Form 945 portable on Form 941/944 and $1,200 reportable on Form
instead of depositing, without incurring a penalty, if one of 943, deposit both amounts by May 15. Use one transac-
the following applies. tion to deposit the $1,500 of Form 941/944 taxes and an-
other transaction to deposit the $1,200 of Form 943 taxes.
• You’re a monthly schedule depositor (defined later)
and make a payment in accordance with the Accuracy
When To Deposit
of Deposits Rule, discussed later in this section. This
payment may be $2,500 or more. There are two deposit schedules—monthly and semi-
• Your Form 941 total tax liability (Form 941, line 12) for weekly—for determining when you deposit social security,
either the current quarter or the prior quarter is less Medicare, and withheld federal income taxes. These
than $2,500, and you didn't incur a $100,000 next-day schedules tell you when a deposit is due after a tax liability
deposit obligation during the current quarter. However, arises. Your tax liability is based on the dates payments
if you're unsure that your total tax liability for the cur- were made or wages were paid. For taxable noncash
rent quarter will be less than $2,500 (and your liability fringe benefits, see When taxable fringe benefits are trea-
for the prior quarter wasn't less than $2,500), make ted as paid in section 5. Before the beginning of each cal-
deposits using the semiweekly or monthly rules so you endar year, you must determine which of the two deposit
won't be subject to an FTD penalty. schedules you’re required to use. The deposit schedule
you must use is based on the total tax liability you reported
• Your Form 943 total tax liability (Form 943, line 13) for
on Forms 941, line 12; Form 943, line 13; Form 944, line 9;
the year is less than $2,500. However, if you're unsure
or Form 945, line 3, during a lookback period, discussed
that you will report less than $2,500, deposit under the
next. Your deposit schedule isn't determined by how often
rules explained in this section so that you won't be
you pay your employees or make deposits. See special
subject to an FTD penalty.
rules for Forms 943, 944, and 945, later in this section.
• Your Form 944 total tax liability for the year (Form 944, Also see Application of Monthly and Semiweekly Sched-
line 9) is less than $2,500, or your Form 944 total tax ules, later in this section.
liability for the year (Form 944, line 9) is $2,500 or
These rules don't apply to FUTA tax. See section
more and you already deposited the taxes you owed
14 for information on depositing FUTA tax.
for the first, second, and third quarters of the year; CAUTION!
your net tax for the fourth quarter is less than $2,500;
and you're paying, in full, the tax you owe for the fourth Lookback period. If you’re a Form 941 filer, your deposit
quarter with a timely filed return. schedule for a calendar year is determined from the total
• Your Form 945 total tax liability (Form 945, line 3) for taxes reported on Forms 941, line 12, in a 4-quarter look-
the year is less than $2,500. However, if you're unsure back period. The lookback period begins July 1 and ends
that you will report less than $2,500, deposit under the June 30 as shown next in Table 1. If you reported $50,000
rules explained in this section so that you won't be or less of taxes for the lookback period, you’re a monthly
subject to an FTD penalty. schedule depositor; if you reported more than $50,000,
you’re a semiweekly schedule depositor.
Separate deposit requirements for nonpayroll (Form
945) tax liabilities. Separate deposits are required for Table 1. Lookback Period for Calendar Year
nonpayroll and payroll income tax withholding. Don't com- 2024
bine deposits for Forms 941 (Form 943 or Form 944) and
Form 945 tax liabilities. Generally, the deposit rules for July 1, 2022, Oct. 1, 2022, Jan. 1, 2023, Apr. 1, 2023,
nonpayroll liabilities are the same as discussed next, ex- through through through through
cept the rules apply to an annual rather than a quarterly Sept. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 June 30, 2023
return period. If the total amount of tax for the year repor-
ted on Form 945 is less than $2,500, you're not required to

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The lookback period for a 2024 Form 941 filer Monthly Deposit Schedule
! who filed Form 944 in either 2022 or 2023 is cal-
CAUTION endar year 2022. For Form 941 filers, you're a monthly schedule depositor
for a calendar year if the total taxes on Forms 941, line 12,
If you’re a Form 943 or Form 944 filer for the current
for the 4 quarters in your lookback period were $50,000 or
year or either of the preceding 2 years, your deposit
less. For Form 943, Form 944, or Form 945 filers, you're a
schedule for a calendar year is determined from the total
monthly schedule depositor for a calendar year if the total
taxes reported during the second preceding calendar year
taxes on Form 943, line 13; Form 944, line 9; or Form 945,
(either on your Forms 941 for all 4 quarters of that year,
line 3, during your lookback period were $50,000 or less.
your Form 943 for that year, or your Form 944 for that
Under the monthly deposit schedule, deposit employment
year). The lookback period for 2024 for a Form 943 or
taxes on payments made during a month by the 15th day
Form 944 filer is calendar year 2022. If you reported
of the following month. See also Deposits Due on Busi-
$50,000 or less of taxes for the lookback period, you’re a
ness Days Only and $100,000 Next-Day Deposit Rule,
monthly schedule depositor; if you reported more than
later in this section. Monthly schedule depositors
$50,000, you’re a semiweekly schedule depositor.
shouldn't file Form 941, Form 943, Form 944, or Form 945
If you’re a Form 945 filer, your deposit schedule for a
on a monthly basis.
calendar year is determined from the total taxes reported
on line 3 of your Form 945 for the second preceding calen- New employers. For Form 941 filers, your tax liability for
dar year. The lookback period for 2024 for a Form 945 filer any quarter in the lookback period before you started or
is calendar year 2022. acquired your business is considered to be zero. There-
Your total tax liability for the lookback period is de- fore, you’re a monthly schedule depositor for the first cal-
TIP termined based on the amount of taxes you repor- endar year of your business. For Form 943, Form 944, or
ted on Forms 941, line 12; Form 943, line 13; or Form 945 filers, your tax liability in the lookback period be-
Form 944, line 9. Your total liability isn’t reduced by the re- fore you started or acquired your business is considered
fundable portion of the credit for qualified sick and family to be zero. Therefore, you're a monthly schedule depositor
leave wages, or the refundable portion of the COBRA pre- for the first and second calendar years of your business.
mium assistance credit. For more information about these However, see $100,000 Next-Day Deposit Rule, later in
credits, see the instructions for your employment tax re- this section.
turn that were applicable during the lookback period.
Semiweekly Deposit Schedule
Adjustments and the lookback rule. Adjustments
made on Form 941-X, Form 943-X, Form 944-X, and Form For Form 941 filers, you're a semiweekly schedule deposi-
945-X don't affect the amount of tax liability for previous tor for a calendar year if the total taxes on Forms 941,
periods for purposes of the lookback rule. line 12, during your lookback period were more than
$50,000. For Form 943, Form 944, or Form 945 filers,
Example. An employer originally reported a tax liabil- you're a semiweekly schedule depositor for a calendar
ity of $45,000 for the lookback period. The employer dis- year if the total taxes on Form 943, line 13; Form 944,
covered, during January 2024, that the tax reported for line 9; or Form 945, line 3, during your lookback period
one of the lookback period quarters was understated by were more than $50,000. Under the semiweekly deposit
$10,000 and corrected this error by filing Form 941-X. This schedule, deposit employment taxes for payments made
employer is a monthly schedule depositor for 2024 be- on Wednesday, Thursday, and/or Friday by the following
cause the lookback period tax liabilities are based on the Wednesday. Deposit taxes for payments made on Satur-
amounts originally reported, and they were $50,000 or day, Sunday, Monday, and/or Tuesday by the following Fri-
less. The $10,000 adjustment is also not treated as part of day. See also Deposits Due on Business Days Only, later
the 2024 taxes. in this section.
Deposit period. The term “deposit period” refers to the Semiweekly schedule depositors must complete
period during which tax liabilities are accumulated for ! Schedule B (Form 941), Report of Tax Liability for
each required deposit due date. For monthly schedule de- CAUTION Semiweekly Schedule Depositors, and submit it
positors, the deposit period is a calendar month. The de- with Form 941. If you file Form 943 and are a semiweekly
posit periods for semiweekly schedule depositors are schedule depositor, complete Form 943-A, Agricultural
Wednesday through Friday and Saturday through Tues- Employer's Record of Federal Tax Liability, and submit it
day. with Form 943. If you file Form 944 or Form 945 and are a
semiweekly schedule depositor, complete Form 945-A,
If you're an agent with an approved Form 2678, Annual Record of Federal Tax Liability, and submit it with
TIP the deposit rules apply to you based on the total your return.
employment taxes accumulated by you for your
own employees and on behalf of all employers for whom
you're authorized to act. For more information on an agent
with an approved Form 2678, see Revenue Procedure
2013-39, 2013-52 I.R.B. 830, available at IRS.gov/irb/
2013-52_IRB#RP-2013-39.

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Table 2. Semiweekly Deposit Schedule 2023 Lookback Period 2024 Lookback Period
3rd Quarter 2021 $12,000 3rd Quarter 2022 $12,000
IF the payday falls on a... THEN deposit taxes by the 4th Quarter 2021 12,000 4th Quarter 2022 12,000
following...
1st Quarter 2022 12,000 1st Quarter 2023 12,000
Wednesday, Thursday, and/or Wednesday. 2nd Quarter 2022 12,000 2nd Quarter 2023 15,000
Friday $48,000 $51,000
Saturday, Sunday, Monday, and/or Friday.
Tuesday Rose Co. is a monthly schedule depositor for 2023 be-
cause its tax liability for the 4 quarters in its lookback pe-
Semiweekly deposit period spanning 2 quarters riod (third quarter 2021 through second quarter 2022)
(Form 941 filers). If you have more than 1 pay date dur- wasn't more than $50,000. However, for 2024, Rose Co.
ing a semiweekly period and the pay dates fall in different will be a semiweekly schedule depositor because the total
calendar quarters, you’ll need to make separate depos- taxes exceeded $50,000 for the 4 quarters in its lookback
its for the separate liabilities. period (third quarter 2022 through second quarter 2023).

Example. If you have a pay date on Saturday, March Example for employers of farmworkers. Red Co. re-
30, 2024 (first quarter), and another pay date on Monday, ported taxes on its 2022 Form 943, line 13, of $48,000. On
April 1, 2024 (second quarter), two separate deposits its 2023 Form 943, line 13, it reported taxes of $60,000.
would be required even though the pay dates fall within Red Co. is a monthly schedule depositor for 2024 be-
the same semiweekly period. Both deposits would be due cause its taxes for its lookback period ($48,000 for calen-
Friday, April 5, 2024. dar year 2022) weren't more than $50,000. However, for
2025, Red Co. is a semiweekly schedule depositor be-
Semiweekly deposit period spanning 2 return peri- cause the total taxes for its lookback period ($60,000 for
ods (Form 943, Form 944, or Form 945 filers). The pe- calendar year 2023) exceeded $50,000.
riod covered by a return is the return period. The return
period for annual Forms 943, 944, and 945 is a calendar Deposits Due on Business Days Only
year. If you have more than one pay date during a semi-
weekly period and the pay dates fall in different return pe- If a deposit is required to be made on a day that isn't a
riods, you'll need to make separate deposits for the sepa- business day, the deposit is considered timely if it is made
rate liabilities. For example, if a return period ends on by the close of the next business day. A business day is
Thursday, taxes accumulated on Wednesday and Thurs- any day other than a Saturday, Sunday, or legal holiday.
day are subject to one deposit obligation, and taxes accu- For example, if a deposit is required to be made on a Fri-
mulated on Friday are subject to a separate obligation. day and Friday is a legal holiday, the deposit will be con-
Separate deposits are required because two different re- sidered timely if it is made by the following Monday (if that
turn periods are affected. Monday is a business day).

Summary of Steps To Determine Your Deposit Schedule Semiweekly schedule depositors have at least 3
1. Identify your lookback period (see Lookback period, earlier in business days following the close of the semiweekly pe-
this section). riod to make a deposit. If any of the 3 weekdays after the
2. Add the total taxes you reported on Forms 941, line 12, during end of a semiweekly period is a legal holiday, you’ll have
the lookback period. an additional day for each day that is a legal holiday to
3. Determine if you’re a monthly or semiweekly schedule make the required deposit. For example, if a semiweekly
depositor:
schedule depositor accumulated taxes for payments
IF the total taxes you THEN you’re a... made on Friday and the following Monday is a legal holi-
reported in the lookback day, the deposit normally due on Wednesday may be
period were...
made on Thursday (this allows 3 business days to make
$50,000 or less monthly schedule depositor. the deposit).
more than $50,000 semiweekly schedule
depositor. Legal holiday. The term “legal holiday” means any legal
holiday in the District of Columbia. For purposes of the de-
posit rules, the term “legal holiday” doesn't include other
statewide legal holidays. Legal holidays for 2024 are listed
Example of Monthly and Semiweekly
next.
Schedules
• January 1—New Year's Day
Rose Co. reported Form 941 taxes as follows.
• January 15—Birthday of Martin Luther King, Jr.
• February 19—Washington's Birthday
• April 16—District of Columbia Emancipation Day
• May 27—Memorial Day
• June 19—Juneteenth National Independence Day

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• July 4—Independence Day deposited by Friday and $10,000 must be deposited by
the following Wednesday.
• September 2—Labor Day
• October 14—Indigenous Peoples' Day (Columbus However, once you accumulate at least $100,000 in a
Day) deposit period, stop accumulating at the end of that day
and begin to accumulate anew on the next day. For exam-
• November 11—Veterans Day
ple, Fir Co. is a semiweekly schedule depositor. On Mon-
• November 28—Thanksgiving Day day, Fir Co. accumulates taxes of $110,000 and must de-
• December 25—Christmas Day posit this amount on Tuesday, the next business day. On
Tuesday, Fir Co. accumulates additional taxes of $30,000.
Because the $30,000 isn't added to the previous
Application of Monthly and Semiweekly $110,000 and is less than $100,000, Fir Co. must deposit
Schedules the $30,000 by Friday (following the semiweekly deposit
schedule).
The terms “monthly schedule depositor” and “semiweekly
schedule depositor” don't refer to how often your business If you’re a monthly schedule depositor and accu-
pays its employees or even how often you’re required to ! mulate a $100,000 tax liability on any day during
make deposits. The terms identify which set of deposit CAUTION the deposit period, you become a semiweekly
rules you must follow when an employment tax liability ari- schedule depositor on the next day and remain so for at
ses. The deposit rules are based on the dates when wa- least the rest of the calendar year and for the following cal-
ges are paid (cash basis), not on when tax liabilities are endar year.
accrued for accounting purposes.
Example. Elm, Inc., started its business on May 6,
Monthly schedule example. Spruce Co. is a monthly 2024. On Wednesday, May 8, it paid wages for the first
schedule depositor with seasonal employees. It paid wa- time and accumulated a tax liability of $40,000. On Friday,
ges each Friday during January but didn't pay any wages May 10, Elm, Inc., paid wages and accumulated a liability
during February. Under the monthly deposit schedule, of $60,000, bringing its total accumulated tax liability to
Spruce Co. must deposit the combined tax liabilities for $100,000. Because this was the first year of its business,
the January paydays by February 15. Spruce Co. doesn't the tax liability for its lookback period is considered to be
have a deposit requirement for February (due by March zero, and it would be a monthly schedule depositor based
15) because no wages were paid and, therefore, it didn't on the lookback rules. However, since Elm, Inc., accumu-
have a tax liability for February. lated a $100,000 liability on May 10, it became a semi-
weekly schedule depositor on May 11. It will be a semi-
Semiweekly schedule example. Green, Inc., is a semi- weekly schedule depositor for the remainder of 2024 and
weekly schedule depositor and pays wages once each for 2025. Elm, Inc., is required to deposit the $100,000 by
month on the last Friday of the month. Although Green, Monday, May 13, the next business day.
Inc., has a semiweekly deposit schedule, it will deposit
just once a month because it pays wages only once a The $100,000 tax liability threshold requiring a
month. The deposit, however, will be made under the TIP next-day deposit is determined before you con-
semiweekly deposit schedule as follows: Green, Inc.'s tax sider any reduction of your liability for nonrefunda-
liability for the April 26, 2024 (Friday), payday must be de- ble credits.
posited by May 1, 2024 (Wednesday). Under the semi-
weekly deposit schedule, liabilities for wages paid on Accuracy of Deposits Rule
Wednesday through Friday must be deposited by the fol-
lowing Wednesday. You’re required to deposit 100% of your tax liability on or
before the deposit due date. However, penalties won't be
$100,000 Next-Day Deposit Rule applied for depositing less than 100% if both of the follow-
ing conditions are met.
If you accumulate $100,000 or more in taxes on any day Any deposit shortfall doesn't exceed the greater of
•
during a monthly or semiweekly deposit period (see De- $100 or 2% of the amount of taxes otherwise required
posit period, earlier in this section), you must deposit the to be deposited.
tax by the next business day, whether you’re a monthly or
semiweekly schedule depositor. • The deposit shortfall is paid or deposited by the short-
fall makeup date as described next.
For purposes of the $100,000 rule, don't continue accu-
Makeup Date for Deposit Shortfall:
mulating a tax liability after the end of a deposit period.
For example, if a semiweekly schedule depositor has ac- 1. Monthly schedule depositor. Deposit the shortfall
cumulated a liability of $95,000 on a Tuesday (of a Satur- or pay it with your return by the due date of your return
day-through-Tuesday deposit period) and accumulated a for the return period in which the shortfall occurred.
$10,000 liability on Wednesday, the $100,000 next-day You may pay the shortfall with your return even if the
deposit rule doesn't apply because the $10,000 is accu- amount is $2,500 or more.
mulated in the next deposit period. Thus, $95,000 must be

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2. Semiweekly schedule depositor. Deposit by the Depositing on time. For deposits made by EFTPS to
earlier of: be on time, you must submit the deposit by 8 p.m. Eastern
time the day before the date the deposit is due. If you use
a. The first Wednesday or Friday (whichever comes
a third party to make a deposit on your behalf, they may
first) that falls on or after the 15th day of the month
have different cutoff times.
following the month in which the shortfall occurred,
or Same-day wire payment option. If you fail to submit
a deposit transaction on EFTPS by 8 p.m. Eastern time
b. The due date of your return (for the return period
the day before the date a deposit is due, you can still
of the tax liability).
make your deposit on time by using the Federal Tax Col-
For example, if a semiweekly schedule depositor has a lection Service (FTCS) to make a same-day wire payment.
deposit shortfall during February 2024, the shortfall To use the same-day wire payment method, you’ll need to
makeup date is March 15, 2024 (Friday). However, if the make arrangements with your financial institution ahead of
shortfall occurred on the required October 2, 2024 (Wed- time. Please check with your financial institution regarding
nesday), deposit due date for the September 27, 2024 availability, deadlines, and costs. Your financial institution
(Friday), pay date, the return due date for the September may charge you a fee for payments made this way. To
27 pay date (October 31, 2024) would come before the learn more about the information you’ll need to give to
November 15, 2024 (Friday), shortfall makeup date. In this your financial institution to make a same-day wire pay-
case, the shortfall must be deposited by October 31, ment, go to IRS.gov/SameDayWire.
2024.
How to claim credit for overpayments. If you depos-
ited more than the right amount of taxes for a quarter, you
How To Deposit can choose on Form 941 for that quarter (or on Form 943,
You must deposit employment taxes, including Form 945 Form 944, or Form 945 for that year) to have the overpay-
taxes, by EFT. See Payment with return, earlier in this sec- ment refunded or applied as a credit to your next return.
tion, for exceptions explaining when taxes may be paid Don't ask EFTPS to request a refund from the IRS for you.
with the tax return instead of being deposited.
Deposit Penalties
Electronic deposit requirement. You must use EFT to
make all federal tax deposits. Generally, an EFT is made Although the deposit penalties information provi-
using EFTPS. If you don't want to use EFTPS, you can ar- TIP ded next refers specifically to Form 941, these
range for your tax professional, financial institution, payroll rules also apply to Form 943, Form 944, and Form
service, or other trusted third party to make electronic de- 945. The penalties won't apply if the employer qualifies for
posits on your behalf. EFTPS is a free service provided by the exceptions to the deposit requirements discussed un-
the Department of the Treasury. To get more information der Payment with return, earlier in this section).
about EFTPS or to enroll in EFTPS, go to EFTPS.gov or
call 800-555-4477, 800-244-4829 (Spanish), or Penalties may apply if you don't make required deposits
303-967-5916 (toll call). To contact EFTPS using TRS for on time or if you make deposits for less than the required
people who are deaf, hard of hearing, or have a speech amount. The penalties don't apply if any failure to make a
disability, dial 711 and then provide the TRS assistant the proper and timely deposit was due to reasonable cause
800-555-4477 number or 800-733-4829. Additional infor- and not to willful neglect. If you receive a penalty notice,
mation about EFTPS is also available in Pub. 966. you can provide an explanation of why you believe reason-
When you receive your EIN. If you’re a new em- able cause exists.

ployer that indicated a federal tax obligation when re- If you timely filed your employment tax return, the IRS
questing an EIN, you’ll be pre-enrolled in EFTPS. You’ll re- may also waive deposit penalties if you inadvertently failed
ceive information about Express Enrollment in your to deposit and it was the first quarter that you were re-
Employer Identification Number (EIN) Package and an ad- quired to deposit any employment tax, or if you inadver-
ditional mailing containing your EFTPS personal identifi- tently failed to deposit the first time after your deposit fre-
cation number (PIN) and instructions for activating your quency changed. You must also meet the net worth and
PIN. Call the toll-free number located in your “How to Acti- size limitations applicable to awards of administrative and
vate Your Enrollment” brochure to activate your enrollment litigation costs under section 7430; for individuals, this
and begin making your payroll tax deposits. If you out- means that your net worth can't exceed $2 million, and for
source any of your payroll and related tax duties to a businesses, your net worth can't exceed $7 million and
third-party payer, such as a payroll service provider (PSP) you also can't have more than 500 employees.
or reporting agent, be sure to tell them about your EFTPS
enrollment. The IRS may also waive the deposit penalty the first
Deposit record. For your records, an EFT Trace time you're required to make a deposit if you inadvertently
Number will be provided with each successful payment. send the payment to the IRS rather than deposit it by EFT.

The number can be used as a receipt or to trace the pay- For amounts not properly or timely deposited, the pen-
ment. alty rates are as follows.

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Penalty Charged for... employee of a sole proprietorship, or any other person or
2% Deposits made 1 to 5 days late. entity that is responsible for collecting, accounting for, or
paying over trust fund taxes. A responsible person may
5% Deposits made 6 to 15 days late. also include one who signs checks for the business or oth-
10% Deposits made 16 or more days late, but before 10 days from erwise has authority to cause the spending of business
the date of the first notice the IRS sent asking for the tax due. funds.
10% Amounts that should have been deposited, but instead were Willfully means voluntarily, consciously, and intention-
paid directly to the IRS, or paid with your tax return. But see ally. A responsible person acts willfully if the person knows
Payment with return, earlier in this section, for exceptions. the required actions of collecting, accounting for, or paying
15% Amounts still unpaid more than 10 days after the date of the over trust fund taxes aren't taking place, or recklessly dis-
first notice the IRS sent asking for the tax due or the day on regards obvious and known risks to the government's right
which you received notice and demand for immediate to receive trust fund taxes.
payment, whichever is earlier.
Separate accounting when deposits aren't made or
Late deposit penalty amounts are determined using withheld taxes aren't paid. Separate accounting may
calendar days, starting from the due date of the liability. be required if you don't pay over withheld employee social
security, Medicare, or income taxes; deposit required
Special rule for former Form 944 filers. If you filed taxes; make required payments; or file tax returns. In this
Form 944 for the prior year and file Forms 941 for the cur- case, you would receive written notice from the IRS requir-
rent year, the FTD penalty won't apply to a late deposit of ing you to deposit taxes into a special trust account for the
employment taxes for January of the current year if the U.S. Government.
taxes are deposited in full by March 15 of the current year.
You may be charged with criminal penalties if you
Order in which deposits are applied. Deposits are ! don't comply with the special bank deposit re-
generally applied to the most recent tax liability within the CAUTION quirements for the special trust account for the
quarter. If you receive an FTD penalty notice, you may U.S. Government.
designate how your deposits are to be applied in order to
minimize the amount of the penalty if you do so within 90 “Averaged” FTD penalty. The IRS may assess an
days of the date of the notice. Follow the instructions on "averaged" FTD penalty of 2% to 10% if you’re a monthly
the penalty notice you receive. For more information on schedule depositor and didn't properly complete Form
designating deposits, see Revenue Procedure 2001-58. 941, line 16; Form 943, line 17; Form 944, line 13; or Form
You can find Revenue Procedure 2001-58 on page 579 of 945, line 7, when your tax liability shown on Form 941,
Internal Revenue Bulletin 2001-50 at IRS.gov/pub/irs-irbs/ line 12; Form 943, line 13; Form 944, line 9; or Form 945,
irb01-50.pdf. line 3, equaled or exceeded $2,500.
The IRS may also assess an "averaged" FTD penalty of
Example. Cedar, Inc., is required to make a deposit of 2% to 10% if you’re a semiweekly schedule depositor and
$1,000 on February 15 and $1,500 on March 15. It doesn't your tax liability shown on Form 941, line 12; Form 943,
make the deposit on February 15. On March 15, Cedar, line 13; Form 944, line 9; or Form 945, line 3, equaled or
Inc., deposits $2,000. Under the deposits rule, which ap- exceeded $2,500 and you:
plies deposits to the most recent tax liability, $1,500 of the
deposit is applied to the March 15 deposit and the remain- • Completed Form 941, line 16, instead of Schedule B
ing $500 is applied to the February deposit. Accordingly, (Form 941); Form 943, line 17, instead of Form 943-A;
$500 of the February 15 liability remains undeposited. The Form 944, line 13, instead of Form 945-A; or Form
penalty on this underdeposit will apply as explained ear- 945, line 7, instead of Form 945-A;
lier. • Failed to attach a properly completed Schedule B
(Form 941); Form 943-A, or Form 945-A, as applica-
Trust fund recovery penalty. If federal income, social ble; or
security, or Medicare taxes that must be withheld (that is,
trust fund taxes) aren't withheld or aren't deposited or paid • Improperly completed Schedule B (Form 941), Form
to the U.S. Treasury, the trust fund recovery penalty may 943-A, or Form 945-A by, for example, entering tax de-
apply. The penalty is 100% of the unpaid trust fund tax. If posits instead of tax liabilities in the numbered
these unpaid taxes can't be immediately collected from spaces.
the employer or business, the trust fund recovery penalty The FTD penalty is figured by distributing your total tax
may be imposed on all persons who are determined by liability shown on Form 941, line 12; Form 943, line 13;
the IRS to be responsible for collecting, accounting for, or Form 944, line 9; or Form 945, line 3, equally throughout
paying over these taxes, and who acted willfully in not do- the tax period. Then we apply your deposits and pay-
ing so. The trust fund recovery penalty won't apply to any ments to the averaged liabilities in the date order we re-
amount of trust fund taxes an employer holds back in an- ceived your deposits. We figure the penalty on any tax not
ticipation of any credits they are entitled to. deposited, deposited late, or not deposited in the correct
A responsible person can be an officer or employee amounts. Your deposits and payments may not be coun-
of a corporation, a partner or employee of a partnership, ted as timely because the actual dates of your tax liabili-
an accountant, a volunteer director/trustee, or an ties can't be accurately determined.

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You can avoid an "averaged" FTD penalty by reviewing
your return before you file it. Follow these steps before
submitting your Form 941, Form 943, Form 944, or Form 12. Filing Form 941, Form 943,
945.
Form 944, or Form 945
• If you’re a monthly schedule depositor, report your tax
liabilities (not your deposits) in the monthly entry Form 941. If you paid wages subject to federal income
spaces on Form 941, line 16; Form 943, line 17; Form tax withholding (including withholding on sick pay and
944, line 13; or Form 945, line 7. supplemental unemployment benefits) or social security
and Medicare taxes, you must file Form 941 quarterly
• If you’re a semiweekly schedule depositor, report your
even if you have no taxes to report, unless you filed a final
tax liabilities (not your deposits) on Schedule B (Form
return, you receive an IRS notification that you’re eligible
941), Form 943-A, or Form 945-A, as applicable, on
to file Form 944, or the exceptions discussed later apply.
the lines that represent the dates your employees
Also, if you’re required to file Forms 941 but believe your
were paid.
employment taxes for the calendar year will be $1,000 or
• Verify that your total liability shown on Form 941, less, and you would like to file Form 944 instead of Forms
line 16, or the bottom of Schedule B (Form 941) 941, you must contact the IRS during the first calendar
equals your tax liability shown on Form 941, line 12. quarter of the tax year to request to file Form 944. You
• Verify that your total liability shown on Form 943, must receive written notice from the IRS to file Form 944
line 17, or Form 943-A, line M, equals your tax liability instead of Forms 941 before you may file this form. For
shown on Form 943, line 13. more information on requesting to file Form 944, including
the methods and deadlines for making a request, see the
• Verify that your total liability shown on Form 944, Instructions for Form 944. Form 941 must be filed by the
line 13, or Form 945-A, line M, equals your tax liability last day of the month that follows the end of the quarter.
shown on Form 944, line 9. However, if you made timely deposits in full payment of
• Verify that your total liability shown on Form 945, your taxes for the quarter, you may file by the 10th day of
line 7, or Form 945-A, line M, equals your tax liability the 2nd month that follows the end of the quarter. See Cal-
shown on Form 945, line 3. endar, earlier.

• Don't show negative amounts on Form 941, line 16, or Form 943. You must file Form 943 for each calendar
Schedule B (Form 941); Form 943, line 17, or Form year beginning with the first year that you pay $2,500 or
943-A; Form 944, line 13, or Form 945-A; or Form 945, more for farmwork or you employ a farmworker who meets
line 7, or Form 945-A. the $150 test explained under Social Security and Medi-
• For prior period errors, don't adjust your tax liabilities care Taxes, in section 9. Don’t report these wages on
reported on Form 941, line 16, or Schedule B (Form Form 941, Form 944, or Form 945. File your 2023 Form
941); Form 943, line 17, or Form 943-A; Form 944, 943 by January 31, 2024. However, if you made timely de-
line 13, or Form 945-A; or Form 945, line 7, or Form posits in full payment of your taxes for the year, you may
945-A. Instead, file an adjusted return (Form 941-X, file by February 12, 2024.
943-X, 944-X, or 945-X) if you’re also adjusting your
Form 944. If you receive written notification that you
tax liability. If you’re only adjusting your deposits in re-
qualify for the Form 944 program, you must file Form 944
sponse to an FTD penalty notice, see the Instructions
instead of Forms 941. You must file Form 944 even if you
for Schedule B (Form 941), the Instructions for Form
have no taxes to report (or you have taxes in excess of
943-A (for Form 943), or the Instructions for Form
$1,000 to report) unless you filed a final return for the prior
945-A (for Forms 944 and 945).
year. If you received notification to file Form 944, but pre-
In addition to civil penalties, you may be subject to fer to file Forms 941, you can request to have your filing
! criminal prosecution (brought to trial) for willfully: requirement changed to Forms 941 during the first calen-
CAUTION dar quarter of the tax year. For more information on re-
• Evading tax; questing to file Forms 941, including the methods and
• Failing to collect or truthfully account for and pay over deadlines for making a request, see the Instructions for
tax; Form 944. File your 2023 Form 944 by January 31, 2024.
However, if you made timely deposits in full payment of
• Failing to file a return, supply information, or pay any your taxes for the year, you may file by February 12, 2024.
tax due;
Form 945. If you withhold or are required to withhold fed-
• Furnishing false or fraudulent Forms W-2 to employ-
eral income tax (including backup withholding) from non-
ees or failing to furnish Forms W-2;
payroll payments, you must file Form 945. You don't have
• Committing fraud and providing false statements; to file Form 945 for those years in which you don't have a
• Preparing and filing a fraudulent return; or nonpayroll tax liability. Don't report on Form 945 withhold-
ing that is required to be reported on Form 1042, Annual
• Committing identity theft. Withholding Tax Return for U.S. Source Income of Foreign
Persons. File your 2023 Form 945 by January 31, 2024.

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However,  if  you  made  timely  deposits  in  full  payment  of   the IRS Online Registration System for Professional Em-
your taxes for the year, you may file by February 12, 2024.        ployer Organizations at least 45 days before the due date 
                                                                   of the return for which the CPEO is unable to electronically 
Exceptions.  The following exceptions apply to the filing          file. For more information on filing a waiver request elec-
requirements for Forms 941 and 944.                                tronically,  go  to IRS.gov/CPEO.  Also  see          Revenue 
•  Seasonal employers who don't have to file Forms                 Procedure 2023-18.
   941 for quarters when they have no tax liability 
                                                                   Penalties. For  each  whole  or  part  month  a  return  isn't 
   because they have paid no wages. To alert the IRS 
                                                                   filed when required, there is a failure-to-file (FTF) penalty 
   you won't have to file a return for 1 or more quarters 
                                                                   of 5% of the unpaid tax due with that return. The maximum 
   during the year, check the “Seasonal employer” box 
                                                                   penalty  is  generally  25%  of  the  tax  due.  Also,  for  each 
   on Form 941, line 18. When you fill out Form 941, be 
                                                                   whole  or  part  month  the  tax  is  paid  late,  there  is  a  fail-
   sure to check the box on the top of the form that corre-
                                                                   ure-to-pay (FTP) penalty of 0.5% per month of the amount 
   sponds to the quarter reported. Generally, the IRS 
                                                                   of tax. For individual filers only, the FTP penalty is reduced 
   won't inquire about unfiled returns if at least one taxa-
                                                                   from 0.5% per month to 0.25% per month if an installment 
   ble return is filed each year. However, you must check 
                                                                   agreement is in effect. You must have filed your return on 
   the “Seasonal employer” box on every Form 941 you 
                                                                   or before the due date of the return to qualify for the re-
   file. Otherwise, the IRS will expect a return to be filed 
                                                                   duced penalty. The maximum amount of the FTP penalty 
   for each quarter.
                                                                   is also 25% of the tax due. If both penalties apply in any 
•  Household employers reporting social security                   month, the FTF penalty is reduced by the amount of the 
   and Medicare taxes and/or withheld income tax. If               FTP penalty. The penalties won't be charged if you have 
   you file Form 941, Form 943, or Form 944 for business           reasonable cause for failing to file or pay. If you receive a 
   employees, you may include taxes for household em-              penalty notice, you can provide an explanation of why you 
   ployees on your Form 941, Form 943, or Form 944.                believe reasonable cause exists.
   Otherwise, report social security and Medicare taxes 
   and income tax withholding for household employees              Note.   In  addition  to  any  penalties,  interest  accrues 
   on Schedule H (Form 1040). See Pub. 926 for more                from the due date of the tax on any unpaid balance.
   information.                                                    If income, social security, or Medicare taxes that must 
                                                                   be withheld aren't withheld or aren't paid, you may be per-
•  Agricultural employers reporting social security, 
                                                                   sonally liable for the trust fund recovery penalty. See Trust 
   Medicare, and withheld income taxes. Report 
                                                                   fund recovery penalty in section 11.
   these taxes on Form 943.
                                                                   Generally, the use of a third-party payer, such as a PSP 
         Employers  that  pay  Railroad  Retirement  Tax  Act      or reporting agent, doesn't relieve an employer of the re-
TIP      (RRTA)  taxes  use  Form  CT-1  to  report  employ-       sponsibility to ensure tax returns are filed and all taxes are 
         ment taxes imposed by the RRTA, and Form 941              paid  or  deposited  correctly  and  on  time.  However,  see 
or Form 944 to report federal income taxes withheld from           Certified  professional  employer  organization  (CPEO),  in 
their employees' wages and other compensation.                     section 16, for an exception.

E-file.  The IRS e-file program allows a taxpayer to elec-         Don't  file  more  than  one  return  per  return  period. 
tronically  file  Form  941,  Form  943,  Form  944,  and  Form    Employers  with  multiple  locations  or  divisions  must  file 
945  using  a  computer  with  an  Internet  connection  and       only one Form 941 per quarter or one Form 944 per year. 
commercial  tax  preparation  software.  For  more  informa-       An agricultural employer must file only one Form 943 per 
tion,    go to     IRS.gov/EmploymentEfile, or         call        year. A payer of nonpayroll payments that withheld federal 
866-255-0654.                                                      income tax or backup withholding must file only one Form 
                                                                   945  per  year.  Filing  more  than  one  return  may  result  in 
Electronic filing by reporting agents. Reporting agents            processing  delays  and  may  require  correspondence  be-
filing Form Forms 941, 943, 944, or 945 for groups of tax-         tween you and the IRS. For information on making adjust-
payers  can  file  them  electronically.  For  details,  see  Pub. ments to previously filed returns, see section 13.
3112, IRS e-file Application and Participation. For informa-
tion on electronic filing, see Revenue Procedure 2007-40,          Reminders about filing. 
2007-26     I.R.B.  1488,  available   at   IRS.gov/irb/           • Don't report more than 1 calendar quarter on a Form 
2007-26_IRB#RP-2007-40.  For  information  on  the  differ-          941.
ent  types  of  third-party  payer  arrangements,  see section 
                                                                   • If you need Form 941, Form 943, Form 944, or Form 
16.
                                                                     945, go to IRS.gov/Forms. Also see Ordering Em-
Electronic  filing  by  CPEOs. With  the  exception  of  the         ployer Tax Forms, Instructions, and Publications, ear-
first quarter (Form 941 only) for which a CPEO is certified,         lier.
CPEOs  are  required  to  electronically  file  Form  941  with    • Enter your name and EIN on Form 941, Form 943, 
Schedule  R  (Form  941),  or,  if  applicable,  Form  943  with     Form 944, or Form 945. Be sure they’re exactly as they 
Schedule R (Form 943). Under certain circumstances, the              appeared on earlier returns.
IRS  may  waive  the  electronic  filing  requirement.  To  re-
quest a waiver, the CPEO must file a written request using 

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• See the Instructions for Form 941, Instructions for 1. Report bonuses as wages and as social security and
Form 943, Instructions for Form 944, or Instructions for Medicare wages on Forms W-2 and on Forms 941,
Form 945 for information on preparing the form. Form 943, or Form 944.
Final return. If you go out of business, you must file a fi- 2. Report both social security and Medicare wages and
nal return for the last quarter (last year for Form 943, Form taxes separately on Forms W-2 and W-3, and on
944, or Form 945) in which wages (nonpayroll payments Forms 941, Form 943, or Form 944.
for Form 945) are paid. If you continue to pay wages or 3. Report the employee share of social security taxes on
other compensation for periods following termination of Form W-2 in the box for social security tax withheld
your business, you must file returns for those periods. See (box 4), not as social security wages. On Form
the Instructions for Form 941, Instructions for Form 943, 499R-2/W-2PR, social security tax withheld is repor-
Instructions for Form 944, or Instructions for Form 945 for ted in box 21.
details on how to file a final return.
If you’re required to file a final return, you’re also re- 4. Report the employee share of Medicare taxes on
quired to furnish Forms W-2 to your employees and file Form W-2 in the box for Medicare tax withheld
Forms W-2 and W-3 with the SSA by the due date of your (box 6), not as Medicare wages. On Form 499R-2/
final return. Don't send an original or copy of your Form W-2PR, Medicare tax withheld is reported in box 23.
941, Form 943, or Form 944 to the SSA. See the General 5. Make sure the social security wage amount for each
Instructions for Forms W-2 and W-3 for more information. employee doesn't exceed the annual social security
Employers in Puerto Rico, see the Instructions for Form wage base limit ($168,600 for 2024).
W-3PR.
6. Don't report noncash wages that aren't subject to so-
Filing late returns for previous years. Get a copy of cial security or Medicare taxes, as discussed earlier
Form 941, Form 943, Form 944, or Form 945 (and sepa- under Wages not paid in money in section 5, as social
rate instructions) with a revision date showing the year, security or Medicare wages.
and, if applicable, quarter for which your delinquent return
7. If you used an EIN on any Forms 941, Form 943, or
is being filed. Prior year and/or quarter Forms 941, 943,
Form 944 for the year that is different from the EIN re-
944, and 945 are available, respectively, at IRS.gov/
ported on Form W-3, enter the other EIN on Form W-3
Form941, IRS.gov/Form943, IRS.gov/Form944, and
in the box for “Other EIN used this year” (box h). On
IRS.gov/Form945 (select the link for all form revisions un-
Form W-3PR, “Other EIN used this year” is reported in
der "Other Items You May Find Useful"). Also, see Order-
box f.
ing Employer Tax Forms, Instructions, and Publications,
earlier. Contact the IRS at 800-829-4933 if you have any 8. Be sure the amounts on Form W-3 are the total of
questions about filing late returns. amounts from Forms W-2.
9. Reconcile Form W-3 with your four quarterly Forms
Table 3. Social Security and Medicare Tax 941, annual Form 943, or annual Form 944 by com-
Rates (for 3 Prior Years) paring amounts reported for the following items.
Tax Rate on a. Federal income tax withheld.
Wage Base Limit Taxable Wages
Calendar Year (each employee) and Tips b. Social security and Medicare wages.
2023—Social security $160,200 12.4%* c. Social security and Medicare taxes. Generally, the
amounts shown on Forms 941, Form 943, or Form
2023—Medicare All Wages 2.9% 944, including current year adjustments, should be
2022—Social security $147,000 12.4%* approximately twice the amounts shown on Form
2022—Medicare All Wages 2.9% W-3 because Forms 941, Form 943, and Form
944 report both the employer and employee social
2021—Social security $142,800 12.4%*
security and Medicare taxes while Form W-3 re-
2021—Medicare All Wages 2.9% ports only the employee taxes.
* Qualified sick leave wages and qualified family leave wages for leave taken
after March 31, 2020, and before April 1, 2021, aren't subject to the employer Don't report backup withholding or withholding on non-
share of social security tax; therefore, the tax rate on these wages is 6.2% payroll payments, such as pensions, annuities, and gam-
(0.062). bling winnings, on Forms 941, Form 943, or Form 944.
Withholding on nonpayroll payments is reported on Forms
Reconciling Forms W-2 and W-3 with Forms 941, 1099 or W-2G and must be reported on Form 945. Only
Form 943, or Form 944. When there are discrepancies taxes and withholding reported on Form W-2 should be re-
between Forms 941, Form 943, or Form 944 filed with the ported on Forms 941, Form 943, or Form 944.
IRS and Forms W-2 and W-3 filed with the SSA, the IRS Amounts reported on Forms W-2, W-3, and Forms 941,
or the SSA may contact you to resolve the discrepancies. Form 943, or Form 944 may not match for valid reasons.
Take the following steps to help reduce discrepancies. For example, if you withheld any Additional Medicare Tax
from your employee’s wages, the amount of Medicare tax
that is reported on Forms 941, line 5c, column 2; Form

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943, line 5; or Form 944, line 4c, column 2, won’t be twice        • Medicare tax reported on Form 941, Form 943, or 
the amount of the Medicare tax withheld that is reported in          Form 944 by 1.45% (0.0145); and
box 6 of Form W-3 (box 13 of Form W-3PR) because the 
                                                                   • Additional Medicare Tax reported on Form 941, Form 
Additional Medicare Tax is only imposed on the employee; 
                                                                     943, or Form 944 by 0.9% (0.009).
there  is  no  employer  share  of  Additional  Medicare  Tax. 
Make sure there are valid reasons for any mismatch. Keep           Compare  these  amounts  (the  employee  share  of  social 
your reconciliation so you’ll have a record of why amounts         security and Medicare taxes) with the total social security 
didn't match in case there are inquiries from the IRS or the       and Medicare taxes actually withheld from employees and 
SSA.  See  the  Instructions  for  Schedule  D  (Form  941)  if    shown in your payroll records for the quarter (Form 941) or 
you need to explain any discrepancies that were caused             the year (Form 943 or Form 944). If there is a small differ-
by an acquisition, statutory merger, or consolidation.             ence,  the  amount,  positive  or  negative,  may  be  a  frac-
                                                                   tions-of-cents adjustment. Fractions-of-cents adjustments 
        When  reconciling  Forms  W-2  and  W-3  to  Forms         are  reported  on  Form  941,  line  7;  Form  943,  line  10;  or 
!       941, Form 943, or Form 944, you should consider            Form 944, line 6. If the actual amount withheld is less, re-
CAUTION that qualified sick leave wages and qualified fam-
                                                                   port a negative adjustment using a minus sign (if possible; 
ily leave wages for leave taken after March 31, 2020, and          otherwise, use parentheses) in the entry space. If the ac-
before April 1, 2021, aren't subject to the employer share         tual amount is more, report a positive adjustment.
of social security tax.
                                                                   Adjustment of tax on third-party sick pay.  Report both 
                                                                   the employer and employee share of social security and 
                                                                   Medicare taxes for sick pay on Form 941, lines 5a and 5c 
13. Reporting Adjustments to                                       (Form 943, lines 2 and 4; or Form 944, lines 4a and 4c). If 
                                                                   the  aggregate  wages  paid  for  an  employee  by  the  em-
Forms 941, Form 943, or Form                                       ployer and third-party payer exceed $200,000 for the cal-
                                                                   endar  year,  report  the  Additional  Medicare  Tax  on  Form 
944
                                                                   941, line 5d (Form 943, line 7; or Form 944, line 4d). Show 
                                                                   as a negative adjustment on Form 941, line 8 (Form 943, 
Current Period Adjustments                                         line 10; or Form 944, line 6), the social security and Medi-
                                                                   care taxes withheld on sick pay by a third-party payer. See 
In certain cases, amounts reported as social security and          section 6 of Pub. 15-A for more information.
Medicare taxes on Form 941, lines 5a–5d, column 2 (Form 
943, lines 3, 3a, 3b, 5, and 7; or Form 944, lines 4a–4d,          Adjustment of tax on tips.  If, by the 10th of the month 
column 2), must be adjusted to arrive at your correct tax          after the month you received an employee's report on tips, 
liability  (for  example,  excluding  amounts  withheld  by  a     you don't have enough employee funds available to with-
third-party payer or amounts you weren't required to with-         hold the employee's share of social security and Medicare 
hold).  Current  period  adjustments  are  reported  on  Form      taxes, you no longer have to collect it. However, report the 
941, lines 7–9; Form 943, line 10; or Form 944, line 6, and        entire amount of these tips on Form 941, lines 5b and 5c 
include the following types of adjustments.                        (Form 944, lines 4b and 4c). If the aggregate wages and 
                                                                   tips paid for an employee exceed $200,000 for the calen-
Fractions-of-cents  adjustment.   If  there  is  a  small  dif-    dar year, report the Additional Medicare Tax on Form 941, 
ference between total taxes after adjustments and nonre-           line 5d (Form 944, line 4d). Include as a negative adjust-
fundable credits (Form 941, line 12; Form 943, line 13; or         ment on Form 941, line 9 (Form 944, line 6), the total un-
Form 944, line 9) and total deposits (Form 941, line 13a;          collected employee share of the social security and Medi-
Form  943,  line  14a;  or  Form  944,  line  10a),  it  may  have care taxes.
been caused, all or in part, by rounding to the nearest cent 
each time you figured payroll. This rounding occurs when           Adjustment of tax on group-term life insurance pre-
you figure the amount of social security and Medicare tax          miums  paid  for  former  employees.   The  employee 
to be withheld and deposited from each employee's wa-              share of social security and Medicare taxes for premiums 
ges. The IRS refers to rounding differences relating to em-        on  group-term  life  insurance  over  $50,000  for  a  former 
ployee withholding of social security and Medicare taxes           employee is paid by the former employee with their tax re-
as “fractions-of-cents” adjustments. If you pay your taxes         turn and isn't collected by the employer. However, include 
with Form 941 (Form 943 or Form 944) instead of making             all social security and Medicare taxes for such coverage 
deposits because your total taxes for the quarter (year for        on Form 941, lines 5a and 5c (Form 944, lines 4a and 4c). 
Form  943  or  Form  944)  are  less  than  $2,500,  you  may      For Form 943, include the social security wages and Medi-
also report a fractions-of-cents adjustment.                       care wages on lines 2 and 4, respectively; and report the 
To  determine  if  you  have  a  fractions-of-cents  adjust-       social security tax and Medicare tax on lines 3 and 5, re-
ment  for  2024,  multiply  the  total  wages  and  tips  for  the spectively. If the amount paid for an employee for premi-
quarter subject to:                                                ums on group-term life insurance combined with other wa-
• Social security tax reported on Form 941, Form 943,              ges  exceeds  $200,000  for  the  calendar  year,  report  the 
  or Form 944 by 6.2% (0.062);                                     Additional Medicare Tax on Form 941, line 5d (Form 944, 
                                                                   line  4d).  For  Form  943,  include  the  Additional  Medicare 
                                                                   tax wages on line 6 and report the Additional Medicare tax 

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on line 7. Back out the amount of the employee share of Prior Period Adjustments
these taxes as a negative adjustment on Form 941, line 9
(Form 943, line 10; or Form 944, line 6). See Pub. 15-B for Forms for prior period adjustments. Use Form 941-X,
more information on group-term life insurance. Form 943-X, or Form 944-X to make a correction after you
For the above adjustments, prepare and retain a discover an error on a previously filed Form 941, Form
TIP brief supporting statement explaining the nature 943, or Form 944. There are also Forms 945-X and CT-1
and amount of each. Don't attach the statement to X to report corrections on the corresponding returns. Use
Form 941, Form 943, or Form 944. See the General In- Form 843 when requesting a refund or abatement of as-
structions for Forms W-2 and W-3 for information on how sessed interest or penalties.
to report the uncollected employee share of social security See Revenue Ruling 2009-39, 2009-52 I.R.B.
and Medicare taxes on tips and group-term life insurance TIP 951, for examples of how the interest-free adjust-
on Form W-2. ment and claim for refund rules apply in 10 differ-
ent situations. You can find Revenue Ruling 2009-39 at
Example. Cedar, Inc., filed Form 941 and was entitled IRS.gov/irb/2009-52_IRB#RR-2009-39 .
to the following current period adjustments.
• Fractions of cents. Cedar, Inc., determined the Background. Treasury Decision 9405 changed the proc-
amounts withheld and deposited for social security ess for making interest-free adjustments to employment
and Medicare taxes during the quarter were a net taxes reported on Form 941, Form 943, and Form 944 and
$1.44 more than the employee share of the amount for filing a claim for refund of employment taxes. Treasury
figured on Form 941, lines 5a–5d, column 2 (social se- Decision 9405, 2008-32 I.R.B. 293, is available at
curity and Medicare taxes). This difference was IRS.gov/irb/2008-32_IRB#TD-9405. You’ll use the adjust-
caused by adding or dropping fractions of cents when ment process if you underreported employment taxes and
figuring social security and Medicare taxes for each are making a payment, or if you overreported employment
wage payment. Cedar, Inc., must report a positive taxes and will be applying the credit to the Form 941, Form
$1.44 fractions-of-cents adjustment on Form 941, 943, or Form 944 period during which you file Form 941-X,
line 7. Form 943-X, or Form 944-X. You’ll use the claim process if
you overreported employment taxes and are requesting a
• Third-party sick pay. Cedar, Inc., included taxes of refund or abatement of the overreported amount. We use
$2,000 for sick pay on Form 941, lines 5a and 5c, col- the terms “correct” and “corrections” to include inter-
umn 2, for social security and Medicare taxes. How- est-free adjustments under sections 6205 and 6413, and
ever, the third-party payer of the sick pay withheld and claims for refund and abatement under sections 6402,
paid the employee share ($1,000) of these taxes. Ce- 6414, and 6404.
dar, Inc., is entitled to a $1,000 sick pay adjustment
(negative) on Form 941, line 8. Correcting employment taxes. When you discover an
error on a previously filed Form 941, Form 943, or Form
• Life insurance premiums. Cedar, Inc., paid
944, you must:
group-term life insurance premiums for policies in ex-
cess of $50,000 for former employees. The former • Correct that error using Form 941-X, Form 943-X, or
employees must pay the employee share of the social Form 944-X;
security and Medicare taxes ($200) on the policies.
• File a separate Form 941-X, Form 943-X, or Form
However, Cedar, Inc., must include the employee
944-X for each Form 941, Form 943, or Form 944
share of these taxes with the social security and Medi-
you’re correcting; and
care taxes reported on Form 941, lines 5a and 5c, col-
umn 2. Therefore, Cedar, Inc., is entitled to a negative • File Form 941-X, Form 943-X, or Form 944-X sepa-
$200 adjustment on Form 941, line 9. rately. Don't file with Form 941, Form 943, or Form
944.
No change to record of federal tax liability. Don't
Report current quarter adjustments for fractions of
make any changes to your record of federal tax liability re-
cents, third-party sick pay, tips, and group-term life insur-
ported on Form 941, line 16, or Schedule B (Form 941)
ance on Form 941 using lines 7–9, on Form 943 using
(for Form 943 filers, Form 943 line 17, or Form 943-A; or
line 10, and on Form 944 using line 6. See Current Period
for Form 944 filers, Form 944, line 13, or Form 945-A) for
Adjustments, earlier in this section.
current period adjustments. The amounts reported on the
Report the correction of underreported and overrepor-
record reflect the actual amounts you withheld from em-
ted amounts for the same tax period on a single Form
ployees' wages for social security and Medicare taxes.
941-X, Form 943-X, or Form 944-X unless you’re request-
Because the current period adjustments make the
ing a refund. If you’re requesting a refund and are correct-
amounts reported on Form 941, lines 5a–5d, column 2
ing both underreported and overreported amounts, file
(Form 943, lines 3, 5, and 7; or Form 944, lines 4a–4d,
one Form 941-X, Form 943-X, or Form 944-X correcting
column 2), equal the actual amounts you withheld (the
the underreported amounts only and a second Form
amounts reported on the record), no additional changes to
941-X, Form 943-X, or Form 944-X correcting the overre-
the record of federal tax liability are necessary for these
ported amounts.
adjustments.

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See the chart on the last page of Form 941-X, Form income, social security, or Medicare taxes from wages
943-X, or Form 944-X for help in choosing whether to use paid, repay or reimburse the employee the excess. Any
the adjustment process or the claim process. See the In- excess income tax or Additional Medicare Tax withholding
structions for Form 941-X, the Instructions for Form 943-X, must be repaid or reimbursed to the employee before the
or the Instructions for Form 944-X for details on how to end of the calendar year in which it was withheld. Keep in
make the adjustment or claim for refund or abatement. your records the employee's written receipt showing the
date and amount of the repayment or record of reimburse-
Income tax withholding adjustments. In a current cal- ment. If you didn't repay or reimburse the employee, you
endar year, correct prior quarter income tax withholding must report and pay each excess amount when you file
errors by making the correction on Form 941-X when you Form 941 for the quarter (Form 943 or Form 944 for the
discover the error. year) in which you withheld too much tax.
You may make an adjustment only to correct income
tax withholding errors discovered during the same calen- Correcting filed Forms W-2 and W-3. When adjust-
dar year in which you paid the wages. This is because the ments are made to correct wages and social security and
employee uses the amount shown on Form W-2 or, if ap- Medicare taxes because of a change in the wage totals re-
plicable, Form W-2c, as a credit when filing their income ported for a previous year, you also need to file Form W-2c
tax return (Form 1040, etc.). and Form W-3c with the SSA. Up to 25 Forms W-2c per
You can't adjust amounts reported as income tax with- Form W-3c may be filed per session over the Internet, with
held in a prior calendar year unless it is to correct an ad- no limit on the number of sessions. For more information,
ministrative error or section 3509 applies. An administra- go to the SSA's Employer W-2 Filing Instructions & Infor-
tive error occurs if the amount you entered on Form 941, mation webpage at SSA.gov/employer.
Form 943, or Form 944 isn't the amount you actually with-
held. For example, if the total income tax actually withheld Exceptions to interest-free corrections of employ-
was incorrectly reported on Form 941, Form 943, or Form ment taxes. A correction won't be eligible for inter-
944 due to a mathematical or transposition error, this est-free treatment if:
would be an administrative error. The administrative error • The failure to report relates to an issue raised in an
adjustment corrects the amount reported on Form 941, IRS examination of a prior return, or
Form 943, or Form 944 to agree with the amount actually
withheld from employees and reported on their Forms • The employer knowingly underreported its employ-
W-2. ment tax liability.
A correction won't be eligible for interest-free treatment
Additional Medicare Tax withholding adjustments. after the earlier of the following.
Generally, the rules discussed earlier in this section under
Income tax withholding adjustments apply to Additional • Receipt of an IRS notice and demand for payment af-
Medicare Tax withholding adjustments. That is, you may ter assessment.
make an adjustment to correct Additional Medicare Tax • Receipt of an IRS notice of determination under sec-
withholding errors discovered during the same calendar tion 7436.
year in which you paid wages. You can't adjust amounts
reported in a prior calendar year unless it is to correct an
Wage Repayments
administrative error or section 3509 applies. If you have
overpaid Additional Medicare Tax, you can't file a claim for If an employee repays you for wages received in error,
refund for the amount of the overpayment unless the don't offset the repayments against current year wages
amount wasn't actually withheld from the employee's wa- unless the repayments are for amounts received in error in
ges (which would be an administrative error). the current year.
If a prior year error was a nonadministrative error, you
may correct only the wages and tips subject to Additional Repayment of current year wages. If you receive re-
Medicare Tax withholding. payments for wages paid during a prior quarter in the cur-
rent year, report adjustments on Form 941-X to recover in-
Collecting underwithheld taxes from employees. If come tax withholding and social security and Medicare
you withheld no income, social security, or Medicare taxes taxes for the repaid wages.
or less than the correct amount from an employee's wa-
ges, you can make it up from later pay to that employee. Repayment of prior year wages. If you receive repay-
But you’re the one who owes the underpayment. Reim- ments for wages paid during a prior year, report an adjust-
bursement is a matter for settlement between you and the ment on Form 941-X, Form 943-X, or Form 944-X to re-
employee. Underwithheld income tax and Additional Med- cover the social security and Medicare taxes. You can't
icare Tax must be recovered from the employee on or be- make an adjustment for income tax withholding because
fore the last day of the calendar year. There are special the wages were income to the employee for the prior year.
rules for tax on tips (see section 6) and fringe benefits You can't make an adjustment for Additional Medicare Tax
(see section 5). withholding because the employee determines liability for
Additional Medicare Tax on the employee's income tax re-
Refunding amounts incorrectly withheld from em- turn for the prior year.
ployees. If you withheld more than the correct amount of

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You must also file Forms W-2c and W-3c with the SSA b. You had one or more employees for at least some
to correct social security and Medicare wages and taxes. part of a day in any 20 or more different weeks in
Don't correct wages (box 1) on Form W-2c for the amount 2023 or 20 or more different weeks in 2024.
paid in error. Give a copy of Form W-2c to the employee.
2. Household employees test.
Employee reporting of repayment. The wages paid You’re subject to FUTA tax if you paid total cash
in error in the prior year remain taxable to the employee for wages of $1,000 or more to household employees in
that year. This is because the employee received and had any calendar quarter in 2023 or 2024. A household
use of those funds during that year. The employee isn't employee is an employee who performs household
entitled to file an amended return (Form 1040-X) to re- work in a private home, local college club, or local fra-
cover the income tax on these wages. Instead, the em- ternity or sorority chapter.
ployee may be entitled to a deduction or credit for the re-
3. Farmworkers test.
paid wages on their income tax return for the year of
You’re subject to FUTA tax on the wages you pay to
repayment. However, the employee should file an amen-
farmworkers if:
ded return (Form 1040-X) to recover any Additional Medi-
care Tax paid on the wages paid in error in the prior year. If a. You paid cash wages of $20,000 or more to farm-
an employee asks about reporting their wage repayment, workers during any calendar quarter in 2023 or
you may tell the employee to see Repayments in Pub. 525 2024, or
for more information.
b. You employed 10 or more farmworkers during at
least some part of a day (whether or not at the
same time) during any 20 or more different weeks
14. Federal Unemployment in 2023 or 20 or more different weeks in 2024.
(FUTA) Tax To determine whether you meet either test above for
farmworkers, you must count wages paid to aliens admit-
FUTA tax doesn't apply to employers in American ted on a temporary basis to the United States to perform
! Samoa, Guam, and the CNMI, but it does apply to farmwork, also known as H-2A visa workers. However, wa-
CAUTION employers in the USVI and Puerto Rico. ges paid to H-2A visa workers aren't subject to the FUTA
tax.
The Federal Unemployment Tax Act (FUTA), with state Generally, farmworkers supplied by crew leaders, as
unemployment systems, provides for payments of unem- defined earlier in section 2, are considered employees of
ployment compensation to workers who have lost their the farm operator for purposes of the FUTA tax unless (a)
jobs. Most employers pay both a federal and a state un- the crew leader is registered under the Migrant and Sea-
employment tax. For a list of state unemployment agen- sonal Agricultural Worker Protection Act; or (b) substan-
cies, go to the U.S. Department of Labor’s website at tially all of the workers supplied by the crew leader operate
oui.doleta.gov/unemploy/agencies.asp. Only the employer or maintain tractors, harvesting or crop-dusting machines,
pays FUTA tax; it isn't withheld from the employee's wa- or other machines provided by the crew leader. Therefore,
ges. For more information, see the Instructions for Form if (a) or (b) applies, the farmworkers are generally employ-
940. ees of the crew leader.

Services rendered to a federally recognized In- Figuring FUTA tax. For 2024, the FUTA tax rate is 6.0%.
TIP dian tribal government (or any subdivision, sub- The tax applies to the first $7,000 you pay to each em-
sidiary, or business wholly owned by such an In- ployee as wages during the year. The $7,000 is the federal
dian tribe) are exempt from FUTA tax, subject to the tribe's wage base. Your state wage base may be different.
compliance with state law. For more information, see sec- Generally, you can take a credit against your FUTA tax
tion 3309(d) and Pub. 4268. for amounts you paid into state unemployment funds. The
credit may be as much as 5.4% of FUTA taxable wages. If
Who must pay? Use the following three tests to deter- you’re entitled to the maximum 5.4% credit, the FUTA tax
mine whether you must pay FUTA tax. Each test applies to rate after credit is 0.6%. You’re entitled to the maximum
a different category of employee, and each is independent credit if you paid your state unemployment taxes in full, on
of the others. If a test describes your situation, you’re sub- time, and on all the same wages as are subject to FUTA
ject to FUTA tax on the wages you pay to employees in tax, and as long as the state isn't determined to be a credit
that category during the current calendar year. reduction state. See the Instructions for Form 940 to de-
1. General test. termine the credit.
You’re subject to FUTA tax in 2024 on the wages In some states, the wages subject to state unemploy-
you pay employees who aren't farmworkers or house- ment tax are the same as the wages subject to FUTA tax.
hold workers if: However, certain states exclude some types of wages
from state unemployment tax, even though they’re subject
a. You paid wages of $1,500 or more in any calendar to FUTA tax (for example, wages paid to corporate offi-
quarter in 2023 or 2024, or cers, certain payments of sick pay by unions, and certain
fringe benefits). In such a case, you may be required to

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deposit more than 0.6% FUTA tax on those wages. See the entire amount by the due date of Form 940 (January
the Instructions for Form 940 for further guidance. 31). If it is $500 or less, you can make a deposit, pay the
tax with a credit or debit card, or pay the tax with your
In years when there are credit reduction states,
Form 940 by January 31. If you file Form 940 electroni-
TIP you must include liabilities owed for credit reduc-
cally, you can e-file and use EFW to pay the balance due.
tion with your fourth quarter deposit. You may de-
For more information on paying your taxes with a credit or
posit the anticipated extra liability throughout the year, but
debit card or using EFW, go to IRS.gov/Payments.
it isn't due until the due date for the deposit for the fourth
quarter, and the associated liability should be recorded as
being incurred in the fourth quarter. See the Instructions Table 4. When To Deposit FUTA Taxes
for Form 940 for more information.
Quarter Ending Due Date
Successor employer. If you acquired a business from Jan.–Feb.–Mar. Mar. 31 Apr. 30
an employer who was liable for FUTA tax, you may be able Apr.–May–June June 30 July 31
to count the wages that employer paid to the employees July–Aug.–Sept. Sept. 30 Oct. 31
who continue to work for you when you figure the $7,000 Oct.–Nov.–Dec. Dec. 31 Jan. 31
FUTA tax wage base. See the Instructions for Form 940.
Reporting FUTA tax. Use Form 940 to report FUTA tax.
Depositing FUTA tax. For deposit purposes, figure File your 2023 Form 940 by January 31, 2024. However, if
FUTA tax quarterly. Determine your FUTA tax liability by you deposited all FUTA tax when due, you may file on or
multiplying the amount of taxable wages paid during the before February 12, 2024.
quarter by 0.6%. This amount may need to be adjusted,
however, depending on your entitlement to the credit for Form 940 e-file. The Form 940 e-file program allows
state unemployment contributions. See the Instructions for a taxpayer to electronically file Form 940 using a computer
Form 940. Stop depositing FUTA tax on an employee's with an Internet connection and commercial tax prepara-
wages when taxable wages reach $7,000 for the calendar tion software. For more information, go to IRS.gov/
year. EmploymentEfile, or call 866-255-0654.
If your FUTA tax liability for any calendar quarter is Household employees. If you didn't report employ-
$500 or less, you don't have to deposit the tax. Instead, ment taxes for household employees on Forms 941, Form
you may carry it forward and add it to the liability figured in 943, or Form 944, report FUTA tax for these employees on
the next quarter to see if you must make a deposit. If your Schedule H (Form 1040). See Pub. 926 for more informa-
FUTA tax liability for any calendar quarter is over $500 (in- tion. You must have an EIN to file Schedule H (Form
cluding any FUTA tax carried forward from an earlier quar- 1040).
ter), you must deposit the tax by EFT. See section 11 for
more information on EFTs. Electronic filing by reporting agents. Reporting
agents filing Forms 940 for groups of taxpayers can file
Household employees. You’re not required to de- them electronically. See Electronic filing by reporting
posit FUTA taxes for household employees unless you re- agents in section 12.
port their wages on Forms 941, Form 943, or Form 944.
See Pub. 926 for more information. Electronic filing by CPEOs. CPEOs are required to
electronically file Form 940 with Schedule R (Form 940).
When to deposit. Deposit the FUTA tax by the last Under certain circumstances, the IRS may waive the elec-
day of the first month that follows the end of the quarter. If tronic filing requirement. To request a waiver, the CPEO
the due date for making your deposit falls on a Saturday, must file a written request using the IRS Online Registra-
Sunday, or legal holiday, you may make your deposit on tion System for Professional Employer Organizations at
the next business day. See Legal holiday, in section 11, for least 45 days before the due date of the return for which
a list of legal holidays occurring in 2024. the CPEO is unable to electronically file. For more infor-
If your liability for the fourth quarter (plus any undepos- mation on filing a waiver request electronically, go to
ited amount from any earlier quarter) is over $500, deposit IRS.gov/CPEO. Also see Revenue Procedure 2023-18.

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15. Special Rules for Various Types of Services and Payments

Section references are to the Internal Revenue Code unless otherwise noted.
Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Federal Income Tax Social Security and FUTA
Withholding Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Agricultural labor:
1. Service on farm in connection with Taxable if wages subject to Taxable if $150 test or Taxable if either test in
cultivating soil; raising or harvesting any social security tax and $2,500 test in section 9 is section 14 is met.
agricultural or horticultural commodity; Medicare tax. met.
the care of livestock, poultry, bees,
furbearing animals, or wildlife.
2. Service in employ of owner or operator Taxable if wages subject to Taxable if $150 test or Taxable if either test in
of farm if major part of the services are social security tax and $2,500 test in section 9 is section 14 is met.
performed on farm, in management or Medicare tax. met.
maintenance, etc., of farm, tools, or
equipment, or in salvaging timber, or
clearing brush and other debris left by
hurricane.
3. In connection with the production and Taxable if wages subject to Taxable if $150 test or Taxable if either test in
harvesting of turpentine and other social security tax and $2,500 test in section 9 is section 14 is met.
oleoresinous products. Medicare tax. met.
4. Cotton ginning. Taxable if wages subject to Taxable if $150 test or Taxable if either test in
social security tax and $2,500 test in 1 section 9 is section 14 is met.
Medicare tax. met.
5. In connection with hatching of poultry. Taxable if wages subject to Taxable if $150 test or Taxable if either test in
social security tax and $2,500 test in section 9 is section 14 is met.
Medicare tax. met (not farmwork if
performed off farm).
6. In operation or maintenance of ditches, Taxable if wages subject to Taxable if $150 test or Taxable if either test in
canals, reservoirs, or waterways used social security tax and $2,500 test in section 9 is section 14 is met.
only for supplying or storing water for Medicare tax. met.
farming purposes and not owned or
operated for profit.
7. In processing, packaging, delivering,
etc., any agricultural or horticultural
commodity in its unmanufactured state:
a. In employ of farm operator. Taxable if wages subject to If operator produced over If employer produced over
social security tax and half of commodity half of commodity
Medicare tax. processed, taxable if $150 processed, taxable if either
test of $2,500 test in test in section 14 is met;
section 9 is met; otherwise 1 otherwise taxable (not
taxable (not farmwork). farmwork).
b. In employ of unincorporated Taxable if wages subject to If group produced all If employer produced over
group of farm operators (never social security tax and commodity processed, half of commodity
more than 20). Medicare tax. taxable if $150 test or processed, taxable if either
$2,500 test in section 9 is test in section 14 is met;
farmwork).
met; otherwise taxable (not otherwise taxable (not 1 farmwork).
c. In employ of other groups of farm Taxable if wages subject to Taxable (not farmwork).1 If employer produced over
operators (including cooperative social security tax and half of commodity
organizations and commercial Medicare tax. processed, taxable if either
handlers). test in section 14 is met;
otherwise taxable (not
farmwork).
8. Handling or processing commodities Taxable if wages subject to Taxable (not farmwork).1 Taxable (not farmwork).
after delivery to terminal market for social security tax and
commercial canning or freezing. Medicare tax.
Aliens:
1. Resident:
a. Service performed in the United 2 Same as U.S. citizen. Same as U.S. citizen. Same as U.S. citizen.
States. (Exempt if any part of
service as crew member of
foreign vessel or aircraft is
performed outside United
States).

12 Wages for services not considered farmwork are reported on Forms 941 or Form 944. Other exemptions may apply. See Benefits provided under cafeteria plans may qualify for exclusion from wages for social security, Medicare, and FUTA taxes.section 5 and section 13.

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Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Federal Income Tax Social Security and FUTA
Withholding Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Aliens (continued):
b. Service performed outside the 2 Withhold. Taxable if (1) working for an Exempt unless on or in
United States. American employer, or (2) connection with an
an American employer by American vessel or aircraft
agreement covers U.S. and either performed under
citizens and residents contract made in United
employed by its foreign States, or alien is employed
affiliates or subsidiary of an on such vessel or aircraft
American employer. when it touches U.S. port.
2. Nonresidents working in United States.3
a. Workers lawfully admitted under See Pub. 515 and Pub. 519. Exempt. Exempt.
section 101 (a)(15)(H)(ii)(a) of the
Immigration and Nationality Act
on a temporary basis to perform
agricultural labor ("H-2A"
workers).
b. Student, scholar, trainee, teacher, See Pub. 515 and Pub. 519. Exempt if service is performed for purposes specified in
etc., as nonimmigrant alien under section 101(a)(15)(F), (J), (M), or (Q) of the Immigration
section 101(a)(15)(F), (J), (M), or and Nationality Act. However, these taxes may apply if the
(Q). employee becomes a resident alien.
c. Philippine resident not admitted to See Pub. 515 and Pub. 519. Exempt if service is performed for purposes specified in
Guam or CNMI under section section 101(a)(15)(H)(ii) of the Immigration and Nationality
101(a)(15)(H)(ii) of the Act. However, these taxes may apply if the employee
Immigration and Nationality Act. becomes a resident alien.
d. Philippine resident not admitted to See Pub. 515 and Pub. 519. Taxable. Exempt.
CNMI under section 101(a)(15)(H)
(ii) of the Immigration and
Nationality Act for services
performed in the CNMI on or after
January 1, 2015.
e. Korean resident admitted to See Pub. 515 and Pub. 519. Exempt if service is Exempt.
Guam under section 101(a)(15) performed for purposes
(H)(ii) of the Immigration and specified in section 101(a)
Nationality Act. (15)(H)(ii) of the
Immigration and Nationality
Act. However, these taxes
may apply if the employee
becomes a resident alien.
f. Korean resident admitted to See Pub. 515 and Pub. 519. Taxable. Exempt.
CNMI under section 101(a)(15)(H)
(ii) of the Immigration and
Nationality Act.
g. All other nonresidents working in 3 See Pub. 515 and Pub. 519. Same as U.S. citizen; Same as U.S. citizen.
United States. exempt if any part of
service as crew member of
foreign vessel or aircraft is
performed outside United
States and employer isn't
an American employer.
3. Nonresident working on American 3 See Pub. 515 and Pub. 519. Taxable if under contract made in United States or worker
vessel or aircraft outside United States. is employed on vessel or aircraft when it touches U.S. port.
Cafeteria plan benefits under section 125. If employee chooses cash or other taxable benefit, subject to all employment taxes. If
employee chooses a non-taxable benefit, the treatment is the same as if the benefit was
provided outside the plan. See Pub. 15-B for more information.
Deceased worker:
1. Wages paid to beneficiary or estate in Exempt. Taxable. Taxable.
same calendar year as worker's death.
See the General Instructions for Forms
W-2 and W-3 for details.
2. Wages paid to beneficiary or estate Exempt. Exempt. Exempt.
after calendar year of worker's death.
Dependent care assistance programs. Exempt to the extent it is reasonable to believe amounts are excludable from gross income
under section 129.

23 Benefits provided under cafeteria plans may qualify for exclusion from wages for social security, Medicare, and FUTA taxes. United States includes American Samoa, Guam, the CNMI, the USVI, and Puerto Rico.

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Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Federal Income Tax Social Security and FUTA
Withholding Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Disabled worker's wages paid after year in Withhold. Exempt if worker didn't Taxable.
which worker became entitled to disability perform any service for
insurance benefits under the Social Security employer during the period
Act. for which payment is made.
Employee business expense
reimbursement:
1. Accountable plan.
a. Amounts not exceeding specified Exempt. Exempt. Exempt.
government rate for per diem or
standard mileage.
b. Amounts in excess of specified Withhold. Taxable. Taxable.
government rate for per diem or
standard mileage.
2. Nonaccountable plan. See section 5 for Withhold. Taxable. Taxable.
details.
Family employees:
1. Child employed by parent (or Withhold. Exempt until age 18; age Exempt until age 21.
partnership in which each partner is a 21 for domestic service.
parent of the child).
2. Parent employed by child. Withhold. Taxable if in course of the Exempt.
child’s business. For
domestic services, see
section 3.
3. Spouse employed by spouse. Withhold. Taxable if in course of Exempt.
spouse's business.
See section 3 for more information.

Fishing and related activities, employment
in connection with catching, harvesting,
farming, etc.:
1. Salmon or halibut. Taxable unless (3) applies. Taxable unless (3) applies. Taxable unless (3) applies.
2. All other aquatic forms of animal and Taxable unless (3) applies. Taxable unless (3) applies. Exempt unless on vessel of
vegetable life. more than 10 net tons and
(3) doesn't apply.
3. An arrangement with the owner or Exempt. Exempt if any cash remuneration is:
operator of the boat by which the
individual receives a share of the boat's (a) $100 or less,
catch (or proceeds from the sale of the (b) Contingent on minimum catch, and
catch), the share depending on the (c) Paid solely for additional duties (such as mate,
boat's catch, and operating crew of the engineer, or cook for which cash remuneration is
boat is normally fewer than 10 4 traditional).
individuals.
Foreign governments and international Exempt. Exempt. Exempt.
organizations.
Foreign service by U.S. citizens:
1. As U.S. Government employees. Withhold. Same as within United Exempt.
States.
2. For foreign affiliates of American Exempt if at time of payment Exempt unless (1) an Exempt unless (1) on
employers and other private employers. (1) it is reasonable to believe American employer by American vessel or aircraft
employee is entitled to agreement covers U.S. and work is performed under
exclusion from income under citizens employed by its contract made in United
section 911, or (2) the foreign affiliates, or (2) U.S. States or worker is
employer is required by law citizen works for American employed on vessel when it
of the foreign country to employer. touches U.S. port, or (2) U.S.
withhold income tax on such citizen works for American
payment. employer (except in a
contiguous country with
which the United States has
an agreement for
unemployment
compensation) or in the
USVI.
4 Income derived by Native Americans exercising fishing rights is generally exempt from employment taxes.

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Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Federal Income Tax Social Security and FUTA
Withholding Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Fringe benefits. Taxable on excess of fair market value of the benefit over the sum of an amount paid for it
by the employee and any amount excludable by law. However, special valuation rules may
apply. Benefits provided under cafeteria plans may qualify for exclusion from wages for
social security, Medicare, and FUTA taxes. See Pub. 15-B for details.
Government employment:
1. State/local governments and political
subdivisions, employees of:
a. Salaries and wages (includes Withhold. Generally, taxable for (1) Exempt.
payments to most elected and services performed by
appointed officials). See employees who are either
chapter 3 of Pub. 963. (a) covered under a section
218 agreement, or (b) not
covered under a section
218 agreement and not a
member of a public
retirement system
(mandatory social security
and Medicare coverage);
and (2) (for Medicare tax
only) for services
performed by employees
hired or rehired after March
31, 1986, who aren't
covered under a section
218 agreement or the
mandatory social security
provisions, unless
specifically excluded by
law. See Pub. 963.
b. Election workers. Election Exempt. Taxable if paid $2,300 or Exempt.
individuals are workers who are more in 2024 (lesser
employed to perform services for amount if specified by a
state or local governments at section 218 social security
election booths in connection with agreement). See Revenue
national, state, or local elections. Ruling 2000-6.
Note. File Form W-2 for payments
of $600 or more even if no social
security or Medicare taxes were
withheld.
c. Emergency workers. Emergency Withhold. Exempt if serving on a Exempt.
workers who were hired on a temporary basis in case of
temporary basis in response to a fire, storm, snow,
specific unforeseen emergency earthquake, flood, or
and aren't intended to become similar emergency.
permanent employees.
2. U.S. federal government employees. Withhold. Taxable for Medicare. Exempt unless worker is a
Taxable for social security seaman performing services
unless hired before 1984. on or in connection with
See section 3121(b)(5). American vessel owned by
or chartered to the United
States and operated by
general agent of Secretary
of Commerce.
Homeworkers (industrial, cottage
industry):
1. Common law employees. Withhold. Taxable. Taxable.
2. Statutory employees. See section 2 for Exempt. Taxable if paid $100 or Exempt.
details. more in cash in a year.
Hospital employees:
1. Interns. Withhold. Taxable. Exempt.
2. Patients. Withhold. Taxable (Exempt for state Exempt.
or local government
hospitals.)

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Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Federal Income Tax Social Security and FUTA
Withholding Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Household employees:
1. Domestic service in private homes. Exempt (withhold if both Taxable if paid $2,700 or Taxable if employer paid
employer and employee more in cash in 2024. total cash wages of $1,000
voluntarily agree). Exempt if performed by an or more in any quarter in the
individual under age 18 current or preceding
during any portion of the calendar year.
calendar year and isn't the
principal occupation of the
employee.
2. Domestic service in college clubs, Exempt (withhold if both Exempt if paid to regular Taxable if employer paid
fraternities, and sororities. employer and employee student; also exempt if total cash wages of $1,000
voluntarily agree). employee is paid less than or more in any quarter in the
$100 in a year by an current or preceding
income-tax-exempt calendar year.
employer.
Insurance for employees:
1. Accident and health insurance Exempt (except 2% Exempt. Exempt.
premiums under a plan or system for shareholder-employees of S
employees and their dependents corporations).
generally or for a class or classes of
employees and their dependents.
2. Group-term life insurance costs. See Exempt. Exempt, except for the cost Exempt.
Pub. 15-B for details. of group-term life insurance
includible in the employee's
gross income. Special rules
apply for former employees.
Insurance agents or solicitors:
1. Full-time life insurance salesperson. Withhold only if employee Taxable. Taxable if (1) employee
under common law. See under common law, and (2)
section 2. not paid solely by
commissions.
2. Other salesperson of life, casualty, etc., Withhold only if employee Taxable only if employee Taxable if (1) employee
insurance. under common law. under common law. under common law, and (2)
not paid solely by
commissions.
Interest on loans with below-market See Pub. 15-A.
interest rates (foregone interest and deemed
original issue discount).
Leave-sharing plans: Amounts paid to an Withhold. Taxable. Taxable.
employee under a leave-sharing plan.
Newspaper carriers and vendors: Exempt (withhold if both Exempt. Exempt.
Newspaper carriers under age 18; newspaper employer and employee
and magazine vendors buying at fixed prices voluntarily agree).
and retaining receipts from sales to
customers. See Pub. 15-A for information on
statutory nonemployee status.
Noncash payments:
1. For household work, agricultural labor, Exempt (withhold if both Exempt. Exempt.
and service not in the course of the employer and employee
employer's trade or business. voluntarily agree).
2. To certain retail commission Optional with employer, Taxable. Taxable.
salespersons ordinarily paid solely on a except to the extent
cash commission basis. employee's supplemental
wages during the year
exceed $1 million.
Nonprofit organizations. See Pub. 15-A.
Officers or shareholders of an S Withhold. Taxable. Taxable.
corporation: Distributions and other
payments by an S corporation to a corporate
officer or shareholder must be treated as
wages to the extent the amounts are
reasonable compensation for services to the
corporation by an employee. See the
Instructions for Form 1120-S.

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Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Federal Income Tax Social Security and FUTA
Withholding Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Partners: Payments to general or limited Exempt. Exempt. Exempt.
partners of a partnership. See Pub. 541 for
partner reporting rules.
Railroads: Payments subject to the Railroad Withhold. Exempt. Exempt.
Retirement Act. See Pub. 915 and the
Instructions for Form CT-1 for more details.
Religious exemptions. See Pub. 15-A and Pub. 517.
Retirement and pension plans:
1. Employer contributions to a qualified Exempt. Exempt. Exempt.
plan.
2. Elective employee contributions and Generally exempt, but see Taxable. Taxable.
deferrals to a plan containing a qualified section 402(g) for limitation.
cash or deferred compensation
arrangement (401(k)).
3. Employer contributions to individual Generally exempt, but see Exempt, except for amounts contributed under a salary
retirement accounts under simplified section 402(g) for salary reduction SEP agreement.
employee pension (SEP) plan. reduction SEP limitation.
4. Employer contributions to section Generally exempt, but see Taxable if paid through a salary reduction agreement
403(b) annuities including salary section 402(g) for limitation. (written or otherwise).
reduction contributions.
5. Employee salary reduction contributions Exempt. Taxable. Taxable.
to a SIMPLE retirement account.
6. Distributions from qualified retirement Withhold, but recipient may Exempt. Exempt.
and pension plans and section 403(b) elect exemption on Form
annuities. See Pub. 15-A for information W-4P in certain cases;
on pensions, annuities, and employer mandatory 20% withholding
contributions to nonqualified deferred applies to an eligible rollover
compensation arrangements. distribution that isn't a direct
rollover; exempt for direct
rollover. See Pub. 15-A.
7. Employer contributions to a section Generally exempt, but see Taxable. Taxable.
457(b) plan. section 402(g) limitation.
8. Employee salary reduction contributions Generally exempt, but see Taxable. Taxable.
to a section 457(b) plan. section 402(g) salary
reduction limitation.
Salespersons:
1. Common law employees. Withhold. Taxable. Taxable.
2. Statutory employees. Exempt. Taxable. Taxable, except for full-time
life insurance sales agents.
3. Statutory nonemployees (qualified real Exempt. Exempt. Exempt.
estate agents, direct sellers, and certain
companion sitters). See Pub. 15-A for
details.
Scholarships and fellowship grants Withhold. Taxability depends on the nature of the employment and
(includible in income under section the status of the organization. See Students, scholars,
117(c)). trainees, teachers, etc., below.
Severance or dismissal pay. Withhold. Taxable. Taxable.
Service not in the course of the Withhold only if employee Taxable if employee Taxable only if employee
employer's trade or business (other than earns $50 or more in cash in receives $100 or more in earns $50 or more in cash in
on a farm operated for profit or for a quarter and works on 24 or cash in a calendar year. a quarter and works on 24 or
household employment in private homes). more different days in that more different days in that
quarter or in the preceding quarter or in the preceding
quarter. quarter.
Sick pay. See Pub. 15-A for more information. Withhold. Exempt after end of 6 calendar months after the calendar
month employee last worked for employer.
Students, scholars, trainees, teachers,
etc.:
1. Student enrolled and regularly attending
classes, performing services for the
following.
a. Private school, college, or Withhold. Exempt. Exempt.
university.

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   Special Classes of Employment and                        Treatment Under Employment Taxes
        Special Types of Payments
                                               Federal Income Tax                Social Security and            FUTA
                                               Withholding                       Medicare (including 
                                                                           Additional Medicare Tax 
                                                                           when wages are paid in 
                                                                                 excess of $200,000)
Students, scholars, trainees, teachers, 
etc. (continued):
     b. Auxiliary nonprofit organization       Withhold.                   Exempt unless services are  Exempt.
        operated for and controlled by                                     covered by a section 218 
        school, college, or university.                                    (Social Security Act) 
                                                                           agreement.
     c. Public school, college, or             Withhold.                   Exempt unless services are  Exempt.
        university.                                                        covered by a section 218 
                                                                           (Social Security Act) 
                                                                           agreement.
2.   Full-time student performing service for  Withhold.                   Taxable.                   Exempt unless program was 
     academic credit, combining instruction                                                           established for or on behalf 
     with work experience as an integral part                                                         of an employer or group of 
     of the program.                                                                                  employers.
3.   Student nurse performing part-time        Withhold.                   Exempt.                    Exempt.
     services for nominal earnings at hospital 
     as incidental part of training.
4.   Student employed by organized camps.      Withhold.                   Taxable.                   Exempt.
5.   Student, scholar, trainee, teacher, etc., Withhold unless excepted by Exempt if service is performed for purpose specified in 
     as nonimmigrant alien under section       regulations.                section 101(a)(15)(F), (J), (M), or (Q) of Immigration and 
     101(a)(15)(F), (J), (M), or (Q) of                                    Nationality Act. However, these taxes may apply if the 
     Immigration and Nationality Act (that is,                             employee becomes a resident alien. See the special 
     aliens holding F-1, J-1, M-1, or Q-1                                  residency tests for exempt individuals in chapter 1 of Pub. 
     visas).                                                               519.
Supplemental unemployment                      Withhold.                   Exempt under certain conditions. See Pub. 15-A.
compensation plan benefits.
Territory government employees (other          (See section 3121(b)(7)) or go to SSA.gov.
than federal):
1.   USVI.                                     Exempt.                     Taxable if covered by      Exempt.
                                                                           section 218 agreement with 
                                                                           SSA.
2.   American Samoa and political              Exempt.                     Taxable, unless employee   Exempt.
     subdivisions.                                                         covered by a retirement 
                                                                           system.
3.   Guam.                                     Exempt.                     Exempt, except for certain Exempt.
                                                                           temporary and intermittent 
                                                                           employees.
4.   The CNMI and political subdivisions.      Exempt.                     Taxable (beginning in the  Exempt.
                                                                           fourth calendar quarter of 
                                                                           2012).
Tips:
1.   If $20 or more in a month.                Withhold.                   Taxable.                   Taxable for all tips reported 
                                                                                                      in writing to employer.
2.   If less than $20 in a month. See section  Exempt.                     Exempt.                    Exempt.
     6 for more information.

Workers' compensation.                         Exempt.                     Exempt.                    Exempt.

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an agent of the employer for the employer’s employment
taxes. If an employer is using a PSP to perform its tax du-
16. Third-Party Payer ties, the employer remains liable for its employment tax
obligations, including liability for employment taxes.
Arrangements
An employer who uses a PSP should ensure the PSP is
using EFTPS to make federal tax deposits on behalf of the
An employer may outsource some or all of its federal em-
employer so the employer can confirm that the payments
ployment tax withholding, reporting, and payment obliga-
are being made on its behalf.
tions. An employer who outsources payroll and related tax
duties (that is, withholding, reporting, and paying over so- Reporting agent. A reporting agent is a type of PSP. A
cial security, Medicare, FUTA, and income taxes) to a reporting agent helps administer payroll and payroll-rela-
third-party payer will generally remain responsible for ted tax duties on behalf of the employer, including authori-
those duties, including liability for the taxes. However, see zation to electronically sign and file forms set forth on
Certified professional employer organization (CPEO), later Form 8655. An employer uses Form 8655 to authorize a
in this section, for an exception. reporting agent to perform functions on behalf of the em-
If an employer outsources some or all of its payroll re- ployer. A reporting agent performs these functions using
sponsibilities, the employer should consider the following the EIN of the employer. A reporting agent isn't liable as
information. either an employer or an agent of the employer for the em-
ployer’s employment taxes. If an employer is using a re-
• The employer remains responsible for federal tax de-
porting agent to perform its tax duties, the employer re-
posits and other federal tax payments even though the
mains liable for its employment obligations, including
employer may forward the tax amounts to the
liability for employment taxes.
third-party payer to make the deposits and payments.
A reporting agent must use EFTPS to make federal tax
If the third party fails to make the deposits and pay-
deposits on behalf of an employer. The employer has ac-
ments, the IRS may assess penalties and interest on
cess to EFTPS to confirm federal tax deposits were made
the employer’s account. As the employer, you may be
on its behalf.
liable for all taxes, penalties, and interest due. The
For more information on reporting agents, see Revenue
employer may also be held personally liable for certain
Procedure 2012-32, 2012-34 I.R.B. 267, available at
unpaid federal taxes.
IRS.gov/irb/2012-34_IRB#RP-2012-32; and Pub. 1474,
• If the employer’s account has any issues, the IRS will Technical Specifications Guide for Reporting Agent Au-
send correspondence to the employer at the address thorization and Federal Tax Depositors.
of record. We strongly recommend that the employer
maintain its address as the address of record with the Agent with an approved Form 2678. An agent with an
IRS. Having correspondence sent to the address of approved Form 2678 helps administer payroll and related
the third-party payer may significantly limit the employ- tax duties on behalf of the employer. An agent authorized
er’s ability to be informed about tax matters involving under section 3504 may pay wages or compensation to
the employer’s business. Use Form 8822-B to update some or all of the employees of an employer, prepare and
your business address. file employment tax returns as set forth on Form 2678,
prepare Forms W-2, and make federal tax deposits and
• When a third party enrolls an employer in EFTPS for other federal tax payments. An employer uses Form 2678
federal tax deposits, the employer will receive an In- to request authorization to appoint an agent to perform
quiry PIN. The employer should activate and use this functions on behalf of the employer. An agent with an ap-
Inquiry PIN to monitor its account and ensure the third proved Form 2678 is authorized to perform these func-
party is making the required tax deposits. tions using its own EIN. The agent files a Schedule R
The following are common third-party payers who an (Form 941) or, if applicable, Schedule R (Form 943) to al-
employer may contract with to perform payroll and related locate wages, taxes, and credits claimed to the employers
tax duties. it represents as an agent.
If an employer is using an agent with an approved Form
• Payroll service provider (PSP).
2678 to perform its tax duties, the agent and the employer
• Reporting agent. are jointly liable for the employment taxes and related tax
• Agent with approved Form 2678. duties for which the agent is authorized to perform.
Form 2678 doesn't apply to FUTA taxes reportable on
• Payer designated under section 3504. Form 940 unless the employer is a home care service re-
• Certified professional employer organization (CPEO). cipient receiving home care services through a program
administered by a federal, state, or local government
Payroll service provider (PSP). A PSP helps administer agency.
payroll and payroll-related tax duties on behalf of the em- For more information on an agent with an approved
ployer. A PSP may prepare paychecks for employees, pre- Form 2678, see Revenue Procedure 2013-39, 2013-52
pare and file employment tax returns, prepare Forms W-2, I.R.B. 830, available at IRS.gov/irb/
and make federal tax deposits and other federal tax pay- 2013-52_IRB#RP-2013-39.
ments. A PSP performs these functions using the EIN of
the employer. A PSP isn't liable as either an employer or

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Payer designated under section 3504. In certain cir- reporting the wages each entity paid to the employee dur-
cumstances, the IRS may designate a third-party payer to ing the year.
perform the acts of an employer. The IRS will designate a
third-party payer on behalf of an employer if the third party
has a service agreement with the employer. A service
agreement is an agreement between the third-party payer 17. Federal Agency Certifying
and an employer in which the third-party payer (1) asserts
it is the employer of individuals performing services for the Requirements of Federal
employer; (2) pays wages to the individuals that perform
services for the employer; and (3) assumes responsibility Income Taxes Withheld From

to withhold, report, and pay federal employment taxes for U.S. Government Employees
the wages it pays to the individuals who perform services
for the employer. Working in, or Federal Pension
A payer designated under section 3504 performs tax
duties under the service agreement using its own EIN. If Recipients Residing in,
the IRS designates a third-party payer under section
3504, the designated payer and the employer are jointly li- American Samoa, the CNMI,
able for the employment taxes and related tax duties for
which the third-party payer is designated. and Guam
For more information on a payer designated under sec-
tion 3504, see Regulations section 31.3504-2.
Special Certifying
Certified professional employer organization (CPEO).
The Stephen Beck, Jr., Achieving a Better Life Experience Requirements for Federal
Act of 2014 required the IRS to establish a voluntary certif-
ication program for professional employer organizations Agencies
(PEOs). PEOs handle various payroll administration and
tax reporting responsibilities for their business clients and This section sets forth the legal authorities requiring fed-
are typically paid a fee based on payroll costs. To become eral agencies to certify to the IRS the amount of federal in-
and remain certified under the certification program, come taxes withheld from amounts paid to U.S. Govern-
CPEOs must meet various requirements described in sec- ment employees working in, as well as federal civilian and
tions 3511 and 7705 and related published guidance. Cer- military pensioners residing in, American Samoa, the
tification as a CPEO may affect the employment tax liabili- CNMI, and Guam. As noted below, these special certify-
ties of both the CPEO and its customers. A CPEO is ing requirements don't apply to federal agencies who have
generally treated for employment tax purposes as the em- employees working in Puerto Rico or the USVl.
ployer of any individual who performs services for a cus-
tomer of the CPEO and is covered by a contract described
American Samoa
in section 7705(e)(2) between the CPEO and the cus-
tomer (CPEO contract), but only for wages and other com- Code sections 931(a), 931(d), and 7654 provide that the
pensation paid to the individual by the CPEO. However, U.S. Government is required to transfer (“cover over”) to
with respect to certain employees covered by a CPEO the Treasury of American Samoa the federal income taxes
contract, you may also be treated as an employer of the withheld on amounts paid to military and civilian employ-
employees and, consequently, may also be liable for fed- ees and pensioners who are residents of American Sa-
eral employment taxes imposed on wages and other com- moa. The effect of these provisions is that the federal gov-
pensation paid by the CPEO to such employees. ernment transfers on at least an annual basis the federal
CPEOs must complete Schedule R (Form 940), Sched- income taxes withheld or collected from its employees
ule R (Form 941), or Schedule R (Form 943) when filing and pensioners who are residents of American Samoa to
an aggregate Form 940, 941, or 943, respectively. CPEOs the American Samoa Treasury. In order for the federal
file Form 8973 to notify the IRS that they started or ended government to cover over these income taxes as required
a service contract with a customer. To become a CPEO, by law, federal agencies must certify the amount of federal
the organization must apply through the IRS Online Regis- income taxes withheld or collected from its employees
tration System. For more information or to apply to be- and pensioners by following the procedures discussed un-
come a CPEO, go to IRS.gov/CPEO. Also see Revenue der Certification Procedures, later in this section.
Procedure 2023-18.
If both an employer and a section 3504 authorized Commonwealth of the Northern
TIP agent (or CPEO or other third-party payer) paid
Mariana Islands
wages to an employee during a quarter, both the
employer and the section 3504 authorized agent (or Code section 7654 and 48 U.S.C. section 1681 [P.L.
CPEO or other third-party payer, if applicable) should file 94-241, section 703(b)] provide that the U.S. Government
Form 941 reporting the wages each entity paid to the em- is required to cover over to the Treasury of the CNMI the
ployee during the applicable quarter and issue Forms W-2 federal income taxes withheld on amounts paid to military

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and civilian employees and pensioners who are residents whose regular place of federal employment is in Puerto
of the CNMI. The effect of these provisions is that the fed- Rico. Federal employers are also required to file quarterly
eral government transfers on at least an annual basis the and annual reports with the Puerto Rico tax department.
federal income taxes withheld or collected from its em- The 5517 agreement isn't applicable to payments made to
ployees and pensioners who are residents of the CNMI to pensioners and compensation paid to members of the
the CNMI Treasury. In order for the federal government to U.S. Armed Forces who are stationed in Puerto Rico but
cover over these federal income taxes as required by law, have a state of legal residence outside Puerto Rico. For
federal agencies must certify the amount of federal in- more information, including details on completing Form
come taxes withheld or collected from its employees and W-2, go to IRS.gov/5517Agreements.
pensioners by following the procedures discussed under
Certification Procedures, later in this section. As dis-
cussed in the Caution next, federal agencies aren't re- U.S. Virgin Islands
quired to certify the amount of local CNMI taxes that are
withheld or collected. These special certifying requirements don't apply to fed-
eral agencies who have employees working in the USVI.
The U.S. Treasury Department and the CNMI Di-
! vision of Revenue and Taxation entered into an
CAUTION agreement under 5 U.S.C. section 5517 in De-
cember 2006. Under this agreement, all federal employers “Federal Income Taxes” From
(including the Department of Defense) are required to
American Samoa, the CNMI, or
withhold CNMI income taxes (rather than federal income
taxes) and deposit the CNMI taxes with the CNMI Treas- Guam
ury for employees whose regular place of federal employ-
ment is in the CNMI. Federal employers are also required This section describes what “federal income taxes” are
to file quarterly and annual reports with the CNMI Division subject to these certification procedures.
of Revenue and Taxation. The 5517 agreement isn't appli-
cable to payments made to pensioners and compensation For purposes of these cover over certification require-
paid to members of the U.S. Armed Forces who are sta- ments, the term “federal income taxes” includes federal in-
tioned in the CNMI but have a state of legal residence out- come taxes that have been withheld from compensation
side the CNMI. For more information, including details on and other amounts paid to and deposited into the U.S.
completing Form W-2, go to IRS.gov/5517Agreements. Treasury on any of the following.

a. Federal government civilian employees who are resi-
Guam dents of American Samoa, the CNMI, or Guam.

Code section 7654 and 48 U.S.C. section 1421(h) provide b. Recipients (including survivors) of federal pensions (ci-
that the U.S. Government is required to cover over to the vilian or military) who are residents of American Samoa,
Treasury of Guam the federal income taxes withheld on the CNMI, or Guam.
amounts paid to military and civilian employees and pen-
sioners who are residents of Guam. The effect of these c. Military personnel stationed in American Samoa, the
provisions is that the federal government transfers on at CNMI, or Guam.

least an annual basis the federal income taxes withheld or d. Military personnel not stationed in American Samoa,
collected from its employees and pensioners who are resi- the CNMI, or Guam but who have a state of legal resi-
dents of Guam to the Guam Treasury. In order for the fed- dence in any of these territories.
eral government to cover over these federal income taxes
as required by law, federal agencies must certify the e. Employees of a service or social organization associ-
amount of federal income taxes withheld or collected from ated with a military or civilian agency in American Samoa,
its employees by following the procedures discussed un- the CNMI, or Guam.
der Certification Procedures, later in this section.

Puerto Rico Certification Procedures
These special certifying requirements don't apply to fed-
This section contains the procedures federal agencies
eral agencies who have employees working in Puerto
must follow to certify to the IRS the amount of “federal in-
Rico.
come taxes” paid to and deposited into the U.S. Treasury.
The U.S. Treasury Department and Puerto Rico All departments and agencies of the federal government
! entered into an agreement under 5 U.S.C. section (as well as service and social organizations associated
CAUTION 5517 in November 1988. Under this agreement, with a military or civilian federal entity) that withhold fed-
all federal employers (including the Department of De- eral income taxes on amounts paid to employees and
fense) are required to withhold Puerto Rico income taxes pensioners of the United States (or any agency thereof) as
(rather than federal income taxes) and deposit the Puerto provided herein must certify to the IRS each calendar
Rico taxes with the Puerto Rico Treasury for employees quarter the total amount of federal income taxes withheld

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that have been deposited into the U.S. Treasury. Federal
agencies must submit a separate certification for federal
income taxes creditable to American Samoa, the CNMI, How To Get Tax Help
and Guam, as applicable.
If you have questions about a tax issue; need help prepar-
Except as provided below, these certifications should ing your tax return; or want to download free publications,
be in the form of a letter and should include: forms, or instructions, go to IRS.gov to find resources that
1. A citation to Pub. 15 as the authority for the certifica- can help you right away.
tion,
Preparing and filing your tax return. Go to IRS.gov/
2. The name of the federal certifying agency or depart- EmploymentEfile for more information on filing your em-
ment, ployment tax returns electronically.
3. The certifying agency’s EIN, Getting answers to your tax questions. On
4. The calendar quarter and fiscal year covered by the IRS.gov, you can get up-to-date information on
certification, current events and changes in tax law.
5. The total number of individuals covered by the certifi- • IRS.gov/Help: A variety of tools to help you get an-
swers to some of the most common tax questions.
cation, and
6. The aggregate dollar amount of federal income taxes • IRS.gov/Forms: Find forms, instructions, and publica-
tions. You will find details on the most recent tax
withheld on all individuals covered by the certification.
changes and interactive links to help you find answers
A federal government department or agency that sub- to your questions.
mits a certification on behalf of another department or You may also be able to access tax information in your
•
agency must include the name and EIN of each subordi- e-filing software.
nate or designated federal department or agency inclu-
ded, along with the required data for each subordinate or
designated department or agency. In this instance, the Need someone to prepare your tax return? There are
certifying agency must send the certification at least on an various types of tax return preparers, including enrolled
annual basis, no later than February 14. agents, certified public accountants (CPAs), accountants,
In addition, federal government agencies certifying for and many others who don’t have professional credentials.
compensation paid to military personnel not stationed in If you choose to have someone prepare your tax return,
American Samoa, the CNMI, or Guam but who have a choose that preparer wisely. A paid tax preparer is:
state of legal residence in one of these territories must • Primarily responsible for the overall substantive accu-
provide each servicemember’s name, SSN, amount of an- racy of your return,
nual salary paid, and total amount of annual federal in-
come tax withheld. • Required to sign the return, and
The amounts shown in the certification must agree with • Required to include their preparer tax identification
the amounts of federal income tax withheld and reported number (PTIN).
on the quarterly federal tax return(s) of the agency (Form Although the tax preparer always signs the return,
941). ! you're ultimately responsible for providing all the
Federal agencies must submit these certifications on a CAUTION information required for the preparer to accurately
quarterly basis no later than 45 days after the close of prepare your return and for the accuracy of every item re-
each calendar quarter as follows. ported on the return. Anyone paid to prepare tax returns
for others should have a thorough understanding of tax
Quarter Due matters. For more information on how to choose a tax pre-
parer, go to Tips for Choosing a Tax Preparer on IRS.gov.
First quarter (ending March 31) . . . . . . . . . . . . . . . . . May 15
Second quarter (ending June 30) . . . . . . . . . . . . . . . Aug. 14
Employers can register to use Business Services On-
Third quarter (ending September 30) . . . . . . . . . . . . . Nov. 14 line. The SSA offers online service at SSA.gov/employer
Fourth quarter (ending December 31) . . . . . . . . . . . . . Feb. 14 for fast, free, and secure W-2 filing options to CPAs, ac-
countants, enrolled agents, and individuals who process
Federal agencies should mail this certification to the fol- Form W-2 and Form W-2c.
lowing address.
IRS social media. Go to IRS.gov/SocialMedia to see the
Internal Revenue Service various social media tools the IRS uses to share the latest
Revenue Systems and Analysis information on tax changes, scam alerts, initiatives, prod-
Attn: OS:CFO:FM:RA:S (77K St) ucts, and services. At the IRS, privacy and security are our
1111 Constitution Ave NW highest priority. We use these tools to share public infor-
CFO/FM - Mail Stop 6167 mation with you. Don’t post your social security number
Washington, DC 20224 (SSN) or other confidential information on social media
Fax: 202-803-9691

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sites. Always protect your identity when using any social Your taxes can be affected if your EIN is used to file a
networking site. fraudulent return or to claim a refund or credit.
The following IRS YouTube channels provide short, in-
• The IRS doesn’t initiate contact with taxpayers by
formative videos on various tax-related topics in English,
email, text messages (including shortened links), tele-
Spanish, and ASL.
phone calls, or social media channels to request or
• Youtube.com/irsvideos. verify personal or financial information. This includes
requests for personal identification numbers (PINs),
• Youtube.com/irsvideosmultilingua.
passwords, or similar information for credit cards,
• Youtube.com/irsvideosASL. banks, or other financial accounts.
Watching IRS videos. The IRS Video portal • Go to IRS.gov/IdentityTheft, the IRS Identity Theft
(IRSVideos.gov) contains video and audio presentations Central webpage, for information on identity theft and
for individuals, small businesses, and tax professionals. data security protection for taxpayers, tax professio-
nals, and businesses. If your EIN has been lost or sto-
Online tax information in other languages. You can len or you suspect you’re a victim of tax-related iden-
find information on IRS.gov/MyLanguage if English isn’t tity theft, you can learn what steps you should take.
your native language.
Making a tax payment. Payments of U.S. tax must be
Free Over-the-Phone Interpreter (OPI) Service. The remitted to the IRS in U.S. dollars. Digital assets are not
IRS is committed to serving taxpayers with limited-English accepted. Go to IRS.gov/Payments for information on how
proficiency (LEP) by offering OPI services. The OPI Serv- to make a payment using any of the following options.
ice is a federally funded program and is available at Tax-
• Debit Card, Credit Card, or Digital Wallet: Choose an
payer Assistance Centers (TACs), most IRS offices, and
approved payment processor to pay online or by
every VITA/TCE tax return site. The OPI Service is acces-
phone.
sible in more than 350 languages.
• Electronic Funds Withdrawal: Schedule a payment
Accessibility Helpline available for taxpayers with when filing your federal taxes using tax return prepara-
disabilities. Taxpayers who need information about ac- tion software or through a tax professional.
cessibility services can call 833-690-0598. The Accessi-
bility Helpline can answer questions related to current and • Electronic Federal Tax Payment System: Best option
for businesses. Enrollment is required.
future accessibility products and services available in al-
ternative media formats (for example, braille, large print, • Check or Money Order: Mail your payment to the ad-
audio, etc.). The Accessibility Helpline doesn’t have ac- dress listed on the notice or instructions.
cess to your IRS account. For help with tax law, refunds, or Cash: You may be able to pay your taxes with cash at
•
account-related issues, go to IRS.gov/LetUsHelp. a participating retail store.
Disasters. Go to IRS.gov/DisasterRelief to review the • Same-Day Wire: You may be able to do same-day
available disaster tax relief. wire from your financial institution. Contact your finan-
cial institution for availability, cost, and time frames.
Getting tax forms and publications. Go to IRS.gov/
Forms to view, download, or print most of the forms, in- Note. The IRS uses the latest encryption technology to
structions, and publications you may need. Or, you can go ensure that the electronic payments you make online, by
to IRS.gov/OrderForms to place an order. phone, or from a mobile device using the IRS2Go app are
safe and secure. Paying electronically is quick, easy, and
Getting tax publications and instructions in eBook faster than mailing in a check or money order.
format. Download and view most tax publications and in-
structions (including Pub. 15) on mobile devices as What if I can’t pay now? Go to IRS.gov/Payments for
eBooks at IRS.gov/eBooks. more information about your options.
IRS eBooks have been tested using Apple's iBooks for
• Apply for an online payment agreement IRS.gov/ (
iPad. Our eBooks haven’t been tested on other dedicated
OPA) to meet your tax obligation in monthly install-
eBook readers, and eBook functionality may not operate
ments if you can’t pay your taxes in full today. Once
as intended.
you complete the online process, you will receive im-
Get a transcript of your return. You can get a copy of mediate notification of whether your agreement has
your tax transcript or a copy of your return by calling been approved.
800-829-4933 or by mailing Form 4506-T (transcript re- • Use the Offer in Compromise Pre-Qualifier to see if
quest) or Form 4506 (copy of return) to the IRS. you can settle your tax debt for less than the full
amount you owe. For more information on the Offer in
Reporting and resolving your tax-related identity Compromise program, go to IRS.gov/OIC.
theft issues.
• Tax-related identity theft happens when someone Understanding an IRS notice or letter you’ve re-
steals your personal information to commit tax fraud. ceived. Go to IRS.gov/Notices to find additional informa-
tion about responding to an IRS notice or letter.

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Responding to an IRS notice or letter. You can now What Can TAS Do for You?
upload responses to all notices and letters using the
Document Upload Tool. For notices that require additional TAS can help you resolve problems that you can’t resolve
action, taxpayers will be redirected appropriately on with the IRS. And their service is free. If you qualify for
IRS.gov to take further action. To learn more about the their assistance, you will be assigned to one advocate
tool, go to IRS.gov/Upload. who will work with you throughout the process and will do
everything possible to resolve your issue. TAS can help
Contacting your local TAC. Keep in mind, many ques- you if:
tions can be answered on IRS.gov without visiting a TAC.
Go to IRS.gov/LetUsHelp for the topics people ask about • Your problem is causing financial difficulty for you,
most. If you still need help, TACs provide tax help when a your family, or your business;
tax issue can’t be handled online or by phone. All TACs • You face (or your business is facing) an immediate
now provide service by appointment, so you’ll know in ad- threat of adverse action; or
vance that you can get the service you need without long
wait times. Before you visit, go to IRS.gov/TACLocator to • You’ve tried repeatedly to contact the IRS but no one
find the nearest TAC and to check hours, available serv- has responded, or the IRS hasn’t responded by the
ices, and appointment options. Or, on the IRS2Go app, date promised.
under the Stay Connected tab, choose the Contact Us op-
tion and click on “Local Offices.” How Can You Reach TAS?

TAS has offices in every state, the District of Columbia,
The Taxpayer Advocate Service (TAS)
and Puerto Rico. To find your advocate’s number:
Is Here To Help You
• Go to TaxpayerAdvocate.IRS.gov/Contact-Us;
What Is TAS?
• Download Pub. 1546, The Taxpayer Advocate Service
TAS is an independent organization within the IRS that Is Your Voice at the IRS, available at IRS.gov/pub/irs-
helps taxpayers and protects taxpayer rights. TAS strives pdf/p1546.pdf;
to ensure that every taxpayer is treated fairly and that you • Call the IRS toll free at 800-TAX-FORM
know and understand your rights under the Taxpayer Bill (800-829-3676) to order a copy of Pub. 1546;
of Rights.
• Check your local directory; or
How Can You Learn About Your Taxpayer • Call TAS toll free at 877-777-4778.
Rights?
How Else Does TAS Help Taxpayers?
The Taxpayer Bill of Rights describes 10 basic rights that
all taxpayers have when dealing with the IRS. Go to TAS works to resolve large-scale problems that affect
TaxpayerAdvocate.IRS.gov to help you understand what many taxpayers. If you know of one of these broad issues,
these rights mean to you and how they apply. These are report it to TAS at IRS.gov/SAMS. Be sure to not include
your rights. Know them. Use them. any personal taxpayer information.

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                        To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                   See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
A                                       G                                       R
Accuracy of deposits rule   33          Government employees, nonfederal     50 Reconciling Forms W-2 and Forms 941 or 
Additional Medicare Tax   28 41,        Government employers    11               Form 944    38
Adjustments  39                                                                 Recordkeeping  8
Agricultural labor  44                  H                                       Reimbursements    18
                                                                                Repayments, wages   41
Aliens, nonresident  25 29,             H-2A visa holders 17
                                                                                Reporting agent  51
Allocated tips 21                       Health insurance plans  19
Archer MSAs  19                         Health savings accounts (HSAs)   19
Assistance (See Tax help)               Hiring new employees    6               S
                                        Household employees     37              Seasonal employers   37
B                                       How To Figure Social Security and       Semiweekly deposit schedule              31
Backup withholding   7                    Medicare Taxes:                       Severance payments   4
Business expenses, employee       18      Deducting the tax 28                  Share farmers 17
                                          Sick pay 29                           Sick pay 20
C                                         Taxes paid by employer  28            Social security and Medicare taxes         27
                                                                                Social security number, employee           15
Calendar  9
Certified professional employer         I                                       Spouse 14
  organizations (CPEOs)     3 52,       Identity protection services  21        Standard mileage rate 18
Change of business address or           Income tax withholding  24              Statutory employees  13
  responsible party     8               Information returns 6                   Statutory nonemployees  13
Commodity wages     17                  International social security           Successor employer   28 43, 
Correcting employment taxes    40         agreements   29                       Supplemental wages   22
Correcting errors (prior period 
  adjustments)    40                    L                                       T
Crew leaders 13                                                                 Tax help 54
                                        Long-term-care insurance   19
Criminal prosecution    36                                                      Telephone help 9
                                        Lookback period  30
                                                                                Third-party payer arrangements           51
D                                       M                                       Third-party sick pay tax adjustment        39
Delivery services, private  8                                                   Tip rate determination agreement           22
                                        Meals and lodging 19
Depositing taxes:                                                               Tip rate determination and education 
                                        Medicaid waiver payments    4
  Penalties  34                                                                  program    22
                                        Medical care  19
  Rules 30                                                                      Tips 21 23, 
                                        Medical savings accounts (MSAs)   19
Differential wage payments   4 19,                                              Trust fund recovery penalty 35
                                        Medicare tax  27
Disaster tax relief 2
                                        Mileage 18                              U
                                        Monthly deposit schedule   31
E                                       Motion picture project employers  29    Unemployment tax, federal   42
E-file 37                               Moving expense reimbursement     3
E-news for payroll professionals   9                                            V
Election worker   12                    N                                       Vacation pay 23
Electronic deposit requirement    34
                                        New employees    6
Electronic Federal Tax Payment System                                           W
  (EFTPS)    34                         Noncash wages    17 18, 
Electronic filing 5 37,                 Nonemployee compensation      7         Wage repayments    41
Eligibility for employment  6                                                   Wages defined  17
Employees defined    12                 O                                       Wages not paid in money    18
Employer identification number (EIN) 12 Outsourcing payroll duties  3           Where to get and file Form SS-5 in the 
                                                                                 U.S. territories 16
Employer responsibilities   7
                                                                                Withholding:
                                        P                                        Backup  7
F                                       Part-time workers 29                     Certificate 24
Family employees    15                  Payroll period 23                        Exemption   25
Farmworkers  13                         Payroll service provider (PSP) 51        Fringe benefits 20
Federal agency certifying               Penalties 34 37,                         Income tax  6 24, 
  requirements    52                    Private delivery services (PDSs) 8       Levies  27
Final return 38                         Publications (See Tax help)              Nonresident aliens 29
Foreign persons treated as American                                              Pensions and annuities 6
  employers  29                         Q                                        Social security and Medicare taxes        27
Fringe benefits 19                                                               Tips 23
Fringe Benefits:                        Qualified small business payroll tax 
                                          credit for increasing research 
  Social security and Medicare taxes      activities 2                          Z
  withholding on fringe benefits   20
FUTA tax  42                                                                    Zero wage return  4

Publication 15 (2024)                                                                                                        57

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