PDF document

- 1 -

                            Userid: CPM               Schema: tipx Leadpct: 100% Pt. size: 10             Draft           Ok to Print
AH XSL/XML                  Fileid: … ations/p15/2023/a/xml/cycle05/source                           (Init. & Date) _______

Page 1 of 49                                                                                       15:08 - 13-Dec-2022

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

            Department of the Treasury                        Contents
            Internal Revenue Service
                                                              What's New     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
                                                              Reminders    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Publication 15
Cat. No. 10000W                                               Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
                                                              Introduction   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10
                                                              1. Employer Identification Number (EIN)                    . . . . . . .   11
(Circular E), 
                                                              2. Who Are Employees? . . . . . . . . . . . . . . . . . . . .              11
Employer's                                                    3. Family Employees          . . . . . . . . . . . . . . . . . . . . . .   13
                                                              4. Employee's Social Security Number (SSN)                         . . .   14
Tax Guide                                                     5. Wages and Other Compensation                    . . . . . . . . . . .   15
                                                              6. Tips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
For use in 2023
                                                              7. Supplemental Wages            . . . . . . . . . . . . . . . . . . . .   19
                                                              8. Payroll Period . . . . . . . . . . . . . . . . . . . . . . . . . .      20
                                                              9. Withholding From Employees' Wages                       . . . . . . .   21
                                                              10. Required Notice to Employees About the 
                                                              Earned Income Credit (EIC) . . . . . . . . . . . . . .                     26
                                                              11. Depositing Taxes         . . . . . . . . . . . . . . . . . . . . . .   26
                                                              12. Filing Form 941 or Form 944              . . . . . . . . . . . . . .   32
                                                              13. Reporting Adjustments to Form 941 or 
                                                              Form 944         . . . . . . . . . . . . . . . . . . . . . . . . . . . .   34
                                                              14. Federal Unemployment (FUTA) Tax . . . . . . . .                        37
                                                              15. Special Rules for Various Types of 
                                                              Services and Payments                  . . . . . . . . . . . . . . . . .   40
                                                              16. Third-Party Payer Arrangements                   . . . . . . . . . .   45
                                                              How To Get Tax Help          . . . . . . . . . . . . . . . . . . . . . .   46
                                                              Index  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

                                                              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
                                                              Social security and Medicare tax for 2023.                     The rate of 
                                                              social  security  tax  on  taxable  wages,  including  qualified 
                                                              sick leave wages and qualified family leave wages paid in 
                                                              2023 for leave taken after March 31, 2021, and before Oc-
                                                              tober  1,  2021,  is  6.2%  each  for  the  employer  and  em-
                                                              ployee or 12.4% for both. Qualified sick leave wages and 
Get forms and other information faster and easier at:         qualified family leave wages paid in 2023 for leave taken 
• IRS.gov (English)         • IRS.gov/Korean (한국어) 
• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)       after March 31, 2020, and before April 1, 2021, aren't sub-
• IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (Tiếng Việt) ject to the employer share of social security tax; therefore, 

Dec 13, 2022

- 2 -

Page 2 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

the tax rate on these wages is 6.2%. The social security Mariana Islands; and Pub. 179, Guía Contributiva Federal
wage base limit is $160,200. para Patronos Puertorriqueños, will no longer be available
The Medicare tax rate is 1.45% each for the employee after 2023. Instead, information specific to agricultural em-
and employer, unchanged from 2022. There is no wage ployers and employers in the U.S. territories will be inclu-
base limit for Medicare tax. ded in Pub. 15 beginning with the Pub. 15 for use in 2024
Social security and Medicare taxes apply to the wages (published December 2023). Beginning in 2024, there will
of household workers you pay $2,600 or more in cash wa- be a new Pub. 15 (sp) that is a Spanish-language version
ges in 2023. Social security and Medicare taxes apply to of Pub. 15.
election workers who are paid $2,200 or more in cash or
an equivalent form of compensation in 2023.
Qualified small business payroll tax credit for in- Reminders
creasing research activities. For tax years beginning
before January 1, 2023, a qualified small business may The COVID-19 related credit for qualified sick and
elect to claim up to $250,000 of its credit for increasing re- family leave wages is limited to leave taken after
search activities as a payroll tax credit. The Inflation Re- March 31, 2020, and before October 1, 2021. Gener-
duction Act of 2022 (the IRA) increases the election ally, the credit for qualified sick and family leave wages as
amount to $500,000 for tax years beginning after Decem- enacted under the Families First Coronavirus Response
ber 31, 2022. The payroll tax credit election must be made Act (FFCRA) and amended and extended by the
on or before the due date of the originally filed income tax COVID-related Tax Relief Act of 2020 for leave taken after
return (including extensions). The portion of the credit March 31, 2020, and before April 1, 2021, and the credit
used against payroll taxes is allowed in the first calendar for qualified sick and family leave wages under sections
quarter beginning after the date that the qualified small 3131, 3132, and 3133 of the Internal Revenue Code, as
business filed its income tax return. The election and de- enacted under the American Rescue Plan Act of 2021 (the
termination of the credit amount that will be used against ARP), for leave taken after March 31, 2021, and before
the employer’s payroll taxes are made on Form 6765, October 1, 2021, have expired. However, employers that
Credit for Increasing Research Activities. The amount pay qualified sick and family leave wages in 2023 for
from Form 6765, line 44, must then be reported on Form leave taken after March 31, 2020, and before October 1,
8974, Qualified Small Business Payroll Tax Credit for In- 2021, are eligible to claim a credit for qualified sick and
creasing Research Activities. family leave wages in 2023. See the March 2023 revision
of the Instructions for Form 941 or the 2023 Instructions
Starting in the first quarter of 2023, the payroll tax credit
for Form 944 for more information.
is first used to reduce the employer share of social secur-
ity tax up to $250,000 per quarter and any remaining Disaster tax relief. Disaster tax relief is available for
credit reduces the employer share of Medicare tax for the those impacted by disasters. For more information about
quarter. Any remaining credit, after reducing the employer disaster relief, go to IRS.gov/DisasterTaxRelief.
share of social security tax and the employer share of Payroll tax credit for certain tax-exempt organiza-
Medicare tax, is then carried forward to the next quarter. tions affected by qualified disasters. Section 303(d) of
Form 8974 is used to determine the amount of the credit the Taxpayer Certainty and Disaster Tax Relief Act of
that can be used in the current quarter. The amount from 2020 allows for a payroll tax credit for certain tax-exempt
Form 8974, line 12, or, if applicable, line 17, is reported on organizations affected by certain qualified disasters not
Form 941 or Form 944. For more information about the related to COVID-19. This credit is claimed on Form
payroll tax credit, see IRS.gov/ResearchPayrollTC. Also 5884-D (not on Form 941 and Form 944). Form 5884-D is
see the line 16 instructions in the Instructions for Form filed after the Form 941 for the quarter or Form 944 for the
941 (line 13 instructions in the Instructions for Form 944) year for which the credit is being claimed has been filed.
for information on reducing your record of tax liability for For more information about this credit, go to IRS.gov/
this credit. Form5884D.
Forms 941-SS and 941-PR discontinued after 2023. 2023 withholding tables. The Percentage Method and
Form 941-SS, Employer’s QUARTERLY Federal Tax Re- Wage Bracket Method withholding tables, the employer
turn—American Samoa, Guam, the Commonwealth of the instructions on how to figure employee withholding, and
Northern Mariana Islands, and the U.S. Virgin Islands, and the amount to add to a nonresident alien employee's wa-
Form 941-PR, Planilla para la Declaración Federal TRI- ges for figuring income tax withholding are included in
MESTRAL del Patrono, will no longer be available after Pub. 15-T, Federal Income Tax Withholding Methods,
the fourth quarter of 2023. Instead, employers in the U.S. available at IRS.gov/Pub15T.
territories will file Form 941, Employer’s QUARTERLY Moving expense reimbursement. P.L. 115-97 sus-
Federal Tax Return, or, if you prefer your form and instruc- pends the exclusion for qualified moving expense reim-
tions in Spanish, you can file new Form 941 (sp), Declara- bursements from your employee's income for tax years
ción del Impuesto Federal TRIMESTRAL del Empleador. beginning after 2017 and before 2026. However, the ex-
Pubs. 51, 80, and 179 discontinued after 2023. Pub. clusion is still available in the case of a member of the
51, Agricultural Employer’s Tax Guide; Pub. 80, Federal U.S. Armed Forces on active duty who moves because of
Tax Guide for Employers in the U.S. Virgin Islands, Guam, a permanent change of station due to a military order. The
American Samoa, and the Commonwealth of the Northern exclusion applies only to reimbursement of moving

Page 2 Publication 15 (2023)

- 3 -

Page 3 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

expenses that the member could deduct if they had paid Aggregate Form 941 filers. Approved section 3504
or incurred them without reimbursement. See Moving Ex- agents and CPEOs must complete Schedule R (Form
penses in Pub. 3, Armed Forces' Tax Guide, for the defini- 941), Allocation Schedule for Aggregate Form 941 Filers,
tion of what constitutes a permanent change of station when filing an aggregate Form 941. Aggregate Forms 941
and to learn which moving expenses are deductible. are filed by agents approved by the IRS under section
Withholding on supplemental wages. P.L. 115-97 3504 of the Internal Revenue Code. To request approval
lowered the withholding rates on supplemental wages for to act as an agent for an employer, the agent files Form
tax years beginning after 2017 and before 2026. See sec- 2678 with the IRS unless you're a state or local govern-
tion 7 for the withholding rates. ment agency acting as an agent under the special proce-
Backup withholding. P.L. 115-97 lowered the backup dures provided in Revenue Procedure 2013-39, 2013-52
withholding rate to 24% for tax years beginning after 2017 I.R.B. 830, available at IRS.gov/irb/
and before 2026. For more information on backup with- 2013-52_IRB#RP-2013-39. Aggregate Forms 941 are
holding, see Backup withholding, later. also filed by CPEOs approved by the IRS under section
Certification program for professional employer or- 7705. To become a CPEO, the organization must apply
ganizations (PEOs). The Stephen Beck, Jr., Achieving a through the IRS Online Registration System at IRS.gov/
Better Life Experience Act of 2014 required the IRS to es- CPEO. CPEOs file Form 8973, Certified Professional Em-
tablish a voluntary certification program for PEOs. PEOs ployer Organization/Customer Reporting Agreement, to
handle various payroll administration and tax reporting re- notify the IRS that they’ve started or ended a service con-
sponsibilities for their business clients and are typically tract with a client or customer. CPEOs must generally file
paid a fee based on payroll costs. To become and remain Form 941 and Schedule R (Form 941) electronically. For
certified under the certification program, certified profes- more information about a CPEO's requirement to file elec-
sional employer organizations (CPEOs) must meet vari- tronically, see Revenue Procedure 2017-14, 2017-3 I.R.B.
ous requirements described in sections 3511 and 7705 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14.
and related published guidance. Certification as a CPEO Other third-party payers that file aggregate Forms 941,
may affect the employment tax liabilities of both the CPEO such as non-certified PEOs, must complete and file
and its customers. A CPEO is generally treated for em- Schedule R (Form 941) if they have clients that are claim-
ployment tax purposes as the employer of any individual ing any employment tax credit (for example, the qualified
who performs services for a customer of the CPEO and is small business payroll tax credit for increasing research
covered by a contract described in section 7705(e)(2) be- activities).
tween the CPEO and the customer (CPEO contract), but Aggregate Form 940 filers. Approved section 3504
only for wages and other compensation paid to the indi- agents and CPEOs must complete Schedule R (Form
vidual by the CPEO. To become a CPEO, the organization 940), Allocation Schedule for Aggregate Form 940 Filers,
must apply through the IRS Online Registration System. when filing an aggregate Form 940, Employer's Annual
For more information or to apply to become a CPEO, go to Federal Unemployment (FUTA) Tax Return. Aggregate
IRS.gov/CPEO. Also see Revenue Procedure 2017-14, Forms 940 can be filed by agents acting on behalf of
2017-3 I.R.B. 426, available at IRS.gov/irb/ home care service recipients who receive home care
2017-03_IRB#RP-2017-14. services through a program administered by a federal,
Outsourcing payroll duties. Generally, as an employer, state, or local government. To request approval to act as
you’re responsible to ensure that tax returns are filed and an agent on behalf of home care service recipients, the
deposits and payments are made, even if you contract agent files Form 2678 with the IRS unless you're a state or
with a third party to perform these acts. You remain re- local government agency acting as an agent under the
sponsible if the third party fails to perform any required ac- special procedures provided in Revenue Procedure
tion. Before you choose to outsource any of your payroll 2013-39. Aggregate Forms 940 are also filed by CPEOs
and related tax duties (that is, withholding, reporting, and approved by the IRS under section 7705. CPEOs file
paying over social security, Medicare, FUTA, and income Form 8973 to notify the IRS that they’ve started or ended
taxes) to a third-party payer, such as a payroll service pro- a service contract with a client or customer. CPEOs must
vider or reporting agent, go to IRS.gov/ generally file Form 940 and Schedule R (Form 940) elec-
OutsourcingPayrollDuties for helpful information on this tronically. For more information about a CPEO's require-
topic. If a CPEO pays wages and other compensation to ment to file electronically, see Revenue Procedure
an individual performing services for you, and the services 2017-14.
are covered by a contract described in section 7705(e)(2)
Work opportunity tax credit for qualified tax-exempt
between you and the CPEO (CPEO contract), then the
organizations hiring qualified veterans. Qualified
CPEO is generally treated as the employer, but only for
tax-exempt organizations that hire eligible unemployed
wages and other compensation paid to the individual by
veterans may be able to claim the work opportunity tax
the CPEO. However, with respect to certain employees
credit against their payroll tax liability using Form 5884-C.
covered by a CPEO contract, you may also be treated as
For more information, go to IRS.gov/WOTC.
an employer of the employees and, consequently, may
also be liable for federal employment taxes imposed on Medicaid waiver payments. Notice 2014-7 provides
wages and other compensation paid by the CPEO to such that certain Medicaid waiver payments are excludable
employees. For more information on the different types of from income for federal income tax purposes. See Notice
third-party payer arrangements, see section 16. 2014-7, 2014-4 I.R.B. 445, available at IRS.gov/irb/

Publication 15 (2023) Page 3

- 4 -

Page 4 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

2014-04_IRB#NOT-2014-7. For more information, includ- information on requesting to file Forms 941, including the
ing questions and answers related to Notice 2014-7, go to methods and deadlines for making a request, see the In-
IRS.gov/MedicaidWaiverPayments. structions for Form 944.
No federal income tax withholding on disability pay- Correcting Form 941 or 944. If you discover an error on
ments for injuries incurred as a direct result of a ter- a previously filed Form 941, make the correction using
rorist attack directed against the United States. Disa- Form 941-X. If you discover an error on a previously filed
bility payments for injuries incurred as a direct result of a Form 944, make the correction using Form 944-X. Forms
terrorist attack directed against the United States (or its al- 941-X and 944-X are filed separately from Forms 941 and
lies) aren't included in income. Because federal income 944. Forms 941-X and 944-X are used by employers to
tax withholding is only required when a payment is includi- claim refunds or abatements of employment taxes, rather
ble in income, no federal income tax should be withheld than Form 843. See section 13 for more information.
from these payments. See Pub. 907, Tax Highlights for
Persons With Disabilities, and Pub. 3920, Tax Relief for Zero wage return. If you haven't filed a “final” Form 940
Victims of Terrorist Attacks. and "final" Form 941 or 944, or aren't a “seasonal” em-
ployer (Form 941 only), you must continue to file a Form
Voluntary withholding on dividends and other distri-
940 and Forms 941 or Form 944, even for periods during
butions by an Alaska Native Corporation (ANC). A
which you paid no wages. The IRS encourages you to file
shareholder of an ANC may request voluntary income tax
your “zero wage” Form 940 and Form 941 or 944 electron-
withholding on dividends and other distributions paid by
ically. Go to IRS.gov/EmploymentEfile for more informa-
an ANC. A shareholder may request voluntary withholding
tion on electronic filing.
by giving the ANC a completed Form W-4V. For more in-
formation, see Notice 2013-77, 2013-50 I.R.B. 632, avail- Federal tax deposits must be made by electronic
able at IRS.gov/irb/2013-50_IRB#NOT-2013-77. funds transfer (EFT). You must use EFT to make all
Definition of marriage. A marriage of two individuals is federal tax deposits. Generally, an EFT is made using the
recognized for federal tax purposes if the marriage is rec- Electronic Federal Tax Payment System (EFTPS). If you
ognized by the state, possession, or territory of the United don't want to use EFTPS, you can arrange for your tax
States in which the marriage is entered into, regardless of professional, financial institution, payroll service, or other
legal residence. Two individuals who enter into a relation- trusted third party to make electronic deposits on your be-
ship that is denominated as marriage under the laws of a half. Also, you may arrange for your financial institution to
foreign jurisdiction are recognized as married for federal initiate a same-day wire payment on your behalf. EFTPS
tax purposes if the relationship would be recognized as is a free service provided by the Department of the Treas-
marriage under the laws of at least one state, possession, ury. Services provided by your tax professional, financial
or territory of the United States, regardless of legal resi- institution, payroll service, or other third party may have a
dence. Individuals who have entered into a registered do- fee.
mestic partnership, civil union, or other similar relationship For more information on making federal tax deposits,
that isn't denominated as a marriage under the law of the see How To Deposit in section 11. To get more informa-
state, possession, or territory of the United States where tion about EFTPS or to enroll in EFTPS, go to EFTPS.gov
such relationship was entered into aren't lawfully married or call 800-555-4477. To contact EFTPS using Telecom-
for federal tax purposes, regardless of legal residence. munications Relay Services (TRS) for people who are
Severance payments. Severance payments are wages deaf, hard of hearing, or have a speech disability, dial 711
subject to social security and Medicare taxes, income tax and then provide the TRS assistant the 800-555-4477
withholding, and FUTA tax. number above or 800-733-4829. Additional information
about EFTPS is also available in Pub. 966.
You must receive written notice from the IRS to file
Form 944. If you’ve been filing Forms 941 (or Forms Pub. 5146 explains employment tax examinations
941-SS or Formularios 941-PR), and believe your employ- and appeal rights. Pub. 5146 provides employers with
ment taxes for the calendar year will be $1,000 or less, information on how the IRS selects employment tax re-
and you would like to file Form 944 instead of Forms 941, turns to be examined, what happens during an exam, and
you must contact the IRS during the first calendar quarter what options an employer has in responding to the results
of the tax year to request to file Form 944. You must re- of an exam, including how to appeal the results. Pub.
ceive written notice from the IRS to file Form 944 instead 5146 also includes information on worker classification is-
of Forms 941 before you may file this form. For more infor- sues and tip exams.
mation on requesting to file Form 944, including the meth-
ods and deadlines for making a request, see the Instruc-
tions for Form 944.
Electronic Filing and Payment
Employers can request to file Forms 941 instead of
Form 944. If you received notice from the IRS to file Businesses can enjoy the benefits of filing and paying
Form 944 but would like to file Forms 941 instead, you their federal taxes electronically. Whether you rely on a
must contact the IRS during the first calendar quarter of tax professional or handle your own taxes, the IRS offers
the tax year to request to file Forms 941. You must receive you convenient programs to make filing and payment
written notice from the IRS to file Forms 941 instead of easier.
Form 944 before you may file these forms. For more

Page 4 Publication 15 (2023)

- 5 -

Page 5 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Spend less time worrying about taxes and more time
running your business. Use e-file and EFTPS to your
Hiring New Employees
benefit.
• For e-file, go to IRS.gov/EmploymentEfile for Eligibility for employment. You must verify that each
additional information. A fee may be charged to file new employee is legally eligible to work in the United
electronically. States. This includes completing the U.S. Citizenship and
Immigration Services (USCIS) Form I-9, Employment Eli-
• For EFTPS, go to EFTPS.gov or call EFTPS Customer gibility Verification. You can get Form I-9 at USCIS.gov/
Service at 800-555-4477. To contact EFTPS using Forms. For more information, go to the USCIS website at
TRS for people who are deaf, hard of hearing, or have USCIS.gov/I-9-Central, or call 800-375-5283 or
a speech disability, dial 711 and then provide the TRS 800-767-1833 (TTY).
assistant the 800-555-4477 number above or You may use the Social Security Number Verification
800-733-4829. Service (SSNVS) at SSA.gov/employer/ssnv.htm to verify
• For electronic filing of Forms W-2, Wage and Tax that an employee name matches an SSN. A person may
Statement, go to SSA.gov/employer. You may be have a valid SSN but not be authorized to work in the Uni-
required to file Forms W-2 electronically. For details, ted States. You may use E-Verify at E-Verify.gov to con-
see the General Instructions for Forms W-2 and W-3. firm the employment eligibility of newly hired employees.
If you’re filing your tax return or paying your fed- New hire reporting. You’re required to report any new
employee to a designated state new hire registry. A new
! eral taxes electronically, a valid employer identifi- employee is an employee who hasn't previously been em-
CAUTION cation number (EIN) is required at the time the re-
turn is filed or the payment is made. If a valid EIN isn't ployed by you or was previously employed by you but has
provided, the return or payment won't be processed. This been separated from such prior employment for at least
may result in penalties. See section 1 for information 60 consecutive days.
about applying for an EIN. Many states accept a copy of Form W-4 with employer
information added. Go to the Office of Child Support En-
Electronic funds withdrawal (EFW). If you file your em- forcement website at acf.hhs.gov/programs/css/
ployment tax return electronically, you can e-file and use employers for more information.
EFW to pay the balance due in a single step using tax W-4 request. Ask each new employee to complete the
preparation software or through a tax professional. How- 2023 Form W-4. See section 9.
ever, don't use EFW to make federal tax deposits. For Name and social security number (SSN). Record
more information on paying your taxes using EFW, go to each new employee's name and SSN from their social se-
IRS.gov/EFW. curity card. Any employee without a social security card
Credit or debit card payments. You can pay the bal- should apply for one. See section 4.
ance due shown on your employment tax return by credit
or debit card. Your payment will be processed by a pay-
ment processor who will charge a processing fee. Don't
use a credit or debit card to make federal tax deposits. For Information Returns
more information on paying your taxes with a credit or You must file Forms W-2 to report wages paid to
debit card, go to IRS.gov/PayByCard. employees. You may also be required to file information
Online payment agreement. You may be eligible to ap- returns to report certain types of payments made during
ply for an installment agreement online if you can’t pay the the year. For example, you must file Form 1099-NEC,
full amount of tax you owe when you file your employment Nonemployee Compensation, to report payments of $600
tax return. For more information, see the instructions for or more to persons not treated as employees (for
your employment tax return or go to IRS.gov/OPA. example, independent contractors) for services performed
for your trade or business. For details about filing Forms
1099 and for information about required electronic filing,
see the General Instructions for Certain Information
Forms in Spanish Returns for general information, and the separate, specific
instructions for each information return you file (for
You can provide Formulario W-4(SP), Certificado de example, the Instructions for Forms 1099-MISC and
Retenciones del Empleado, in place of Form W-4, 1099-NEC). Generally, don't use Forms 1099 to report
Employee's Withholding Certificate, to your wages and other compensation you paid to employees;
Spanish-speaking employees. For more information, see report these on Form W-2. See the General Instructions
Pub. 17(SP), El Impuesto Federal sobre los Ingresos for Forms W-2 and W-3 for details about filing Form W-2
(Para Personas Físicas). For nonemployees, such as and for information about required electronic filing.
independent contractors, Formulario W-9(SP), Solicitud y
Technical Services Operation (TSO). The IRS oper-
Certificación del Número de Identificación del
ates the TSO to answer questions about reporting on
Contribuyente, may be used in place of Form W-9,
Forms W-2, W-3, and 1099, and other information returns.
Request for Taxpayer Identification Number and
If you have questions related to reporting on information
Certification.
returns, call 866-455-7438 (toll free) or 304-263-8700 (toll

Publication 15 (2023) Page 5

- 6 -

Page 6 of 49       Fileid: … ations/p15/2023/a/xml/cycle05/source                                             15:08 - 13-Dec-2022

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

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            . . . . . . . 5       File Form 944 if required (pay tax with return if
Record employees' names and SSNs from                                     not required to deposit). . . . . . . . . . . . . . . . . . . . .       32
social security cards   . . . . . . . . . . . . . . . . . . . .   5       Remind employees to submit a new Form W-4
Ask employees for Form W-4. . . . . . . . . . . . . .             5       if they need to change their withholding            . . . . . . . . . . 21
                    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. . . . . . . . . . . . . . . . . . .          21      withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Withhold employee's share of social security                              Reconcile Forms 941 (or Form 944) with Forms
and Medicare taxes. . . . . . . . . . . . . . . . . . . .         24      W-2 and W-3. . . . . . . . . . . . . . . . . . . . . . . . . . . .      34
Deposit:                                                                  Furnish each employee a Form W-2. . . . . . . . . . . .                 9
• 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. . . . . . . . . . . . . . . . . . . . .          9
• Withheld and employer Medicare taxes                . . . . .   26      Furnish each other payee a Form 1099 (for example, 
Note: Due date of deposit generally depends                               Form 1099-NEC)      . . . . . . . . . . . . . . . . . . . . . . . . .   9
on your deposit schedule (monthly or                                      File Forms 1099 and the transmittal Form
semiweekly).                                                              1096. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Quarterly (By April 30, July 31, October 31,                              File Form 940. . . . . . . . . . . . . . . . . . . . . . . . . . . .    9
                and January 31):                                          File Form 945 for any nonpayroll income tax
Deposit FUTA tax if undeposited amount                                    withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
is over $500  . . . . . . . . . . . . . . . . . . . . . . . . . . 38
File Form 941 (pay tax with return if not
required to deposit). . . . . . . . . . . . . . . . . . . . .     32
call).  The  center  can  also  be  reached  by  email  at              Winnings) must be reported on Form 945, Annual Return 
mccirp@irs.gov. Don't include taxpayer identification num-              of  Withheld  Federal  Income  Tax.  Separate  deposits  are 
bers  (TINs)  or  attachments  in  email  because  email  isn't         required  for  payroll  (Form  941  or  Form  944)  and 
secure.                                                                 nonpayroll  (Form  945)  withholding.  Nonpayroll  items 
                                                                        include the following.
                                                                        • Pensions (including distributions from tax-favored 
Federal Income Tax                                                        retirement plans, for example, section 401(k), section 
                                                                          403(b), and governmental section 457(b) plans), 
Withholding                                                               annuities, and IRA distributions.
Withhold federal income tax from each wage payment or                   • Military retirement.
supplemental  unemployment  compensation  plan  benefit                 • Gambling winnings.
payment according to the employee's Form W-4 and the 
correct  withholding  table  in  Pub.  15-T.  If  you're  paying        • Indian gaming profits.
supplemental wages to an employee, see section 7. If you                • Certain government payments on which the recipient 
have  nonresident  alien  employees,  see                   Withholding   elected voluntary income tax withholding.
income  taxes  on  the  wages  of  nonresident  alien 
                                                                        • Dividends and other distributions by an ANC on which 
employees in section 9.
                                                                          the recipient elected voluntary income tax withholding.
See section 8 of Pub. 15-A, Employer’s Supplemental 
Tax Guide, for information about withholding on pensions                • Payments subject to backup withholding.
(including distributions from tax-favored retirement plans),            For  details  on  depositing  and  reporting  nonpayroll 
annuities, and individual retirement arrangements (IRAs).               income tax withholding, see the Instructions for Form 945.
                                                                        Distributions  from  nonqualified  pension  plans  and 
                                                                        deferred compensation plans.                  Because distributions to 
Nonpayroll Income Tax                                                   participants  from  some  nonqualified  pension  plans  and 
                                                                        deferred  compensation  plans  (including  section  457(b) 
Withholding                                                             plans of tax-exempt organizations) are treated as wages 
                                                                        and are reported on Form W-2, income tax withheld must 
Nonpayroll  federal  income  tax  withholding  (reported  on            be reported on Form 941 or Form 944, not on Form 945. 
Forms  1099  and  Form  W-2G,  Certain  Gambling                        However, distributions from such plans to a beneficiary or 

Page 6                                                                                                                  Publication 15 (2023)

- 7 -

Page 7 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

estate of a deceased employee aren't wages and are re- and weekly rate of payments you or third-party payers
ported on Forms 1099-R, Distributions From Pensions, made to them.
Annuities, Retirement or Profit-Sharing Plans, IRAs, Insur-
• Copies of employees' and recipients' income tax
ance Contracts, etc.; income tax withheld must be repor-
withholding certificates (Forms W-4, W-4P, W-4(SP),
ted on Form 945.
W-4S, and W-4V).
Backup withholding. You must generally withhold 24%
of certain taxable payments if the payee fails to furnish • Dates and amounts of tax deposits you made and
you with their correct TIN. This withholding is referred to acknowledgment numbers for deposits made by
as “backup withholding.” EFTPS.
Payments subject to backup withholding include inter- • Copies of returns filed and confirmation numbers.
est, dividends, patronage dividends, rents, royalties, com- • Records of fringe benefits and expense
missions, nonemployee compensation, payments made in reimbursements provided to your employees,
settlement of payment card or third-party network transac- including substantiation.
tions, and certain other payments you make in the course
of your trade or business. In addition, transactions by • Documentation to substantiate any credits claimed.
brokers and barter exchanges and certain payments Records related to qualified sick leave wages and
made by fishing boat operators are subject to backup qualified family leave wages for leave taken after
withholding. March 31, 2021, and before October 1, 2021, and
records related to qualified wages for the employee
Backup withholding doesn't apply to wages, pen- retention credit paid after June 30, 2021, should be
! sions, annuities, IRAs (including simplified em- kept for at least 6 years. For more information on
CAUTION ployee pension (SEP) and SIMPLE retirement
substantiation requirements, go to IRS.gov/PLC and
plans), section 404(k) distributions from an employee IRS.gov/ERC.
stock ownership plan (ESOP), medical savings accounts
(MSAs), health savings accounts (HSAs), long-term-care • Documentation to substantiate the amount of any
benefits, or real estate transactions. employer or employee share of social security tax that
you deferred and paid for 2020.
You can use Form W-9 or Formulario W-9(SP) to re-
quest payees to furnish a TIN. Form W-9 or Formulario
W-9(SP) must be used when payees must certify that the
number furnished is correct, or when payees must certify Change of Business Name
that they’re not subject to backup withholding or are ex-
Notify the IRS immediately if you change your business
empt from backup withholding. The Instructions for the
name. Write to the IRS office where you file your returns,
Requester of Form W-9 or Formulario W-9(SP) includes a
using the Without a payment address provided in the
list of types of payees who are exempt from backup with-
instructions for your employment tax return, to notify the
holding. For more information, see Pub. 1281, Backup
IRS of any business name change. See Pub. 1635 to see
Withholding for Missing and Incorrect Name/TIN(s).
if you need to apply for a new EIN.

Recordkeeping
Change of Business Address
Keep all records of employment taxes for at least 4 years.
These should be available for IRS review. Your records or Responsible Party
should include the following information. Notify the IRS immediately if you change your business
• Your EIN. address or responsible party. Complete and mail Form
8822-B to notify the IRS of a business address or
• Amounts and dates of all wage, annuity, and pension responsible party change. For a definition of “responsible
payments. party,” see the Instructions for Form SS-4.
• Amounts of tips reported to you by your employees.
• Records of allocated tips.
• The fair market value of in-kind wages paid. Filing Addresses
• Names, addresses, SSNs, and occupations of Generally, your filing address for Form 940, 941, 943,
employees and recipients. 944, 945, or CT-1 depends on the location of your
residence or principal place of business and whether or
• Any employee copies of Forms W-2 and W-2c
not you’re including a payment with your return. There are
returned to you as undeliverable.
separate filing addresses for these returns if you’re a
• Dates of employment for each employee. tax-exempt organization or government entity. See the
• Periods for which employees and recipients were paid separate instructions for Form 940, 941, 943, 944, 945, or
while absent due to sickness or injury and the amount CT-1 for the filing addresses.

Publication 15 (2023) Page 7

- 8 -

Page 8 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

information about COVID-19 tax relief, go to IRS.gov/
Coronavirus.
Private Delivery Services
You can use certain private delivery services (PDSs)
designated by the IRS to meet the “timely mailing as
timely filing” rule for tax returns. Go to IRS.gov/PDS for the Ordering Employer Tax Forms,
current list of PDSs.
Instructions, and Publications
The PDS can tell you how to get written proof of the
mailing date. You can view, download, or print most of the forms,
For the IRS mailing address to use if you're using a instructions, and publications you may need at IRS.gov/
PDS, go to IRS.gov/PDSstreetAddresses. Select the Forms. Otherwise, you can go to IRS.gov/OrderForms to
mailing address listed on the webpage that is in the same place an order and have them mailed to you. The IRS will
state as the address to which you would mail returns filed process your order as soon as possible. Don't resubmit
without a payment, as shown in the instructions for your requests you've already sent us. You can get forms,
employment tax return. instructions, and publications faster online.
PDSs can't deliver items to P.O. boxes. You must Instead of ordering paper Forms W-2 and W-3,
consider filing them electronically using the SSA's free
! use the U.S. Postal Service to mail any item to an e-file service. Go to the SSA's Employer W-2 Filing
CAUTION IRS P.O. box address.
Instructions & Information webpage at SSA.gov/employer
to register for Business Services Online. You’ll be able to
create Forms W-2 online and submit them to the SSA by
typing your wage information into easy-to-use fill-in fields.
Dishonored Payments In addition, you can print out completed copies of Forms
Any form of payment that is dishonored and returned from W-2 to file with state or local governments, distribute to
a financial institution is subject to a penalty. The penalty is your employees, and keep for your records. Form W-3 will
$25 or 2% of the payment, whichever is more. However, be created for you based on your Forms W-2.
the penalty on dishonored payments of $24.99 or less is
an amount equal to the payment. For example, a
dishonored payment of $18 is charged a penalty of $18.
Photographs of Missing

Children
E-News for Payroll The IRS is a proud partner with the National Center for
Missing & Exploited Children® (NCMEC). Photographs of
Professionals missing children selected by the Center may appear in
The IRS has a subscription-based email service for this publication on pages that would otherwise be blank.
payroll professionals. Subscribers will receive periodic You can help bring these children home by looking at the
updates from the IRS. The updates may include photographs and calling 1-800-THE-LOST
information regarding recent legislative changes affecting (1-800-843-5678) if you recognize a child.
federal payroll reporting, IRS news releases and special
announcements pertaining to the payroll industry, new
employment tax procedures, and other information
specifically affecting federal payroll tax returns. To Calendar
subscribe, go to IRS.gov/ENewsPayroll. The following is a list of important dates and
responsibilities. The dates listed here haven’t been
adjusted for Saturdays, Sundays, and legal holidays (see
the TIP next). Pub. 509, Tax Calendars (for use in 2023),
Telephone Help adjusts the dates for Saturdays, Sundays, and legal
Tax questions. You can call the IRS Business and Spe- holidays. See section 11 for information about depositing
cialty Tax Line with your employment tax questions at taxes reported on Forms 941, 944, and 945. See section
800-829-4933. 14 for information about depositing FUTA tax. Due dates
for forms required for health coverage reporting aren't
Help for people with disabilities. You may call
listed here. For these dates, see Pub. 509.
800-829-4059 (TDD/TTY for persons who are deaf, hard
of hearing, or have a speech disability) with any employ- If any date shown next for filing a return, furnish-
ment tax questions. You may also use this number for as- TIP ing a form, or depositing taxes falls on a Saturday,
sistance with unresolved tax problems. Sunday, or legal holiday, the due date is the next
business day. The term "legal holiday" means any legal
Additional information. Go to IRS.gov/
holiday in the District of Columbia. A statewide legal holi-
EmploymentTaxes for additional employment tax informa-
day delays a filing due date only if the IRS office where
tion. For information about employer responsibilities under
you’re required to file is located in that state. However, a
the Affordable Care Act, go to IRS.gov/ACA. For

Page 8 Publication 15 (2023)

- 9 -

Page 9 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

statewide legal holiday doesn't delay the due date of fed- File Form 945. File Form 945 to report any nonpayroll
eral tax deposits. See Deposits Due on Business Days federal income tax withheld. If you deposited all taxes
Only in section 11. For any filing due date, you’ll meet the when due, you may file by February 10. See Nonpayroll
“file” or “furnish” requirement if the envelope containing Income Tax Withholding under Reminders, earlier, for
the return or form is properly addressed, contains suffi- more information.
cient postage, and is postmarked by the U.S. Postal Serv-
ice on or before the due date, or sent by an IRS-designa- By February 15
ted PDS on or before the due date. See Private Delivery
Services under Reminders, earlier, for more information. Request a new Form W-4 from exempt employees.
Ask for a new Form W-4 from each employee who
Fiscal year taxpayers. The due dates listed next apply claimed exemption from income tax withholding last
whether you use a calendar or a fiscal year. year.

By January 31 On February 16
File Form 941 or Form 944. File Form 941 for the Forms W-4 claiming exemption from withholding ex-
fourth quarter of the previous calendar year and deposit pire. Any Form W-4 claiming exemption from with-
any undeposited income, social security, and Medicare holding for the previous year has now expired. Begin
taxes. You may pay these taxes with Form 941 if your withholding for any employee who previously claimed
total tax liability for the quarter (Form 941, line 12) is less exemption from withholding but hasn't given you a new
than $2,500. File Form 944 for the previous calendar Form W-4 for the current year. If the employee doesn't
year instead of Form 941 if the IRS has notified you in give you a new Form W-4, withhold tax as if they had
writing to file Form 944. Pay any undeposited income, checked the box for Single or Married filing separately in
social security, and Medicare taxes with your Form 944. Step 1(c) and made no entries in Step 2, Step 3, or Step
You may pay these taxes with Form 944 if your total tax 4 of the 2023 Form W-4. See section 9 for more infor-
liability for the year (Form 944, line 9) is less than mation. If the employee gives you a new Form W-4
$2,500. For additional rules on when you can pay your claiming exemption from withholding after February 15,
taxes with your return, see Payment with return in sec- you may apply the exemption to future wages, but don't
tion 11. If you timely deposited all taxes when due, you refund taxes withheld while the exempt status wasn't in
may file by February 10. place.
File Form 940. File Form 940 to report any FUTA tax.
However, if you deposited all of the FUTA tax when due, By February 28
you may file by February 10. See section 14 for more in- File paper 2022 Forms 1099 and 1096. File Copy A
formation on FUTA tax. of all paper 2022 Forms 1099, except Forms 1099-NEC,
Furnish Forms 1099 and W-2. Furnish each em- with Form 1096 with the IRS. For electronically filed re-
ployee a completed 2022 Form W-2. Furnish a 2022 turns, see By March 31, later.
Form 1099-NEC to payees for nonemployee compensa- File paper Form 8027. File paper Form 8027, Em-
tion. Most Forms 1099 must be furnished to payees by ployer's Annual Information Return of Tip Income and
January 31, but some can be furnished by February 15. Allocated Tips, with the IRS. See section 6. For elec-
For more information, see the Guide to Information Re- tronically filed returns, see By March 31 next.
turns chart in the General Instructions for Certain Infor-
mation Returns.
By March 31
File Form W-2. File with the SSA Copy A of all 2022
paper and electronic Forms W-2 with Form W-3, Trans- File electronic 2022 Forms 1099 and 8027. File
mittal of Wage and Tax Statements. For more informa- electronic 2022 Forms 1099, except Forms 1099-NEC,
tion on reporting Form W-2 information to the SSA elec- with the IRS. Also file electronic Form 8027 with the IRS.
tronically, go to the SSA’s Employer W-2 Filing For information on filing information returns electroni-
Instructions & Information webpage at SSA.gov/ cally with the IRS, see Pub. 1220 and Pub. 1239, Speci-
employer. If filing electronically, via the SSA's Form W-2 fications for Electronic Filing of Form 8027, Employer's
Online service, the SSA will generate Form W-3 data Annual Information Return of Tip Income and Allocated
from the electronic submission of Form(s) W-2. Tips.

File Form 1099-NEC reporting nonemployee compen-
By April 30, July 31, October 31, and
sation. File with the IRS Copy A of all 2022 paper
and electronic Forms 1099-NEC. Paper forms must be January 31
filed with Form 1096, Annual Summary and Transmittal Deposit FUTA taxes. Deposit FUTA tax for the quar-
of U.S. Information Returns. For information on filing in- ter (including any amount carried over from other quar-
formation returns electronically with the IRS, see Pub. ters) if over $500. If $500 or less, carry it over to the next
1220, Specifications for Electronic Filing of Forms 1097, quarter. See section 14 for more information.
1098, 1099, 3921, 3922, 5498, and W-2G.

Publication 15 (2023) Page 9

- 10 -

Page 10 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

File Form 941. File Form 941 and deposit any unde- There are exceptions to these requirements. See sec-
posited income, social security, and Medicare taxes. tion 15 for guidance. Railroad retirement taxes are ex-
You may pay these taxes with Form 941 if your total tax plained in the Instructions for Form CT-1. Employment
liability for the quarter (Form 941, line 12) is less than taxes for agricultural employers are explained in Pub. 51.
$2,500. If you timely deposited all taxes when due, you If you have employees in the U.S. Virgin Islands, Guam,
may file by May 10, August 10, November 10, or Febru- American Samoa, or the Commonwealth of the Northern
ary 10, respectively. Don't file Form 941 for these quar- Mariana Islands, see Pub. 80.
ters if you have been notified to file Form 944 and you
didn't request and receive written notice from the IRS to Comments and suggestions. We welcome your com-
file quarterly Forms 941. ments about this publication and suggestions for future
editions.
You can send us comments through IRS.gov/
Before December 1 FormComments.
New Forms W-4. Remind employees to submit a new Or, you can write to:
Form W-4 if their filing status, other income, deductions,
or credits have changed or will change for the next year. Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
Introduction
Although we can’t respond individually to each com-
This publication explains your tax responsibilities as an ment received, we do appreciate your feedback and will
employer. It explains the requirements for withholding, de- consider your comments and suggestions as we revise
positing, reporting, paying, and correcting employment our tax forms, instructions, and publications. Don’t send
taxes. It explains the forms you must give to your employ- tax questions, tax returns, or payments to the above ad-
ees, those your employees must give to you, and those dress.
you must send to the IRS and the SSA. References to “in-
come tax” in this guide apply only to federal income tax. Getting answers to your tax questions. If you have
Contact your state or local tax department to determine a tax question not answered by this publication, check
their rules. IRS.gov and How To Get Tax Help at the end of this publi-
When you pay your employees, you don't pay them all cation.
the money they earned. As their employer, you have the Getting tax forms, instructions, and publications.
added responsibility of withholding taxes from their pay- Go to IRS.gov/Forms to download current and prior-year
checks. The federal income tax and employees' share of forms, instructions, and publications.
social security and Medicare taxes that you withhold from
your employees' paychecks are part of their wages that Ordering tax forms, instructions, and publications.
you pay to the U.S. Treasury instead of to your employ- Go to IRS.gov/OrderForms to order current forms, instruc-
ees. Your employees trust that you pay the withheld taxes tions, and publications; call 800-829-3676 to order
to the U.S. Treasury by making federal tax deposits. This prior-year forms and instructions. The IRS will process
is the reason that these withheld taxes are called trust your order for forms and publications as soon as possible.
fund taxes. If federal income, social security, or Medicare Don’t resubmit requests you’ve already sent us. You can
taxes that must be withheld aren't withheld or aren't de- get forms and publications faster online.
posited or paid to the U.S. Treasury, the trust fund recov-
ery penalty may apply. See section 11 for more informa- Federal government employers. The information in this
tion. publication, including the rules for making federal tax de-
Additional employment tax information is available in posits, applies to federal agencies.
Pubs. 15-A, 15-B, and 15-T. Pub. 15-A includes special-
State and local government employers. Payments to
ized information supplementing the basic employment tax
employees for services in the employ of state and local
information provided in this publication. Pub. 15-B, Em-
government employers are generally subject to federal in-
ployer's Tax Guide to Fringe Benefits, contains informa-
come tax withholding but not FUTA tax. Most elected and
tion about the employment tax treatment and valuation of
appointed public officials of state or local governments are
various types of noncash compensation. Pub. 15-T in-
employees under common law rules. See chapter 3 of
cludes the federal income tax withholding tables and in-
Pub. 963, Federal-State Reference Guide. In addition, wa-
structions on how to use the tables.
ges, with certain exceptions, are subject to social security
Most employers must withhold (except FUTA), deposit,
and Medicare taxes. See section 15 for more information
report, and pay the following employment taxes.
on the exceptions.
• Income tax. If an election worker is employed in another capacity
• Social security tax. with the same government entity, see Revenue Ruling
2000-6 on page 512 of Internal Revenue Bulletin 2000-6
• Medicare tax. at IRS.gov/pub/irs-irbs/irb00-06.pdf.
• FUTA tax.

Page 10 Publication 15 (2023)

- 11 -

Page 11 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

You can get information on reporting and social secur- Form 941, or Form 944, that is different from the EIN re-
ity coverage from your local IRS office. If you have any ported on Form W-3, see Box h—Other EIN used this year
questions about coverage under a section 218 (Social Se- in the General Instructions for Forms W-2 and W-3. The
curity Act) agreement, contact the appropriate state offi- name and EIN on Form 945 must match the name and
cial. To find your State Social Security Administrator, go to EIN on your information returns where federal income tax
the National Conference of State Social Security Adminis- withholding is reported (for example, backup withholding
trators website at NCSSSA.org. reported on Form 1099-NEC). Filing a Form 945 with an
incorrect EIN or using another business's EIN may result
Indian tribal governments. See Pub. 4268 for employ- in penalties and delays in processing your return.
ment tax information for Indian tribal governments.

Disregarded entities and qualified subchapter S sub-
sidiaries (QSubs). Eligible single-owner disregarded en- 2. Who Are Employees?
tities and QSubs are treated as separate entities for em-
ployment tax purposes. Eligible single-member entities Generally, employees are defined either under common
must report and pay employment taxes on wages paid to law or under statutes for certain situations. See Pub. 15-A
their employees using the entities' own names and EINs. for details on statutory employees and nonemployees.
See Regulations sections 1.1361-4(a)(7) and
301.7701-2(c)(2)(iv). Employee status under common law. Generally, a
worker who performs services for you is your employee if
you have the right to control what will be done and how it
will be done. This is so even when you give the employee
1. Employer Identification
freedom of action. What matters is that you have the right
Number (EIN) to control the details of how the services are performed.
See Pub. 15-A for more information on how to determine
If you’re required to report employment taxes or give tax whether an individual providing services is an independ-
statements to employees or annuitants, you need an EIN. ent contractor or an employee.
Generally, people in business for themselves aren't
The EIN is a nine-digit number the IRS issues. The dig- employees. For example, doctors, lawyers, veterinarians,
its are arranged as follows: 00-0000000. It is used to iden- and others in an independent trade in which they offer
tify the tax accounts of employers and certain others who their services to the public are usually not employees. If
have no employees. Use your EIN on all of the items you the business is incorporated, corporate officers who work
send to the IRS and the SSA. For more information, see in the business are employees of the corporation.
Pub. 1635. If an employer-employee relationship exists, it doesn't
If you don’t have an EIN, you may apply for one online matter what it is called. The employee may be called an
by going to IRS.gov/EIN. You may also apply for an EIN agent or independent contractor. It also doesn't matter
by faxing or mailing Form SS-4 to the IRS. If the principal how payments are measured or paid, what they’re called,
business was created or organized outside of the United or if the employee works full or part time.
States or U.S. territories, you may also apply for an EIN by
Statutory employees. If someone who works for you
calling 267-941-1099 (toll call). Don't use an SSN in place
isn't an employee under the common law rules discussed
of an EIN.
earlier, don't withhold federal income tax from their pay,
You should have only one EIN. If you have more than unless backup withholding applies. Although the following
one and aren't sure which one to use, call 800-829-4933 persons may not be common law employees, they’re con-
or 800-829-4059 (TDD/TTY for persons who are deaf, sidered employees by statute for social security and Medi-
hard of hearing, or have a speech disability). Give the care tax purposes under certain conditions.
numbers you have, the name and address to which each • An agent or commission driver who delivers meat,
was assigned, and the address of your main place of busi- vegetable, fruit, or bakery products; beverages (other
ness. The IRS will tell you which number to use. For more than milk); laundry; or dry cleaning for someone else.
information, see Pub. 1635.
• A full-time life insurance salesperson who sells primar-
If you took over another employer's business (see Suc- ily for one company.
cessor employer in section 9), don't use that employer's
EIN. If you’ve applied for an EIN but don't have your EIN • A homeworker who works at home or off premises ac-
cording to guidelines of the person for whom the work
by the time a return is due, file a paper return and write
is done, with materials or goods furnished by and re-
“Applied For” and the date you applied for it in the space
turned to that person or to someone that person des-
shown for the number.
ignates.
Always be sure the EIN on the form you file ex-
• A traveling or city salesperson (other than an agent or
! actly matches the EIN the IRS assigned to your commission driver) who works full time (except for
CAUTION business. Don't use your SSN or individual tax-
sideline sales activities) for one firm or person getting
payer identification number (ITIN) on forms that ask for an
orders from customers. The orders must be for
EIN. If you used an EIN (including a prior owner's EIN) on

Publication 15 (2023) Page 11

- 12 -

Page 12 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

merchandise for resale or supplies for use in the cus- If the employer didn't issue required information re-
tomer's business. The customers must be retailers, turns, the section 3509 rates are the following.
wholesalers, contractors, or operators of hotels, res-
• For social security taxes: employer rate of 6.2% plus
taurants, or other businesses dealing with food or
40% of the employee rate of 6.2%, for a total rate of
lodging.
8.68% of wages.
For FUTA tax, an agent or commission driver and a
traveling or city salesperson are considered statutory em- • For Medicare taxes: employer rate of 1.45% plus 40%
of the employee rate of 1.45%, for a total rate of
ployees; however, a full-time life insurance salesperson
2.03% of wages.
and a homeworker aren't considered statutory employees.
• For Additional Medicare Tax: 0.36% (40% of the em-
Statutory nonemployees. Direct sellers, qualified real ployee rate of 0.9%) of wages subject to Additional
estate agents, and certain companion sitters are, by law, Medicare Tax.
considered nonemployees. They’re generally treated as
self-employed for all federal tax purposes, including in- • For federal income tax withholding, the rate is 3.0% of
come and employment taxes. See Pub. 15-A for more in- wages.
formation. Relief provisions. If you have a reasonable basis for
not treating a worker as an employee, you may be re-
H-2A agricultural workers. On Form W-2, don't check lieved from having to pay employment taxes for that
box 13 (Statutory employee), as H-2A workers aren't stat- worker. To get this relief, you must file all required federal
utory employees. tax returns, including information returns, on a basis con-
Treating employees as nonemployees. You’ll gener- sistent with your treatment of the worker. You (or your
predecessor) must not have treated any worker holding a
ally be liable for social security and Medicare taxes and
substantially similar position as an employee for any peri-
withheld income tax if you don't deduct and withhold these
ods beginning after 1977. See Pub. 1976, Do You Qualify
taxes because you treated an employee as a nonem-
for Relief Under Section 530.
ployee. You may be able to figure your liability using spe-
cial section 3509 rates for the employee share of social IRS help. If you want the IRS to determine whether a
security and Medicare taxes and federal income tax with- worker is an employee, file Form SS-8.
holding. 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 or the Instructions for Form
Business Owned and Operated by
944-X.
Section 3509 rates aren't available if you intentionally Spouses
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
curity or Medicare taxes. Section 3509 isn't available for
in 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.
nership is considered the employer of any employees,
If the employer issued required information returns, the
and is liable for any employment taxes due on wages paid
section 3509 rates are the following.
to 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 Oppor-
tunity Tax Act of 2007 (Public Law 110-28) provides that a
• For Medicare taxes: employer rate of 1.45% plus 20%
“qualified joint venture,” whose only members are spou-
of the employee rate of 1.45%, for a total rate of
ses filing a joint income tax return, can elect not to be trea-
1.74% of wages.
ted as a partnership for federal tax purposes. A qualified
• For Additional Medicare Tax: 0.18% (20% of the em- joint venture 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

Page 12 Publication 15 (2023)

- 13 -

Page 13 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

1040), line G) in the trade or business (mere joint own- payments are for work other than in a trade or business
ership of property isn't enough), and are less than $50 in the quarter or the child isn't regu-
larly employed to do such work.
• Both spouses elect to not be treated as a partnership,
and One spouse employed by another. The wages for the
• The business is co-owned by both spouses and isn't services of an individual who works for their spouse in a
held in the name of a state law entity such as a part- trade or business are subject to income tax withholding
nership or limited liability company (LLC). and social security and Medicare taxes, but not to FUTA
tax. However, the payments for services of one spouse
To make the election, all items of income, gain, loss,
employed by another in other than a trade or business,
deduction, and credit must be divided between the spou-
such as domestic service in a private home, aren't subject
ses, in accordance with each spouse's interest in the ven-
to social security, Medicare, and FUTA taxes.
ture, and reported as sole proprietors on a separate
Schedule C (Form 1040) or Schedule F (Form 1040). Covered services of a child or spouse. The wages for
Each spouse must also file a separate Schedule SE (Form the services of a child or spouse are subject to income tax
1040) to pay self-employment taxes, as applicable. withholding as well as social security, Medicare, and
Spouses using the qualified joint venture rules are trea- FUTA taxes if they work for:
ted as sole proprietors for federal tax purposes and gener-
ally don't need an EIN. If employment taxes are owed by • A corporation, even if it is controlled by the child's pa-
the qualified joint venture, either spouse may report and rent or the individual's spouse;
pay the employment taxes due on the wages paid to the • A partnership, even if the child's parent is a partner,
employees using the EIN of that spouse's sole proprietor- unless each partner is a parent of the child;
ship. Generally, filing as a qualified joint venture won't in-
crease the spouses' total tax owed on the joint income tax • A partnership, even if the individual's spouse is a part-
return. However, it gives each spouse credit for social se- ner; or
curity 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 part-
ner, 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. possession, you can treat • Payments for the services of a parent not in their
the business either as a sole proprietorship (of the spouse child’s (the employer’s) trade or business are gener-
who carried on the business) or a partnership. You may ally 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. ! 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
trade or business aren't subject to social security and remarried, or living with a spouse who, because of a
Medicare taxes if the trade or business is a sole proprie- mental or physical condition, can't care for their child
torship or a partnership in which each partner is a parent or stepchild for at least 4 continuous weeks in the cal-
of the child. If these payments are for work other than in a endar quarter in which the service is performed.
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

Publication 15 (2023) Page 13

- 14 -

Page 14 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

the employee shows you the updated social security card
with the corrected name.
4. Employee's Social Security
If the SSA issues the employee an updated card after a
Number (SSN) name change, or a new card with a different SSN after a
change in alien work status, file a Form W-2c to correct
You’re required to get each employee's name and SSN the name/SSN reported for the most recently filed Form
and to enter them on Form W-2. This requirement also ap- W-2. It isn't necessary to correct other years if the previ-
plies to resident and nonresident alien employees. You ous name and number were used for years before the
should ask your employee to show you their social secur- most recent Form W-2.
ity card. The employee may show the card if it is available.
IRS individual taxpayer identification numbers
Don't accept a social security card that says “Not (ITINs) for aliens. Don't accept an ITIN in place of an
! valid for employment.” An SSN issued with this SSN for employee identification or for work. An ITIN is
CAUTION legend doesn't permit employment.
only available to resident and nonresident aliens who
aren't eligible for U.S. employment and need identification
You may, but aren't required to, photocopy the social for other tax purposes. You can identify an ITIN because it
security card if the employee provides it. If you don't pro- is a nine-digit number, formatted like an SSN, that starts
vide the correct employee name and SSN on Form W-2, with the number "9" and has a range of numbers from “50–
you may owe a penalty unless you have reasonable 65,” “70–88,” “90–92,” and “94–99” for the fourth and fifth
cause. See Pub. 1586, Reasonable Cause Regulations & digits (for example, 9NN-7N-NNNN). For more informa-
Requirements for Missing and Incorrect Name/TINs, for tion about ITINs, see the Instructions for Form W-7 or go
information on the requirement to solicit the employee's to IRS.gov/ITIN.
SSN.
An individual with an ITIN who later becomes eli-
Applying for a social security card. Any employee ! gible to work in the United States must obtain an
who is legally eligible to work in the United States and CAUTION SSN. If the individual is currently eligible to work
doesn't have a social security card can get one by com- in the United States, instruct the individual to apply for an
pleting Form SS-5, Application for a Social Security Card, SSN and follow the instructions under Applying for an
and submitting the necessary documentation. You can get SSN, earlier. Don't use an ITIN in place of an SSN on
Form SS-5 from the SSA website at SSA.gov/forms/ Form W-2.
ss-5.pdf, at SSA offices, or by calling 800-772-1213 or
800-325-0778 (TTY). The employee must complete and Verification of SSNs. Employers and authorized report-
sign Form SS-5; it can't be filed by the employer. You may ing agents can use the Social Security Number Verifica-
be asked to supply a letter to accompany Form SS-5 if the tion Service (SSNVS) to instantly verify that an employee
employee has exceeded their yearly or lifetime limit for the name matches an SSN for up to 10 names and SSNs (per
number of replacement cards allowed. 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 Registering for SSNVS. You must register online to
Wage and Tax Statement, with the SSA to show the em- use SSNVS. To register, go to the SSA's website at
ployee's SSN. Furnish Copies B, C, and 2 of Form W-2c SSA.gov/bso and click on the Register link under Busi-
to the employee. Up to 25 Forms W-2c for each Form ness Services Online. Follow the registration instructions
W-3c, Transmittal of Corrected Wage and Tax State- to obtain a user identification (ID) and password. You’ll
ments, may be filed per session over the Internet, with no need to provide the following information about yourself
limit on the number of sessions. For more information, go and your company.
to the SSA's Employer W-2 Filing Instructions & Informa- Name.
•
tion webpage at SSA.gov/employer. Advise your em-
ployee to correct the SSN on their original Form W-2. • SSN.
• Date of birth.
Correctly record the employee's name and SSN. Re-
cord the name and SSN of each employee as they’re • Type of employer.
shown on the employee's social security card. If the em- • EIN.
ployee's name isn't correct as shown on the card (for ex-
ample, because of marriage or divorce), the employee • Company name, address, and telephone number.
should request an updated card from the SSA. Continue • Email address.
to report the employee's wages under the old name until When you have completed the online registration proc-
ess, the SSA will mail a one-time activation code to you.

Page 14 Publication 15 (2023)

- 15 -

Page 15 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

You must enter the activation code online to use SSNVS. Employee business expense reimbursements. A re-
Your employees must receive authorization from you to imbursement or allowance arrangement is a system by
use SSNVS. If your employees register, the one-time acti- which you pay the advances, reimbursements, and
vation code will be mailed to you. charges for your employees' business expenses. How you
report a reimbursement or allowance amount depends on
whether you have an accountable or a nonaccountable
plan. If a single payment includes both wages and an ex-
5. Wages and Other
pense reimbursement, you must specify the amount of the
Compensation reimbursement.
These rules apply to all allowable ordinary and neces-
Wages subject to federal employment taxes generally in- sary employee business expenses.
clude all pay you give to an employee for services per- Accountable plan. To be an accountable plan, your
formed. The pay may be in cash or in other forms. It in- reimbursement or allowance arrangement must require
cludes salaries, vacation allowances, bonuses, your employees to meet all three of the following rules.
commissions, and taxable fringe benefits. It doesn't matter
how you measure or make the payments. Amounts an 1. They must have paid or incurred allowable expenses
employer pays as a bonus for signing or ratifying a con- while performing services as your employees. The re-
tract in connection with the establishment of an em- imbursement or advance must be payment for the ex-
ployer-employee relationship and an amount paid to an penses and must not be an amount that would have
employee for cancellation of an employment contract and otherwise been paid to the employee as wages.
relinquishment of contract rights are wages subject to so- 2. They must substantiate these expenses to you within
cial security, Medicare, and FUTA taxes and income tax a reasonable period of time.
withholding. Also, compensation paid to a former em-
ployee for services performed while still employed is wa- 3. They must return any amounts in excess of substanti-
ges subject to employment taxes. ated expenses within a reasonable period of time.
More information. See section 6 for a discussion of tips Amounts paid under an accountable plan aren't wages
and section 7 for a discussion of supplemental wages. and aren't subject to income, social security, Medicare,
Also, see section 15 for exceptions to the general rules for and FUTA taxes.
wages. Pub. 15-A provides additional information on wa- If the expenses covered by this arrangement aren't
ges, including nonqualified deferred compensation, and substantiated (or amounts in excess of substantiated ex-
other compensation. Pub. 15-B provides information on penses aren't returned within a reasonable period of time),
other forms of compensation, including: the amount paid under the arrangement in excess of the
substantiated expenses is treated as paid under a nonac-
• Accident and health benefits, countable plan. This amount is subject to income, social
• Achievement awards, security, Medicare, and FUTA taxes for the first payroll pe-
riod following the end of the reasonable period of time.
• Adoption assistance, A reasonable period of time depends on the facts and
• Athletic facilities, circumstances. Generally, it is considered reasonable if
your employees receive their advance within 30 days of
• De minimis (minimal) benefits,
the time they pay or incur the expenses, adequately ac-
• Dependent care assistance, count for the expenses within 60 days after the expenses
were paid or incurred, and return any amounts in excess
• Educational assistance,
of expenses within 120 days after the expenses were paid
• Employee discounts, or incurred. Alternatively, it is considered reasonable if
• Employee stock options, you give your employees a periodic statement (at least
quarterly) that asks them to either return or adequately ac-
• Employer-provided cell phones, count for outstanding amounts and they do so within 120
• Group-term life insurance coverage, days.
• Health savings accounts, Nonaccountable plan. Payments to your employee
for travel and other necessary expenses of your business
• Lodging on your business premises,
under a nonaccountable plan are wages and are treated
• Meals, as supplemental wages and subject to income, social se-
• No-additional-cost services, curity, Medicare, and FUTA taxes. Your payments are
treated as paid under a nonaccountable plan if:
• Retirement planning services,
• Your employee isn't required to or doesn't substanti-
• Transportation (commuting) benefits, ate timely those expenses to you with receipts or other
• Tuition reduction, and documentation,
• Working condition benefits. • You advance an amount to your employee for busi-
ness expenses and your employee isn't required to or

Publication 15 (2023) Page 15

- 16 -

Page 16 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

doesn't return timely any amount they don’t use for nished for the employer's convenience, on the employer's
business expenses, premises, and as a condition of employment.
“For the convenience of the employer” means you have
• You advance or pay an amount to your employee re-
a substantial business reason for providing the meals and
gardless of whether you reasonably expect the em-
lodging other than to provide additional compensation to
ployee to have business expenses related to your
the employee. For example, meals you provide at the
business, or
place of work so that an employee is available for emer-
• You pay an amount as a reimbursement you would gencies during their lunch period are generally considered
have otherwise paid as wages. to be for your convenience. You must be able to show
See section 7 for more information on supplemental these emergency calls have occurred or can reasonably
wages. be expected to occur, and that the calls have resulted, or
will result, in you calling on your employees to perform
Per diem or other fixed allowance. You may reim- their jobs during their meal period.
burse your employees by travel days, miles, or some Whether meals or lodging are provided for the conven-
other fixed allowance under the applicable revenue proce- ience of the employer depends on all of the facts and cir-
dure. In these cases, your employee is considered to have cumstances. A written statement that the meals or lodging
accounted to you if your reimbursement doesn't exceed are for your convenience isn't sufficient.
rates established by the federal government. The stand-
ard mileage rate for auto expenses is provided in Pub. 50% test. If over 50% of the employees who are pro-
15-B. vided meals on an employer's business premises receive
The government per diem rates for meals and lodging these meals for the convenience of the employer, all
in the continental United States can be found by going to meals provided on the premises are treated as furnished
the U.S. General Services Administration website at for the convenience of the employer. If this 50% test is
GSA.gov/PerDiemRates. Other than the amount of these met, the value of the meals is excludable from income for
expenses, your employees' business expenses must be all employees and isn't subject to federal income tax with-
substantiated (for example, the business purpose of the holding or employment taxes. For more information, see
travel or the number of business miles driven). For infor- Pub. 15-B.
mation on substantiation methods, see Pub. 463.
Health insurance plans. If you pay the cost of an acci-
If the per diem or allowance paid exceeds the amounts
dent or health insurance plan for your employees, includ-
substantiated, you must report the excess amount as wa-
ing an employee's spouse and dependents, your pay-
ges. This excess amount is subject to income tax with-
ments aren't wages and aren't subject to social security,
holding and payment of social security, Medicare, and
Medicare, and FUTA taxes, or federal income tax with-
FUTA taxes. Show the amount equal to the substantiated
holding. Generally, this exclusion also applies to qualified
amount (that is, the nontaxable portion) in box 12 of Form
long-term-care insurance contracts. However, for income
W-2 using code “L.”
tax withholding, the value of health insurance benefits
Wages not paid in money. If in the course of your trade must be included in the wages of S corporation employ-
or business you pay your employees in a medium that is ees who own more than 2% of the S corporation (2%
neither cash nor a readily negotiable instrument, such as shareholders). For social security, Medicare, and FUTA
a check, you’re said to pay them “in kind.” Payments in taxes, the health insurance benefits are excluded from the
kind may be in the form of goods, lodging, food, clothing, 2% shareholder's wages. See Announcement 92-16 for
or services. Generally, the fair market value of such pay- more information. You can find Announcement 92-16 on
ments at the time they’re provided is subject to federal in- page 53 of Internal Revenue Bulletin 1992-5.
come tax withholding and social security, Medicare, and Health savings accounts (HSAs) and medical sav-
FUTA taxes. ings accounts (MSAs). Your contributions to an em-
However, noncash payments for household work, agri- ployee's HSA or Archer MSA aren't subject to social se-
cultural labor, and service not in the employer's trade or curity, Medicare, or FUTA taxes, or federal income tax
business are exempt from social security, Medicare, and withholding if it is reasonable to believe at the time of pay-
FUTA taxes. Withhold income tax on these payments only ment of the contributions they’ll be excludable from the in-
if you and the employee agree to do so. Nonetheless, come of the employee. To the extent it isn't reasonable to
noncash payments for agricultural labor, such as com- believe they’ll be excludable, your contributions are sub-
modity wages, are treated as cash payments subject to ject to these taxes. Employee contributions to their HSAs
employment taxes if the substance of the transaction is a or MSAs through a payroll deduction plan must be inclu-
cash payment. ded in wages and are subject to social security, Medicare,
and FUTA taxes and income tax withholding. However,
Meals and lodging. The value of meals isn't taxable in-
HSA contributions made under a salary reduction ar-
come and isn't subject to federal income tax withholding
rangement in a section 125 cafeteria plan aren't wages
and social security, Medicare, and FUTA taxes if the
and aren't subject to employment taxes or withholding.
meals are furnished for the employer's convenience and
For more information, see the Instructions for Form 8889.
on the employer's premises. The value of lodging isn't
subject to federal income tax withholding and social se-
curity, Medicare, and FUTA taxes if the lodging is fur-

Page 16 Publication 15 (2023)

- 17 -

Page 17 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Medical care reimbursements. Generally, medical care • The use of on-premises athletic facilities operated by
reimbursements paid for an employee under an employ- you if substantially all of the use is by employees, their
er's self-insured medical reimbursement plan aren't wa- spouses, and their dependent children.
ges and aren't subject to social security, Medicare, and
• Qualified tuition reduction an educational organization
FUTA taxes, or income tax withholding. See Pub. 15-B for
provides to its employees for education. For more in-
a rule regarding inclusion of certain reimbursements in the
formation, see Pub. 970.
gross income of highly compensated individuals.
• Employer-provided cell phones provided primarily for
Differential wage payments. Differential wage pay- a noncompensatory business reason.
ments are any payments made by an employer to an indi-
However, don't exclude the following fringe benefits
vidual for a period during which the individual is perform-
from the wages of highly compensated employees unless
ing service in the uniformed services while on active duty
the benefit is available to other employees on a nondiscri-
for a period of more than 30 days and represent all or a
minatory basis.
portion of the wages the individual would have received
from the employer if the individual were performing serv- • No-additional-cost services.
ices for the employer. • Qualified employee discounts.
Differential wage payments are wages for income tax
withholding, but aren't subject to social security, Medi- • Meals provided at an employer-operated eating fa-
care, or FUTA taxes. Employers should report differential cility.
wage payments in box 1 of Form W-2. For more informa- • Reduced tuition for education.
tion about the tax treatment of differential wage payments,
For more information, including the definition of a highly
see Revenue Ruling 2009-11, 2009-18 I.R.B. 896, availa-
compensated employee, see Pub. 15-B.
ble at IRS.gov/irb/2009-18_IRB#RR-2009-11 .
When taxable fringe benefits are treated as paid.
Fringe benefits. You must generally include fringe bene- You may choose to treat certain taxable noncash fringe
fits in an employee's wages (but see Nontaxable fringe benefits as paid by the pay period, by the quarter, or on
benefits next). The benefits are subject to income tax any other basis you choose, as long as you treat the ben-
withholding and employment taxes. Fringe benefits in- efits as paid at least once a year. You don't have to make
clude cars you provide, flights on aircraft you provide, free a formal choice of payment dates or notify the IRS of the
or discounted commercial flights, vacations, discounts on dates you choose. You don't have to make this choice for
property or services, memberships in country clubs or all employees. You may change methods as often as you
other social clubs, and tickets to entertainment or sporting like, as long as you treat all benefits provided in a calen-
events. In general, the amount you must include is the dar year as paid by December 31 of the calendar year.
amount by which the fair market value of the benefit is See section 4 of Pub. 15-B for more information, including
more than the sum of what the employee paid for it plus a discussion of the special accounting rule for fringe bene-
any amount the law excludes. There are other special fits provided during November and December.
rules you and your employees may use to value certain
fringe benefits. See Pub. 15-B for more information. Valuation of fringe benefits. Generally, you must
determine the value of fringe benefits no later than Janu-
Nontaxable fringe benefits. Some fringe benefits ary 31 of the next year. Before January 31, you may rea-
aren't taxable (or are minimally taxable) if certain condi- sonably estimate the value of the fringe benefits for purpo-
tions are met. See Pub. 15-B for details. The following are ses of withholding and depositing on time.
some examples of nontaxable fringe benefits.
Withholding on fringe benefits. You may add the
• Services provided to your employees at no additional value of fringe benefits to regular wages for a payroll pe-
cost to you. riod and figure withholding taxes on the total, or you may
• Qualified employee discounts. withhold federal income tax on the value of the fringe ben-
efits at the optional flat 22% supplemental wage rate.
• Working condition fringes that are property or services
However, see Withholding on supplemental wages when
that would be allowable as a business expense or de-
an employee receives more than $1 million of supplemen-
preciation expense deduction to the employee if they
tal wages during the calendar year in section 7.
had paid for them. Examples include a company car
You may choose not to withhold income tax on the
for business use and subscriptions to business maga-
value of an employee's personal use of a vehicle you pro-
zines.
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
Depositing taxes on fringe benefits. Once you
employees if the meals aren't furnished at below cost).
choose when fringe benefits are paid, you must deposit
• Qualified transportation fringes subject to specified taxes in the same deposit period you treat the fringe bene-
conditions and dollar limitations (including transporta- fits as paid. To avoid a penalty, deposit the taxes following
tion in a commuter highway vehicle, any transit pass, the general deposit rules for that deposit period.
and qualified parking).

Publication 15 (2023) Page 17

- 18 -

Page 18 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

If you determine by January 31 you overestimated the employee reports the tips on Form 4070 or on a similar
value of a fringe benefit at the time you withheld and de- statement. The statement must be signed and dated by
posited for it, you may claim a refund for the overpayment the employee and must include:
or have it applied to your next employment tax return. See
• The employee's name, address, and SSN;
Valuation of fringe benefits, earlier. If you underestimated
the value and deposited too little, you may be subject to a • Your name and address;
failure-to-deposit (FTD) penalty. See section 11 for infor- • The month and year (or the beginning and ending
mation on deposit penalties. dates, if the statement is for a period of less than 1
If you deposited the required amount of taxes but with- calendar month) the report covers; and
held a lesser amount from the employee, you can recover
from the employee the social security, Medicare, or in- • The total of tips received during the month or period.
come taxes you deposited on their behalf and included in Both Forms 4070 and 4070-A, Employee's Daily Re-
the employee's Form W-2. However, you must recover the cord of Tips, are included in Pub. 1244, Employee's Daily
income taxes before April 1 of the following year. Record of Tips and Report to Employer.
Sick pay. In general, sick pay is any amount you pay un- You’re permitted to establish a system for elec-
der a plan to an employee who is unable to work because TIP tronic tip reporting by employees. See Regula-
of sickness or injury. These amounts are sometimes paid tions section 31.6053-1(d).
by a third party, such as an insurance company or an em-
ployees' trust. In either case, these payments are subject Collecting taxes on tips. You must collect federal in-
to social security, Medicare, and FUTA taxes. These come tax, employee social security tax, and employee
taxes don't apply to sick pay paid more than 6 calendar Medicare tax on the employee's tips. The withholding
months after the last calendar month in which the em- rules for withholding an employee's share of Medicare tax
ployee worked for the employer. The payments are al- on tips also apply to withholding the Additional Medicare
ways subject to federal income tax. See section 6 of Pub. Tax once wages and tips exceed $200,000 in the calen-
15-A for more information. dar year.
For purposes of this publication, all references to You can collect these taxes from the employee's wages
TIP "sick pay" mean ordinary sick pay, not "qualified (excluding tips) or from other funds they make available.
sick leave wages" under the FFCRA, as amended See Tips are treated as supplemental wages in section 7
by the COVID-related Tax Relief Act of 2020, and the for more information. Stop collecting the employee social
ARP. security tax when their wages and tips for tax year 2023
reach $160,200; collect the income and employee Medi-
care taxes for the whole year on all wages and tips. You’re
Identity protection services. The value of identity pro-
responsible for the employer social security tax on wages
tection services provided by an employer to an employee
and tips until the wages (including tips) reach the limit.
isn't included in an employee's gross income and doesn't
You’re responsible for the employer Medicare tax for the
need to be reported on an information return (such as
whole year on all wages and tips. Tips are considered to
Form W-2) filed for an employee. This includes identity
be paid at the time the employee reports them to you. De-
protection services provided before a data breach occurs.
posit taxes on tips based on your deposit schedule as de-
This exception doesn't apply to cash received instead of
scribed in section 11. File Form 941 or Form 944 to report
identity protection services or to proceeds received under
withholding and employment taxes on tips.
an identity theft insurance policy. For more information,
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.
Cash tips your employee receives from customers are 2. Withhold social security and Medicare taxes on tips.
generally subject to withholding. Your employee must re- 3. Withhold income tax on tips.
port cash tips to you by the 10th of the month after the
month the tips are received. Cash tips include tips paid by Reporting tips. Report tips and any collected and un-
cash, check, debit card, and credit card. The report collected social security and Medicare taxes on Form W-2
should include tips you paid over to the employee for and on Form 941, lines 5b, 5c, and, if applicable, 5d
charge customers, tips the employee received directly (Form 944, lines 4b, 4c, and, if applicable, 4d). Report a
from customers, and tips received from other employees negative adjustment on Form 941, line 9 (Form 944,
under any tip-sharing arrangement. Both directly and indi- line 6), for the uncollected social security and Medicare
rectly tipped employees must report tips to you. No report taxes. Enter the amount of uncollected social security tax
is required for months when tips are less than $20. Your and Medicare tax in box 12 of Form W-2 with codes “A”

Page 18 Publication 15 (2023)

- 19 -

Page 19 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

and “B,” respectively. Don't include any uncollected Addi- payments subject to the supplemental wage rules include
tional Medicare Tax in box 12 of Form W-2. For additional taxable fringe benefits and expense allowances paid un-
information on reporting tips, see section 13 and the Gen- der a nonaccountable plan. How you withhold on supple-
eral Instructions for Forms W-2 and W-3. mental wages depends on whether the supplemental pay-
Revenue Ruling 2012-18 provides guidance for em- ment is identified as a separate payment from regular
ployers regarding social security and Medicare taxes im- wages. See Regulations section 31.3402(g)-1 for addi-
posed on tips, including information on the reporting of the tional guidance. Also see Revenue Ruling 2008-29,
employer share of social security and Medicare taxes un- 2008-24 I.R.B. 1149, available at IRS.gov/irb/
der section 3121(q), the difference between tips and serv- 2008-24_IRB#RR-2008-29.
ice charges, and the section 45B credit. See Revenue
Ruling 2012-18, 2012-26 I.R.B. 1032, available at Withholding on supplemental wages when an em-
IRS.gov/irb/2012-26_IRB#RR-2012-18. ployee receives more than $1 million of supplemen-
tal wages from you during the calendar year. Special
FUTA tax on tips. If an employee reports to you in writ- rules apply to the extent supplemental wages paid to any
ing $20 or more of tips in a month, the tips are also subject one employee during the calendar year exceed $1 million.
to FUTA tax. If a supplemental wage payment, together with other sup-
plemental wage payments made to the employee during
Allocated tips. If you operate a large food or beverage the calendar year, exceeds $1 million, the excess is sub-
establishment, you must report allocated tips under cer- ject to withholding at 37% (or the highest rate of income
tain circumstances. However, don't withhold income, so- tax for the year). Withhold using the 37% rate without re-
cial security, or Medicare taxes on allocated tips. gard to the employee's Form W-4. In determining supple-
A large food or beverage establishment is one that pro- mental wages paid to the employee during the year, in-
vides food or beverages for consumption on the premises, clude payments from all businesses under common
where tipping is customary, and where there were nor- control. For more information, see Treasury Decision
mally more than 10 employees on a typical business day 9276, 2006-37 I.R.B. 423, available at IRS.gov/irb/
during the preceding year. 2006-37_IRB#TD-9276.
The tips may be allocated by one of three meth-
ods—hours worked, gross receipts, or good faith agree- Withholding on supplemental wage payments to an
ment. For information about these allocation methods, employee who doesn't receive $1 million of supple-
and for information about required electronic filing of Form mental wages during the calendar year. If the supple-
8027, see the Instructions for Form 8027. For more infor- mental wages paid to the employee during the calendar
mation on filing Form 8027 electronically with the IRS, see year are less than or equal to $1 million, the following
Pub. 1239. rules apply in determining the amount of income tax to be
withheld.
Tip Rate Determination and Education Program. Em-
ployers may participate in the Tip Rate Determination and Supplemental wages combined with regular wages.
Education Program. The program primarily consists of two If you pay supplemental wages with regular wages but
voluntary agreements developed to improve tip income don't specify the amount of each, withhold federal income
reporting by helping taxpayers to understand and meet tax as if the total were a single payment for a regular pay-
their tip reporting responsibilities. The two agreements are roll period.
the Tip Rate Determination Agreement (TRDA) and the
Tip Reporting Alternative Commitment (TRAC). A tip Supplemental wages identified separately from regu-
agreement, the Gaming Industry Tip Compliance Agree- lar wages. If you pay supplemental wages separately
ment (GITCA), is available for the gaming (casino) indus- (or combine them in a single payment and specify the
try. For more information, see Pub. 3144. amount of each), the federal income tax withholding
method depends partly on whether you withhold income
More information. Advise your employees to see Pub. tax from your employee's regular wages.
531 or use the IRS Interactive Tax Assistant at IRS.gov/
1. If you withheld income tax from an employee's regular
TipIncome for help in determining if their tip income is tax-
wages in the current or immediately preceding calen-
able and for information about how to report tip income.
dar year, you can use one of the following methods
for the supplemental wages.
a. Withhold a flat 22% (no other percentage al-
7. Supplemental Wages
lowed).
Supplemental wages are wage payments to an employee b. If the supplemental wages are paid concurrently
that aren't regular wages. They include, but aren't limited with regular wages, add the supplemental wages
to, bonuses, commissions, overtime pay, payments for to the concurrently paid regular wages and with-
accumulated sick leave, severance pay, awards, prizes, hold federal income tax as if the total were a single
back pay, reported tips, retroactive pay increases, and payment for a regular payroll period. If there are
payments for nondeductible moving expenses. However, no concurrently paid regular wages, add the sup-
employers have the option to treat overtime pay and tips plemental wages to, alternatively, either the
as regular wages instead of supplemental wages. Other regular wages paid or to be paid for the current

Publication 15 (2023) Page 19

- 20 -

Page 20 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

payroll period or the regular wages paid for the Example 3. The facts are the same as in Example 2,
preceding payroll period. Figure the income tax except you elect to use the flat rate method of withholding
withholding as if the total of the regular wages and on the bonus. You withhold 22% of $1,000, or $220, from
supplemental wages is a single payment. Subtract Sharon's bonus payment.
the tax already withheld or to be withheld from the
regular wages. Withhold the remaining tax from Example 4. The facts are the same as in Example 2,
the supplemental wages. If there were other pay- except you elect to pay Sharon a second bonus of $2,000
ments of supplemental wages paid during the pay- on May 29. Using supplemental wage withholding method
roll period made before the current payment of 1b, you do the following.
supplemental wages, aggregate all the payments 1. Add the first and second bonus amounts to the
of supplemental wages paid during the payroll pe- amount of wages from the most recent base salary
riod with the regular wages paid during the payroll pay date (May 1) ($2,000 + $1,000 + $2,000 =
period, figure the tax on the total, subtract the tax $5,000).
already withheld from the regular wages and the
previous supplemental wage payments, and with- 2. Determine the amount of withholding on the com-
hold the remaining tax. bined $5,000 amount to be $461 using the wage
bracket tables.
2. If you didn't withhold income tax from the employee's
regular wages in the current or immediately preceding 3. Subtract the amounts withheld from wages on the
calendar year, use method 1b. most recent base salary pay date (May 1) and the
amounts withheld from the first bonus payment from
Regardless of the method you use to withhold income tax the combined withholding amount ($461 – $86 – $116
on supplemental wages, they’re subject to social security, = $259).
Medicare, and FUTA taxes.
4. Withhold $259 from the second bonus payment.
Example 1. You pay John Peters a base salary on the
1st of each month. John’s most recent Form W-4 is from Tips are treated as supplemental wages. Withhold in-
2018, and John is single, claims one withholding allow- come tax on tips from wages earned by the employee or
ance, and didn’t enter an amount for additional withhold- from other funds the employee makes available. Don't
ing on Form W-4. In January, John is paid $1,000. You withhold the income tax due on tips from employee tips. If
decide to use the Wage Bracket Method of withholding. an employee receives regular wages and reports tips, fig-
Using Worksheet 3 and the withholding tables in section 3 ure income tax withholding as if the tips were supplemen-
of Pub. 15-T, you withhold $20 from this amount. In Febru- tal wages. If you withheld income tax from the regular wa-
ary, John receives salary of $1,000 plus a commission of ges in the current or immediately preceding calendar year,
$500, which you combine with regular wages and don't you can withhold on the tips by method 1a or 1b dis-
separately identify. You figure the withholding based on cussed earlier in this section under Supplemental wages
the total of $1,500. The correct withholding from the tables identified separately from regular wages. If you didn’t with-
is $72. hold income tax from the regular wages in the current or
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 2023 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
and the withholding tables in section 2 of Pub. 15-T, you Vacation pay. Vacation pay is subject to withholding as if
withhold $86. On May 15, Sharon receives a bonus of it were a regular wage payment. When vacation pay is in
$1,000. Electing to use supplemental wage withholding addition to regular wages for the vacation period (for ex-
method 1b, you do the following. ample, an annual lump-sum payment for unused vacation
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 $202 using the wage 8. Payroll Period
bracket tables.
3. Subtract the amount withheld from wages on the most Your payroll period is a period of service for which you
recent base salary pay date (May 1) from the com- usually pay wages. When you have a regular payroll pe-
bined withholding amount ($202 – $86 = $116). riod, withhold income tax for that time period even if your
employee doesn't work the full period.
4. Withhold $116 from the bonus payment.
No regular payroll period. When you don't have a reg-
ular payroll period, withhold the tax as if you paid wages

Page 20 Publication 15 (2023)

- 21 -

Page 21 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

for a daily or miscellaneous payroll period. Figure the An employee who submitted Form W 4 in any year be-‐
number of days (including Sundays and holidays) in the fore 2020 isn’t required to submit a new form merely be-
period covered by the wage payment. If the wages are un- cause of the redesign. Employers will continue to figure
related to a specific length of time (for example, commis- withholding based on the information from the employee's
sions paid on completion of a sale), count back the num- most recently submitted Form W 4. The withholding tables ‐
ber of days from the payment period to the latest of: in Pub. 15 T allow employers to figure withholding based ‐
on a Form W 4 for 2019 or earlier, as well as the rede-
• The last wage payment made during the same calen- ‐
signed Form W 4. While you may ask your employee first
dar year; ‐
paid wages before 2020 that hasn’t yet submitted a rede-
• The date employment began, if during the same cal- signed Form W 4 to submit a new Form W 4 using the re-‐ ‐
endar year; or designed version of the form, you should explain to them
• January 1 of the same year. that they’re not required to do this and if they don't submit
a new Form W 4, withholding will continue based on a ‐
Employee paid for period less than 1 week. When valid Form W 4 previously submitted. All newly hired em-‐
you pay an employee for a period of less than 1 week, and ployees must use the redesigned form. Similarly, any
the employee signs a statement under penalties of perjury other employees who wish to adjust their withholding must
indicating they aren’t working for any other employer dur- use the redesigned form.
ing the same week for wages subject to withholding, fig- Pub. 15 T provides an optional computational bridge to ‐
ure withholding based on a weekly payroll period. If the treat 2019 and earlier Forms W 4 as if they were 2020 or ‐
employee later begins to work for another employer for later Forms W 4 for purposes of figuring federal income ‐
wages subject to withholding, the employee must notify tax withholding. This computational bridge allows you to
you within 10 days. You then figure withholding based on use computational procedures and data fields for a 2020
the daily or miscellaneous period. and later Form W-4 to arrive at the equivalent withholding
for an employee that would have applied using the com-
putational procedures and data fields on a 2019 or earlier
Form W-4. See How To Treat 2019 and Earlier Forms W 4 ‐
9. Withholding From as if They Were 2020 or Later Forms W 4‐ in the Introduc-
Employees' Wages tion section of Pub. 15-T.
More information. For more information about the re-
Federal Income Tax Withholding designed Form W 4 and regulations that provide guidance ‐
for employers concerning income tax withholding from
Redesigned Form W 4. ‐ The IRS redesigned Form W 4 ‐ employees’ wages, see Treasury Decision 9924, 2020 44 ‐
for 2020 and subsequent years. Before 2020, the value of I.R.B. 943, available at IRS.gov/irb/2020 44_IRB#TD‐ ‐
a withholding allowance was tied to the amount of the per- 9924. For information about Form W 4, go to ‐ IRS.gov/
sonal exemption. Due to changes in the law, taxpayers FormW4. Employer instructions on how to figure em-
can no longer claim personal exemptions or dependency ployee withholding are provided in Pub. 15 T, available at ‐
exemptions; therefore, Form W 4 no longer asks an em-‐ IRS.gov/Pub15T.
ployee to report the number of withholding allowances
that they are claiming. The revised Form W 4 is divided ‐ Using Form W-4 to figure withholding. To know how
into five steps. Step 1 and Step 5 apply to all employees. much federal income tax to withhold from employees' wa-
In Step 1, employees enter personal information like their ges, you should have a Form W-4 on file for each em-
name and filing status. In Step 5, employees sign the ployee. Encourage your employees to file an updated
form. Employees who complete only Step 1 and Step 5 Form W-4 for 2023, especially if they owed taxes or re-
will have their withholding figured based on their filing sta- ceived a large refund when filing their 2022 tax return.
tus's standard deduction and tax rates with no other ad- Ask all new employees to give you a signed Form W-4
justments. If applicable, in Step 2, employees increase when they start work. Make the form effective with the first
their withholding to account for higher tax rates due to in- wage payment. If a new employee doesn't give you a
come from other jobs in their household. Under Step 2, completed Form W-4 in 2023 (including an employee who
employees either enter an additional amount to withhold previously worked for you and was rehired in 2023, and
per payroll period in Step 4(c) or check the box in Step who fails to furnish a Form W-4), treat the new employee
2(c) for higher withholding rate tables to apply to their wa- as if they had checked the box for Single or Married filing
ges. In Step 3, employees decrease their withholding by separately in Step 1(c) and made no entries in Step 2,
reporting the annual amount of any credits they will claim Step 3, or Step 4 of the 2023 Form W-4. An employee
on their income tax return. In Step 4, employees may in- who was paid wages before 2020 and who failed to fur-
crease or decrease their withholding based on the annual nish a Form W-4 should continue to be treated as single
amount of other income or deductions they will report on and claiming zero allowances on a 2019 Form W-4. If you
their income tax return and they may also request any ad- use the optional computational bridge, described earlier
ditional federal income tax they want withheld each pay under Redesigned Form W-4, you may treat this em-
period. ployee as if they had checked the box for Single or Mar-
ried filing separately in Step 1(c), and made no entries in

Publication 15 (2023) Page 21

- 22 -

Page 22 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Step 2 and Step 3, an entry of $8,600 in Step 4(a), and an necessary, pay estimated tax by filing Form 1040-ES or
entry of zero in Step 4(b) of the 2023 Form W-4. by using EFTPS to make estimated tax payments. Em-
ployees who receive tips may provide funds to their em-
Form in Spanish. You can provide Formulario
ployer for withholding on tips; see Collecting taxes on tips
W-4(SP) in place of Form W-4 to your Spanish-speaking
in section 6.
employees. For more information, see Pub. 17(SP). The
rules discussed in this section that apply to Form W-4 also Exemption from federal income tax withholding.
apply to Formulario W-4(SP). Generally, an employee may claim exemption from fed-
Electronic system to receive Form W-4. You may eral income tax withholding because they had no income
establish a system to electronically receive Forms W-4 tax liability last year and expect none this year. See the
from your employees. See Regulations section 31.3402(f) Form W-4 instructions for more information. However, the
(5)-1(c) and Pub. 15-T for more information. wages are still subject to social security and Medicare
taxes. See also Invalid Forms W-4, later in this section.
Effective date of Form W-4. A Form W-4 for 2022 or A Form W-4 claiming exemption from withholding is ef-
earlier years remains in effect for 2023 unless the em- fective when it is given to the employer and only for that
ployee gives you a 2023 Form W-4. When you receive a calendar year. To continue to be exempt from withholding,
new Form W-4 from an employee, don't adjust withholding an employee must give you a new Form W-4 by February
for pay periods before the effective date of the new form. If 15. If the employee doesn't give you a new Form W-4 by
an employee gives you a Form W-4 that replaces an exist- February 15, begin withholding as if they had checked the
ing Form W-4, begin withholding no later than the start of box for Single or Married filing separately in Step 1(c) and
the first payroll period ending on or after the 30th day from made no entries in Step 2, Step 3, or Step 4 of the 2023
the date when you received the replacement Form W-4. Form W-4. If the employee provides a new Form W-4
For exceptions, see Exemption from federal income tax claiming exemption from withholding on February 16 or
withholding IRS review of requested Forms W-4, , and In- later, you may apply it to future wages but don't refund any
valid Forms W-4, later in this section. taxes withheld while the exempt status wasn’t in place.
A Form W-4 that makes a change for the next cal-
Withholding income taxes on the wages of nonresi-
! endar year won't take effect in the current calen- dent alien employees. In general, you must withhold
CAUTION dar year.
federal income taxes on the wages of nonresident alien
Successor employer. If you’re a successor employer employees. However, see Pub. 515 for exceptions to this
(see Successor employer, later in this section), secure general rule. Also see section 3 of Pub. 51 for guidance
new Forms W-4 from the transferred employees unless on H-2A visa workers.

the “Alternative Procedure” in section 5 of Revenue Pro- Withholding adjustment for nonresident alien em-
cedure 2004-53 applies. See Revenue Procedure ployees. Nonresident aliens may not claim the standard
2004-53, 2004-34 I.R.B. 320, available at IRS.gov/irb/ deduction on their tax returns; therefore, employers must
2004-34_IRB#RP-2004-53. add an amount to the wages of nonresident alien employ-
Completing Form W-4. The amount of any federal ees performing services within the United States in order
income tax withholding must be based on filing status, in- to figure the amount of federal income tax to withhold from
come (including income from other jobs), deductions, and their wages. The amount is added to their wages solely for
credits. Your employees may not base their withholding calculating federal income tax withholding. The amount
amounts on a fixed dollar amount or percentage. How- isn’t included in any box on the employee's Form W-2 and
ever, an employee may specify a dollar amount to be with- doesn’t increase the income tax liability of the employee.
held each pay period in addition to the amount of with- The amount also doesn't increase the social security tax
holding based on filing status and other information or Medicare tax liability of the employer or the employee,
reported on Form W-4. or the FUTA tax liability of the employer. See Withholding
Employees that are married filing jointly and have spou- Adjustment for Nonresident Alien Employees in the Intro-
ses that also currently work, or employees that hold more duction section of Pub. 15-T for the amount to add to their
than one job at the same time, should account for their wages for the payroll period.
higher tax rate by completing Step 2 of their 2023 Form Supplemental wage payment. The adjustment for
W-4. Employees also have the option to report on their determining the amount of income tax withholding for non-
2023 Form W-4 other income they will receive that isn't resident alien employees doesn't apply to a supplemental
subject to withholding and other deductions they will claim wage payment (see section 7) if the 37% mandatory flat
in order to increase the accuracy of their federal income rate withholding applies or if the 22% optional flat rate
tax withholding. withholding is being used to calculate income tax with-
See Pub. 505 for more information about completing holding on the supplemental wage payment.
Form W-4. Along with Form W-4, you may wish to order
Pub. 505 for use by your employees. Nonresident alien employee's Form W-4. When com-
Don't accept any withholding or estimated tax pay- pleting Forms W-4, nonresident aliens are required to:
ments from your employees in addition to withholding
based on their Form W-4. If they require additional with- • Not claim exemption from income tax withholding
holding, they should submit a new Form W-4 and, if (even if they meet both of the conditions to claim

Page 22 Publication 15 (2023)

- 23 -

Page 23 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

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

Publication 15 (2023) Page 23

- 24 -

Page 24 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

W-4. You must withhold based on the notice or modifica- you a valid one, and you have an earlier Form W-4 for this
tion notice unless the IRS notifies you to withhold based employee that is valid, withhold as you did before. If you
on the new Form W-4. If the employee wants to put a new don't have an earlier Form W-4 that is valid, withhold tax
Form W-4 into effect that results in less withholding than as if the employee had checked the box for Single or Mar-
required, 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 no- Step 2, Step 3, or Step 4 of the 2023 Form W-4. However,
tice, your employee gives you a new completed Form W-4 an employee who was paid wages in 2019 who never
that results in more withholding than would result under submitted a valid Form W-4 and submits an invalid Form
the notice or modification notice, you must withhold tax W-4 in 2023 should continue to be treated as single and
based on the new Form W-4. Otherwise, disregard any claiming zero allowances on a 2019 Form W-4. If you use
subsequent Forms W-4 provided by the employee and the optional computational bridge, described earlier under
withhold based on the IRS notice or modification notice. Redesigned Form W-4, you may treat this employee as if
they had checked the box for Single or Married filing sep-
If, in a year before 2020, you received a lock-in
arately in Step 1(c), and made no entries in Step 2 and
! letter for an employee, then for 2023 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 2023 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 (Forms 668-W(ACS), 668-W(c)
or later Forms W-4 for purposes of figuring federal income (DO), or 668-W(ICS)), you must withhold amounts as de-
tax withholding. See How To Treat 2019 and Earlier scribed in the instructions for these forms. Pub. 1494 has
Forms W-4 as if They Were 2020 or Later Forms W-4 in tables to figure the amount exempt from levy. If a levy is-
the Introduction section of Pub. 15-T. You should continue sued in a prior year is still in effect and the taxpayer sub-
following the instructions in the pre-2020 lock-in letter until mits a new Statement of Exemptions and Filing Status,
you receive a letter releasing your employee from the use the current year Pub. 1494 to figure the exempt
lock-in procedures, you receive a modification notice, or amount.
your employee 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
compliance, see IRS.gov/WHC. The Federal Insurance Contributions Act (FICA) provides
for a federal system of old-age, survivors, disability, and
Substitute Forms W-4. You’re encouraged to have your hospital insurance. The old-age, survivors, and disability
employees use the official version of Form W-4. You may insurance part is financed by the social security tax. The
use a substitute version of Form W-4 to meet your busi- hospital insurance part is financed by the Medicare tax.
ness needs. However, your substitute Form W-4 must Each of these taxes is reported separately.
contain language that is identical to the official Form W-4
and your form must meet all current IRS rules for substi- Generally, you’re required to withhold social security
tute forms. At the time you provide your substitute form to and Medicare taxes from your employees' wages and pay
the employee, you must provide them with all tables, in- the employer share of these taxes. Certain types of wages
structions, and worksheets from the current Form W-4. and compensation aren't subject to social security and
For more information, see Pub. 15-T. Medicare taxes. See section 5 and section 15 for details.
You can't accept substitute Forms W-4 developed by Generally, employee wages are subject to social security
employees. An employee who submits an employee-de- and Medicare taxes regardless of the employee's age or
veloped substitute Form W-4 after October 10, 2007, will whether they are receiving social security benefits. If the
be treated as failing to furnish a Form W-4. However, con- employee reported tips, see section 6.
tinue to honor any valid employee-developed Forms W-4
Tax rates and the social security wage base limit.
you accepted before October 11, 2007.
Social security and Medicare taxes have different rates
Invalid Forms W-4. Any unauthorized change or addi- and only the social security tax has a wage base limit. The
tion to Form W-4 makes it invalid. This includes taking out wage base limit is the maximum wage subject to the tax
any language by which the employee certifies the form is for the year. Determine the amount of withholding for so-
correct. A Form W-4 is also invalid if, by the date an em- cial security and Medicare taxes by multiplying each pay-
ployee gives it to you, they clearly indicate it is false. An ment by the employee tax rate.
employee who submits a false Form W-4 may be subject For 2023, the social security tax rate is 6.2% (amount
to a $500 penalty. You may treat a Form W-4 as invalid if withheld) each for the employer and employee (12.4% to-
the employee wrote “exempt” below Step 4(c) and tal). The social security wage base limit is $160,200. The
checked the box in Step 2(c) or entered numbers for tax rate for Medicare is 1.45% (amount withheld) each for
Steps 3 and 4. the employee and employer (2.9% total). There is no
When you get an invalid Form W-4, don't use it to figure wage base limit for Medicare tax; all covered wages are
federal income tax withholding. Tell the employee it is in- subject to Medicare tax.
valid and ask for another one. If the employee doesn't give

Page 24 Publication 15 (2023)

- 25 -

Page 25 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Qualified sick leave wages and qualified family project employer and motion picture project worker, see
! leave wages for leave taken after March 31, 2020, section 3512.
CAUTION and before April 1, 2021, aren't subject to the em-
ployer share of social security tax; therefore, the tax rate Withholding social security and Medicare taxes on
on these wages is 6.2%. Qualified sick leave wages and nonresident alien employees. In general, if you pay
qualified family leave wages for leave taken after March wages to nonresident alien employees, you must withhold
31, 2021, and before October 1, 2021, are subject to both social security and Medicare taxes as you would for a
the employer share (6.2%) and employee share (6.2%) of U.S. citizen or resident alien. However, see Pub. 515 for
social security tax (12.4% total). exceptions to this general rule.

International social security agreements. The United
Additional Medicare Tax withholding. In addition to States has social security agreements, also known as to-
withholding Medicare tax at 1.45%, you must withhold a talization agreements, with many countries that eliminate
0.9% Additional Medicare Tax from wages you pay to an dual social security coverage and taxation. Compensation
employee in excess of $200,000 in a calendar year. subject to social security and Medicare taxes may be ex-
You’re required to begin withholding Additional Medicare empt under one of these agreements. You can get more
Tax in the pay period in which you pay wages in excess of information and a list of agreement countries from the
$200,000 to an employee and continue to withhold it each SSA at SSA.gov/international. Also see Pub. 519, U.S.
pay period until the end of the calendar year. Additional Tax Guide for Aliens.
Medicare Tax is only imposed on the employee. There is
no employer share of Additional Medicare Tax. All wages Religious exemption. An exemption from social secur-
that are subject to Medicare tax are subject to Additional ity and Medicare taxes is available to members of a recog-
Medicare Tax withholding if paid in excess of the nized religious sect opposed to insurance. This exemption
$200,000 withholding threshold. is available only if both the employee and the employer
For more information on what wages are subject to are members of the sect. For more information, see Pub.
Medicare tax, see section 15. For more information on Ad- 517.
ditional Medicare Tax, go to IRS.gov/ADMTfaqs.
Foreign persons treated as American employers.
Successor employer. When corporate acquisitions Under section 3121(z), a foreign person who meets both
meet certain requirements, wages paid by the predeces- of the following conditions is generally treated as an
sor are treated as if paid by the successor for purposes of American employer for purposes of paying FICA taxes on
applying the social security wage base and for applying wages paid to an employee who is a U.S. citizen or resi-
the Additional Medicare Tax withholding threshold (that is, dent.
$200,000 in a calendar year). You should determine
whether or not you should file Schedule D (Form 941), Re- 1. The foreign person is a member of a domestically
port of Discrepancies Caused by Acquisitions, Statutory controlled group of entities.
Mergers, or Consolidations, by reviewing the Instructions 2. The employee of the foreign person performs serv-
for Schedule D (Form 941). See Regulations section ices in connection with a contract between the U.S.
31.3121(a)(1)-1(b) for more information. Also see Reve- Government (or an instrumentality of the U.S. Govern-
nue Procedure 2004-53, 2004-34 I.R.B. 320, available at ment) and any member of the domestically controlled
IRS.gov/irb/2004-34_IRB#RP-2004-53. group of entities. Ownership of more than 50% consti-
tutes control.
Example. Early in 2023, you bought all of the assets of
a plumbing business from Mr. Martin. Mr. Brown, who had
been employed by Mr. Martin and received $2,000 in wa- Part-Time Workers
ges before the date of purchase, continued to work for
Part-time workers and workers hired for short periods of
you. The wages you paid to Mr. Brown are subject to so-
time are treated the same as full-time employees for fed-
cial security taxes on the first $158,200 ($160,200 minus
eral income tax withholding and social security, Medicare,
$2,000). Medicare tax is due on all of the wages you pay
and FUTA tax purposes.
Mr. Brown during the calendar year. You should include
the $2,000 Mr. Brown received while employed by Mr. Generally, it doesn't matter whether the part-time
Martin in determining whether Mr. Brown's wages exceed worker or worker hired for a short period of time has an-
the $200,000 for Additional Medicare Tax withholding other job or has the maximum amount of social security
threshold. tax withheld by another employer. See Successor em-
ployer, earlier, for an exception to this rule.
Motion picture project employers. All wages paid by a
motion picture project employer to a motion picture project Income tax withholding may be figured the same way
worker during a calendar year are subject to a single so- as for full-time workers or it may be figured by the
cial security tax wage base ($160,200 for 2023) and a sin- part-year employment method explained in section 6 of
gle FUTA tax wage base ($7,000 for 2023) regardless of Pub. 15-T.
the worker's status as a common law employee of multiple
clients of the motion picture project employer. For more
information, including the definition of a motion picture

Publication 15 (2023) Page 25

- 26 -

Page 26 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Payment with return. You may make a payment with a
timely filed Form 941 or Form 944 instead of depositing,
10. Required Notice to without incurring a penalty, if one of the following applies.
Employees About the Earned • You’re a monthly schedule depositor (defined later)
and make a payment in accordance with the Accuracy
Income Credit (EIC) of Deposits Rule, discussed later in this section. This
payment may be $2,500 or more.
You must notify employees who have no federal income
tax withheld that they may be able to claim a tax refund • Your Form 941 total tax liability (Form 941, line 12) for
because of the EIC. Although you don't have to notify em- either the current quarter or the prior quarter is less
ployees who claim exemption from withholding on Form than $2,500, and you didn't incur a $100,000 next-day
W-4 about the EIC, you’re encouraged to notify any em- deposit obligation during the current quarter. If you
ployees whose wages for 2022 were less than $53,057 aren't sure your total tax liability for the current quarter
($59,187 if married filing jointly) that they may be eligible will be less than $2,500 (and your liability for the prior
to claim the credit for 2022. This is because eligible em- quarter wasn't less than $2,500), make deposits using
ployees may get a refund of the amount of the EIC that is the semiweekly or monthly rules so you won't be sub-
more than the tax they owe. ject to an FTD penalty.
You’ll meet this notification requirement if you issue the • Your Form 944 net tax liability for the year (Form 944,
line 9) is less than $2,500.
employee Form W-2 with the EIC notice on the back of
Copy B, or a substitute Form W-2 with the same state- • Your Form 944 net tax liability for the year (Form 944,
ment. You’ll also meet the requirement by providing No- line 9) is $2,500 or more and you already deposited
tice 797, Possible Federal Tax Refund Due to the Earned the taxes you owed for the first, second, and third
Income Credit (EIC), or your own statement that contains quarters of the year; your net tax for the fourth quarter
the same wording. is less than $2,500; and you're paying, in full, the tax
you owe for the fourth quarter with a timely filed return.
If a substitute for Form W-2 is given to the employee on
time but doesn't have the required statement, you must Separate deposit requirements for nonpayroll (Form
notify the employee within 1 week of the date the substi- 945) tax liabilities. Separate deposits are required for
tute for Form W-2 is given. If Form W-2 is required but isn't nonpayroll and payroll income tax withholding. Don't com-
given on time, you must give the employee Notice 797 or bine deposits for Forms 941 (or Form 944) and Form 945
your written statement by the date Form W-2 is required to tax liabilities. Generally, the deposit rules for nonpayroll li-
be given. If Form W-2 isn't required, you must notify the abilities are the same as discussed next, except the rules
employee by February 7, 2023. apply to an annual rather than a quarterly return period. If
the total amount of tax for the year reported on Form 945
is less than $2,500, you're not required to make deposits
11. Depositing Taxes during the year. See the separate Instructions for Form
945 for more information.
If an employer is eligible to claim a credit for quali-
TIP fied sick and family leave wages during 2023, the
When To Deposit
employer can reduce their deposits by the
amount of their anticipated credit. Employers won't be
There are two deposit schedules—monthly and semi-
subject to an FTD penalty for properly reducing their de-
weekly—for determining when you deposit social security,
posits if certain conditions are met. For more information
Medicare, and withheld federal income taxes. These
on reducing deposits, see Notice 2020-22, 2020-17 I.R.B.
schedules tell you when a deposit is due after a tax liability
664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22;
arises. Your tax liability is based on the dates payments
Notice 2021-24, 2021-18 I.R.B. 1122, available at
were made or wages were paid. For taxable noncash
IRS.gov/irb/2021-18_IRB#NOT-2021-24; and the Instruc-
fringe benefits, see When taxable fringe benefits are trea-
tions for Form 941 or the Instructions for Form 944. For
ted as paid in section 5. Before the beginning of each cal-
more information about the credit for qualified sick and
endar year, you must determine which of the two deposit
family leave wages, go to IRS.gov/PLC.
schedules you’re required to use. The deposit schedule
you must use is based on the total tax liability you repor-
Generally, you must deposit federal income tax with- ted on Forms 941, line 12, or Form 944, line 9, during a
held and both the employer and employee social security lookback period, discussed next. Your deposit schedule
and Medicare taxes. You must use EFT to make all fed- isn't determined by how often you pay your employees or
eral tax deposits. See How To Deposit, later in this sec- make deposits. See special rules for Forms 944 and 945,
tion, for information on electronic deposit requirements. later. Also see Application of Monthly and Semiweekly
Schedules, later in this section.
These rules don't apply to FUTA tax. See section
! 14 for information on depositing FUTA tax.
CAUTION

Page 26 Publication 15 (2023)

- 27 -

Page 27 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Lookback period. If you’re a Form 941 filer, your de- Deposit period. The term “deposit period” refers to the
posit schedule for a calendar year is determined from the period during which tax liabilities are accumulated for
total taxes reported on Forms 941, line 12, in a 4-quarter each required deposit due date. For monthly schedule de-
lookback period. The lookback period begins July 1 and positors, the deposit period is a calendar month. The de-
ends June 30 as shown next in Table 1. If you reported posit periods for semiweekly schedule depositors are
$50,000 or less of taxes for the lookback period, you’re a Wednesday through Friday and Saturday through Tues-
monthly schedule depositor; if you reported more than day.
$50,000, you’re a semiweekly schedule depositor.
If you're an agent with an approved Form 2678,
TIP the deposit rules apply to you based on the total
Table 1. Lookback Period for Calendar Year employment taxes accumulated by you for your
2023 own employees and on behalf of all employers for whom
July 1, 2021, Oct. 1, 2021, Jan. 1, 2022, Apr. 1, 2022, you're authorized to act. For more information on an agent
through through through through with an approved Form 2678, see Revenue Procedure
Sept. 30, 2021 Dec. 31, 2021 Mar. 31, 2022 June 30, 2022 2013-39, 2013-52 I.R.B. 830, available at IRS.gov/irb/
2013-52_IRB#RP-2013-39.
The lookback period for a 2023 Form 941 filer
! who filed Form 944 in either 2021 or 2022 is cal- Monthly Deposit Schedule
CAUTION endar year 2021.
If you’re a Form 944 filer for the current year or either of You’re a monthly schedule depositor for a calendar year if
the preceding 2 years, your deposit schedule for a calen- the total taxes on Forms 941, line 12, for the 4 quarters in
dar year is determined from the total taxes reported during your lookback period were $50,000 or less. Under the
the second preceding calendar year (either on your Forms monthly deposit schedule, deposit employment taxes on
941 for all 4 quarters of that year or your Form 944 for that payments made during a month by the 15th day of the fol-
year). The lookback period for 2023 for a Form 944 filer is lowing month. See also Deposits Due on Business Days
calendar year 2021. If you reported $50,000 or less of Only and $100,000 Next-Day Deposit Rule, later in this
taxes for the lookback period, you’re a monthly schedule section. Monthly schedule depositors shouldn't file Form
depositor; if you reported more than $50,000, you’re a 941 or Form 944 on a monthly basis.
semiweekly schedule depositor.
If you’re a Form 945 filer, your deposit schedule for a New employers. Your tax liability for any quarter in the
calendar year is determined from the total taxes reported lookback period before you started or acquired your busi-
on line 3 of your Form 945 for the second preceding cal- ness is considered to be zero. Therefore, you’re a monthly
endar year. The lookback period for 2023 for a Form 945 schedule depositor for the first calendar year of your busi-
filer is calendar year 2021. ness. However, see $100,000 Next-Day Deposit Rule,
later in this section.
Your total tax liability for the lookback period is
TIP determined based on the amount of taxes you re- Semiweekly Deposit Schedule
ported on Forms 941, line 12, or Form 944, line 9.
Your total liability isn’t reduced by the refundable portion You’re a semiweekly schedule depositor for a calendar
of the credit for qualified sick and family leave wages, the year if the total taxes on Forms 941, line 12, during your
refundable portion of the employee retention credit, or the lookback period were more than $50,000. Under the semi-
refundable portion of the COBRA premium assistance weekly deposit schedule, deposit employment taxes for
credit. For more information about these credits, see the payments made on Wednesday, Thursday, and/or Friday
instructions for your employment tax return that were ap- by the following Wednesday. Deposit taxes for payments
plicable during the lookback period. made on Saturday, Sunday, Monday, and/or Tuesday by
the following Friday. See also Deposits Due on Business
Adjustments and the lookback rule. Adjustments Days Only, later in this section.
made on Form 941-X, Form 944-X, and Form 945-X don't
affect the amount of tax liability for previous periods for Semiweekly schedule depositors must complete
purposes of the lookback rule. ! Schedule B (Form 941), Report of Tax Liability for
CAUTION Semiweekly Schedule Depositors, and submit it
Example. An employer originally reported a tax liabil- with Form 941. If you file Form 944 or Form 945 and are a
ity of $45,000 for the lookback period. The employer dis- semiweekly schedule depositor, complete Form 945-A,
covered, during January 2023, that the tax reported for Annual Record of Federal Tax Liability, and submit it with
one of the lookback period quarters was understated by your return (instead of Schedule B).
$10,000 and corrected this error by filing Form 941-X.
This employer is a monthly schedule depositor for 2023
because the lookback period tax liabilities are based on
the amounts originally reported, and they were $50,000 or
less. The $10,000 adjustment is also not treated as part of
the 2023 taxes.

Publication 15 (2023) Page 27

- 28 -

Page 28 of 49         Fileid: … ations/p15/2023/a/xml/cycle05/source                        15:08 - 13-Dec-2022

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

Table 2. Semiweekly Deposit Schedule                                   2022 Lookback Period 2023 Lookback Period
                                                                  3rd Quarter 2020  $12,000 3rd Quarter 2021              $12,000
IF the payday falls on a... THEN deposit taxes by the             4th Quarter 2020  12,000 4th Quarter 2021               12,000
                            following...
                                                                  1st Quarter 2021  12,000 1st Quarter 2022               12,000
Wednesday, Thursday, and/or Wednesday.                            2nd Quarter 2021  12,000 2nd Quarter 2022              15,000
Friday                                                                              $48,000                               $51,000
Saturday, Sunday, Monday,   Friday.
and/or Tuesday                                                    Rose Co. is a monthly schedule depositor for 2022 be-
                                                                  cause its tax liability for the 4 quarters in its lookback pe-
Semiweekly  deposit  period  spanning  two  quarters              riod  (third  quarter  2020  through  second  quarter  2021) 
(Form  941  filers). If  you  have  more  than  one  pay  date    wasn't more than $50,000. However, for 2023, Rose Co. 
during a semiweekly period and the pay dates fall in differ-      will be a semiweekly schedule depositor because the total 
ent calendar quarters, you’ll need to make separate de-           taxes exceeded $50,000 for the 4 quarters in its lookback 
posits for the separate liabilities.                              period (third quarter 2021 through second quarter 2022).

Example.       If you have a pay date on Saturday, Sep-           Deposits Due on Business Days Only
tember 30, 2023 (third quarter), and another pay date on 
Monday,  October  2,  2023  (fourth  quarter),  two  separate     If a deposit is required to be made on a day that isn't a 
deposits would be required even though the pay dates fall         business day, the deposit is considered timely if it is made 
within the same semiweekly period. Both deposits would            by the close of the next business day. A business day is 
be due Friday, October 6, 2023.                                   any day other than a Saturday, Sunday, or legal holiday. 
                                                                  For example, if a deposit is required to be made on a Fri-
Semiweekly deposit period spanning two return peri-
                                                                  day and Friday is a legal holiday, the deposit will be con-
ods (Form 944 or Form 945 filers).    The period covered 
                                                                  sidered timely if it is made by the following Monday (if that 
by a return is the return period. The return period for an-
                                                                  Monday is a business day).
nual Forms 944 and 945 is a calendar year. If you have 
more than one pay date during a semiweekly period and 
                                                                  Semiweekly  schedule  depositors  have  at  least  3 
the pay dates fall in different return periods, you'll need to 
                                                                  business days following the close of the semiweekly pe-
make separate deposits for the separate liabilities. For ex-
                                                                  riod to make a deposit. If any of the 3 weekdays after the 
ample, if a return period ends on Thursday, taxes accu-
                                                                  end of a semiweekly period is a legal holiday, you’ll have 
mulated on Wednesday and Thursday are subject to one 
                                                                  an  additional  day  for  each  day  that  is  a  legal  holiday  to 
deposit obligation, and taxes accumulated on Friday are 
                                                                  make the required deposit. For example, if a semiweekly 
subject to a separate obligation. Separate deposits are re-
                                                                  schedule  depositor  accumulated  taxes  for  payments 
quired because two different return periods are affected.
                                                                  made on Friday and the following Monday is a legal holi-
                                                                  day,  the  deposit  normally  due  on  Wednesday  may  be 
   Summary of Steps to Determine Your Deposit Schedule            made on Thursday (this allows 3 business days to make 
1. Identify your lookback period (see Lookback period, earlier in 
this section).                                                    the deposit).

2. Add the total taxes you reported on Forms 941, line 12, during Legal holiday.   The term “legal holiday” means any legal 
the lookback period.
3. Determine if you’re a monthly or semiweekly schedule           holiday in the District of Columbia. For purposes of the de-
depositor:                                                        posit rules, the term “legal holiday” doesn't include other 
                                                                  statewide legal holidays. Legal holidays for 2023 are listed 
IF the total taxes you      THEN you’re a...                      next.
reported in the lookback 
period were...                                                    • January 2—New Year's Day (observed)
$50,000 or less             monthly schedule depositor.           • January 16—Birthday of Martin Luther King, Jr.
more than $50,000           semiweekly schedule                   • February 20—Washington's Birthday
                            depositor.
                                                                  • April 17—District of Columbia Emancipation Day (ob-
                                                                    served)
Example of Monthly and Semiweekly                                 • May 29—Memorial Day
Schedules                                                         • June 19—Juneteenth National Independence Day
Rose Co. reported Form 941 taxes as follows:                      • July 4—Independence Day
                                                                  • September 4—Labor Day
                                                                  • October 9—Columbus Day
                                                                  • November 10—Veterans Day (observed)
                                                                  • November 23—Thanksgiving Day
                                                                  • December 25—Christmas Day

Page 28                                                                                      Publication 15 (2023)

- 29 -

Page 29 of 49     Fileid: … ations/p15/2023/a/xml/cycle05/source                                     15:08 - 13-Dec-2022

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

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                         If you’re a monthly schedule depositor and accu-
schedule depositor” don't refer to how often your business             !       mulate a $100,000 tax liability on any day during 
pays its employees or even how often you’re required to                CAUTION the  deposit  period,  you  become  a  semiweekly 
make  deposits.  The  terms  identify  which  set  of  deposit         schedule depositor on the next day and remain so for at 
rules you must follow when an employment tax liability ari-            least  the  rest  of  the  calendar  year  and  for  the  following 
ses. The deposit rules are based on the dates when wa-                 calendar year.
ges are paid (cash basis), not on when tax liabilities are 
accrued for accounting purposes.
                                                                       Example.       Elm,  Inc.,  started  its  business  on  May  1, 
Monthly  schedule  example.   Spruce  Co.  is  a  monthly              2023. On Wednesday, May 3, 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 May but didn't pay any wages dur-               May 5, Elm, Inc., paid wages and accumulated a liability 
ing  June.  Under  the  monthly  deposit  schedule,  Spruce            of  $60,000,  bringing  its  total  accumulated  tax  liability  to 
Co. must deposit the combined tax liabilities for the May              $100,000. Because this was the first year of its business, 
paydays by June 15. Spruce Co. doesn't have a deposit                  the tax liability for its lookback period is considered to be 
requirement for June (due by July 15) because no wages                 zero, and it would be a monthly schedule depositor based 
were  paid  and,  therefore,  it  didn't  have  a  tax  liability  for on the lookback rules. However, since Elm, Inc., accumu-
June.                                                                  lated  a  $100,000  liability  on  May  5,  it  became  a  semi-
                                                                       weekly  schedule  depositor  on  May  6.  It  will  be  a  semi-
Semiweekly schedule example.    Green, Inc., is a semi-                weekly schedule depositor for the remainder of 2023 and 
weekly  schedule  depositor  and  pays  wages  once  each              for 2024. Elm, Inc., is required to deposit the $100,000 by 
month  on  the  last  Friday  of  the  month.  Although  Green,        Monday, May 8, the next business day.
Inc.,  has  a  semiweekly  deposit  schedule,  it  will  deposit               The  $100,000  tax  liability  threshold  requiring  a 
just  once  a  month  because  it  pays  wages  only  once  a          TIP     next-day  deposit  is  determined  before  you  con-
month.  The  deposit,  however,  will  be  made  under  the                    sider any reduction of your liability for nonrefunda-
semiweekly deposit schedule as follows: Green, Inc.'s tax              ble  credits.  For  more  information,  see  frequently  asked 
liability for the April 28, 2023 (Friday), payday must be de-          question 17 at IRS.gov/ETD.
posited  by  May  3,  2023  (Wednesday).  Under  the  semi-
weekly  deposit  schedule,  liabilities  for  wages  paid  on 
Wednesday through Friday must be deposited by the fol-                 Accuracy of Deposits Rule
lowing Wednesday.
                                                                       You’re required to deposit 100% of your tax liability on or 
$100,000 Next-Day Deposit Rule                                         before the deposit due date. However, penalties won't be 
                                                                       applied for depositing less than 100% if both of the follow-
If you accumulate $100,000 or more in taxes on any day                 ing conditions are met.
during a monthly or semiweekly deposit period (see De-                 •  Any deposit shortfall doesn't exceed the greater of 
posit period, earlier in this section), you must deposit the              $100 or 2% of the amount of taxes otherwise required 
tax by the next business day, whether you’re a monthly or                 to be deposited.
semiweekly schedule depositor.
                                                                       •  The deposit shortfall is paid or deposited by the short-
For purposes of the $100,000 rule, don't continue accu-                   fall makeup date as described next.
mulating  a  tax  liability  after  the  end  of  a  deposit  period. 
                                                                       Makeup Date for Deposit Shortfall: 
For example, if a semiweekly schedule depositor has ac-
cumulated a liability of $95,000 on a Tuesday (of a Satur-             1. Monthly schedule depositor. Deposit the shortfall 
day-through-Tuesday deposit period) and accumulated a                     or pay it with your return by the due date of your return 
$10,000  liability  on  Wednesday,  the  $100,000  next-day               for the return period in which the shortfall occurred. 
deposit rule doesn't apply because the $10,000 is accu-                   You may pay the shortfall with your return even if the 
mulated in the next deposit period. Thus, $95,000 must be                 amount is $2,500 or more.
deposited  by  Friday  and  $10,000  must  be  deposited  by 
                                                                       2. Semiweekly schedule depositor. Deposit by the 
the following Wednesday.
                                                                          earlier of:
However, once you accumulate at least $100,000 in a                       a. The first Wednesday or Friday (whichever comes 
deposit period, stop accumulating at the end of that day                       first) that falls on or after the 15th day of the month 
and begin to accumulate anew on the next day. For exam-                        following the month in which the shortfall occur-
ple, Fir Co. is a semiweekly schedule depositor. On Mon-                       red, or
day, Fir Co. accumulates taxes of $110,000 and must de-
posit this amount on Tuesday, the next business day. On                   b. The due date of your return (for the return period 
Tuesday,  Fir  Co.  accumulates  additional  taxes  of                         of the tax liability).
$30,000. Because the $30,000 isn't added to the previous 

Publication 15 (2023)                                                                                            Page 29

- 30 -

Page 30 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

For example, if a semiweekly schedule depositor has a need to make arrangements with your financial institution
deposit shortfall during May 2023, the shortfall makeup ahead of time. Please check with your financial institution
date is June 16, 2023 (Friday). However, if the shortfall regarding availability, deadlines, and costs. Your financial
occurred on the required October 4, 2023 (Wednesday), institution may charge you a fee for payments made this
deposit due date for the September 29, 2023 (Friday), pay way. To learn more about the information you’ll need to
date, the return due date for the September 29 pay date give to your financial institution to make a same-day wire
(October 31, 2023) would come before the November 15, payment, go to IRS.gov/SameDayWire.
2023 (Wednesday), shortfall makeup date. In this case,
the shortfall must be deposited by October 31, 2023. How to claim credit for overpayments. If you depos-
ited more than the right amount of taxes for a quarter, you
can choose on Form 941 for that quarter (or on Form 944
How To Deposit for that year) to have the overpayment refunded or applied
You must deposit employment taxes, including Form 945 as a credit to your next return. Don't ask EFTPS to request
taxes, by EFT. See Payment with return, earlier in this a refund from the IRS for you.
section, for exceptions explaining when taxes may be
paid with the tax return instead of being deposited. Deposit Penalties
Electronic deposit requirement. You must use EFT to Although the deposit penalties information provi-
make all federal tax deposits. Generally, an EFT is made TIP ded next refers specifically to Form 941, these
using EFTPS. If you don't want to use EFTPS, you can ar- rules also apply to Form 945 and Form 944. The
range for your tax professional, financial institution, payroll penalties won't apply if the employer qualifies for the ex-
service, or other trusted third party to make electronic de- ceptions to the deposit requirements discussed under
posits on your behalf. EFTPS is a free service provided by Payment with return, earlier in this section).
the Department of the Treasury. To get more information
about EFTPS or to enroll in EFTPS, go to EFTPS.gov or Penalties may apply if you don't make required depos-
call 800-555-4477. To contact EFTPS using TRS for peo- its on time or if you make deposits for less than the re-
ple who are deaf, hard of hearing, or have a speech disa- quired amount. The penalties don't apply if any failure to
bility, dial 711 and then provide the TRS assistant the make a proper and timely deposit was due to reasonable
800-555-4477 number above or 800-733-4829. Additional cause and not to willful neglect. If you receive a penalty
information about EFTPS is also available in Pub. 966. notice, you can provide an explanation of why you believe
reasonable cause exists.
When you receive your EIN. If you’re a new em-
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 may also waive deposit penalties if you inadvertently
receive information about Express Enrollment in your Em- failed to deposit and it was the first quarter that you were
ployer Identification Number (EIN) Package and an addi- required to deposit any employment tax, or if you inadver-
tional mailing containing your EFTPS personal identifica- tently failed to deposit the first time after your deposit fre-
tion number (PIN) and instructions for activating your PIN. quency changed. You must also meet the net worth and
Call the toll-free number located in your “How to Activate size limitations applicable to awards of administrative and
Your Enrollment” brochure to activate your enrollment and litigation costs under section 7430; for individuals, this
begin making your payroll tax deposits. If you outsource means that your net worth can't exceed $2 million, and for
any of your payroll and related tax duties to a third-party businesses, your net worth can't exceed $7 million and
payer, such as a payroll service provider (PSP) or report- you also can't have more than 500 employees.
ing agent, be sure to tell them about your EFTPS enroll- The IRS may also waive the deposit penalty the first
ment. time you're required to make a deposit if you inadvertently
Deposit record. For your records, an EFT Trace send the payment to the IRS rather than deposit it by EFT.
Number will be provided with each successful payment. For amounts not properly or timely deposited, the pen-
The number can be used as a receipt or to trace the pay- alty rates are as follows.
ment.
Depositing on time. For deposits made by EFTPS to
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 third party to make a deposit on your behalf, they may
have different cutoff times.
Same-day wire payment option. If you fail to submit
a deposit transaction on EFTPS by 8 p.m. Eastern time
the day before the date a deposit is due, you can still
make your deposit on time by using the Federal Tax Col-
lection Service (FTCS) to make a same-day wire pay-
ment. To use the same-day wire payment method, you’ll

Page 30 Publication 15 (2023)

- 31 -

Page 31 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

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

Publication 15 (2023) Page 31

- 32 -

Page 32 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

941) on the lines that represent the dates your em- instead of Form 941. You must file Form 944 even if you
ployees were paid. have no taxes to report (or you have taxes in excess of
$1,000 to report) unless you filed a final return for the prior
• Verify that your total liability shown on Form 941,
year. If you received notification to file Form 944, but pre-
line 16, or the bottom of Schedule B (Form 941)
fer to file Form 941, you can request to have your filing re-
equals your tax liability shown on Form 941, line 12.
quirement changed to Form 941 during the first calendar
• Don't show negative amounts on Form 941, line 16, or quarter of the tax year. For more information on request-
Schedule B (Form 941). ing to file Forms 941, including the methods and dead-
• For prior period errors, don't adjust your tax liabilities lines for making a request, see the Instructions for Form
reported on Form 941, line 16, or on Schedule B 944. File your 2022 Form 944 by January 31, 2023. How-
(Form 941). Instead, file an adjusted return (Form ever, if you timely deposited all taxes when due, you may
941-X, 944-X, or 945-X) if you’re also adjusting your file by February 10, 2023.
tax liability. If you’re only adjusting your deposits in re-
Exceptions. The following exceptions apply to the filing
sponse to an FTD penalty notice, see the Instructions
requirements for Forms 941 and 944.
for Schedule B (Form 941) or the Instructions for Form
945-A (for Forms 944 and 945). • Seasonal employers who don't have to file a
Form 941 for quarters when they have no tax lia-
In addition to civil penalties, you may be subject
bility because they have paid no wages. To alert
! to criminal prosecution (brought to trial) for will- the IRS you won't have to file a return for one or more
CAUTION fully:
quarters during the year, check the “Seasonal em-
• Evading tax; ployer” box on Form 941, line 18. When you fill out
• Failing to collect or truthfully account for and pay over Form 941, be sure to check the box on the top of the
tax; form that corresponds to the quarter reported. Gener-
ally, the IRS won't inquire about unfiled returns if at
• Failing to file a return, supply information, or pay any least one taxable return is filed each year. However,
tax due; you must check the “Seasonal employer” box on ev-
• Furnishing false or fraudulent Forms W-2 to employ- ery Form 941 you file. Otherwise, the IRS will expect a
ees or failing to furnish Forms W-2; return to be filed for each quarter.
• Committing fraud and providing false statements; • Household employers reporting social security
and Medicare taxes and/or withheld income tax. If
• Preparing and filing a fraudulent return; or you file Form 941 or Form 944 for business employ-
• Committing identity theft. ees, you may include taxes for household employees
on your Form 941 or Form 944. Otherwise, report so-
cial security and Medicare taxes and income tax with-
holding for household employees on Schedule H
12. Filing Form 941 or Form (Form 1040). See Pub. 926 for more information.
• Employers reporting wages for employees in
944 American Samoa, Guam, the Commonwealth of
the Northern Mariana Islands, the U.S. Virgin Is-
Form 941. If you paid wages subject to federal income lands, or Puerto Rico. If your employees aren't sub-
tax withholding (including withholding on sick pay and ject to U.S. income tax withholding, use Forms
supplemental unemployment benefits) or social security 941-SS, Form 944, or Formulario 944(SP). Employers
and Medicare taxes, you must file Form 941 quarterly in Puerto Rico use Formularios 941-PR, Formulario
even if you have no taxes to report, unless you filed a final 944(SP), or Form 944. If you have both employees
return, you receive an IRS notification that you’re eligible who are subject to U.S. income tax withholding and
to file Form 944, or the exceptions discussed later apply. employees who aren't subject to U.S. income tax with-
Also, if you’re required to file Forms 941 but believe your holding, you must file only Form 941 (or Form 944 or
employment taxes for the calendar year will be $1,000 or Formulario 944(SP)) and include all of your employ-
less, and you would like to file Form 944 instead of Forms ees' wages on that form. For more information, see
941, you must contact the IRS during the first calendar Pub. 80, Federal Tax Guide for Employers in the U.S.
quarter of the tax year to request to file Form 944. You Virgin Islands, Guam, American Samoa, and the Com-
must receive written notice from the IRS to file Form 944 monwealth of the Northern Mariana Islands, or Pub.
instead of Forms 941 before you may file this form. For 179, Guía Contributiva Federal para Patronos Puertor-
more information on requesting to file Form 944, including riqueños.
the methods and deadlines for making a request, see the
Instructions for Form 944. Form 941 must be filed by the • Agricultural employers reporting social security,
last day of the month that follows the end of the quarter. Medicare, and withheld income taxes. Report
See Calendar, earlier. these taxes on Form 943. For more information, see
Pub. 51.
Form 944. If you receive written notification that you
qualify for the Form 944 program, you must file Form 944

Page 32 Publication 15 (2023)

- 33 -

Page 33 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Employers that pay Railroad Retirement Tax Act Certified professional employer organization (CPEO),
TIP (RRTA) taxes use Form CT-1 to report employ- later, for an exception.
ment taxes imposed by the RRTA, and Form 941,
or Form 944, to report federal income taxes withheld from Don't file more than one Form 941 per quarter or
their employees' wages and other compensation. more than one Form 944 per year. Employers with
multiple locations or divisions must file only one Form 941
per quarter or one Form 944 per year. Filing more than
E-file. The IRS e-file program allows a taxpayer to elec-
one return may result in processing delays and may re-
tronically file Form 941 or Form 944 using a computer with
quire correspondence between you and the IRS. For infor-
an Internet connection and commercial tax preparation
mation on making adjustments to previously filed returns,
software. For more information, go to IRS.gov/
see section 13.
EmploymentEfile, or call 866-255-0654.
Reminders about filing.
Electronic filing by reporting agents. Reporting
agents filing Form 940, 941, or 944 for groups of taxpay- • Don't report more than 1 calendar quarter on a Form
ers can file them electronically. For details, see Pub. 941.
3112, IRS e-file Application and Participation. For informa-
• If you need Form 941 or Form 944, go to IRS.gov/
tion on electronic filing of Forms 940, 941, and 944, see
Forms. Also see Ordering Employer Tax Forms, In-
Revenue Procedure 2007-40, 2007-26 I.R.B. 1488, avail-
structions, and Publications, earlier.
able at IRS.gov/irb/2007-26_IRB#RP-2007-40. For infor-
mation on the different types of third-party payer arrange- • Enter your name and EIN on Form 941 or Form 944.
ments, see section 16. Be sure they’re exactly as they appeared on earlier re-
turns.
Electronic filing by CPEOs. With the exception of the
first quarter for which a CPEO is certified, CPEOs are re- • See the Instructions for Form 941 or the Instructions
for Form 944 for information on preparing the form.
quired to electronically file Form 941. Under certain cir-
cumstances, the IRS may waive the electronic filing re- Final return. If you go out of business, you must file a fi-
quirement. To request a waiver, the CPEO must file a nal return for the last quarter (last year for Form 944) in
written request using the IRS Online Registration System which wages are paid. If you continue to pay wages or
for Professional Employer Organizations at least 45 days other compensation for periods following termination of
before the due date of the return for which the CPEO is your business, you must file returns for those periods. See
unable to electronically file. For more information on filing the Instructions for Form 941 or the Instructions for Form
a waiver request electronically, go to IRS.gov/CPEO. 944 for details on how to file a final return.
If you’re required to file a final return, you’re also re-
Penalties. For each whole or part month a return isn't
quired to furnish Forms W-2 to your employees and file
filed when required, there is a failure-to-file (FTF) penalty
Forms W-2 and W-3 with the SSA by the due date of your
of 5% of the unpaid tax due with that return. The maximum
final return. Don't send an original or copy of your Form
penalty is generally 25% of the tax due. Also, for each
941 or Form 944 to the SSA. See the General Instructions
whole or part month the tax is paid late, there is a fail-
for Forms W-2 and W-3 for more information.
ure-to-pay (FTP) penalty of 0.5% per month of the amount
of tax. For individual filers only, the FTP penalty is re- Filing late returns for previous years. Get a copy of
duced from 0.5% per month to 0.25% per month if an in- Form 941 or Form 944 (and separate instructions) with a
stallment agreement is in effect. You must have filed your revision date showing the year, and, if applicable, quarter
return on or before the due date of the return to qualify for for which your delinquent return is being filed. Prior year
the reduced penalty. The maximum amount of the FTP and/or quarter Forms 941 and 944 are available, respec-
penalty is also 25% of the tax due. If both penalties apply tively, at IRS.gov/Form941 and IRS.gov/Form944 (select
in any month, the FTF penalty is reduced by the amount of the link for all form revisions under "Other Items You May
the FTP penalty. The penalties won't be charged if you Find Useful"). Also, see Ordering Employer Tax Forms, In-
have reasonable cause for failing to file or pay. If you re- structions, and Publications, earlier. Contact the IRS at
ceive a penalty notice, you can provide an explanation of 800-829-4933 if you have any questions about filing late
why you believe reasonable cause exists. returns.
Note. In addition to any penalties, interest accrues
from the due date of the tax on any unpaid balance.
If income, social security, or Medicare taxes that must
be withheld aren't withheld or aren't paid, you may be per-
sonally liable for the trust fund recovery penalty. See Trust
fund recovery penalty in section 11.
Generally, the use of a third-party payer, such as a PSP
or reporting agent, doesn't relieve an employer of the re-
sponsibility to ensure tax returns are filed and all taxes are
paid or deposited correctly and on time. However, see

Publication 15 (2023) Page 33

- 34 -

Page 34 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Table 3. Social Security and Medicare Tax b. Social security and Medicare wages.
Rates (for 3 Prior Years) c. Social security and Medicare taxes. Generally, the
amounts shown on Forms 941 or annual Form
Tax Rate on 944, including current year adjustments, should
Wage Base Limit Taxable Wages be approximately twice the amounts shown on
Calendar Year (each employee) and Tips
Form W-3 because Form 941 and Form 944 re-
2022—Social Security $147,000 12.4%* port both the employer and employee social se-
2022—Medicare All Wages 2.9% curity and Medicare taxes while Form W-3 reports
only the employee taxes.
2021—Social Security $142,800 12.4%*
2021—Medicare All Wages 2.9% Don't report backup withholding or withholding on non-
payroll payments, such as pensions, annuities, and gam-
2020—Social Security $137,700 12.4%** bling winnings, on Form 941 or Form 944. Withholding on
2020—Medicare All Wages 2.9% nonpayroll payments is reported on Forms 1099 or W-2G
* Qualified sick leave wages and qualified family leave wages for leave taken and must be reported on Form 945. Only taxes and with-
after March 31, 2020, and before April 1, 2021, aren't subject to the employer holding reported on Form W-2 should be reported on
share of social security tax; therefore, the tax rate on these wages is 6.2% Form 941 or Form 944.
(0.062). Amounts reported on Forms W-2, W-3, and Forms 941
** Qualified sick leave wages and qualified family leave wages aren't subject or Form 944 may not match for valid reasons. For exam-
to the employer share of social security tax; therefore, the tax rate on these
wages for 2020 is 6.2% (0.062). ple, if you withheld any Additional Medicare Tax from your
employee’s wages, the amount of Medicare tax that is re-
ported on Forms 941, line 5c, column 2, or Form 944,
Reconciling Forms W-2 and W-3 with Forms 941 or
line 4c, column 2, won’t be twice the amount of the Medi-
Form 944. When there are discrepancies between
care tax withheld that is reported in box 6 of Form W-3 be-
Forms 941 or Form 944 filed with the IRS and Forms W-2
cause the Additional Medicare Tax is only imposed on the
and W-3 filed with the SSA, the IRS or the SSA may con-
employee; there is no employer share of Additional Medi-
tact you to resolve the discrepancies.
care Tax. Make sure there are valid reasons for any mis-
Take the following steps to help reduce discrepancies.
match. Keep your reconciliation so you’ll have a record of
1. Report bonuses as wages and as social security and why amounts didn't match in case there are inquiries from
Medicare wages on Forms W-2 and on Forms 941 or the IRS or the SSA. See the Instructions for Schedule D
Form 944. (Form 941) if you need to explain any discrepancies that
were caused by an acquisition, statutory merger, or con-
2. Report both social security and Medicare wages and
solidation.
taxes separately on Forms W-2 and W-3, and on
Forms 941 or Form 944. When reconciling Forms W-2 and W-3 to Forms
941 or Form 944, you should consider that quali-
3. Report the employee share of social security taxes on CAUTION! fied sick leave wages and qualified family leave
Form W-2 in the box for social security tax withheld wages for leave taken after March 31, 2020, and before
(box 4), not as social security wages. April 1, 2021, aren't subject to the employer share of so-
4. Report the employee share of Medicare taxes on cial security tax.
Form W-2 in the box for Medicare tax withheld
(box 6), not as Medicare wages.

5. Make sure the social security wage amount for each 13. Reporting Adjustments to
employee doesn't exceed the annual social security
wage base limit ($160,200 for 2023). Form 941 or Form 944
6. Don't report noncash wages that aren't subject to so-
cial security or Medicare taxes, as discussed earlier Current Period Adjustments
under Wages not paid in money in section 5, as social
security or Medicare wages. In certain cases, amounts reported as social security and
7. If you used an EIN on any Forms 941 or Form 944 for Medicare taxes on Form 941, lines 5a–5d, column 2
the year that is different from the EIN reported on (Form 944, lines 4a–4d, column 2), must be adjusted to
Form W-3, enter the other EIN on Form W-3 in the arrive at your correct tax liability (for example, excluding
box for “Other EIN used this year” (box h). amounts withheld by a third-party payer or amounts you
weren't required to withhold). Current period adjustments
8. Be sure the amounts on Form W-3 are the total of are reported on Form 941, lines 7–9, or Form 944, line 6,
amounts from Forms W-2. and include the following types of adjustments.
9. Reconcile Form W-3 with your four quarterly Forms
Fractions-of-cents adjustment. If there is a small dif-
941 or annual Form 944 by comparing amounts re-
ference between total taxes after adjustments and nonre-
ported for the following items.
fundable credits (Form 941, line 12; Form 944, line 9) and
a. Federal income tax withheld. total deposits (Form 941, line 13a; Form 944, line 10a), it

Page 34 Publication 15 (2023)

- 35 -

Page 35 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

may have been caused, all or in part, by rounding to the Adjustment of tax on group-term life insurance pre-
nearest cent each time you figured payroll. This rounding miums paid for former employees. The employee
occurs when you figure the amount of social security and share of social security and Medicare taxes for premiums
Medicare tax to be withheld and deposited from each em- on group-term life insurance over $50,000 for a former
ployee's wages. The IRS refers to rounding differences re- employee is paid by the former employee with their tax re-
lating to employee withholding of social security and Med- turn and isn't collected by the employer. However, include
icare taxes as “fractions-of-cents” adjustments. If you pay all social security and Medicare taxes for such coverage
your taxes with Form 941 (or Form 944) instead of making on Form 941, lines 5a and 5c (Form 944, lines 4a and 4c).
deposits because your total taxes for the quarter (year for If the amount paid for an employee for premiums on
Form 944) are less than $2,500, you may also report a group-term life insurance combined with other wages ex-
fractions-of-cents adjustment. ceeds $200,000 for the calendar year, report the Addi-
To determine if you have a fractions-of-cents adjust- tional Medicare Tax on Form 941, line 5d (Form 944,
ment for 2023, multiply the total wages and tips for the line 4d). Back out the amount of the employee share of
quarter subject to: these taxes as a negative adjustment on Form 941, line 9
(Form 944, line 6). See Pub. 15-B for more information on
• Social security tax reported on Form 941 or Form 944
group-term life insurance.
by 6.2% (0.062),
For the above adjustments, prepare and retain a
• Medicare tax reported on Form 941 or Form 944 by
brief supporting statement explaining the nature
1.45% (0.0145), and TIP
and amount of each. Don't attach the statement to
• Additional Medicare Tax reported on Form 941 or Form 941 or Form 944. See the General Instructions for
Form 944 by 0.9% (0.009). Forms W-2 and W-3 for information on how to report the
Compare these amounts (the employee share of social uncollected employee share of social security and Medi-
security and Medicare taxes) with the total social security care taxes on tips and group-term life insurance on Form
and Medicare taxes actually withheld from employees and W-2.
shown in your payroll records for the quarter (Form 941)
or the year (Form 944). If there is a small difference, the Example. Cedar, Inc., filed Form 941 and was entitled
amount, positive or negative, may be a fractions-of-cents to the following current period adjustments.
adjustment. Fractions-of-cents adjustments are reported
• Fractions of cents. Cedar, Inc., determined the
on Form 941, line 7, or Form 944, line 6. If the actual
amounts withheld and deposited for social security
amount withheld is less, report a negative adjustment us-
and Medicare taxes during the quarter were a net
ing a minus sign (if possible; otherwise, use parentheses)
$1.44 more than the employee share of the amount
in the entry space. If the actual amount is more, report a
figured on Form 941, lines 5a–5d, column 2 (social se-
positive adjustment.
curity and Medicare taxes). This difference was
Adjustment of tax on third-party sick pay. Report both caused by adding or dropping fractions of cents when
the employer and employee share of social security and figuring social security and Medicare taxes for each
Medicare taxes for sick pay on Form 941, lines 5a and 5c wage payment. Cedar, Inc., must report a positive
(Form 944, lines 4a and 4c). If the aggregate wages paid $1.44 fractions-of-cents adjustment on Form 941,
for an employee by the employer and third-party payer ex- line 7.
ceed $200,000 for the calendar year, report the Additional • Third-party sick pay. Cedar, Inc., included taxes of
Medicare Tax on Form 941, line 5d (Form 944, line 4d). $2,000 for sick pay on Form 941, lines 5a and 5c, col-
Show as a negative adjustment on Form 941, line 8 (Form umn 2, for social security and Medicare taxes. How-
944, line 6), the social security and Medicare taxes with- ever, the third-party payer of the sick pay withheld and
held on sick pay by a third-party payer. See section 6 of paid the employee share ($1,000) of these taxes. Ce-
Pub. 15-A for more information. dar, Inc., is entitled to a $1,000 sick pay adjustment
(negative) on Form 941, line 8.
Adjustment of tax on tips. If, by the 10th of the month
after the month you received an employee's report on tips, • Life insurance premiums. Cedar, Inc., paid
you don't have enough employee funds available to with- group-term life insurance premiums for policies in ex-
hold the employee's share of social security and Medicare cess of $50,000 for former employees. The former
taxes, you no longer have to collect it. However, report the employees must pay the employee share of the social
entire amount of these tips on Form 941, lines 5b and 5c security and Medicare taxes ($200) on the policies.
(Form 944, lines 4b and 4c). If the aggregate wages and However, Cedar, Inc., must include the employee
tips paid for an employee exceed $200,000 for the calen- share of these taxes with the social security and Medi-
dar year, report the Additional Medicare Tax on Form 941, care taxes reported on Form 941, lines 5a and 5c, col-
line 5d (Form 944, line 4d). Include as a negative adjust- umn 2. Therefore, Cedar, Inc., is entitled to a negative
ment on Form 941, line 9 (Form 944, line 6), the total un- $200 adjustment on Form 941, line 9.
collected employee share of the social security and Medi-
No change to record of federal tax liability. Don't
care taxes.
make any changes to your record of federal tax liability re-
ported on Form 941, line 16, or Schedule B (Form 941)

Publication 15 (2023) Page 35

- 36 -

Page 36 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

(for Form 944 filers, Form 944, line 13, or Form 945-A) for you’re requesting a refund and are correcting both under-
current period adjustments. The amounts reported on the reported and overreported amounts, file one Form 941-X
record reflect the actual amounts you withheld from em- or Form 944-X correcting the underreported amounts only
ployees' wages for social security and Medicare taxes. and a second Form 941-X or Form 944-X correcting the
Because the current period adjustments make the overreported amounts.
amounts reported on Form 941, lines 5a–5d, column 2 See the chart on the last page of Form 941-X or Form
(Form 944, lines 4a–4d, column 2), equal the actual 944-X for help in choosing whether to use the adjustment
amounts you withheld (the amounts reported on the re- process or the claim process. See the Instructions for
cord), no additional changes to the record of federal tax li- Form 941-X or the Instructions for Form 944-X for details
ability are necessary for these adjustments. on how to make the adjustment or claim for refund or
abatement.

Prior Period Adjustments Income tax withholding adjustments. In a current cal-
Forms for prior period adjustments. Use Form 941-X endar year, correct prior quarter income tax withholding
or Form 944-X to make a correction after you discover an errors by making the correction on Form 941-X when you
error on a previously filed Form 941 or Form 944. There discover the error.
are also Forms 943-X, 945-X, and CT-1 X to report cor- You may make an adjustment only to correct income
rections on the corresponding returns. Use Form 843 tax withholding errors discovered during the same calen-
when requesting a refund or abatement of assessed inter- dar year in which you paid the wages. This is because the
est or penalties. employee uses the amount shown on Form W-2 or, if ap-
plicable, Form W-2c, as a credit when filing their income
See Revenue Ruling 2009-39, 2009-52 I.R.B. tax return (Form 1040, etc.).
TIP 951, for examples of how the interest-free adjust- You can't adjust amounts reported as income tax with-
ment and claim for refund rules apply in 10 differ- held in a prior calendar year unless it is to correct an ad-
ent situations. You can find Revenue Ruling 2009-39 at ministrative error or section 3509 applies. An administra-
IRS.gov/irb/2009-52_IRB#RR-2009-39. tive error occurs if the amount you entered on Form 941 or
Form 944 isn't the amount you actually withheld. For ex-
Background. Treasury Decision 9405 changed the ample, if the total income tax actually withheld was incor-
process for making interest-free adjustments to employ- rectly reported on Form 941 or Form 944 due to a mathe-
ment taxes reported on Form 941 and Form 944 and for matical or transposition error, this would be an
filing a claim for refund of employment taxes. Treasury administrative error. The administrative error adjustment
Decision 9405, 2008-32 I.R.B. 293, is available at corrects the amount reported on Form 941 or Form 944 to
IRS.gov/irb/2008-32_IRB#TD-9405. You’ll use the adjust- agree with the amount actually withheld from employees
ment process if you underreported employment taxes and and reported on their Forms W-2.
are making a payment, or if you overreported employment
taxes and will be applying the credit to the Form 941 or Additional Medicare Tax withholding adjustments.
Form 944 period during which you file Form 941-X or Generally, the rules discussed earlier under Income tax
Form 944-X. You’ll use the claim process if you overrepor- withholding adjustments apply to Additional Medicare Tax
ted employment taxes and are requesting a refund or withholding adjustments. That is, you may make an ad-
abatement of the overreported amount. We use the terms justment to correct Additional Medicare Tax withholding
“correct” and “corrections” to include interest-free adjust- errors discovered during the same calendar year in which
ments under sections 6205 and 6413, and claims for re- you paid wages. You can't adjust amounts reported in a
fund and abatement under sections 6402, 6414, and prior calendar year unless it is to correct an administrative
6404. error or section 3509 applies. If you have overpaid Addi-
tional Medicare Tax, you can't file a claim for refund for
Correcting employment taxes. When you discover an the amount of the overpayment unless the amount wasn't
error on a previously filed Form 941 or Form 944, you actually withheld from the employee's wages (which
must: would be an administrative error).
If a prior year error was a nonadministrative error, you
• Correct that error using Form 941-X or Form 944-X,
may correct only the wages and tips subject to Addi-
• File a separate Form 941-X or Form 944-X for each tional Medicare Tax withholding.
Form 941 or Form 944 you’re correcting, and
Collecting underwithheld taxes from employees. If
• File Form 941-X or Form 944-X separately. Don't file
you withheld no income, social security, or Medicare
with Form 941 or Form 944.
taxes or less than the correct amount from an employee's
Report current quarter adjustments for fractions of wages, you can make it up from later pay to that em-
cents, third-party sick pay, tips, and group-term life insur- ployee. But you’re the one who owes the underpayment.
ance on Form 941 using lines 7–9, and on Form 944 using Reimbursement is a matter for settlement between you
line 6. See Current Period Adjustments, earlier. and the employee. Underwithheld income tax and Addi-
Report the correction of underreported and overrepor- tional Medicare Tax must be recovered from the em-
ted amounts for the same tax period on a single Form ployee on or before the last day of the calendar year.
941-X or Form 944-X unless you’re requesting a refund. If

Page 36 Publication 15 (2023)

- 37 -

Page 37 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

There are special rules for tax on tips (see section 6) and an adjustment for Additional Medicare Tax withholding
fringe benefits (see section 5). because the employee determines liability for Additional
Medicare Tax on the employee's income tax return for the
Refunding amounts incorrectly withheld from em- prior year.
ployees. If you withheld more than the correct amount of You must also file Forms W-2c and W-3c with the SSA
income, social security, or Medicare taxes from wages to correct social security and Medicare wages and taxes.
paid, repay or reimburse the employee the excess. Any Don't correct wages (box 1) on Form W-2c for the amount
excess income tax or Additional Medicare Tax withholding paid in error. Give a copy of Form W-2c to the employee.
must be repaid or reimbursed to the employee before the
end of the calendar year in which it was withheld. Keep in Employee reporting of repayment. The wages paid
your records the employee's written receipt showing the in error in the prior year remain taxable to the employee
date and amount of the repayment or record of reimburse- for that year. This is because the employee received and
ment. If you didn't repay or reimburse the employee, you had use of those funds during that year. The employee
must report and pay each excess amount when you file isn't entitled to file an amended return (Form 1040-X) to
Form 941 for the quarter (or Form 944 for the year) in recover the income tax on these wages. Instead, the em-
which you withheld too much tax. ployee may be entitled to a deduction or credit for the re-
paid wages on their income tax return for the year of re-
Correcting filed Forms W-2 and W-3. When adjust- payment. However, the employee should file an amended
ments are made to correct wages and social security and return (Form 1040-X) to recover any Additional Medicare
Medicare taxes because of a change in the wage totals Tax paid on the wages paid in error in the prior year. If an
reported for a previous year, you also need to file Form employee asks about reporting their wage repayment, you
W-2c and Form W-3c with the SSA. Up to 25 Forms W-2c may tell the employee to see Repayments in Pub. 525 for
per Form W-3c may be filed per session over the Internet, more information.
with no limit on the number of sessions. For more informa-
tion, go to the SSA's Employer W-2 Filing Instructions &
Information webpage at SSA.gov/employer.
14. Federal Unemployment
Exceptions to interest-free corrections of employ-
(FUTA) Tax
ment taxes. A correction won't be eligible for inter-
est-free treatment if: The Federal Unemployment Tax Act (FUTA), with state
• The failure to report relates to an issue raised in an unemployment systems, provides for payments of unem-
IRS examination of a prior return, or ployment compensation to workers who have lost their
jobs. Most employers pay both a federal and a state un-
• The employer knowingly underreported its employ-
employment tax. For a list of state unemployment agen-
ment tax liability.
cies, go to the U.S. Department of Labor’s website at
A correction won't be eligible for interest-free treatment oui.doleta.gov/unemploy/agencies.asp. Only the em-
after the earlier of the following. ployer pays FUTA tax; it isn't withheld from the employ-
• Receipt of an IRS notice and demand for payment af- ee's wages. For more information, see the Instructions for
ter assessment. Form 940.
• Receipt of an IRS notice of determination under sec- Services rendered to a federally recognized In-
tion 7436. TIP dian tribal government (or any subdivision, sub-
sidiary, or business wholly owned by such an In-
dian tribe) are exempt from FUTA tax, subject to the
Wage Repayments tribe's compliance with state law. For more information,
see section 3309(d) and Pub. 4268.
If an employee repays you for wages received in error,
don't offset the repayments against current year wages
Who must pay? Use the following three tests to deter-
unless the repayments are for amounts received in error in
mine whether you must pay FUTA tax. Each test applies
the current year.
to a different category of employee, and each is independ-
Repayment of current year wages. If you receive re- ent of the others. If a test describes your situation, you’re
payments for wages paid during a prior quarter in the cur- subject to FUTA tax on the wages you pay to employees
rent year, report adjustments on Form 941-X to recover in- in that category during the current calendar year.
come tax withholding and social security and Medicare 1. General test.
taxes for the repaid wages. You’re subject to FUTA tax in 2023 on the wages
you pay employees who aren't farmworkers or house-
Repayment of prior year wages. If you receive repay-
hold workers if:
ments for wages paid during a prior year, report an adjust-
ment on Form 941-X or Form 944-X to recover the social a. You paid wages of $1,500 or more in any calendar
security and Medicare taxes. You can't make an adjust- quarter in 2022 or 2023, or
ment for income tax withholding because the wages were
income to the employee for the prior year. You can't make

Publication 15 (2023) Page 37

- 38 -

Page 38 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

b. You had one or more employees for at least some $7,000 FUTA tax wage base. See the Instructions for
part of a day in any 20 or more different weeks in Form 940.
2022 or 20 or more different weeks in 2023.
Depositing FUTA tax. For deposit purposes, figure
2. Household employees test. FUTA tax quarterly. Determine your FUTA tax liability by
You’re subject to FUTA tax if you paid total cash multiplying the amount of taxable wages paid during the
wages of $1,000 or more to household employees in quarter by 0.6%. Stop depositing FUTA tax on an employ-
any calendar quarter in 2022 or 2023. A household ee's wages when taxable wages reach $7,000 for the cal-
employee is an employee who performs household endar year.
work in a private home, local college club, or local fra- If your FUTA tax liability for any calendar quarter is
ternity or sorority chapter. $500 or less, you don't have to deposit the tax. Instead,
3. Farmworkers test. you may carry it forward and add it to the liability figured in
You’re subject to FUTA tax on the wages you pay the next quarter to see if you must make a deposit. If your
to farmworkers if: FUTA tax liability for any calendar quarter is over $500 (in-
cluding any FUTA tax carried forward from an earlier quar-
a. You paid cash wages of $20,000 or more to farm- ter), you must deposit the tax by EFT. See section 11 for
workers during any calendar quarter in 2022 or more information on EFTs.
2023, or
Household employees. You’re not required to de-
b. You employed 10 or more farmworkers during at posit FUTA taxes for household employees unless you re-
least some part of a day (whether or not at the port their wages on Form 941, 943, or 944. See Pub. 926
same time) during any 20 or more different weeks for more information.
in 2022 or 20 or more different weeks in 2023.
When to deposit. Deposit the FUTA tax by the last
Figuring FUTA tax. For 2023, the FUTA tax rate is day of the first month that follows the end of the quarter. If
6.0%. The tax applies to the first $7,000 you pay to each the due date for making your deposit falls on a Saturday,
employee as wages during the year. The $7,000 is the Sunday, or legal holiday, you may make your deposit on
federal wage base. Your state wage base may be differ- the next business day. See Legal holiday, earlier, for a list
ent. of legal holidays occurring in 2023.
Generally, you can take a credit against your FUTA tax If your liability for the fourth quarter (plus any undepos-
for amounts you paid into state unemployment funds. The ited amount from any earlier quarter) is over $500, deposit
credit may be as much as 5.4% of FUTA taxable wages. If the entire amount by the due date of Form 940 (January
you’re entitled to the maximum 5.4% credit, the FUTA tax 31). If it is $500 or less, you can make a deposit, pay the
rate after credit is 0.6%. You’re entitled to the maximum tax with a credit or debit card, or pay the tax with your
credit if you paid your state unemployment taxes in full, on Form 940 by January 31. If you file Form 940 electroni-
time, and on all the same wages as are subject to FUTA cally, you can e-file and use EFW to pay the balance due.
tax, and as long as the state isn't determined to be a credit For more information on paying your taxes with a credit or
reduction state. See the Instructions for Form 940 to de- debit card or using EFW, go to IRS.gov/Payments.
termine the credit.
In some states, the wages subject to state unemploy- Table 4. When To Deposit FUTA Taxes
ment tax are the same as the wages subject to FUTA tax.
However, certain states exclude some types of wages Quarter Ending Due Date
from state unemployment tax, even though they’re subject Jan.–Feb.–Mar. Mar. 31 Apr. 30
to FUTA tax (for example, wages paid to corporate offi- Apr.–May–June June 30 July 31
cers, certain payments of sick pay by unions, and certain July–Aug.–Sept. Sept. 30 Oct. 31
fringe benefits). In such a case, you may be required to Oct.–Nov.–Dec. Dec. 31 Jan. 31
deposit more than 0.6% FUTA tax on those wages. See
the Instructions for Form 940 for further guidance. Reporting FUTA tax. Use Form 940 to report FUTA tax.
In years when there are credit reduction states, File your 2022 Form 940 by January 31, 2023. However, if
TIP you must include liabilities owed for credit reduc- you deposited all FUTA tax when due, you may file on or
tion with your fourth quarter deposit. You may de- before February 10, 2023.
posit the anticipated extra liability throughout the year, but Form 940 e-file. The Form 940 e-file program allows
it isn't due until the due date for the deposit for the fourth a taxpayer to electronically file Form 940 using a com-
quarter, and the associated liability should be recorded as puter with an Internet connection and commercial tax
being incurred in the fourth quarter. See the Instructions preparation software. For more information, go to
for Form 940 for more information. IRS.gov/EmploymentEfile, or call 866-255-0654.
Successor employer. If you acquired a business Household employees. If you didn't report employ-
from an employer who was liable for FUTA tax, you may ment taxes for household employees on Form 941, 943,
be able to count the wages that employer paid to the em- or 944, report FUTA tax for these employees on Sched-
ployees who continue to work for you when you figure the ule H (Form 1040). See Pub. 926 for more information.
You must have an EIN to file Schedule H (Form 1040).

Page 38 Publication 15 (2023)

- 39 -

Page 39 of 49          Fileid: … ations/p15/2023/a/xml/cycle05/source               15:08 - 13-Dec-2022

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

Electronic  filing  by  reporting  agents.   Reporting            the IRS Online Registration System for Professional Em-
agents  filing  Forms  940  for  groups  of  taxpayers  can  file ployer Organizations at least 45 days before the due date 
them  electronically.  See Electronic  filing  by  reporting      of the return for which the CPEO is unable to electronically 
agents in section 12.                                             file. For more information on filing a waiver request elec-
                                                                  tronically, go to IRS.gov/CPEO.
Electronic  filing  by  CPEOs. CPEOs  are  required  to 
electronically file Form 940. Under certain circumstances, 
the IRS may waive the electronic filing requirement. To re-
quest a waiver, the CPEO must file a written request using 

Publication 15 (2023)                                                                                Page 39

- 40 -

Page 40 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

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
Income Tax Withholding Social Security and FUTA
Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Aliens, nonresident. See Pub. 515 and Pub. 519.
Aliens, resident:
1. Service performed in the U.S. Same as U.S. citizen. Same as U.S. citizen. Same as U.S. citizen.
(Exempt if any part of
service as crew member of
foreign vessel or aircraft is
performed outside U.S.)
2. Service performed outside the U.S. Withhold Taxable if (1) working for Exempt unless on or in
an American employer, or connection with an
(2) an American employer American vessel or aircraft
by agreement covers U.S. and either performed under
citizens and residents contract made in U.S., or
employed by its foreign alien is employed on such
affiliates. 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.
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. See Pub. 334.
Foreign governments and international Exempt Exempt Exempt
organizations.

Page 40 Publication 15 (2023)

- 41 -

Page 41 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Income Tax Withholding Social Security and FUTA
Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
Foreign service by U.S. citizens:
1. As U.S. Government employees. Withhold Same as within U.S. Exempt
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
exclusion from income under citizens employed by its under contract made in U.S.
section 911, or (2) the foreign affiliates, or (2) U.S. or worker is employed on
employer is required by law citizen works for American vessel when it touches U.S.
of the foreign country to employer. port, or (2) U.S. citizen
withhold income tax on such works for American
payment. employer (except in a
contiguous country with
which the U.S. has an
agreement for
unemployment
compensation) or in the U.S.
Virgin Islands.
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:
State/local governments and political
subdivisions, employees of:
1. Salaries and wages (includes payments Withhold Generally, taxable for (1) Exempt
to most elected and appointed officials). services performed by
See chapter 3 of Pub. 963. employees who are either
(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.
2. Election workers. Election individuals Exempt Taxable if paid $2,200 or Exempt
are workers who are employed to more in 2023 (lesser
perform services for state or local amount if specified by a
governments at election booths in section 218 social security
connection with national, state, or local agreement). See Revenue
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.
3. Emergency workers. Emergency Withhold Exempt if serving on a Exempt
workers who were hired on a temporary temporary basis in case of
basis in response to a specific fire, storm, snow,
unforeseen emergency and aren't earthquake, flood, or
intended to become permanent similar emergency.
employees.
U.S. federal government employees. Withhold Taxable for Medicare. Exempt
Taxable for social security
unless hired before 1984.
See section 3121(b)(5).

Publication 15 (2023) Page 41

- 42 -

Page 42 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Income Tax Withholding Social Security and FUTA
Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
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.)
Household employees:
1. Domestic service in private homes. Exempt (withhold if both Taxable if paid $2,600 or Taxable if employer paid
employer and employee more in cash in 2023. total cash wages of $1,000
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
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 Exempt
Pub. 15-B for details. cost 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.

Page 42 Publication 15 (2023)

- 43 -

Page 43 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Income Tax Withholding Social Security and FUTA
Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
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.
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.

Publication 15 (2023) Page 43

- 44 -

Page 44 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Special Classes of Employment and Treatment Under Employment Taxes
Special Types of Payments
Income Tax Withholding Social Security and FUTA
Medicare (including
Additional Medicare Tax
when wages are paid in
excess of $200,000)
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
household employment in private homes). more different days in that or more different days in
quarter or in the preceding that quarter or in the
quarter. preceding 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.
b. Auxiliary nonprofit organization Withhold Exempt unless services Exempt
operated for and controlled by are covered by a section
school, college, or university. 218 (Social Security Act)
agreement.
c. Public school, college, or Withhold Exempt unless services Exempt
university. are 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.
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

Page 44 Publication 15 (2023)

- 45 -

Page 45 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

or an agent of the employer for the employer’s employ-
ment taxes. If an employer is using a PSP to perform its
16. Third-Party Payer tax duties, 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), Form 8655. An employer uses Form 8655 to authorize a
later, 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 em- tax duties on behalf of the employer. An agent authorized
ployer’s ability to be informed about tax matters involv- under section 3504 may pay wages or compensation to
ing the employer’s business. Use Form 8822-B to up- some or all of the employees of an employer, prepare and
date your business address. file employment tax returns as set forth on Form 2678,
prepare Form 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 adminis- agency.
ter payroll and payroll-related tax duties on behalf of the For more information on an agent with an approved
employer. A PSP may prepare paychecks for employees, Form 2678, see Revenue Procedure 2013-39, 2013-52
prepare and file employment tax returns, prepare Form I.R.B. 830, available at IRS.gov/irb/
W-2, and make federal tax deposits and other federal tax 2013-52_IRB#RP-2013-39.
payments. A PSP performs these functions using the EIN
of the employer. A PSP isn't liable as either an employer

Publication 15 (2023) Page 45

- 46 -

Page 46 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

Payer designated under section 3504. In certain cir- Form 941 reporting the wages each entity paid to the em-
cumstances, the IRS may designate a third-party payer to ployee during the applicable quarter and issue Forms W-2
perform the acts of an employer. The IRS will designate a reporting the wages each entity paid to the employee dur-
third-party payer on behalf of an employer if the third party ing the year.
has a service agreement with the employer. A service
agreement is an agreement between the third-party payer
and an employer in which the third-party payer (1) asserts
it is the employer of individuals performing services for the How To Get Tax Help
employer; (2) pays wages to the individuals that perform
services for the employer; and (3) assumes responsibility If you have questions about a tax issue; need help prepar-
to withhold, report, and pay federal employment taxes for ing your tax return; or want to download free publications,
the wages it pays to the individuals who perform services forms, or instructions, go to IRS.gov to find resources that
for the employer. can help you right away.
A payer designated under section 3504 performs tax
duties under the service agreement using its own EIN. If Preparing and filing your tax return. Go to IRS.gov/
the IRS designates a third-party payer under section EmploymentEfile for more information on filing your em-
3504, the designated payer and the employer are jointly li- ployment tax returns electronically.
able for the employment taxes and related tax duties for Getting answers to your tax questions. On
which the third-party payer is designated. IRS.gov, you can get up-to-date information on
For more information on a payer designated under sec- current events and changes in tax law.
tion 3504, see Regulations section 31.3504-2.
• IRS.gov/Help: A variety of tools to help you get an-
Certified professional employer organization swers to some of the most common tax questions.
(CPEO). The Stephen Beck, Jr., Achieving a Better Life • IRS.gov/Forms: Find forms, instructions, and publica-
Experience Act of 2014 required the IRS to establish a tions. You will find details on the most recent tax
voluntary certification program for professional employer changes and interactive links to help you find answers
organizations (PEOs). PEOs handle various payroll ad- to your questions.
ministration and tax reporting responsibilities for their
business clients and are typically paid a fee based on • You may also be able to access tax law information in
your electronic filing software.
payroll costs. To become and remain certified under the
certification program, CPEOs must meet various require-
ments described in sections 3511 and 7705 and related Need someone to prepare your tax return? There are
published guidance. Certification as a CPEO may affect various types of tax return preparers, including enrolled
the employment tax liabilities of both the CPEO and its agents, certified public accountants (CPAs), attorneys,
customers. A CPEO is generally treated for employment and many others who don’t have professional credentials.
tax purposes as the employer of any individual who per- If you choose to have someone prepare your tax return,
forms services for a customer of the CPEO and is covered choose that preparer wisely. A paid tax preparer is:
by a contract described in section 7705(e)(2) between the
CPEO and the customer (CPEO contract), but only for wa- • Primarily responsible for the overall substantive accu-
racy of your return,
ges and other compensation paid to the individual by the
CPEO. However, with respect to certain employees cov- • Required to sign the return, and
ered by a CPEO contract, you may also be treated as an
• Required to include their preparer tax identification
employer of the employees and, consequently, may also
number (PTIN).
be liable for federal employment taxes imposed on wages
and other compensation paid by the CPEO to such em- Although the tax preparer always signs the return,
ployees. you're ultimately responsible for providing all the informa-
CPEOs must complete Schedule R (Form 940), Sched- tion required for the preparer to accurately prepare your
ule R (Form 941), or Schedule R (Form 943) when filing return. Anyone paid to prepare tax returns for others
an aggregate Form 940, 941, or 943, respectively. CPEOs should have a thorough understanding of tax matters. For
file Form 8973 to notify the IRS that they started or ended more information on how to choose a tax preparer, go to
a service contract with a customer. To become a CPEO, Tips for Choosing a Tax Preparer on IRS.gov.
the organization must apply through the IRS Online Regis-
tration System. For more information or to apply to be- Coronavirus. Go to IRS.gov/Coronavirus for links to in-
come a CPEO, go to IRS.gov/CPEO. Also see Revenue formation on the impact of the coronavirus, as well as tax
Procedure 2017-14, 2017-3 I.R.B. 426, available at relief available for individuals and families, small and large
IRS.gov/irb/2017-03_IRB#RP-2017-14. businesses, and tax-exempt organizations.

If both an employer and a section 3504 author- Employers can register to use Business Services On-
TIP ized agent (or CPEO or other third-party payer) line. The Social Security Administration (SSA) offers on-
paid wages to an employee during a quarter, both line service at SSA.gov/employer for fast, free, and secure
the employer and the section 3504 authorized agent (or online W-2 filing options to CPAs, accountants, enrolled
CPEO or other third-party payer, if applicable) should file

Page 46 Publication 15 (2023)

- 47 -

Page 47 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

agents, and individuals who process Form W-2 and Form dedicated eBook readers, and eBook functionality may
W-2c. not operate as intended.

IRS social media. Go to IRS.gov/SocialMedia to see the Getting a transcript of your return. You can get a
various social media tools the IRS uses to share the latest copy of your tax transcript or a copy of your return by call-
information on tax changes, scam alerts, initiatives, prod- ing 800-829-4933 or by mailing Form 4506-T (transcript
ucts, and services. At the IRS, privacy and security are request) or Form 4506 (copy of return) to the IRS.
our highest priority. We use these tools to share public in-
formation with you. Don’t post your social security number Reporting and resolving your tax-related identity
(SSN) or other confidential information on social media theft issues.
sites. Always protect your identity when using any social • Tax-related identity theft happens when someone
networking site. steals your personal information to commit tax fraud.
The following IRS YouTube channels provide short, in- Your taxes can be affected if your EIN is used to file a
formative videos on various tax-related topics in English, fraudulent return or to claim a refund or credit.
Spanish, and ASL.
• The IRS doesn’t initiate contact with taxpayers by
• Youtube.com/irsvideos. email, text messages (including shortened links), tele-
• Youtube.com/irsvideosmultilingua. phone calls, or social media channels to request or
verify personal or financial information. This includes
• Youtube.com/irsvideosASL. requests for personal identification numbers (PINs),
passwords, or similar information for credit cards,
Watching IRS videos. The IRS Video portal
(IRSVideos.gov) contains video and audio presentations banks, or other financial accounts.
for individuals, small businesses, and tax professionals. • Go to IRS.gov/IdentityTheft, the IRS Identity Theft
Central webpage, for information on identity theft and
Online tax information in other languages. You can data security protection for taxpayers, tax professio-
find information on IRS.gov/MyLanguage if English isn’t nals, and businesses. If your EIN has been lost or sto-
your native language. len or you suspect you’re a victim of tax-related iden-
tity theft, you can learn what steps you should take.
Free Over-the-Phone Interpreter (OPI) Service. The
IRS is committed to serving our multilingual customers by Making a tax payment. Go to IRS.gov/Payments for in-
offering OPI services. The OPI Service is a federally fun- formation on how to make a payment using any of the fol-
ded program and is available at Taxpayer Assistance lowing options.
Centers (TACs), other IRS offices, and every VITA/TCE
return site. The OPI Service is accessible in more than • Debit or Credit Card: Choose an approved payment
350 languages. processor to pay online or by phone.
• 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
future accessibility products and services available in al- for businesses. Enrollment is required.
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 account-related issues, go to IRS.gov/LetUsHelp. • Cash: You may be able to pay your taxes with cash at
a participating retail store.
Disasters. Go to Disaster Assistance and Emergency • Same-Day Wire: You may be able to do same-day
Relief for Individuals and Businesses to review the availa- wire from your financial institution. Contact your finan-
ble disaster tax relief. cial institution for availability, cost, and time frames.

Getting tax forms and publications. Go to IRS.gov/ Note. The IRS uses the latest encryption technology to
Forms to view, download, or print most of the forms, in- ensure that the electronic payments you make online, by
structions, and publications you may need. Or, you can go phone, or from a mobile device using the IRS2Go app are
to IRS.gov/OrderForms to place an order. safe and secure. Paying electronically is quick, easy, and
faster than mailing in a check or money order.
Getting tax publications and instructions in eBook
format. You can also download and view popular tax What if I can’t pay now? Go to IRS.gov/Payments for
publications and instructions (including Pub. 15) on mo- more information about your options.
bile devices as eBooks at IRS.gov/eBooks.
• Apply for an online payment agreement IRS.gov/ (
Note. IRS eBooks have been tested using Apple's OPA) to meet your tax obligation in monthly install-
iBooks for iPad. Our eBooks haven’t been tested on other ments if you can’t pay your taxes in full today. Once
you complete the online process, you will receive

Publication 15 (2023) Page 47

- 48 -

Page 48 of 49 Fileid: … ations/p15/2023/a/xml/cycle05/source 15:08 - 13-Dec-2022

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

immediate notification of whether your agreement has TaxpayerAdvocate.IRS.gov to help you understand what
been approved. these rights mean to you and how they apply. These are
your rights. Know them. Use them.
• Use the Offer in Compromise Pre-Qualifier to see if
you can settle your tax debt for less than the full
amount you owe. For more information on the Offer in What Can TAS Do for You?
Compromise program, go to IRS.gov/OIC.
TAS can help you resolve problems that you can’t resolve
Understanding an IRS notice or letter you’ve re- with the IRS. And their service is free. If you qualify for
ceived. Go to IRS.gov/Notices to find additional informa- their assistance, you will be assigned to one advocate
tion about responding to an IRS notice or letter. who will work with you throughout the process and will do
everything possible to resolve your issue. TAS can help
Contacting your local IRS office. Keep in mind, many you if:
questions can be answered on IRS.gov without visiting an Your problem is causing financial difficulty for you,
•
IRS TAC. Go to IRS.gov/LetUsHelp for the topics people your family, or your business;
ask about most. If you still need help, IRS TACs provide
tax help when a tax issue can’t be handled online or by • You face (or your business is facing) an immediate
phone. All TACs now provide service by appointment, so threat of adverse action; or
you’ll know in advance that you can get the service you • You’ve tried repeatedly to contact the IRS but no one
need without long wait times. Before you visit, go to has responded, or the IRS hasn’t responded by the
IRS.gov/TACLocator to find the nearest TAC and to check date promised.
hours, available services, and appointment options. Or,
on the IRS2Go app, under the Stay Connected tab,
How Can You Reach TAS?
choose the Contact Us option and click on “Local Offices.”
TAS has offices in every state, the District of Columbia,
The Taxpayer Advocate Service (TAS) and Puerto Rico. Your local advocate’s number is in your
local directory and at TaxpayerAdvocate.IRS.gov/
Is Here To Help You
Contact-Us. You can also call them at 877-777-4778.
What Is TAS?
How Else Does TAS Help Taxpayers?
TAS is an independent organization within the IRS that
helps taxpayers and protects taxpayer rights. Their job is TAS works to resolve large-scale problems that affect
to ensure that every taxpayer is treated fairly and that you many taxpayers. If you know of one of these broad issues,
know and understand your rights under the Taxpayer Bill report it to them at IRS.gov/SAMS.
of Rights.
TAS for Tax Professionals
How Can You Learn About Your Taxpayer
Rights? TAS can provide a variety of information for tax professio-
nals, including tax law updates and guidance, TAS pro-
The Taxpayer Bill of Rights describes 10 basic rights that grams, and ways to let TAS know about systemic prob-
all taxpayers have when dealing with the IRS. Go to lems you’ve seen in your practice.

Page 48 Publication 15 (2023)

- 49 -

Page 49 of 49            Fileid: … ations/p15/2023/a/xml/cycle05/source                  15:08 - 13-Dec-2022

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

                        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.
 
                                                                                Reporting agent  45
A                                        H
Accuracy of deposits rule    29          Health insurance plans 16              S
Additional Medicare Tax   25 36,         Health savings accounts (HSAs)   16    Seasonal employers  32
Adjustments  34                          Hiring new employees  5                Semiweekly deposit schedule  27
Aliens, nonresident   22 25,             Household employees   32               Severance payments  4
Allocated tips 19                                                               Sick pay 18
Archer MSAs  16                          I                                      Social security and Medicare taxes         24
Assistance (See Tax help)                Identity protection services  18       Social security number, employee         14
                                         Income tax withholding 21              Spouse 12
B                                        Information returns 5                  Standard mileage rate 16
Backup withholding    7                  International social security          Statutory employees 11
Business expenses, employee        15      agreements   25                      Statutory nonemployees  12
                                                                                Successor employer  25 38, 
C                                        L                                      Supplemental wages  19
Calendar  8                              Long-term-care insurance 16
Certified professional employer          Lookback period   26                   T
  organizations (CPEOs)      3 46,                                              Tax help 46
Change of business address or            M                                      Telephone help 8
  responsible party     7                                                       Third-party payer arrangements           45
                                         Meals and lodging 16
Correcting employment taxes     36                                              Third-party sick pay tax adjustment        35
                                         Medicaid waiver payments    3
Correcting errors (prior period                                                 Tip rate determination agreement         19
  adjustments)    36                     Medical care  17                       Tip rate determination and education 
Criminal prosecution                     Medical savings accounts (MSAs)   16    program    19
                                         Medicare tax  24                       Tips 18 20, 
D                                        Mileage 16                             Trust fund recovery penalty  31
                                         Monthly deposit schedule 27
Delivery services, private   8           Motion picture project employers  25   U
Depositing taxes:                        Moving expense reimbursement     2
  Penalties  30                                                                 Unemployment tax, federal  37
  Rules 26                               N
Differential wage payments     17                                               V
Disaster tax relief 2                    New employees    5
                                         Noncash wages    16                    Vacation pay 20
E                                        Nonemployee compensation      7
                                                                                W
E-file 33                                O                                      Wage repayments  37
E-news for payroll professionals   8                                            Wages defined  15
Election worker   10                     Outsourcing payroll duties  3
                                                                                Wages not paid in money    16
Electronic deposit requirement     30                                           Withholding:
Electronic Federal Tax Payment System    P
                                                                                 Backup  7
  (EFTPS)    30                          Part-time workers 25                    Certificate 21
Electronic filing 4 33,                  Payroll period 20                       Exemption   22
Eligibility for employment   5           Payroll service provider (PSP) 45       Fringe benefits 17
Employees defined    11                  Penalties 30 33,                        Income tax  21
Employer identification number (EIN)  11 Private delivery services (PDSs) 8      Levies  24
Employer responsibilities    6           Publications (See Tax help)             Nonresident aliens 25
                                                                                 Pensions and annuities 6
F                                        Q                                       Social security and Medicare taxes        24
Family employees    13                   Qualified small business payroll tax    Tips 20
Final return 33                            credit for increasing research 
Foreign persons treated as American        activities 2                         Z
  employers    25
Form 944  32                             R                                      Zero wage return 4
Fringe benefits 17                       Reconciling Forms W-2 and Forms 941 or 
FUTA tax  37                               Form 944   34
                                         Recordkeeping    7
G                                        Reimbursements    15
Government employers      10             Repayments, wages    37

Publication 15 (2023)                                                                                          Page 49

PDF file checksum: 1773682658

(Plugin #1/9.12/13.0)