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            Department of the Treasury                   Contents
            Internal Revenue Service
                                                         What's New    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1
                                                         Reminders    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Publication 51
Cat. No. 10320R                                          Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
                                                         Introduction  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7
                                                         1. Taxpayer Identification Numbers (TINs)                     . . . . . .  8
(Circular A), 
                                                         2. Who Are Employees? . . . . . . . . . . . . . . . . . . . . .            9
Agricultural                                             3. Wages and Other Compensation                   . . . . . . . . . . .    11
                                                         4. Social Security and Medicare Taxes                   . . . . . . . .    11
Employer's                                               5. Federal Income Tax Withholding                 . . . . . . . . . . .    13
                                                         6. Required Notice to Employees About 
Tax Guide                                                Earned Income Credit (EIC) . . . . . . . . . . . . . .                     17
                                                         7. Depositing Taxes       . . . . . . . . . . . . . . . . . . . . . . .    17
For use in 2022                                          8. Form 943   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    22
                                                         9. Reporting Adjustments on Form 943                    . . . . . . . .    23
                                                         10. Federal Unemployment (FUTA) Tax . . . . . . . .                        24
                                                         11. Reconciling Wage Reporting Forms . . . . . . . .                       24
                                                         12. How Do Employment Taxes Apply to 
                                                         Farmwork? . . . . . . . . . . . . . . . . . . . . . . . . . . .            26
                                                         How To Get Tax Help         . . . . . . . . . . . . . . . . . . . . . .    27
                                                         Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30

                                                         Future Developments
                                                         For the latest information about developments related to 
                                                         Pub.  51,  such  as  legislation  enacted  after  it  was 
                                                         published, go to IRS.gov/Pub51.

                                                         What's New
                                                         The  COVID-19  related  credit  for  qualified  sick  and 
                                                         family  leave  wages  is  limited  to  leave  taken  after 
                                                         March 31, 2020, and before October 1, 2021.                         Gener-
                                                         ally, the credit for qualified sick and family leave wages, 
                                                         as  enacted  under  the  Families  First  Coronavirus  Re-
                                                         sponse Act (FFCRA) and amended and extended by the 
                                                         COVID-related Tax Relief Act of 2020 for leave taken after 
                                                         March 31, 2020, and before April 1, 2021, and the credit 
                                                         for qualified sick and family leave wages under sections 
                                                         3131, 3132, and 3133 of the Internal Revenue Code, as 
                                                         enacted under the American Rescue Plan Act of 2021 (the 
                                                         ARP),  for  leave  taken  after  March  31,  2021,  and  before 
                                                         October 1, 2021, have expired. However, employers that 
Get forms and other information faster and easier at:    pay  qualified  sick  and  family  leave  wages  in  2022  for 
• IRS.gov (English)    • IRS.gov/Korean (한국어)            leave taken after March 31, 2020, and before October 1, 
• IRS.gov/Spanish (Español)  • IRS.gov/Russian (Pусский) 2021,  are  eligible  to  claim  a  credit  for  qualified  sick  and 
• IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (Tiếng Việt) family  leave  wages  in  2022.  See  the  December  2021 

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revision of the Instructions for Form 943 for more informa-
tion.
Reminders
The COVID-19 related employee retention credit has
expired. The employee retention credit enacted under Paying the deferred amount of the employer share of
the Coronavirus Aid, Relief, and Economic Security social security tax. The CARES Act allowed employers
(CARES) Act and amended and extended by the Tax- to defer the deposit and payment of the employer share of
payer Certainty and Disaster Tax Relief Act of 2020 was social security tax. The deferred amount of the employer
limited to qualified wages paid after March 12, 2020, and share of social security tax was only available for deposits
before July 1, 2021. The employee retention credit under due on or after March 27, 2020, and before January 1,
section 3134 of the Internal Revenue Code, as enacted by 2021, as well as deposits and payments due after January
the ARP and amended by the Infrastructure Investment 1, 2021, that were required for wages paid on or after
and Jobs Act, was limited to wages paid after June 30, March 27, 2020, and before January 1, 2021. One-half of
2021, and before October 1, 2021, unless the employer the employer share of social security tax is due by De-
was a recovery startup business. An employer that was a cember 31, 2021, and the remainder is due by December
recovery startup business could also claim the employee 31, 2022. Because both December 31, 2021, and Decem-
retention credit for wages paid after September 30, 2021, ber 31, 2022, are nonbusiness days, payments made on
and before January 1, 2022. the next business day will be considered timely. Any pay-
Credit for COBRA premium assistance payments is ments or deposits you make before December 31, 2021,
limited to periods of coverage beginning on or after are first applied against your payment due on December
April 1, 2021, through periods of coverage beginning 31, 2021, and then applied against your payment due on
on or before September 30, 2021. Section 9501 of the December 31, 2022. For more information, go to IRS.gov/
ARP provides for COBRA premium assistance in the form ETD. Also see the Instructions for Form 943 for more in-
of a full reduction in the premium otherwise payable by formation, including how to pay the deferred amount.
certain individuals and their families who elect COBRA Paying the deferred amount of the employee share of
continuation coverage due to a loss of coverage as the re- social security tax. The Presidential Memorandum on
sult of a reduction in hours or an involuntary termination of Deferring Payroll Tax Obligations in Light of the Ongoing
employment (assistance eligible individuals). This CO- COVID-19 Disaster, issued on August 8, 2020, directed
BRA premium assistance is available for periods of cover- the Secretary of the Treasury to defer the withholding, de-
age beginning on or after April 1, 2021, through periods of posit, and payment of the employee share of social secur-
coverage beginning on or before September 30, 2021. A ity tax on wages paid during the period from September 1,
premium payee is entitled to the COBRA premium assis- 2020, through December 31, 2020. The deferral of the
tance credit at the time an eligible individual elects cover- withholding and payment of the employee share of social
age. Therefore, due to the COBRA notice and election pe- security tax was available for employees whose social se-
riod requirements (generally, employers have 60 days to curity wages paid for a biweekly pay period were less than
provide notice and assistance eligible individuals have 60 $4,000, or the equivalent threshold amount for other pay
days to elect coverage), some employers may be eligible periods. The employer was required to withhold and pay
to claim the COBRA premium assistance credit on em- the total deferred employee share of social security tax
ployment tax returns for the first quarter of 2022. See the ratably from wages paid to the employee between Janu-
2022 revision of the Instructions for Form 943 for more in- ary 1, 2021, and December 31, 2021. If necessary, the
formation. employer could have made arrangements to otherwise
collect the total deferred taxes from the employee. The
Social security and Medicare tax for 2022. The rate of
employer is liable to pay the deferred taxes to the IRS and
social security tax on taxable wages, including qualified
must do so before January 1, 2022, to avoid interest, pen-
sick leave wages and qualified family leave wages paid in
alties, and additions to tax on those amounts. Because
2022 for leave taken after March 31, 2021, and before Oc-
January 1, 2022, is a nonbusiness day, payments made
tober 1, 2021, is 6.2% each for the employer and em-
on January 3, 2022, will be considered timely. For more
ployee or 12.4% for both. Qualified sick leave wages and
information about the deferral of employee social security
qualified family leave wages paid in 2022 for leave taken
tax, see Notice 2020-65, 2020-38 I.R.B. 567, available at
after March 31, 2020, and before April 1, 2021, aren't sub-
IRS.gov/irb/2020-38_IRB#NOT-2020-65; and Notice
ject to the employer share of social security tax; therefore,
2021-11, 2021-06 I.R.B. 827, available at IRS.gov/irb/
the tax rate on these wages is 6.2%. The social security
2021-06_IRB#NOT-2021-11. Also see the Instructions for
wage base limit is $147,000.
Form 943 for more information, including how to pay the
The Medicare tax rate is 1.45% each for the employee deferred amount.
and employer, unchanged from 2021. There is no wage
Disaster tax relief. Disaster tax relief is available for
base limit for Medicare tax.
those impacted by disasters. For more information about
Social security and Medicare taxes apply to the wages disaster relief, go to IRS.gov/DisasterTaxRelief.
of household workers you pay $2,400 or more in cash wa-
Payroll tax credit for certain tax-exempt organiza-
ges in 2022.
tions affected by qualified disasters. Section 303(d) of
the Taxpayer Certainty and Disaster Tax Relief Act of
2020 allows for a payroll tax credit for certain tax-exempt
organizations affected by certain qualified disasters not

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related to COVID-19. This credit will be claimed on Form covered by a CPEO contract, you may also be treated as
5884-D (not on Form 943). Form 5884-D is filed after the an employer of the employees and, consequently, may
Form 943 for the year for which the credit is being claimed also be liable for federal employment taxes imposed on
has been filed. For more information about this credit, go wages and other compensation paid by the CPEO to such
to IRS.gov/Form5884D. employees. For more information on the different types of
2022 withholding tables. The Percentage Method and third-party payer arrangements, see section 16 of Pub. 15.
Wage Bracket Method withholding tables, the employer Aggregate Form 943 filers. Approved section 3504
instructions on how to figure employee withholding, and agents and CPEOs must complete Schedule R (Form
the amount to add to a nonresident alien employee's wa- 943), Allocation Schedule for Aggregate Form 943 Filers,
ges for figuring income tax withholding are included in when filing an aggregate Form 943. Aggregate Forms 943
Pub. 15-T, Federal Income Tax Withholding Methods, are filed by agents approved by the IRS under section
available at IRS.gov/Pub15T. You may also use the In- 3504 of the Internal Revenue Code. To request approval
come Tax Withholding Assistant for Employers at to act as an agent for an employer, the agent files Form
IRS.gov/ITWA to help you figure federal income tax with- 2678 with the IRS. Aggregate Forms 943 are also filed by
holding. CPEOs approved by the IRS under section 7705. To be-
Withholding on supplemental wages. P.L. 115-97 low- come a CPEO, the organization must apply through the
ered the withholding rates on supplemental wages for tax IRS Online Registration System at IRS.gov/CPEO.
years beginning after 2017 and before 2026. See Supple- CPEOs file Form 8973, Certified Professional Employer
mental wages in section 5 for the withholding rates. Organization/Customer Reporting Agreement, to notify
Certification program for professional employer or- the IRS that they've started or ended a service contract
ganizations (PEOs). The Stephen Beck, Jr., Achieving a with a client or customer. CPEOs must generally file Form
Better Life Experience Act of 2014 required the IRS to es- 943 and Schedule R (Form 943) electronically. For more
tablish a voluntary certification program for PEOs. PEOs information about a CPEO's requirement to file electroni-
handle various payroll administration and tax reporting re- cally, see Revenue Procedure 2017-14, 2017-3 I.R.B.
sponsibilities for their business clients and are typically 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14.
paid a fee based on payroll costs. To become and remain Other third-party payers that file aggregate Forms 943,
certified under the certification program, certified profes- such as non-certified PEOs, must complete and file
sional employer organizations (CPEOs) must meet vari- Schedule R (Form 943) if they have clients that are claim-
ous requirements described in sections 3511 and 7705 ing any employment tax credit (for example, the qualified
and related published guidance. Certification as a CPEO small business payroll tax credit for increasing research
may affect the employment tax liabilities of both the CPEO activities).
and its customers. A CPEO is generally treated for em- Qualified small business payroll tax credit for in-
ployment tax purposes as the employer of any individual creasing research activities. For tax years beginning
who performs services for a customer of the CPEO and is after 2015, a qualified small business may elect to claim
covered by a contract described in section 7705(e)(2) be- up to $250,000 of its credit for increasing research activi-
tween the CPEO and the customer (CPEO contract), but ties as a payroll tax credit against the employer share of
only for wages and other compensation paid to the indi- social security tax. The payroll tax credit election must be
vidual by the CPEO. To become a CPEO, the organization made on or before the due date of the originally filed in-
must apply through the IRS Online Registration System. come tax return (including extensions). The portion of the
For more information or to apply to become a CPEO, go to credit used against the employer share of social security
IRS.gov/CPEO. Also see Revenue Procedure 2017-14, tax is allowed in the first calendar quarter beginning after
2017-3 I.R.B. 426, available at IRS.gov/irb/ the date that the qualified small business filed its income
2017-03_IRB#RP-2017-14. tax return. The election and determination of the credit
Outsourcing payroll duties. Generally, as an employer, amount that will be used against the employer share of so-
you're responsible to ensure that tax returns are filed and cial security tax are made on Form 6765, Credit for In-
deposits and payments are made, even if you contract creasing Research Activities. The amount from Form
with a third party to perform these acts. You remain re- 6765, line 44, must then be reported on Form 8974, Quali-
sponsible if the third party fails to perform any required ac- fied Small Business Payroll Tax Credit for Increasing Re-
tion. Before you choose to outsource any of your payroll search Activities. Form 8974 is used to determine the
and related tax duties (that is, withholding, reporting, and amount of the credit that can be used in the current year.
paying over social security, Medicare, FUTA, and income The amount from Form 8974, line 12, is reported on Form
taxes) to a third-party payer, such as a payroll service pro- 943, line 12a. If you're claiming the research payroll tax
vider or reporting agent, go to IRS.gov/ credit on your Form 943, you must attach Form 8974 to
OutsourcingPayrollDuties for helpful information on this Form 943. For more information about the payroll tax
topic. If a CPEO pays wages and other compensation to credit, see Notice 2017-23, 2017-16 I.R.B. 1100, available
an individual performing services for you, and the services at IRS.gov/irb/2017-16_IRB#NOT-2017-23; and IRS.gov/
are covered by a contract described in section 7705(e)(2) ResearchPayrollTC. Also see the line 17 instructions in
between you and the CPEO (CPEO contract), then the the Instructions for Form 943.
CPEO is generally treated as the employer, but only for Work opportunity tax credit for qualified tax-exempt
wages and other compensation paid to the individual by organizations hiring qualified veterans. Qualified
the CPEO. However, with respect to certain employees tax-exempt organizations that hire eligible unemployed

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veterans may be able to claim the work opportunity tax Spend less time worrying about taxes and more time
credit against their payroll tax liability using Form 5884-C. running your business. Use e-file and EFTPS to your ben-
For more information, go to IRS.gov/WOTC. efit.
Definition of marriage. A marriage of two individuals is • For e-file, go to IRS.gov/EmploymentEfile for addi-
recognized for federal tax purposes if the marriage is rec- tional information. A fee may be charged to file elec-
ognized by the state, possession, or territory of the United tronically.
States in which the marriage is entered into, regardless of
legal residence. Two individuals who enter into a relation- • For EFTPS, go to EFTPS.gov, or call EFTPS Cus-
tomer Service at 800-555-4477 or 800-733-4829
ship that is denominated as a marriage under the laws of
(TDD).
a foreign jurisdiction are recognized as married for federal
tax purposes if the relationship would be recognized as a • For electronic filing of Form W-2, Wage and Tax
marriage under the laws of at least one state, possession, Statement, go to SSA.gov/employer. You may be re-
or territory of the United States, regardless of legal resi- quired to file Forms W-2 electronically. For details,
dence. Individuals who have entered into a registered do- see the General Instructions for Forms W-2 and W-3.
mestic partnership, a civil union, or other similar relation- If you’re filing your tax return or paying your fed-
ship that isn't denominated as a marriage under the law of ! eral taxes electronically, a valid EIN is required at
the state, possession, or territory of the United States CAUTION the time the return is filed or the payment is made.
where such relationship was entered into aren't lawfully If a valid EIN isn't provided, the return or payment won't be
married for federal tax purposes, regardless of legal resi- processed. This may result in penalties. See Employer
dence. identification number (EIN) in section 1 for more informa-
Disregarded entities and qualified subchapter S sub- tion about applying for an EIN.
sidiaries (QSubs). Eligible single-owner disregarded en-
tities and QSubs are treated as separate entities for em- Electronic funds withdrawal (EFW). If you file your em-
ployment tax purposes. Eligible single-member entities ployment tax return electronically, you can e-file and use
must report and pay employment taxes on wages paid to EFW to pay the balance due in a single step using tax
their employees using the entities' own names and em- preparation software or through a tax professional. How-
ployer identification numbers (EINs). See Regulations ever, don't use EFW to make federal tax deposits. For
sections 1.1361-4(a)(7) and 301.7701-2(c)(2)(iv). more information on paying your taxes using EFW, go to
IRS.gov/EFW.
Differential wage payments. Qualified differential wage
Credit or debit card payments. You can pay the bal-
payments made by employers to individuals serving in the
ance due shown on your employment tax return by credit
U.S. Armed Forces are subject to income tax withholding
or debit card. Your payment will be processed by a pay-
but not social security, Medicare, or FUTA taxes. For
ment processor who will charge a processing fee. Don't
more information, see section 5 of Pub. 15.
use a credit or debit card to make federal tax deposits. For
Federal tax deposits must be made by electronic more information on paying your taxes with a credit or
funds transfer (EFT). You must use EFT to make all debit card, go to IRS.gov/PayByCard.
federal tax deposits. Generally, an EFT is made using the Online payment agreement. You may be eligible to ap-
Electronic Federal Tax Payment System (EFTPS). If you ply for an installment agreement online if you can't pay the
don't want to use EFTPS, you can arrange for your tax full amount of tax you owe when you file your employment
professional, financial institution, payroll service, or other tax return. For more information, see the instructions for
trusted third party to make electronic deposits on your be- your employment tax return or go to IRS.gov/OPA.
half. Also, you may arrange for your financial institution to Dishonored payments. Any form of payment that is dis-
initiate a same-day wire payment on your behalf. EFTPS honored and returned from a financial institution is subject
is a free service provided by the Department of the Treas- to a penalty. The penalty is $25 or 2% of the payment,
ury. Services provided by your tax professional, financial whichever is more. However, the penalty on dishonored
institution, payroll service, or other third party may have a payments of $24.99 or less is an amount equal to the pay-
fee. ment. For example, a dishonored payment of $18 is
For more information on making federal tax deposits, charged a penalty of $18.
see How To Deposit in section 7. To get more information When you hire a new employee. Ask each new em-
about EFTPS or to enroll in EFTPS, go to EFTPS.gov, or ployee to complete the 2022 Form W-4, or its Spanish
call 800-555-4477 or 800-733-4829 (TDD). Additional in- version, Formulario W-4(SP). Also, ask the employee to
formation about EFTPS is also available in Pub. 966. show you his or her social security card so that you can
Electronic filing and payment. Businesses can enjoy record the employee's name and social security number
the benefits of filing tax returns and paying their federal (SSN) accurately. If the employee has lost the card or re-
taxes electronically. Whether you rely on a tax professio- cently changed names, have the employee apply for a du-
nal or handle your own taxes, the IRS offers you conven- plicate or corrected card. If the employee doesn't have a
ient programs to make filing and payment easier. card, have the employee apply for one on Form SS-5, Ap-
plication for a Social Security Card. See section 1 for
more information.
Eligibility for employment. You must verify that each
new employee is legally eligible to work in the United

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States. This includes completing the U.S. Citizenship and of hearing, or have a speech disability). The center can
Immigration Services (USCIS) Form I-9, Employment Eli- also be reached by email at mccirp@irs.gov. Don't include
gibility Verification. You can get Form I-9 at USCIS.gov/ tax identification numbers (TINs) or attachments in email
Forms. For more information, go to the USCIS website at correspondence because electronic mail isn't secure.
USCIS.gov/I-9-Central or call 800-375-5283 or Web-based application for an EIN. Go to IRS.gov/EIN
800-767-1833 (TTY). to apply for an EIN online. See section 1 for additional in-
You may use the Social Security Number Verification formation.
Service (SSNVS) at SSA.gov/employer/ssnv.htm to verify When a crew leader furnishes workers to you. Re-
that an employee name matches an SSN. A person may cord the crew leader's name, address, and EIN. See sec-
have a valid SSN but not be authorized to work in the Uni- tions and 2 10.
ted States. You may use E-Verify at E-Verify.gov to con-
firm the employment eligibility of newly hired employees. Change of business address or responsible party.
Notify the IRS immediately if you change your business
New hire reporting. You’re required to report any new
address or responsible party. Complete and mail Form
employee to a designated state new-hire registry. A new
8822-B to notify the IRS of a business address or respon-
employee is an employee who hasn't previously been em-
sible party change. For a definition of “responsible party,”
ployed by you or was previously employed by you but has
see the Instructions for Form SS-4.
been separated from such prior employment for at least
60 consecutive days. Ordering employer tax forms, instructions, and publi-
Many states accept a copy of Form W-4 with employer cations. You can view, download, or print most of the
information added. Visit the Office of Child Support Enfor- forms, instructions, and publications you may need at
cement's website at acf.hhs.gov/css/employers for more IRS.gov/Forms. Otherwise, you can go to IRS.gov/
information. OrderForms to place an order and have them mailed to
you. The IRS will process your order as soon as possible.
Forms in Spanish. You can provide Formulario W-4(SP) Don't resubmit requests you've already sent us. You can
in place of Form W-4 to your Spanish-speaking employ- get forms, instructions, and publications faster online.
ees. For more information, see Pub. 17(SP), El Impuesto
Federal sobre los Ingresos (Para Personas Físicas). Instead of ordering paper Forms W-2 and W-3, con-
sider filing them electronically using the SSA's free e-file
For nonemployees, such as independent contractors, service. Visit the SSA's Employer W-2 Filing Instructions &
Formulario W-9(SP), Solicitud y Certificación del Número Information webpage at SSA.gov/employer to register for
de Identificación del Contribuyente, may be used in place Business Services Online. You’ll be able to create Forms
of Form W-9, Request for Taxpayer Identification Number W-2 online and submit them to the SSA by typing your
and Certification. wage information into easy-to-use “fill-in” fields. In addi-
References in this publication to Form W-4 or Form tion, you can print out completed copies of Forms W-2 to
W-9 also apply to their equivalent Spanish transla- file with state or local governments, distribute to your em-
tions—Formulario W-4(SP) or Formulario W-9(SP). ployees, and keep for your records. Form W-3 will be cre-
Information returns. You must file Forms W-2 to report ated for you based on your Forms W-2.
wages paid to employees. You may also be required to Tax questions. You can call the IRS Business and Spe-
file information returns to report certain types of payments cialty Tax Line with your employment tax questions at
made during the year. For example, you must file Form 800-829-4933 or 800-829-4059 (TDD/TTY for persons
1099-NEC, Nonemployee Compensation, to report pay- who are deaf, hard of hearing, or have a speech disabil-
ments of $600 or more to persons not treated as employ- ity). You may also use this number for assistance with un-
ees (for example, independent contractors) for services resolved tax problems.
performed for your trade or business. For details about fil-
ing Forms 1099 and for information about required elec- Recordkeeping. Keep all records of employment taxes
tronic filing, see the General Instructions for Certain Infor- for at least 4 years. These should be available for IRS re-
mation Returns for general information, and the separate, view. Your records should include the following informa-
specific instructions for each information return that you tion.
file (for example, the Instructions for Forms 1099-MISC • Your EIN.
and 1099-NEC). Generally, don't use Forms 1099 to re-
• Amounts and dates of all wage, annuity, and pension
port wages or other compensation that you paid to em-
payments.
ployees; report these amounts on Form W-2. See the
General Instructions for Forms W-2 and W-3 for details • Names, addresses, SSNs, and occupations of em-
about filing Form W-2 and for information about required ployees and recipients.
electronic filing. • Any employee copies of Forms W-2 and W-2c re-
Information reporting customer service site. The IRS turned to you as undeliverable.
operates an information return customer service site to
answer questions about reporting on Forms W-2, W-3, • Dates of employment for each employee.
1099, and other information returns. If you have questions • Periods for which employees and recipients were paid
related to reporting on information returns, you may call while absent due to sickness or injury and the amount
866-455-7438 (toll free), 304-263-8700 (toll call), or and weekly rate of payments you or third-party payers
304-579-4827 (TDD/TTY for persons who are deaf, hard made to them.

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• Copies of employees' and recipients' income tax with- Children® (NCMEC). Photographs of missing children se-
holding certificates (Forms W-4, W-4(SP), W-4P, and lected by the Center may appear in this publication on pa-
W-4S). ges that would otherwise be blank. You can help bring
• Dates and amounts of tax deposits you made and ac- these children home by looking at the photographs and
knowledgment numbers for deposits made by EFTPS. calling 1-800-THE-LOST (1-800-843-5678) if you recog-
nize a child.
• Copies of returns filed and confirmation numbers.
• Records of fringe benefits and expense reimburse-
ments provided to your employees, including substan-
Calendar
tiation.
• Documentation to substantiate any credits claimed. The following is a list of important dates and
Records related to qualified sick leave wages and responsibilities. The dates listed here haven’t been
qualified family leave wages for leave taken after adjusted for Saturdays, Sundays, and legal holidays (see
March 31, 2021, and records related to qualified wa- the TIP next). Pub. 509, Tax Calendars (for use in 2022),
ges for the employee retention credit paid after June adjusts the dates for Saturdays, Sundays, and legal
30, 2021, should be kept for at least 6 years. For more holidays. See section 7 for information about depositing
information on substantiation requirements, go to taxes reported on Forms 943 and 945, Annual Return of
IRS.gov/PLC and IRS.gov/ERC. Withheld Federal Income Tax. See section 10 for
information about depositing FUTA tax. Due dates for
• Documentation to substantiate the amount of any em- forms required for health coverage reporting aren’t listed
ployer or employee share of social security tax that here. For these dates, see Pub. 509.
you deferred and paid for 2020.
If any date shown next for filing a return, furnish-
If a crew leader furnished you with farmworkers, you TIP ing a form, or depositing taxes falls on a Saturday,
must keep a record of the name, permanent mailing ad- Sunday, or legal holiday, the due date is the next
dress, and EIN of the crew leader. If the crew leader has business day. The term “legal holiday” means any legal
no permanent mailing address, record his or her present holiday in the District of Columbia. A statewide legal holi-
address. day delays a filing due date only if the IRS office where
Private delivery services (PDSs). You can use certain you’re required to file is located in that state. However, a
PDSs designated by the IRS to meet the “timely mailing statewide legal holiday doesn't delay the due date of fed-
as timely filing” rule for tax returns. Go to IRS.gov/PDS for eral tax deposits. See Deposits Due on Business Days
the current list of PDSs. Only in section 7. For any filing due date, you will meet the
The PDS can tell you how to get written proof of the “file” or “furnish” requirement if the envelope containing
mailing date. the return or form is properly addressed, contains suffi-
For the IRS mailing address to use if you’re using a cient postage, and is postmarked by the U.S. Postal Serv-
PDS, go to IRS.gov/PDSstreetAddresses. Select the mail- ice on or before the due date, or sent by an IRS-designa-
ing address listed on the webpage that is in the same ted PDS on or before the due date. See Private delivery
state as the address to which you would mail returns filed services under Reminders, earlier, for more information.
without a payment, as shown in the instructions for your
Fiscal year taxpayers. The due dates listed next apply
employment tax return.
whether you use a calendar or a fiscal year.
PDSs can't deliver items to P.O. boxes. You must By January 31
! use the U.S. Postal Service to mail any item to an • File Form 943. If you deposited all Form 943 taxes
CAUTION IRS P.O. box address.
when due, you may file Form 943 by February 10. See
Zero wage return. If you haven't filed a “final” Form 940, section 8 for more information on Form 943.
Employer's Annual Federal Unemployment (FUTA) Tax File Form 940 to report any FUTA tax. However, if you
•
Return, or Form 943, you must continue to file Forms 940 deposited all the FUTA tax when due, you may file
and 943 even for years during which you paid no wages. Form 940 by February 10. See section 10 for more in-
The IRS encourages you to file your “zero wage” Forms formation on FUTA tax.
940 and 943 electronically. Go to IRS.gov/
EmploymentEfile for more information on electronic filing. • File with the SSA Copy A of all 2021 paper and elec-
Pub. 5146 explains employment tax examinations tronic Forms W-2 with Form W-3, Transmittal of Wage
and appeal rights. Pub. 5146 provides employers with and Tax Statements. For more information on report-
information on how the IRS selects employment tax re- ing Form W-2 information to the SSA electronically,
turns to be examined, what happens during an exam, and visit the SSA's Employer W-2 Filing Instructions & In-
what options an employer has in responding to the results formation webpage at SSA.gov/employer. If filing
of an exam, including how to appeal the results. Pub. electronically via the SSA's Form W-2 Online service,
5146 also includes information on worker classification is- the SSA will generate Form W-3 data from the elec-
sues and tip exams. tronic submission of Form(s) W-2.
Photographs of missing children. The IRS is a proud • Furnish each employee with a completed Form W-2.
partner with the National Center for Missing & Exploited

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• File with the IRS Copy A of all 2021 paper and elec-
tronic Forms 1099-NEC that report nonemployee
Introduction
compensation, with Form 1096, Annual Summary and
Transmittal of U.S. Information Returns. For informa- This publication is for employers of agricultural workers
tion on filing information returns electronically with the (farmworkers). It contains information that you may need
IRS, see Pub. 1220. Other Forms 1099, including to comply with the laws for agricultural labor (farmwork)
Forms 1099-MISC, have different due dates. See the relating to social security and Medicare taxes, FUTA tax,
General Instructions for Certain Information Returns and withheld federal income tax (employment taxes). Ag-
for more information. ricultural employers report social security and Medicare
• Furnish each recipient to whom you paid $600 or taxes and withheld federal income tax on Form 943 and
more in nonemployee compensation with a completed report FUTA tax on Form 940. References to “income tax”
Form 1099-NEC. in this guide apply only to federal income tax. Contact
your state or local tax department to determine their rules.
• File Form 945 to report any nonpayroll federal income When you pay your employees, you don't pay them all
tax withheld. If you deposited all Form 945 taxes when the money they earned. As their employer, you have the
due, you may file Form 945 by February 10. added responsibility of withholding taxes from their pay-
By February 15 checks. The federal income tax and employees' share of
Ask for a new Form W-4 or Formulario W-4(SP) from social security and Medicare taxes that you withhold from
each employee who claimed exemption from federal in- your employees' paychecks are part of their wages that
come tax withholding last year. you pay to the U.S. Treasury instead of to your employ-
ees. Your employees trust that you pay the withheld taxes
On February 16
to the U.S. Treasury by making federal tax deposits. This
Any Form W-4 claiming exemption from withholding for is the reason that these withheld taxes are called trust
the previous year has now expired. Begin withholding for fund taxes. If federal income, social security, or Medicare
any employee who previously claimed exemption from taxes that must be withheld aren't withheld or aren't de-
withholding but hasn't given you a new Form W-4 for the posited or paid to the U.S. Treasury, the trust fund recov-
current year. If the employee doesn't give you a new Form ery penalty may apply. See section 7 for more information.
W-4, withhold tax as if he or she had checked the box for If you have nonfarm employees, see Pub. 15. If you
Single or Married filing separately in Step 1(c) and made have employees in the U.S. Virgin Islands, Guam, Ameri-
no entries in Step 2, Step 3, or Step 4 of the 2022 Form can Samoa, or the Commonwealth of the Northern Ma-
W-4. See section 5 for more information. If the employee riana Islands, see Pub. 80. Pub. 15-A contains more em-
gives you a new Form W-4 claiming exemption from with- ployment-related information, including information about
holding after February 15, you may apply the exemption to sick pay and pension income. Pub. 15-B contains informa-
future wages, but don't refund taxes withheld while the ex- tion about the employment tax treatment and valuation of
empt status wasn't in place. various types of noncash compensation. Pub. 15-T in-
By April 30, July 31, October 31, and January 31 cludes the federal income tax withholding tables and in-
Deposit FUTA taxes. Deposit FUTA taxes if the unde- structions on how to use the tables. For additional infor-
posited amount is over $500. mation about employment taxes, go to IRS.gov/
Before December 1 EmploymentTaxes. For general tax information relevant to
agricultural employers, go to IRS.gov/
Remind employees to submit a new Form W-4 if their AgricultureTaxCenter.
filing status, other income, deductions, or credits have
changed or will change for the next year. Comments and suggestions. We welcome your com-
If you deferred the employer share of social se- ments about this publication and your suggestions for fu-
TIP curity tax under the CARES Act, one-half is due ture editions.
by December 31, 2021, and the remainder is due You can send us comments through IRS.gov/
by December 31, 2022. Any payments or deposits you FormComments.
make before December 31, 2021, are first applied against Or you can write to:
your payment due on December 31, 2021, and then ap-
Internal Revenue Service
plied against your payment due on December 31, 2022. If
Tax Forms and Publications
you deferred the employee share of social security tax un-
1111 Constitution Ave. NW, IR-6526
der Notice 2020-65 and Notice 2021-11, you must with-
Washington, DC 20224
hold and pay the deferred taxes ratably from wages paid
between January 1, 2021, and December 31, 2021. Be-
cause both December 31, 2021, and December 31, 2022, Although we can't respond individually to each com-
are nonbusiness days, payments made on the next busi- ment received, we do appreciate your feedback and will
ness day will be considered timely. For more information consider your comments as we revise our tax forms, in-
and payment instructions, see the Instructions for Form structions, and publications. Don’t send tax questions, tax
943, IRS.gov/ETD Notice 2020-65, , and Notice 2021-11. returns, or payments to this address.

Getting answers to your tax questions. If you have a
tax question not answered by this publication, check

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IRS.gov and How To Get Tax Help at the end of this publi- Always be sure the EIN on the form you file ex-
cation. ! actly matches the EIN the IRS assigned to your
CAUTION business. Don't use your SSN or individual tax-
Useful Items payer identification number (ITIN) on forms that ask for an
You may want to see: EIN. If you used an EIN (including a prior owner's EIN) on
Form 943 that is different from the EIN reported on Form
Publication W-3, see Box h—Other EIN used this year in the General
Instructions for Forms W-2 and W-3. The name and EIN
15 15 Employer's Tax Guide on Form 945 must match the name and EIN on your infor-
mation returns where federal income tax withholding is re-
15-A 15-A Employer's Supplemental Tax Guide ported (for example, backup withholding reported on Form
15-B 15-B Employer's Tax Guide to Fringe Benefits 1099-NEC). Filing a Form 945 with an incorrect EIN or us-
ing another business's EIN may result in penalties and de-
15-T 15-T Federal Income Tax Withholding Methods lays in processing your return.

225 225 Farmer's Tax Guide When you receive your EIN. If you’re a new em-
ployer that indicated a federal tax obligation when re-
535 535 Business Expenses
questing an EIN, you will be pre-enrolled in EFTPS. You
583 583 Starting a Business and Keeping Records will receive information in your EIN Package about Ex-
press Enrollment and an additional mailing containing
1635 1635 Employer Identification Number: your EFTPS personal identification number (PIN) and in-
Understanding Your EIN structions for activating your PIN. Call the toll-free number
located in your “How To Activate Your EFTPS Enrollment”
brochure to activate your enrollment and begin making
1. Taxpayer Identification your employment tax deposits. If you outsource any of
your payroll and related tax duties to a third-party payer,
Numbers (TINs) such as a payroll service provider or reporting agent, be
sure to tell them about your EFTPS enrollment.
If you’re required to withhold any federal income, social
security, or Medicare taxes, you will need an EIN for your- Social security number (SSN). An employee's SSN
self. Also, you will need the SSN of each employee and consists of nine digits arranged as follows: 000-00-0000.
the name of each employee as shown on the employee's You must obtain each employee's name and SSN as
social security card. shown on the employee's social security card because
you must enter them on Form W-2. Don't accept a social
Employer identification number (EIN). An EIN is a security card that says “Not valid for employment.” An
nine-digit number that the IRS issues. The digits are ar- SSN issued with this legend doesn't permit employment.
ranged as follows: 00-0000000. It is used to identify the You may, but aren't required to, photocopy the social se-
tax accounts of employers and certain others who have curity card if the employee provides it. If you don't show
no employees. Use your EIN on all of the items that you the employee's correct name and SSN on Form W-2, you
send to the IRS and the SSA. may owe a penalty unless you have reasonable cause.
If you don't have an EIN, you may apply for one online See Pub. 1586, Reasonable Cause Regulations & Re-
by visiting IRS.gov/EIN. You may also apply for an EIN by quirements for Missing and Incorrect Name/TINs, for infor-
faxing or mailing Form SS-4 to the IRS. If the principal mation on the requirement to solicit the employee's SSN.
business was created or organized outside of the United
States or U.S. territories, you may also apply for an EIN by Applying for a social security card. Any employee
calling 267-941-1099 (toll call). Don't use an SSN in place who is legally eligible to work in the United States and
of an EIN. doesn't have a social security card can get one by com-
If you don't have an EIN by the time a return is due, file pleting Form SS-5 and submitting the necessary docu-
a paper return and write “Applied For” and the date you mentation to the SSA. You can get Form SS-5 at
applied for it in the space shown for the number. If you SSA.gov/forms/ss-5.pdf, at SSA offices, or by calling
took over another employer's business, don't use that em- 800-772-1213 or 800-325-0778 (TTY). The employee
ployer's EIN. must complete and sign Form SS-5; it can't be filed by the
You should have only one EIN. If you have more than employer. You may be asked to supply a letter to accom-
one, and aren't sure which one to use, call the toll-free pany Form SS-5 if the employee has exceeded his or her
Business and Specialty Tax Line at 800-829-4933 or yearly or lifetime limit for the number of replacement cards
800-829-4059 (TDD/TTY for persons who are deaf, hard allowed.
of hearing, or have a speech disability). Provide the EINs
Applying for an SSN. If you file Form W-2 on paper and
that you have, the name and address to which each num-
your employee has applied for an SSN but doesn't have
ber was assigned, and the address of your principal place
one when you must file Form W-2, enter “Applied For” on
of business. The IRS will tell you which EIN to use. For
the form. If you’re filing electronically, enter all zeros
more information, see Pub. 1635.
(000-00-0000 if creating forms online or 000000000 if

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uploading a file) in the SSN field. When the employee re- Registering for SSNVS. You must register online to
ceives the SSN, file Copy A of Form W-2c, Corrected use SSNVS. To register, visit the SSA's website at
Wage and Tax Statement, with the SSA to show the em- SSA.gov/bso and click on the Register link under Busi-
ployee's SSN. Furnish Copies B, C, and 2 of Form W-2c ness Services Online. Follow the registration instructions
to the employee. Up to 25 Forms W-2c per Form W-3c, to obtain a user identification (ID) and password. You will
Transmittal of Corrected Wage and Tax Statements, may need to provide the following information about yourself
be filed per session over the Internet, with no limit on the and your company.
number of sessions. For more information, visit the SSA's
• Name.
Employer W-2 Filing Instructions & Information webpage
at SSA.gov/employer. Advise your employee to correct • SSN.
the SSN on his or her original Form W-2. • Date of birth.
Correctly record the employee's name and SSN. Re- • Type of employer.
cord the name and SSN of each employee as they’re EIN.
•
shown on the employee's social security card. If the em-
ployee's name isn't correct as shown on the card (for ex- • Company name, address, and telephone number.
ample, because of marriage or divorce), the employee • Email address.
should request an updated card from the SSA. Continue
to report the employee's wages under the old name until When you have completed the online registration process,
the employee shows you an updated social security card the SSA will mail a one-time activation code to you. You
with the corrected name. must enter the activation code online to use SSNVS. Your
If the SSA issues the employee an updated card after a employees must receive authorization from you to use
name change, or a new card with a different SSN after a SSNVS. If your employees register, the one-time activa-
change in alien work status, file a Form W-2c to correct tion code will be mailed to you.
the name/SSN reported on the most recently filed Form
W-2. It isn't necessary to correct other years if the previ-
ous name and SSN were used for years before the most 2. Who Are Employees?
recent Form W-2.
Generally, employees are defined either under common
IRS individual taxpayer identification numbers law or under statutes for certain situations. See Pub. 15-A
(ITINs) for aliens. Don't accept an ITIN in place of an for details on statutory employees and nonemployees.
SSN for employee identification or for work. An ITIN is is-
sued for use by resident and nonresident aliens who need Employee status under common law. Generally, a
identification for tax purposes, but who aren't eligible for worker who performs services for you is your employee if
U.S. employment. You can identify an ITIN because it’s a you have the right to control what will be done and how it
nine-digit number, formatted like an SSN, that starts with will be done. This is so even when you give the employee
the number “9” and has a range of numbers from “50–65,” freedom of action. What matters is that you have the right
“70–88,” “90–92,” and “94–99” for the fourth and fifth digits to control the details of how the services are performed.
(for example, 9NN-7N-NNNN). For more information See Pub. 15-A for more information on how to determine
about ITINs, see the Instructions for Form W-7 or go to whether an individual providing services is an independ-
IRS.gov/ITIN. ent contractor or an employee.
An individual with an ITIN who later becomes eli- If an employer-employee relationship exists, it doesn't
! gible to work in the United States must obtain an matter what it is called. The employee may be called an
CAUTION SSN. If the individual is currently eligible to work
agent or independent contractor. It also doesn't matter
in the United States, instruct the individual to apply for an how payments are measured or paid, what they’re called,
SSN and follow the instructions under Applying for an or if the employee works full or part time.
SSN, earlier in this section. Don't use an ITIN in place of
an SSN on Form W-2. You’re responsible for withholding and paying employ-
ment taxes for your employees. You’re also required to file
Verification of SSNs. Employers and authorized report- employment tax returns. These requirements don't apply
ing agents can use the Social Security Number Verifica- to amounts that you pay to independent contractors. The
tion Service (SSNVS) to instantly verify that an employee rules discussed in this publication apply only to workers
name matches an SSN for up to 10 employee names and who are your employees.
SSNs (per screen) at a time, or submit an electronic file of
In general, you’re an employer of farmworkers if your
up to 250,000 names and SSNs and usually receive re-
employees:
sults the next business day. Visit SSA.gov/employer/
ssnv.htm for more information. A person may have a valid • Raise or harvest agricultural or horticultural products
SSN but not be authorized to work in the United States. on your farm (including the raising and feeding of live-
Employers may use E-Verify at E-Verify.gov to confirm the stock);
employment eligibility of newly hired employees. • Work in connection with the operation, management,
conservation, improvement, or maintenance of your

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   farm and its tools and equipment, if the major part of          Exception—Qualified  joint  venture.    For  tax  years  be-
   such service is performed on a farm;                            ginning after 2006, the Small Business and Work Oppor-
                                                                   tunity Tax Act of 2007 (Public Law 110-28) provides that a 
•  Provide services relating to salvaging timber, or clear-
                                                                   “qualified  joint  venture,”  whose  only  members  are  spou-
   ing land of brush and other debris, left by a hurricane 
                                                                   ses filing a joint income tax return, can elect not to be trea-
   (also known as hurricane labor) if the major part of 
                                                                   ted as a partnership for federal tax purposes. A qualified 
   such service is performed on a farm;
                                                                   joint venture conducts a trade or business where:
•  Handle, process, or package any agricultural or horti-
   cultural commodity in its unmanufactured state, if you          • The only members of the joint venture are spouses 
                                                                     who file a joint income tax return,
   produced over half of the commodity (for a group of 
   up to 20 unincorporated operators, all of the commod-           • Both spouses materially participate (see Material par-
   ity); or                                                          ticipation in the instructions for Schedule C (Form 
                                                                     1040), line G) in the trade or business (mere joint own-
•  Do work for you related to cotton ginning, turpentine, 
                                                                     ership of property isn't enough),
   gum resin products, or the operation and maintenance 
   of irrigation facilities.                                       • Both spouses elect to not be treated as a partnership, 
                                                                     and
  For this purpose, the term “farm” includes stock, dairy, 
poultry, fruit, fur-bearing animals, and truck farms, as well      • The business is co-owned by both spouses and isn't 
as  plantations,  ranches,  nurseries,  ranges,  greenhouses         held in the name of a state law entity such as a part-
or other similar structures used primarily for the raising of        nership or limited liability company (LLC).
agricultural or horticultural commodities, and orchards.           To  make  the  election,  all  items  of  income,  gain,  loss, 
                                                                   deduction, and credit must be divided between the spou-
  Farmwork doesn't include reselling activities that don't 
                                                                   ses, in accordance with each spouse's interest in the ven-
involve  any  substantial  activity  of  raising  agricultural  or 
                                                                   ture, and reported on a separate Schedule C (Form 1040) 
horticultural  commodities,  such  as  a  retail  store  or  a 
                                                                   or  Schedule  F  (Form  1040)  as  sole  proprietors.  Each 
greenhouse  used  primarily  for  display  or  storage.  It  also 
                                                                   spouse  must  also  file  a  separate  Schedule  SE  (Form 
doesn't  include  processing  services  that  change  a  com-
                                                                   1040) to pay self-employment taxes, as applicable.
modity from its raw or natural state, or services performed 
                                                                   Spouses using the qualified joint venture rules are trea-
after a commodity has been changed from its raw or natu-
                                                                   ted as sole proprietors for federal tax purposes and gener-
ral state.
                                                                   ally don't need an EIN. If employment taxes are owed by 
  The  table  in  section  12, How  Do  Employment  Taxes          the qualified joint venture, either spouse may report and 
Apply to Farmwork, distinguishes between farm and non-             pay the employment taxes due on the wages paid to the 
farm activities, and also addresses rules that apply in spe-       employees using the EIN of that spouse's sole proprietor-
cial situations.                                                   ship. Generally, filing as a qualified joint venture won't in-
                                                                   crease the spouses' total tax owed on the joint income tax 
                                                                   return. However, it gives each spouse credit for social se-
Crew Leaders
                                                                   curity  earnings  on  which  retirement  benefits  are  based 
If you’re a crew leader, you’re an employer of farmwork-           and for Medicare coverage without filing a partnership re-
ers. A crew leader is a person who furnishes and pays (ei-         turn.
ther on his or her own behalf or on behalf of the farm oper-       Note. If your spouse is your employee, not your part-
ator) workers to do farmwork for the farm operator. If there       ner, you must withhold and pay federal income, social se-
is no written agreement between you and the farm opera-            curity,  and  Medicare  taxes  for  him  or  her.  However,  the 
tor stating that you’re his or her employee and if you pay         wages aren’t subject to FUTA tax.
the workers (either for yourself or for the farm operator),        For more information on qualified joint ventures, go to 
then you’re a crew leader. For FUTA tax rules, see section         IRS.gov/QJV.
10.
                                                                   Exception—Community  income.            If  you  and  your 
  If you're a crew leader, you're not considered the em-           spouse wholly own an unincorporated business as com-
ployee of the farm operator for services you perform in fur-       munity property under the community property laws of a 
nishing farmworkers and as a member of the crew.                   state,  foreign  country,  or  U.S.  possession,  you  can  treat 
                                                                   the business either as a sole proprietorship (of the spouse 
                                                                   who carried on the business) or a partnership. You may 
Business Owned and Operated by 
                                                                   still make an election to be taxed as a qualified joint ven-
Spouses                                                            ture  instead  of  a  partnership.  See Exception—Qualified 
                                                                   joint venture, earlier in this section.
If you and your spouse jointly own and operate a farm or 
nonfarm business and share in the profits and losses, you 
may be partners in a partnership, whether or not you have 
a  formal  partnership  agreement.  See  Pub.  541  for  more 
details. The partnership is considered the employer of any 
employees and is liable for any employment taxes due on 
wages paid to its employees.

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by your spouse or your child under age 21. Nor do the
taxes apply to housework done by your parent unless:
3. Wages and Other
• You have a child (including an adopted child or step-
Compensation child) living in your home who is under age 18 or has a
physical or mental condition that requires care by an
Cash wages that you pay to employees for farmwork are adult for at least 4 continuous weeks in the calendar
generally subject to social security tax and Medicare tax. quarter services were performed; and
You may also be required to withhold, deposit, and report
• You’re a widow or widower, or divorced and not re-
Additional Medicare Tax. See section 4 for more informa-
married, or have a spouse in the home who, because
tion. If the wages are subject to social security and Medi-
of a physical or mental condition, can't care for your
care taxes, they’re also subject to federal income tax with-
child for at least 4 continuous weeks in the calendar
holding. You’re liable for the payment of these taxes to the
quarter services were performed.
federal government whether or not you collect them from
your employees. If, for example, you withhold less than For more information, see Pub. 926.
the correct tax from an employee's wages, you’re still lia- Wages for household work are generally not a de-
ble for the full amount. You may also be liable for FUTA ! ductible farm expense. See Nondeductible Pay in
tax, which isn't withheld by you or paid by the employee. CAUTION chapter 4 of Pub. 225 for more information.
FUTA tax is discussed in section 10. Cash wages include
checks, money orders, and any kind of money or cash.
Share farmers. You don't have to withhold or pay social
For more information on what payments are considered security and Medicare taxes on amounts paid to share
taxable wages, see Pub. 15. farmers under share-farming arrangements.

Noncash wages (including commodity wages). Non- Compensation paid to H-2A visa holders. Report
cash wages include food, lodging, clothing, transportation compensation of $600 or more paid to foreign agricultural
passes, farm products, or other goods or commodities. workers who entered the country on H-2A visas in box 1 of
Noncash wages paid to farmworkers, including commod- Form W-2 but don't report it as social security wages
ity wages, aren't subject to social security taxes, Medicare (box 3) or Medicare wages (box 5) on Form W-2 because
taxes, or federal income tax withholding. However, you compensation paid to H-2A workers for agricultural labor
and your employee can agree to have federal income tax performed in connection with this visa isn't subject to so-
withheld on noncash wages. cial security and Medicare taxes. On Form W-2, don't
Noncash wages, including commodity wages, are trea- check box 13 (Statutory employee), as H-2A workers
ted as cash wages if the substance of the transaction is a aren't statutory employees.
cash payment. Noncash wages treated as cash wages An employer isn't required to withhold federal income
are subject to social security taxes, Medicare taxes, and tax from compensation paid to an H-2A worker for agricul-
federal income tax withholding. tural labor performed in connection with this visa but may
Report the value of noncash wages in box 1 of Form withhold if the worker asks for withholding and the em-
W-2 together with cash wages. Noncash wages for farm- ployer agrees. In that case, the worker must give the em-
work are subject to federal income tax unless a specific ployer a completed Form W-4. Federal income tax with-
exclusion applies. Don't show noncash wages in box 3 or held should be reported in box 2 of Form W-2.
5 of Form W-2 (unless the substance of the transaction is These reporting rules apply when the H-2A worker pro-
a cash payment and they’re being treated as cash wa- vides his or her TIN to the employer. If the H-2A worker
ges). doesn't provide a TIN and the total annual wages to the
H-2A worker are at least $600, the employer is required to
Other compensation. Pubs. 15-A and 15-B discuss backup withhold. See the Instructions for Forms
other forms of compensation that may be taxable. 1099-MISC and 1099-NEC and the Instructions for Form
945.
Family members. Generally, the wages that you pay to For more information on foreign agricultural workers on
family members who are your employees are subject to H-2A visas, go to IRS.gov/H2A.
social security and Medicare taxes, federal income tax
withholding, and FUTA tax. However, certain exemptions
may apply for your child, spouse, or parent. See the table,
How Do Employment Taxes Apply to Farmwork, in 4. Social Security and

section 12. Medicare Taxes
Household employees. The wages of an employee who
Generally, you must withhold social security and Medicare
performs household services, such as a maid, babysitter,
taxes on all cash wage payments that you make to your
gardener, or cook, in your home aren't subject to social
employees. You may also be required to withhold Addi-
security and Medicare taxes if you pay that employee
tional Medicare Tax. For more information, see Additional
cash wages of less than $2,400 in 2022.
Medicare Tax withholding, later.
Social security and Medicare taxes don't apply to cash
wages for housework in your private home if it was done

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The $150 Test or the $2,500 Test 6.2%. Qualified sick leave wages and qualified family
leave wages for leave taken after March 31, 2021, and be-
All cash wages that you pay to an employee during the fore October 1, 2021, are subject to both the employer
year for farmwork are subject to social security and Medi- share (6.2%) and employee share (6.2%) of social secur-
care taxes and federal income tax withholding if either of ity tax (12.4% total).
the two tests below is met.
For purposes of this publication, all references to
• You pay cash wages to an employee of $150 or more TIP “sick pay” mean ordinary sick pay, not “qualified
in a year for farmwork (count all cash wages paid on a sick leave wages” under the FFCRA, as amended
time, piecework, or other basis). The $150 test applies by the COVID-related Tax Relief Act of 2020, and the
separately to each farmworker that you employ. If you ARP.
employ a family of workers, each member is treated
separately. Don't count wages paid by other employ-
ers. Additional Medicare Tax withholding. In addition to
withholding Medicare tax at 1.45%, you must withhold a
• The total that you pay for farmwork (cash and non- 0.9% Additional Medicare Tax from wages you pay to an
cash) to all your employees is $2,500 or more during employee in excess of $200,000 in a calendar year.
the year. You’re required to begin withholding Additional Medicare
Tax in the pay period in which you pay wages in excess of
Exceptions. Annual cash wages of less than $150 you $200,000 to an employee and continue to withhold it each
pay to a seasonal farmworker aren't subject to social se- pay period until the end of the calendar year. Additional
curity and Medicare taxes, or federal income tax withhold- Medicare Tax is only imposed on the employee. There is
ing, even if you pay $2,500 or more to all your farmwork- no employer share of Additional Medicare Tax. All wages
ers. However, these wages count toward the $2,500 test that are subject to Medicare tax are subject to Additional
for determining whether other farmworkers' wages are Medicare Tax withholding if paid in excess of the
subject to social security and Medicare taxes. $200,000 withholding threshold.
A seasonal farmworker is a worker who: For more information on what wages are subject to
• Is employed in agriculture as a hand-harvest laborer, Medicare tax, see the chart, Special Rules for Various
• Is paid piece rates in an operation that is usually paid Types of Services and Payments, in section 15 of Pub.
on a piece-rate basis in the region of employment, 15. For more information on Additional Medicare Tax, go
to IRS.gov/ADMT.
• Commutes daily from his or her permanent home to
the farm, and Employee share paid by employer. If you would rather
pay a household or agricultural employee's share of the
• Had been employed in agriculture less than 13 weeks
social security and Medicare taxes without withholding
in the preceding calendar year.
them from his or her wages, you may do so. If you don't
withhold the taxes, however, you must still pay them on
Social Security and Medicare Tax behalf of the employee. Any employee social security
Withholding and Medicare taxes that you pay are additional income to
the employee. Include it in box 1 of the employee's Form
The social security tax rate is 6.2%, for both the employee W-2, but don't count it as social security and Medicare
and employer, on the first $147,000 paid to each em- wages and don't include it in boxes 3 and 5. Also, don't
ployee in 2022. You must withhold at this rate from each count the additional income as wages for FUTA tax purpo-
employee and pay a matching amount. The Medicare tax ses. Different rules apply to employer payments of social
rate is 1.45% each for the employee and employer on all security and Medicare taxes for non-household and
wages. You must withhold at this rate from each em- non-agricultural employees. See section 7 of Pub. 15-A.
ployee and pay a matching amount. There is no wage
base limit for Medicare tax; all covered wages are subject Example. Gavrielle operates a small family fruit farm.
to Medicare tax. She employs day laborers in the picking season to enable
her to timely get her crop to market. She doesn't deduct
Social security and Medicare taxes apply to most pay-
the employees' share of social security and Medicare
ments of sick pay, including payments made by third par-
taxes from their pay; instead, she pays it on their behalf.
ties such as insurance companies. For details, see sec-
When she prepares her employees' Forms W-2, she adds
tion 6 of Pub. 15-A.
each employee's share of social security and Medicare
Any qualified sick leave wages and qualified fam- taxes that she paid to the employee's wage income (box 1
! ily leave wages paid in 2022 for leave taken under of Form W-2), but doesn't include it in box 3 (social secur-
CAUTION the FFCRA, as amended and extended by the ity wages) or box 5 (Medicare wages and tips).
COVID-related Tax Relief Act of 2020, or taken under the For 2021, Gavrielle paid Dan $1,000 during the year.
ARP, are taxed based on when the leave was taken. She enters $1,076.50 in box 1 of Dan's Form W-2 ($1,000
Qualified sick leave wages and qualified family leave wa- wages plus $76.50 social security and Medicare taxes
ges for leave taken after March 31, 2020, and before April paid for Dan). She enters $1,000.00 in boxes 3 and 5 of
1, 2021, aren't subject to the employer share of social Dan's Form W-2.
security tax; therefore, the tax rate on these wages is

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Withholding social security and Medicare taxes on because of the redesign. Employers will continue to figure
nonresident alien employees. In general, if you pay withholding based on the information from the employee’s
wages to nonresident alien employees, you must withhold most recently submitted Form W-4. The withholding ta-
social security and Medicare taxes as you would for a bles in Pub. 15-T allow employers to figure withholding
U.S. citizen or resident alien. However, see Pub. 515 for based on a Form W-4 for 2019 or earlier, as well as the re-
exceptions to this general rule. One such exception is for designed Form W-4. While you may ask your employees
foreign agricultural workers on H-2A visas, who are ex- first paid wages before 2020 that have not yet submitted a
empt from social security and Medicare taxes. See Com- redesigned Form W-4 to submit new Forms W-4 using the
pensation paid to H-2A visa holders in section 3. redesigned version of the form, you should explain to
them that they’re not required to do this and if they don’t
Religious exemption. An exemption from social security submit a new Form W-4, withholding will continue based
and Medicare taxes is available to members of a recog- on a valid Form W-4 previously submitted. All newly hired
nized religious sect opposed to insurance. This exemption employees must use the redesigned form. Similarly, any
is available only if both the employee and the employer other employees who wish to adjust their withholding must
are members of the sect. For more information, see Pub. use the redesigned form.
517. Pub. 15-T provides an optional computational bridge to
treat 2019 or earlier Forms W-4 as if they were 2020 or
later Forms W-4 for purposes of figuring federal income
5. Federal Income Tax tax withholding. This computational bridge allows you to
use computational procedures and data fields for a 2020
Withholding and later Form W-4 to arrive at the equivalent withholding
for an employee that would have applied using the com-
Farm operators and crew leaders must withhold federal putational procedures and data fields on a 2019 or earlier
income tax from the wages of farmworkers if the wages Form W-4. See How To Treat 2019 and Earlier Forms
are subject to social security and Medicare taxes. The W-4 as if They Were 2020 or Later Forms W-4 in the Intro-
amount to withhold is figured on gross wages before tak- duction section of Pub. 15-T.
ing out social security and Medicare taxes, union dues,
More information. For more information about the re-
etc. You may use one of several methods to determine the
designed Form W-4 and regulations that provide guidance
amount of federal income tax withholding. They’re dis-
for employers concerning income tax withholding from
cussed in Pub. 15-T.
employees’ wages, see Treasury Decision 9924, 2020-44
Redesigned Form W-4. The IRS redesigned Form W-4 I.R.B. 943, available at IRS.gov/irb/
for 2020 and subsequent years. Before 2020, the value of 2020-44_IRB#TD-9924. For information about Form W-4,
a withholding allowance was tied to the amount of the per- go to IRS.gov/FormW4. Employer instructions on how to
sonal exemption. Due to changes in the law, taxpayers figure employee withholding are provided in Pub. 15-T,
can no longer claim personal exemptions or dependency available at IRS.gov/Pub15T. You may also use the In-
exemptions; therefore, Form W-4 no longer asks an em- come Tax Withholding Assistant for Employers at
ployee to report the number of withholding allowances IRS.gov/ITWA to help you figure federal income tax with-
that they are claiming. The revised Form W-4 is divided holding; however, this transitional tool will no longer be
into five steps. Step 1 and Step 5 apply to all employees. available after 2022.
In Step 1, employees enter personal information like their
Using Form W-4 to figure withholding. To know how
name and filing status. In Step 5, employees sign the
much federal income tax to withhold from employees' wa-
form. Employees who complete only Step 1 and Step 5
ges, you should have a Form W-4 on file for each em-
will have their withholding figured based on their filing sta-
ployee. Encourage your employees to file an updated
tus’s standard deduction and tax rates with no other ad-
Form W-4 for 2022, especially if they owed taxes or re-
justments. If applicable, in Step 2, employees increase
ceived a large refund when filing their 2021 tax return.
their withholding to account for higher tax rates due to in-
Ask all new employees to give you a signed Form W-4
come from other jobs in their household. Under Step 2,
when they start work. Make the form effective with the first
employees either enter an additional amount to withhold
wage payment. If a new employee doesn't give you a
per payroll period in Step 4(c) or check the box in Step
completed Form W-4 in 2022 (including an employee who
2(c) for higher withholding rate tables to apply to their wa-
previously worked for you and was rehired in 2022, and
ges. In Step 3, employees decrease their withholding by
who fails to furnish a Form W-4), treat the new employee
reporting the annual amount of any credits they will claim
as if they had checked the box for Single or Married filing
on their income tax return. In Step 4, employees may in-
separately in Step 1(c) and made no entries in Step 2,
crease or decrease their withholding based on the annual
Step 3, or Step 4 of the 2022 Form W-4. An employee
amount of other income or deductions they will report on
who was paid wages before 2020 and who failed to fur-
their income tax return and they may also request any ad-
nish a Form W-4 should continue to be treated as single
ditional federal income tax they want withheld each pay
and claiming zero allowances on a 2019 Form W-4. If you
period.
use the optional computational bridge, described earlier
Employees who have submitted Form W-4 in any year
under Redesigned Form W-4, you may treat this em-
before 2020 aren’t required to submit a new form merely
ployee as if they had checked the box for Single or

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Married filing separately in Step 1(c), and made no entries eral income tax withholding because he or she had no
in Step 2 and Step 3, an entry of $8,600 in Step 4(a), and federal income tax liability last year and expects none this
an entry of zero in Step 4(b) of the 2022 Form W-4. year. See the Form W-4 instructions for more information.
However, the wages are still subject to social security and
Forms in Spanish. You can provide Formulario Medicare taxes. See also Invalid Forms W-4, later in this
W-4(SP) in place of Form W-4 to your Spanish-speaking section.
employees. For more information, see Pub. 17(SP). The A Form W-4 claiming exemption from withholding is ef-
rules discussed in this section that apply to Form W-4 also fective when it is given to the employer and only for that
apply to Formulario W-4(SP). calendar year. To continue to be exempt from withholding,
an employee must give you a new Form W-4 by February
Electronic system to receive Form W-4. You may es-
15. If the employee doesn't give you a new Form W-4 by
tablish a system to electronically receive Forms W-4 from
February 15, begin withholding as if he or she had
your employees. See Regulations section 31.3402(f)
checked the box for Single or Married filing separately in
(5)-1(c) and Pub. 15-A for more information.
Step 1(c) and made no entries in Step 2, Step 3, or Step 4
Effective date of Form W-4. A Form W-4 for 2021 or of the 2022 Form W-4. If the employee provides a new
earlier years remains in effect for 2022 unless the em- Form W-4 claiming exemption from withholding on Febru-
ployee gives you a 2022 Form W-4. When you receive a ary 16 or later, you may apply it to future wages but don't
new Form W-4 from an employee, don't adjust withholding refund any taxes withheld while the exempt status wasn’t
for pay periods before the effective date of the new form. If in place.
an employee gives you a Form W-4 that replaces an exist-
Withholding income taxes on the wages of nonresi-
ing Form W-4, begin withholding no later than the start of dent alien employees. In general, you must withhold
the first payroll period ending on or after the 30th day from
federal income taxes on the wages of nonresident alien
the date you received the replacement Form W-4. For ex-
employees. However, see Pub. 515 for exceptions to this
ceptions, see Exemption from federal income tax with-
general rule. Also see Compensation paid to H-2A visa
holding IRS review of requested Forms W-4, , and Invalid
workers in section 3.
Forms W-4, later in this section.
A Form W-4 that makes a change for the next cal- Withholding adjustment for nonresident alien em-
ployees. Nonresident aliens may not claim the standard
CAUTION dar year.
! endar year won't take effect in the current calen- deduction on their tax return; therefore, employers must
add an amount to the wages of nonresident alien employ-
ees performing services within the United States in order
Completing Form W-4. The amount of any federal in-
to figure the amount of federal income tax to withhold from
come tax withholding must be based on filing status, in-
their wages. The amount is added to their wages solely for
come (including income from other jobs), deductions, and
calculating federal income tax withholding. The amount
credits. Your employees may not base their withholding
isn’t included in any box on the employee's Form W-2 and
amounts on a fixed dollar amount or percentage. How-
doesn’t increase the income tax liability of the employee.
ever, an employee may specify a dollar amount to be with-
The amount also doesn't increase the social security tax
held each pay period in addition to the amount of with-
or Medicare tax liability of the employer or the employee,
holding based on filing status and other information
or the FUTA tax liability of the employer. See Withholding
reported on Form W-4.
Adjustment for Nonresident Alien Employees in the Intro-
Employees that are married filing jointly and have spou-
duction section of Pub. 15-T for the amount to add to their
ses that also currently work, or employees that hold more
wages for the payroll period.
than one job at the same time, should account for their
higher tax rate by completing Step 2 of their 2022 Form Supplemental wage payment. The adjustment for
W-4. Employees also have the option to report on their determining the amount of federal income tax withholding
2022 Form W-4 other income they will receive that isn't for nonresident alien employees doesn't apply to a sup-
subject to withholding and other deductions they will claim plemental wage payment (see Supplemental wages, later
in order to increase the accuracy of their federal income in this section) if the 37% mandatory flat rate withholding
tax withholding. applies or if the 22% optional flat rate withholding is being
See Pub. 505 for more information about completing used to calculate income tax withholding on the supple-
Form W-4. Along with Form W-4, you may wish to order mental wage payment.
Pub. 505 for use by your employees.
Don't accept any withholding or estimated tax pay- Nonresident alien employee's Form W-4. When com-
ments from your employees in addition to withholding pleting Forms W-4, nonresident aliens are required to:
based on their Form W-4. If an employee wants additional • Not claim exemption from income tax withholding
withholding, they should submit a new Form W-4 and, if (even if they meet both of the conditions to claim ex-
necessary, pay estimated tax by filing Form 1040-ES or emption from withholding listed in the Form W-4 in-
by using EFTPS to make estimated tax payments. structions);
Exemption from federal income tax withholding. • Request withholding as if they’re single, regardless of
Generally, an employee may claim exemption from fed- their actual filing status;

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

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into effect that results in less withholding than required, as if the employee had checked the box for Single or Mar-
the employee must contact the IRS. ried filing separately in Step 1(c) and made no entries in
If, after you receive an IRS notice or modification no- Step 2, Step 3, or Step 4 of the 2022 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 2022 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 2022 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 2022 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 or earlier Forms W-4 as if they were 2020 or Salary, and Other Income (Forms 668-W(ACS), 668-W(c)
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.
How To Figure Federal Income Tax
For additional information about employer withholding
compliance, see IRS.gov/WHC. Withholding

Substitute Forms W-4. You’re encouraged to have your There are several ways to figure federal income tax with-
employees use the official version of Form W-4. You may holding; see Pub. 15-T for more information. If an em-
use a substitute version of Form W-4 to meet your busi- ployee wants additional federal income tax withheld, have
ness needs. However, your substitute Form W-4 must the employee show the extra amount on Form W-4.

contain language that is identical to the official Form W-4 Supplemental wages. Supplemental wages are wage
and your form must meet all current IRS rules for substi- payments to an employee that aren't regular wages. They
tute forms. At the time that you provide your substitute include, but aren't limited to, bonuses, commissions, over-
form to the employee, you must provide him or her with all time pay, payments for accumulated sick leave, sever-
tables, instructions, and worksheets from the current Form ance pay, awards, prizes, back pay, retroactive pay in-
W-4. creases, and payments for nondeductible moving
You can't accept substitute Forms W-4 developed by expenses. However, employers have the option to treat
employees. An employee who submits an employee-de- overtime pay as regular wages instead of supplemental
veloped substitute Form W-4 after October 10, 2007, will wages. Other payments subject to the supplemental wage
be treated as failing to furnish a Form W-4. However, con- rules include taxable fringe benefits and expense allowan-
tinue to honor any valid employee-developed Forms W-4 ces paid under a nonaccountable plan. How you withhold
you accepted before October 11, 2007. on supplemental wages depends on whether the supple-
Invalid Forms W-4. Any unauthorized change or addi- mental payment is identified as a separate payment from
tion to Form W-4 makes it invalid. This includes taking out regular wages. See Regulations section 31.3402(g)-1 for
any language by which the employee certifies that the additional guidance. Also see Revenue Ruling 2008-29,
form is correct. A Form W-4 is also invalid if, by the date 2008-24 I.R.B. 1149, available at IRS.gov/irb/
an employee gives it to you, he or she clearly indicates 2008-24_IRB#RR-2008-29.
that it is false. An employee who submits a false Form If you pay supplemental wages with regular wages but
W-4 may be subject to a $500 penalty. You may treat a don't specify the amount of each, withhold federal income
Form W-4 as invalid if the employee wrote “exempt” below tax as if the total was a single payment for a regular pay-
Step 4(c) and checked the box in Step 2(c) or entered roll period.
numbers for Steps 3 and 4. If you pay supplemental wages separately (or combine
When you get an invalid Form W-4, don't use it to figure them in a single payment and specify the amount of
federal income tax withholding. Tell the employee it is in- each), the federal income tax withholding method de-
valid and ask for another one. If the employee doesn't give pends partly on whether you withhold federal income tax
you a valid one, and you have an earlier Form W-4 for this from your employee's regular wages.
employee that is valid, withhold as you did before. If you 1. If you withheld federal income tax from an employee's
don't have an earlier Form W-4 that is valid, withhold tax regular wages in the current or immediately preceding

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calendar year, you can use one of the following meth- Copy B, or a substitute Form W-2 with the same state-
ods for the supplemental wages. ment. You may also meet the requirement by providing
Notice 797, Possible Federal Tax Refund Due to the
a. Withhold a flat 22% (no other percentage al-
Earned Income Credit (EIC), or your own statement that
lowed).
contains the same wording.
b. If the supplemental wages are paid concurrently
with regular wages, add the supplemental wages If a substitute Form W-2 is given to the employee on
to the concurrently paid regular wages and with- time but doesn't have the required statement, you must
hold federal income tax as if the total were a single notify the employee within 1 week of the date that the sub-
payment for a regular payroll period. If there are stitute Form W-2 is given. If Form W-2 is required but isn't
no concurrently paid regular wages, add the sup- given on time, you must give the employee Notice 797 or
plemental wages to, alternatively, either the regu- your written statement by the date that Form W-2 is re-
lar wages paid or to be paid for the current payroll quired to be given. If Form W-2 isn't required, you must
period or the regular wages paid for the preceding notify the employee by February 7, 2022.
payroll period. Figure the income tax withholding
as if the total of the regular wages and supplemen-
tal wages is a single payment. Subtract the tax al- 7. Depositing Taxes
ready withheld or to be withheld from the regular
wages. Withhold the remaining tax from the sup- If an employer is eligible to claim a credit for quali-
plemental wages. If there were other payments of TIP fied sick and family leave wages and/or the CO-
supplemental wages paid during the payroll period BRA premium assistance credit during 2022, the
made before the current payment of supplemental employer can reduce their deposits by the amount of their
wages, aggregate all the payments of supplemen- anticipated credits. You may reduce your deposits of fed-
tal wages paid during the payroll period with the eral employment taxes in anticipation of the COBRA pre-
regular wages paid during the payroll period, fig- mium assistance credit with regard to a period of cover-
ure the tax on the total, subtract the tax already age as of the date you are entitled to the credit. Employers
withheld from the regular wages and previous won't be subject to a failure-to-deposit (FTD) penalty for
supplemental wage payments, and withhold the properly reducing their deposits if certain conditions are
remaining tax. met. For more information on reducing deposits, see No-
tice 2020-22, 2020-17 I.R.B. 664, available at IRS.gov/irb/
2. If you didn't withhold federal income tax from the em- 2020-17_IRB#NOT-2020-22; Notice 2021-24, 2021-18
ployee's regular wages in the current or immediately I.R.B. 1122, available at IRS.gov/irb/
preceding calendar year, use method 1b. 2021-18_IRB#NOT-2021-24; and the Instructions for
Separate rules apply to any supplemental wages Form 943. For more information about the credit for quali-
fied sick and family leave wages, go to IRS.gov/PLC. For
! exceeding $1 million that you pay to an individual more information on COBRA premium assistance pay-
CAUTION during the year. See section 7 of Pub. 15 for de-
tails. ments and the credit, see Notice 2021-31, 2021-23 I.R.B.
1173, available at IRS.gov/irb/2021-
Regardless of the method you use to withhold federal 23_IRB#NOT-2021-31; and Notice 2021-46, 2021-33
income tax on supplemental wages, they’re subject to so- I.R.B. 303, available at IRS.gov/irb/
cial security, Medicare, and FUTA taxes. 2021-33_IRB#NOT-2021-46.

Generally, you must deposit federal income tax with-
6. Required Notice to held and both the employer and employee social security
and Medicare taxes. You must use EFT to make all fed-
Employees About Earned eral tax deposits. See How To Deposit, later in this sec-
tion, for information on electronic deposit requirements.
Income Credit (EIC)
Payment with return. You may make payments with
You must notify employees who have no federal income Form 943 or 945 instead of depositing, without incurring a
tax withheld that they may be able to claim a tax refund penalty, if one of the following applies.
because of the EIC. Although you don't have to notify em-
ployees who claim exemption from withholding on Form • You report less than a $2,500 tax liability for the year
(Form 943, line 13; Form 945, line 3) and you pay in
W-4 about the EIC, you’re encouraged to notify any em-
full with a return that is filed on time. However, if you’re
ployees whose wages for 2021 were less than $51,464
unsure that you will report less than $2,500, deposit
($57,414 if married filing jointly) that they may be eligible
under the rules explained in this section so that you
to claim the credit for 2021. This is because eligible em-
won't be subject to an FTD penalty.
ployees may get a refund of the amount of the EIC that is
more than the tax that they owe. • You’re a monthly schedule depositor (defined later)
and make a payment in accordance with the Accuracy
You will meet the notification requirement if you issue to of Deposits Rule, discussed later in this section. This
the employee Form W-2 with the EIC notice on the back of payment may be $2,500 or more.

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Only monthly schedule depositors are allowed to because the total taxes before adjustment for its lookback
! make an Accuracy of Deposits Rule payment with period ($60,000 for calendar year 2021) exceeded
CAUTION the return. Semiweekly schedule depositors must $50,000.
timely deposit the amount by the shortfall makeup date.
Adjustments to lookback period taxes. To deter-
See Accuracy of Deposits Rule and How To Deposit, later
mine your taxes for the lookback period, use only the tax
in this section.
that you reported on the original return (Form 943,
line 13). Don't include adjustments shown on Form 943-X.
When To Deposit
Example of adjustments. An employer originally re-
If you employ both farm and nonfarm workers, ported total tax of $45,000 for the lookback period in
! don't combine the taxes reportable on Forms 941 2020. The employer discovered during March 2022 that
CAUTION or 944 with Form 943 to decide whether to make the tax reported for the lookback period was understated
a deposit. See Employers of Both Farm and Nonfarm by $10,000 and corrected this error by filing Form 943-X.
Workers, later in this section. The total tax reported in the lookback period is still
$45,000. The $10,000 adjustment is also not treated as
The rules for determining when to deposit Form 943 taxes part of the 2022 taxes.
are discussed next. See section 10 for the separate rules
that apply to FUTA tax. Under these rules, you’re classi- Deposit period. The term “deposit period” refers to the
fied as either a monthly schedule depositor or a semi- period during which tax liabilities are accumulated for
weekly schedule depositor. each required deposit due date. For monthly schedule de-
positors, the deposit period is a calendar month. The de-
The terms “monthly schedule depositor” and “semi- posit periods for semiweekly schedule depositors are
weekly schedule depositor” don't refer to how often your Wednesday through Friday and Saturday through Tues-
business pays its employees or how often you’re required day.
to make deposits. The terms identify which set of rules
you must follow when you incur a tax liability (for example, If you're an agent with an approved Form 2678,
when you have a payday). TIP the deposit rules apply to you based on the total
employment taxes accumulated by you for your
The deposit schedule that you must use for a calendar own employees and on behalf of all employers for whom
year is determined from the total tax liability reported on you're authorized to act. For more information on an agent
your Form 943, line 13, for the lookback period, discussed with an approved Form 2678, see Revenue Procedure
next. 2013-39, 2013-52 I.R.B. 830, available at IRS.gov/irb/
• If you reported $50,000 or less of Form 943 taxes for 2013-52_IRB#RP-2013-39.
the lookback period, you’re a monthly schedule de-
positor.
Monthly Deposit Schedule
• If you reported more than $50,000 of Form 943 taxes
for the lookback period, you’re a semiweekly schedule If the tax liability reported on Form 943, line 13, for the
depositor. lookback period is $50,000 or less, you’re a monthly
schedule depositor for the current year. You must deposit
Your total tax liability for the lookback period is Form 943 taxes on payments made during a calendar
TIP determined based on the amount of taxes you re- month by the 15th day of the following month.
ported on Form 943, line 13. Your total liability
isn’t reduced by the deferred amount of the employer or Monthly schedule example. Spruce Co. is a monthly
employee share of social security tax, the refundable por- schedule depositor with seasonal employees. It paid wa-
tion of the credit for qualified sick and family leave wages, ges each Friday during May but didn't pay any wages dur-
the refundable portion of the employee retention credit, or ing June. Under the monthly deposit schedule, Spruce
the refundable portion of the COBRA premium assistance Co. must deposit the combined tax liabilities for the May
credit. paydays by June 15. Spruce Co. doesn't have a deposit
requirement for June (due by July 15) because no wages
Lookback period. The lookback period is the second were paid and, therefore, it didn't have a tax liability for
calendar year preceding the current calendar year. For June.
example, the lookback period for 2022 is 2020.
New employers. For agricultural employers, your tax lia-
Example of deposit schedule based on lookback bility for any year in the lookback period before the date
period. Rose Co. reported taxes on Form 943 as follows. you started or acquired your business is considered to be
2020—$48,000 zero. Therefore, you’re a monthly schedule depositor for
the first and second calendar years of your agricultural
2021—$60,000 business (but see $100,000 Next-Day Deposit Rule, later
Rose Co. is a monthly schedule depositor for 2022 be- in this section).
cause its taxes for the lookback period ($48,000 for calen-
dar year 2020) weren't more than $50,000. However, for
2023, Rose Co. will be a semiweekly schedule depositor

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Semiweekly Deposit Schedule                                            by the close of the next business day. A business day is 
                                                                       any day other than a Saturday, Sunday, or legal holiday. 
You’re  a  semiweekly  schedule  depositor  for  a  calendar           For example, if a deposit is required to be made on Friday 
year  if  the  tax  liability  on  Form  943,  line  13,  during  your and  Friday  is  a  legal  holiday,  the  deposit  is  considered 
lookback period was more than $50,000. Under the semi-                 timely if it is made by the following Monday (if Monday is a 
weekly deposit schedule, deposit Form 943 taxes for pay-               business day).
ments made on Wednesday, Thursday, and/or Friday by 
the following Wednesday. Deposit amounts accumulated                    Semiweekly  schedule  depositors  have  at  least  3 
for payments made on Saturday, Sunday, Monday, and/or                  business days following the close of the semiweekly pe-
Tuesday by the following Friday. See also    Deposits Due              riod to make a deposit. If any of the 3 weekdays after the 
on Business Days Only, later in this section.                          end  of  a  semiweekly  period  is  a  legal  holiday,  you  will 
                                                                       have an additional day for each day that is a legal holiday 
Semiweekly schedule depositors aren't required to de-                  to  make  the  required  deposit.  For  example,  if  a  semi-
posit  twice  a  week  if  their  payments  were  in  the  same        weekly  schedule  depositor  accumulated  taxes  for  pay-
semiweekly period unless the $100,000 next-day deposit                 ments made on Friday and the following Monday is a legal 
rule (discussed later in this section) applies. For example,           holiday, the deposit normally due on Wednesday may be 
if  you  made  a  payment  on  both  Wednesday  and  Friday            made on Thursday (this allows 3 business days to make 
and incurred taxes of $10,000 for each pay date, deposit               the deposit).
the $20,000 by the following Wednesday. If you made no 
additional payments on Saturday through Tuesday, no de-                Legal holiday. The term “legal holiday” means any legal 
posit is due on Friday.                                                holiday in the District of Columbia. For purposes of the de-
                                                                       posit rules, the term "legal holiday" doesn't include other 
        Semiweekly  schedule  depositors  must  complete               statewide legal holidays. Legal holidays for 2022 are listed 
!       Form  943-A,  Agricultural  Employer's  Record  of             below.
CAUTION Federal Tax Liability, and submit it with Form 943.
                                                                       • December 31, 2021—New Year's Day 2022 (ob-
                                                                         served)
Semiweekly Deposit Schedule                                              January 17—Birthday of Martin Luther King, Jr.
                                                                       •
IF the payday falls on a...  THEN deposit taxes by                     • February 21—Washington's Birthday
                             the following...
                                                                       • April 15—District of Columbia Emancipation Day (ob-
Wednesday, Thursday, and/or  Wednesday.                                  served)
Friday
                                                                       • May 30—Memorial Day
Saturday, Sunday, Monday,    Friday.                                   • June 20—Juneteenth National Independence Day 
and/or Tuesday                                                           (observed)
                                                                       • July 4—Independence Day
Semiweekly schedule example. Green, Inc., is a semi-
weekly  schedule  depositor  and  pays  wages  once  each              • September 5—Labor Day
month on the last Friday of the month. Green, Inc., will de-           • October 10—Columbus Day
posit only once a month, but the deposit will be made un-
                                                                       • November 11—Veterans Day
der  the  semiweekly  deposit  schedule  as  follows.  Green, 
Inc.'s tax liability for the April 29, 2022 (Friday), wage pay-        • November 24—Thanksgiving Day
ment must be deposited by May 4, 2022 (Wednesday).                     • December 26—Christmas Day (observed)
Semiweekly deposit period spanning two return peri-
ods. The period covered by a return is the return period.              $100,000 Next-Day Deposit Rule
The return period for Form 943 is a calendar year. If you 
                                                                       If you accumulate $100,000 or more in taxes on any day 
have more than one pay date during a semiweekly period 
                                                                       during a monthly or semiweekly deposit period (see De-
and the pay dates fall in different return periods, you will 
                                                                       posit period, earlier in this section), you must deposit the 
need  to  make  separate  deposits  for  the  separate  liabili-
                                                                       tax by the next business day, whether you’re a monthly or 
ties.  For  example,  if  a  return  period  ends  on  Thursday, 
                                                                       semiweekly schedule depositor.
taxes accumulated on Wednesday and Thursday are sub-
ject to one deposit obligation, and taxes accumulated on                For purposes of the $100,000 rule, don't continue accu-
Friday are subject to a separate obligation. Separate de-              mulating  a  tax  liability  after  the  end  of  a  deposit  period. 
posits  are  required  because  two  different  return  periods        For example, if a semiweekly schedule depositor has ac-
are affected.                                                          cumulated a liability of $95,000 on a Tuesday (of a Satur-
                                                                       day-through-Tuesday deposit period) and accumulated a 
Deposits Due on Business Days Only                                     $10,000  liability  on  Wednesday,  the  $100,000  next-day 
                                                                       deposit rule doesn't apply because the $10,000 is accu-
If a deposit is required to be made on a day that isn't a              mulated in the next deposit period. Thus, $95,000 must be 
business day, the deposit is considered timely if it is made 

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deposited by Friday and $10,000 must be deposited by • Semiweekly schedule depositor—Deposit by the
the following Wednesday. earlier of (a) the first Wednesday or Friday (whichever
comes first) that falls on or after the 15th day of the
However, once you accumulate at least $100,000 in a month following the month in which the shortfall occur-
deposit period, stop accumulating at the end of that day red, or (b) the due date for Form 943.
and begin to accumulate anew on the next day. For exam-
For example, if a semiweekly schedule depositor has a
ple, Fir Co. is a semiweekly schedule depositor. On Mon-
deposit shortfall during May 2022, the shortfall makeup
day, Fir Co. accumulates taxes of $110,000 and must de-
date is June 15, 2022 (Wednesday). However, if the
posit this amount on Tuesday, the next business day. On
shortfall occurred on the required January 5, 2022, de-
Tuesday, Fir Co. accumulates additional taxes of
posit due date for a December 30, 2021 (Thursday), pay
$30,000. Because the $30,000 isn't added to the previous
date, the Form 943 due date (January 31, 2022) for the re-
$110,000 and is less than $100,000, Fir Co. must deposit
turn period would come before the February 16, 2022
the $30,000 by Friday (following the semiweekly deposit
(Wednesday), shortfall makeup date. In this case, the
schedule).
shortfall must be deposited by January 31, 2022.
If you’re a monthly schedule depositor and accu-
! mulate a $100,000 tax liability on any day of a cal- How To Deposit
CAUTION endar month, you become a semiweekly sched-
ule depositor on the next day and remain so for at least You must deposit employment taxes by EFT. See Pay-
the rest of the calendar year and for the following calendar ment with return, earlier in this section, for exceptions ex-
year. plaining when taxes may be paid with the tax return in-
stead of being deposited.
Example of the $100,000 next-day deposit rule. Elm,
Inc., started its business on May 2, 2022. Because Elm, Electronic deposit requirement. You must use EFT to
Inc., is a new employer, the tax liability for its lookback pe- make all federal tax deposits. Generally, an EFT is made
riod is considered to be zero; therefore, Elm, Inc., is a using EFTPS. If you don't want to use EFTPS, you can ar-
monthly schedule depositor. On Wednesday, May 4, Elm, range for your tax professional, financial institution, payroll
Inc., paid wages for the first time and accumulated a tax service, or other trusted third party to make electronic de-
liability of $50,000. On Friday, May 6, Elm, Inc., paid wa- posits on your behalf. EFTPS is a free service provided by
ges and accumulated a liability of $60,000, for a total of the Department of the Treasury. To get more information
$110,000. Because Elm, Inc., accumulated $110,000 on or to enroll in EFTPS, visit EFTPS.gov, or call
May 6, it must deposit $110,000 by Monday, May 9, the 800-555-4477 or 800-733-4829 (TDD). Additional infor-
next business day. Elm, Inc., became a semiweekly mation about EFTPS is also available in Pub. 966.
schedule depositor on May 7. It will be a semiweekly
New employers that have a federal tax obligation will
schedule depositor for the remainder of 2022 and for
be pre-enrolled in EFTPS. Call the toll-free number loca-
2023.
ted in your EIN Package to activate your enrollment and
The $100,000 tax liability threshold requiring a begin making your tax deposit payments. See When you
TIP next-day deposit is determined before you con- receive your EIN in section 1 for more information.
sider any reduction of your liability for nonrefunda-
ble credits. For more information, see frequently asked Deposit record. For your records, an EFT Trace
question 17 at IRS.gov/ETD. Number will be provided with each successful payment.
The number can be used as a receipt or to trace the pay-
ment.
Accuracy of Deposits Rule
Depositing on time. For deposits made by EFTPS to
You’re required to deposit 100% of your tax liability on or be on time, you must submit the deposit by 8 p.m. Eastern
before the deposit due date. However, penalties won't be time the day before the date a deposit is due. If you use a
applied for depositing less than 100% if both of the follow- third party to make a deposit on your behalf, they may
ing conditions are met. have different cutoff times.
1. Any deposit shortfall doesn't exceed the greater of Same-day wire payment option. If you fail to submit
$100 or 2% of the amount of taxes otherwise required a deposit transaction on EFTPS by 8 p.m. Eastern time
to be deposited. the day before the date a deposit is due, you can still
make your deposit on time by using the Federal Tax Col-
2. The deposit shortfall is paid or deposited by the short- lection Service (FTCS) to make a same-day wire pay-
fall makeup date as described next. ment. To use the same-day wire payment method, you will
need to make arrangements with your financial institution
Makeup Date for Deposit Shortfall:
ahead of time. Check with your financial institution regard-
• Monthly schedule depositor—Deposit the shortfall ing availability, deadlines, and costs. Your financial institu-
or pay it with your return by the due date of your Form tion may charge you a fee for payments made this way.
943. You may pay the shortfall with your Form 943 To learn more about the information you will need to give
even if the amount is $2,500 or more. your financial institution to make a same-day wire pay-
ment, go to IRS.gov/SameDayWire.

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Deposit Penalties the most recent tax liability, $1,500 of the deposit is ap-
plied to the July 15 deposit and the remaining $500 is ap-
Penalties may apply if you don't make required deposits plied to the June deposit. Accordingly, $500 of the June
on time or if you make deposits for less than the required 15 liability remains undeposited. The penalty on this un-
amount. The penalties don't apply if any failure to make a derdeposit will apply as explained earlier.
proper and timely deposit was due to reasonable cause
and not to willful neglect. If you receive a penalty notice, Trust fund recovery penalty. If federal income, social
you can provide an explanation of why you believe rea- security, or Medicare taxes that must be withheld (that is,
sonable cause exists. trust fund taxes) aren't withheld or aren't deposited or paid
to the U.S. Treasury, the trust fund recovery penalty may
If you timely filed your employment tax return, the IRS apply. The penalty is 100% of the unpaid trust fund tax. If
may waive deposit penalties if you inadvertently failed to these unpaid taxes can't be immediately collected from
deposit and it was the first quarter that you were required the employer or business, the trust fund recovery penalty
to deposit any employment tax, or if you inadvertently may be imposed on all persons who are determined by
failed to deposit the first time after your deposit frequency the IRS to be responsible for collecting, accounting for, or
changed. You must also meet the net worth and size limi- paying over these taxes, and who acted willfully in not do-
tations applicable to awards of administrative and litiga- ing so. The trust fund recovery penalty won't apply to any
tion costs under section 7430; for individuals, this means amount of trust fund taxes an employer holds back in an-
that your net worth can't exceed $2 million, and for busi- ticipation of any credits they are entitled to. It also won't
nesses, your net worth can't exceed $7 million and you apply to applicable taxes properly deferred under section
also can't have more than 500 employees. 2302 of the CARES Act or applicable taxes deferred un-
The IRS may also waive the deposit penalty the first der Notice 2020-65 and Notice 2021-11 if paid by the due
time you’re required to make a deposit if you inadvertently date.
send the payment to the IRS rather than deposit it by EFT. A responsible person can be an officer or employee
of a corporation, a partner or employee of a partnership,
For amounts not properly or timely deposited, the pen- an accountant, a volunteer director/trustee, or an em-
alty rates are as follows. ployee of a sole proprietorship. A responsible person may
also include one who signs checks for the business or oth-
Penalty Charged for... erwise has authority to cause the spending of business
2% Deposits made 1 to 5 days late. funds.
5% Deposits made 6 to 15 days late. Willfully means voluntarily, consciously, and intention-
ally. A responsible person acts willfully if the person
10% Deposits made 16 or more days late, but before 10 days knows that the required actions of collecting, accounting
from the date of the first notice the IRS sent asking for the
tax due. for, or paying over trust fund taxes aren't taking place, or
recklessly disregards obvious and known risks to the gov-
10% Amounts that should have been deposited, but instead ernment's right to receive trust fund taxes.
were paid directly to the IRS or paid with your tax return.
See Payment with return, earlier in this section, for “Averaged” FTD penalty. The IRS may assess an
exceptions.
“averaged” FTD penalty of 2% to 10% if you’re a monthly
15% Amounts still unpaid more than 10 days after the date of schedule depositor and didn't properly complete Form
the first notice that the IRS sent asking for the tax due or 943, line 17, when your tax liability shown on Form 943,
the day on which you received notice and demand for line 13, equaled or exceeded $2,500. The IRS may also
immediate payment, whichever is earlier.
assess an “averaged” FTD penalty of 2% to 10% if you’re
a semiweekly schedule depositor and your tax liability
Late deposit penalty amounts are determined using
shown on Form 943, line 13, equaled or exceeded $2,500
calendar days, starting from the due date of the liability.
and you:
Order in which deposits are applied. Deposits are • Completed Form 943, line 17, instead of
generally applied to the most recent tax liability within the Form 943-A;
year. If you receive an FTD penalty notice, you may desig-
nate how your deposits are to be applied in order to mini- • Failed to attach a properly completed Form 943-A; or
mize the amount of the penalty if you do so within 90 days • Improperly completed Form 943-A by, for example,
of the date of the notice. Follow the instructions on the entering tax deposits instead of tax liabilities in the
penalty notice that you receive. For more information on numbered spaces.
designating deposits, see Revenue Procedure 2001-58.
The FTD penalty is figured by distributing your total tax
You can find Revenue Procedure 2001-58 on page 579 of
liability shown on Form 943, line 13, equally throughout
Internal Revenue Bulletin 2001-50 at IRS.gov/pub/irs-irbs/
the tax period. Then, we apply your deposits and pay-
irb01-50.pdf.
ments to the averaged liabilities in the date order we re-
Example. Cedar, Inc., is required to make a deposit of ceived your deposits. We figure the penalty on any tax not
$1,000 on June 15 and $1,500 on July 15. It doesn't make deposited, deposited late, or not deposited in the correct
the deposit on June 15. On July 15, Cedar, Inc., deposits
$2,000. Under the deposits rule, which applies deposits to

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amounts. Your deposits and payments may not be coun- Form 941/944 taxes and another transaction to deposit
ted as timely because the actual dates of your tax liabili- the $1,200 of Form 943 taxes.
ties can't be accurately determined.
You can avoid an “averaged” FTD penalty by reviewing
your return before filing it. Follow these steps before filing
8. Form 943
your Form 943.
• If you’re a monthly schedule depositor, report your tax You must file Form 943 for each calendar year beginning
liabilities (not your deposits) in the monthly entry with the first year that you pay $2,500 or more for farm-
spaces on Form 943, line 17. work or you employ a farmworker who meets the $150
test explained in section 4. Don't report these wages on
• If you’re a semiweekly schedule depositor, report your
Form 941 or Form 944.
tax liabilities (not your deposits) on Form 943-A in the
lines that represent the dates your employees were Household employees. If you file Form 943 and pay wa-
paid. ges to household workers, you may include the wages
• Verify that your total liability shown on Form 943, and taxes of these workers on Form 943. If you choose
line 17, or Form 943-A, line M, equals your tax liability not to report these wages and taxes on Form 943, report
shown on Form 943, line 13. the wages of these workers separately on Schedule H
(Form 1040). You must have an EIN to file Schedule H
• Don't show negative amounts on Form 943, line 17, or
(Form 1040). See section 1 for details. If you report the
Form 943-A.
wages on Form 943, include the taxes when you figure
• For prior period errors, don't adjust your tax liabilities deposit requirements or make deposits. If you include
reported on Form 943, line 17, or on Form 943-A. In- household employee wages and taxes on Schedule H
stead, file Form 943-X, as discussed in Prior Year Ad- (Form 1040), don't include the household employee taxes
justments in section 9. when you figure deposit requirements or make Form 943
deposits. See Pub. 926 for more information about house-
In addition to civil penalties, you may be subject
hold workers.
! to criminal prosecution (brought to trial) for will- If household employee wages and taxes are included
CAUTION fully:
on Form 943, you must also include FUTA tax for the em-
• Evading tax; ployees on Form 940. See section 10 for more informa-
• Failing to collect or truthfully account for and pay over tion.
tax;
Penalties. For each whole or part month a return isn't
• Failing to file a return, supply information, or pay any filed when required, there is a failure-to-file (FTF) penalty
tax due; of 5% of the unpaid tax due with that return. The maximum
• Furnishing false or fraudulent Forms W-2 to employ- penalty is 25% of the tax due. Also, for each whole or part
ees or failing to furnish Forms W-2; month the tax is paid late, there is a failure-to-pay (FTP)
penalty of 0.5% per month of the amount of tax. For indi-
• Committing fraud and providing false statements; vidual filers only, the FTP penalty is reduced from 0.5%
• Preparing and filing a fraudulent return; or per month to 0.25% per month if an installment agreement
is in effect. You must have filed your return on or before
• Committing identity theft. the due date of the return to qualify for the reduced pen-
alty. The maximum amount of the FTP penalty is also 25%
of the tax due. If both penalties apply in any month, the
Employers of Both Farm and Nonfarm FTF penalty is reduced by the amount of the FTP penalty.
Workers The penalties won't be charged if you have reasonable
cause for failing to file or pay. If you receive a penalty no-
If you employ both farm and nonfarm workers, you must tice, you can provide an explanation of why you believe
treat employment taxes for the farmworkers (Form 943 reasonable cause exists.
taxes) separately from employment taxes for the nonfarm Note. In addition to any penalties, interest accrues from
workers (Form 941 and 944 taxes). Form 943 taxes and the due date of the tax on any unpaid balance.
Form 941/944 taxes aren't combined for purposes of ap- If federal income, social security, or Medicare taxes
plying any of the deposit schedule rules. See Household that must be withheld aren't withheld or aren't paid, you
employees, later, for the rules on household employment. may be personally liable for the trust fund recovery pen-
alty. See Trust fund recovery penalty in section 7.
If a deposit is due, deposit the Form 941/944 taxes and
Generally, the use of a third-party payer, such as a pay-
the Form 943 taxes by making separate deposits. For ex-
roll service provider or reporting agent, doesn't relieve an
ample, if you’re a monthly schedule depositor for both
employer of the responsibility to ensure that tax returns
Forms 941/944 and 943 taxes and your tax liability at the
are filed and all taxes are paid or deposited correctly and
end of June is $1,500 reportable on Form 941/944 and
on time. See Outsourcing payroll duties, earlier, for more
$1,200 reportable on Form 943, deposit both amounts by
information.
July 15. Use one transaction to deposit the $1,500 of

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on Form 943-X. However, use Form 843 when requesting
a refund or abatement of assessed interest or penalties.
9. Reporting Adjustments on
Federal income tax and Additional Medicare Tax
Form 943 withholding adjustments. You can't adjust amounts re-
ported as income tax or Additional Medicare Tax withheld
There are two types of adjustments: current year adjust- in a prior calendar year, even if you withheld the wrong
ments and prior year adjustments to correct errors. See amount, unless it is to correct an administrative error or
the Instructions for Form 943 and the Instructions for Form section 3509 applies. An administrative error occurs if the
943-X for more information on how to report these adjust- amount you entered on Form 943 isn’t the amount that
ments. you actually withheld. Examples include mathematical or
transposition errors. The administrative error adjustment
Current Year Adjustments corrects the amount reported on Form 943 to agree with
the amount actually withheld from employees.
In certain cases, amounts reported as social security and If a prior year error was a nonadministrative error, you
Medicare taxes on Form 943, lines 3, 5, and 7, must be may correct only the wages subject to Additional Medi-
adjusted to arrive at your correct tax liability. The most care Tax withholding.
common situation involves differences in cents totals due See the Instructions for Form 943-X for more informa-
to rounding. Other situations when current year adjust- tion about section 3509 and additional examples of ad-
ments may be necessary include third-party sick pay, ministrative and nonadministrative errors.
group-term life insurance for former employees, and the
uncollected employee share of social security and Medi- Social security and Medicare tax adjustments. Cor-
care taxes on tips. Current year adjustments are reported rect prior year social security and Medicare tax errors by
on Form 943, line 10. See section 13 of Pub. 15 for more making an adjustment on Form 943-X.
information on these adjustments. If you withheld no tax or less than the correct amount,
you may correct the mistake by withholding the tax from a
If you withhold an incorrect amount of federal income later payment to the same employee.
tax or Additional Medicare Tax from an employee, you If you withheld employee tax when no tax is due or if
may adjust the amount withheld in later pay periods during you withheld more than the correct amount, you must re-
the same year to compensate for the error. pay or reimburse the employee.

Prior Year Adjustments Collecting underwithheld taxes from employees. If
you withheld no federal income, social security, or Medi-
If you discover an error on a previously filed Form 943, care taxes or less than the correct amount from an em-
make the correction using Form 943-X. File a separate ployee's wages, you can make it up from future pay to that
Form 943-X for each prior year you’re correcting. File employee. But you’re the one who owes the underpay-
Form 943-X separately. Don't attach Form 943-X to your ment. Reimbursement is a matter for settlement between
current period Form 943. You must explain your error on you and the employee. Underwithheld federal income tax
Form 943-X, indicate when the error was discovered, and and Additional Medicare Tax must be recovered from the
provide the applicable certifications. employee on or before the last day of the calendar year.

When you discover that you underreported tax on a Refunding amounts incorrectly withheld from em-
previously filed return, you must file Form 943-X no later ployees. If you withheld more than the correct amount of
than the due date of the return for the period during which income, social security, or Medicare taxes from wages
you discovered the error. Pay the amount you owe by the paid, repay or reimburse the employee the excess. Any
time you file. For example, you discover on June 6, 2022, excess income tax or Additional Medicare Tax withholding
that you underreported $10,000 of social security and must be repaid or reimbursed to the employee before the
Medicare wages on your 2021 Form 943. You owe $1,530 end of the calendar year in which it was withheld. Keep in
on the 2021 Form 943. To qualify for an interest-free ad- your records the employee's written receipt showing the
justment, you must file Form 943-X by January 31, 2023, date and amount of the repayment or record of reimburse-
and pay $1,530 by the time you file. For more information, ment. If you didn't repay or reimburse the employee, you
see the Instructions for Form 943-X or go to IRS.gov/ must report and pay each excess amount when you file
CorrectingEmploymentTaxes. Form 943 for the year in which you withheld too much tax.
See Revenue Ruling 2009-39, 2009-52 I.R.B.
Filing corrections to Forms W-2 and W-3. When ad-
TIP 951, for examples of how the interest-free adjust-
justments are made to correct wages and social security
ment and claim for refund rules apply in 10 differ-
and Medicare taxes because of a change in the wage to-
ent situations. You can find Revenue Ruling 2009-39 at
tals reported for a previous year, you also need to file
IRS.gov/irb/2009-52_IRB#RR-2009-39.
Form W-2c and Form W-3c. Forms W-2c may be created
and submitted to the SSA over the Internet. For more in-
Form 843. Don't use Form 843 to request a refund or formation, visit the SSA's Employer W-2 Filing Instructions
abatement of overreported social security or Medicare & Information website at SSA.gov/employer.
taxes. Instead, request your refund or abatement of taxes

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For additional information about the procedure for ad- you’re entitled to the maximum 5.4% credit, the FUTA tax
justing employment taxes, see the Instructions for Form rate after credit is 0.6%. You’re entitled to the maximum
943-X or go to IRS.gov/CorrectingEmploymentTaxes. credit if you paid your state unemployment taxes in full, on
Also see Treasury Decision 9405, 2008-32 I.R.B. 293, time, and on all the same wages as are subject to FUTA
available at IRS.gov/irb/2008-32_IRB#TD-9405. tax, and as long as the state isn't determined to be a credit
reduction state. See the Instructions for Form 940 to de-
Note. Current period adjustments for fractions of cents,
termine the credit.
sick pay, tips, and group-term life insurance are reported
In some states, the wages subject to state unemploy-
on your Form 943.
ment tax are the same as the wages subject to FUTA tax.
However, certain states exclude some types of wages
from state unemployment tax, even though they're subject
10. Federal Unemployment to FUTA tax (for example, wages paid to corporate offi-
cers, certain payments of sick pay by unions, and certain
(FUTA) Tax fringe benefits). In such a case, you may be required to
deposit more than 0.6% FUTA tax on those wages. See
The Federal Unemployment Tax Act (FUTA), with state the Instructions for Form 940 for further guidance.
unemployment systems, provides for payments of unem-
ployment compensation to workers who have lost their Successor employer. If you acquired a business from
jobs. Most employers pay both a federal and a state un- an employer who was liable for FUTA tax, you may be
employment tax. For a list of state unemployment agen- able to claim a special credit as a successor employer.
cies, visit the U.S. Department of Labor's website at See the Instructions for Form 940.
oui.doleta.gov/unemploy/agencies.asp. Only the em-
ployer pays FUTA tax; it isn't withheld from the employ- Deposit rules for FUTA tax. Generally, deposit FUTA
ees' wages. For more information, see the Instructions for tax quarterly. To figure your FUTA tax, multiply 0.006
Form 940. times the amount of wages paid to each employee during
the quarter. This amount may need to be adjusted, how-
For 2022, you must file Form 940 if you: ever, depending on your entitlement to the credit for state
• Paid cash wages of $20,000 or more to farmworkers unemployment contributions. See the Instructions for
during any calendar quarter in 2021 or 2022, or Form 940. When an employee's wages reach $7,000 for
the calendar year, don't figure any additional FUTA tax for
• Employed 10 or more farmworkers during at least that employee. If your total FUTA tax for the quarter (plus
some part of a day (whether or not at the same time) any undeposited FUTA tax from prior quarters) is more
during any 20 or more different weeks in 2021 or 20 or than $500, you must deposit the FUTA tax by EFT, as ex-
more different weeks in 2022. plained in section 7, by the last day of the month following
To determine whether you meet either test above, you the end of the quarter. If the amount is $500 or less, you
must count wages paid to aliens admitted on a temporary don't have to deposit it, but you must add it to the amount
basis to the United States to perform farmwork, also of tax for the next quarter to determine whether a deposit
known as “H-2A” visa workers. However, wages paid to is required for that quarter.
“H-2A” visa workers aren't subject to the FUTA tax. If your liability for the fourth quarter (plus any undepos-
ited amount from any earlier quarter) is over $500, deposit
Generally, farmworkers supplied by a crew leader, as the entire amount by the due date of Form 940 (January
defined earlier in section 2, are considered employees of 31). If it is $500 or less, you can make a deposit, pay the
the farm operator for purposes of the FUTA tax unless (a) tax with a major credit card or debit card, or pay the tax
the crew leader is registered under the Migrant and Sea- with a check or money order with your Form 940 by Janu-
sonal Agricultural Worker Protection Act; or (b) substan- ary 31. If you file Form 940 electronically, you can e-file
tially all of the workers supplied by the crew leader oper- and use EFW to pay the balance due. For more informa-
ate or maintain tractors, harvesting or crop-dusting tion on paying your taxes with a credit or debit card or us-
machines, or other machines provided by the crew leader. ing EFW, go to IRS.gov/Payments.
Therefore, if (a) or (b) applies, the farmworkers are gener-
ally employees of the crew leader. Filing Form 940. File your 2021 Form 940 by January
31, 2022. If you make deposits on time in full payment of
You must deposit FUTA tax by EFT. The deposit rules
the tax due for the year, you may file Form 940 by Febru-
for FUTA tax are different from those for income, social
ary 10.
security, and Medicare taxes. See Deposit rules for FUTA
tax, later in this section.

FUTA tax rate. The FUTA tax rate is 6.0% for 2022. The 11. Reconciling Wage
tax applies to the first $7,000 you pay to each employee
as wages during the year. The $7,000 is the federal wage Reporting Forms
base. Your state wage base may be different.
Generally, you can take a credit against your FUTA tax When there are discrepancies between amounts reported
for amounts you paid into state unemployment funds. The on Form 943 filed with the IRS and Forms W-2 and W-3
credit may be as much as 5.4% of FUTA taxable wages. If

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filed with the SSA, the IRS or the SSA may contact you to 9. Reconcile Form W-3 with your Form 943 by compar-
resolve the discrepancies. ing amounts reported for the following items.
Take the following actions to help reduce discrepan- a. Federal income tax withheld.
cies.
b. Social security and Medicare wages.
1. Report bonuses as wages and as social security and
Medicare wages on Forms W-2 and 943. c. Social security and Medicare taxes. Generally, the
amounts shown on Form 943, including current
2. Report both social security and Medicare wages and year adjustments, should be approximately twice
taxes separately on Forms W-2, W-3, and 943. the amounts shown on Form W-3.
3. Report the employee share of social security taxes on Amounts reported on Forms W-2, W-3, and 943 may
Form W-2 in the box for social security tax withheld not match for valid reasons. For example, if you withheld
(box 4), not as social security wages. any Additional Medicare Tax from your employee's wa-
4. Report the employee share of Medicare taxes on ges, the amount of Medicare tax that is reported on Form
Form W-2 in the box for Medicare tax withheld 943, line 5, won't be twice the amount of the Medicare tax
(box 6), not as Medicare wages. withheld that is reported in box 6 of Form W-3. If they don't
match, you should determine that the reasons are valid.
5. Make sure that social security wages for each em- Keep your reconciliation so that you will have a record of
ployee don't exceed the annual social security wage why amounts didn't match in case there are inquiries from
base limit ($147,000 for 2022). the IRS or the SSA.
6. Don't report noncash wages that aren't subject to so- When reconciling Forms W-2 and W-3 to Form
cial security or Medicare taxes, as discussed earlier in ! 943, you should consider that paid qualified sick
section 3, as social security or Medicare wages. CAUTION leave wages and qualified family leave wages for
7. If you used an EIN on Form 943 for the year that is dif- leave taken before April 1, 2021, aren't subject to the em-
ferent from the EIN reported on Form W-3, enter the ployer share of social security tax.
other EIN on Form W-3 in the box for “Other EIN used
this year” (box h).
8. Be sure the amounts on Form W-3 are the total of
amounts from Forms W-2, excluding any amounts
from Forms W-2 that were marked void.

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12. How Do Employment Taxes

Apply to Farmwork?
Income Tax Withholding, Social
Security, and Medicare (including
Additional Medicare Tax when
wages are paid in excess of
Type of Employment $200,000) Federal Unemployment Tax
Farm Employment Includes:
1. Cultivating soil; raising or harvesting any Taxable if $150 test or $2,500 test is Taxable if either test in section 10 is
agricultural or horticultural commodity; the care met. See section 4. met.
of livestock, poultry, bees, fur-bearing animals,
or wildlife on a farm.
2. Work on a farm if major farm duties are in
management or maintenance, etc., of farm
tools or equipment or salvaging timber, or
clearing brush or other debris, left by hurricane.
3. Work in connection with the production and
harvesting of turpentine and other oleoresinous
products.
4. Cotton ginning.
5. Operation or maintenance of ditches,
reservoirs, canals, or waterways used only for
supplying or storing water for farming purposes
and not owned or operated for profit.
6. Processing, packaging, etc., any commodity in
its unmanufactured state if employed by farm
operator who produced over half of commodity
processed or by group of up to 20
unincorporated farm operators if they produced
all the commodity.*
7. Hatching poultry on a farm.
8. Production or harvesting of maple syrup on a
farm.

Farm Employment Doesn't Include:
1. Handling or processing commodities after Taxable under general employment Taxable under general FUTA rules.
delivery to terminal market for commercial rules. Farm rules don't apply. Farm rules don't apply.
canning or freezing.
2. Operation or maintenance of ditches, canals,
reservoirs, or waterways not meeting tests in
(5) above.
3. Processing, packaging, delivering, etc., any
commodity in its unmanufactured state if group
of farm operators doesn't meet the tests in (6)
above.
4. Household employment.
Special Employment Situations:
1. Services not in the course of employer's trade or Taxable if $150 test or $2,500 test is Taxable only if $50 or more is paid in a
business on farm operated for profit (cash met (see section 4), unless performed quarter and employee works on 24 or
payments only). by parent employed by child. more different days in current or prior
quarter.
2. Workers admitted under section 101(a)(15)(H)
(ii)(a) of the Immigration and Nationality Act on a Exempt. Exempt.
temporary basis to perform agricultural labor
(“H-2A” workers).
Exempt from social security and Exempt if services performed by
Medicare tax for employer's child employer's parent or spouse or by
3. Family employment of a child if the farm is a under age 18, but counted for $150 employer's child under age 21.
sole proprietorship or a partnership in which test or $2,500 test. The wages are
each partner is a parent of the child.** subject to federal income tax
withholding if they're subject to social
security and Medicare taxes.
Taxable for spouse of employer.
* For federal unemployment tax, farmwork includes workers employed by a group of operators if they produce more than one-half of the
commodity.
** Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA
taxes if he or she works for a corporation, even if it is controlled by you; a partnership, even if you’re a partner (this doesn't apply to wages paid to
your child if each partner is a parent of the child); or an estate or trust, even if it is the estate of a deceased parent. In these situations, the child or
spouse is considered to work for the corporation, partnership, or estate, not you.

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information on tax changes, scam alerts, initiatives, prod-
ucts, and services. At the IRS, privacy and security are
How To Get Tax Help our highest priority. We use these tools to share public in-
formation with you. Don’t post your social security number
If you have questions about a tax issue; need help prepar- (SSN) or other confidential information on social media
ing your tax return; or want to download free publications, sites. Always protect your identity when using any social
forms, or instructions, go to IRS.gov to find resources that networking site.
can help you right away. The following IRS YouTube channels provide short, in-
Preparing and filing your tax return. Go to IRS.gov/ formative videos on various tax-related topics in English,
EmploymentEfile for more information on filing your em- Spanish, and ASL.
ployment tax returns electronically. • Youtube.com/irsvideos.
Getting answers to your tax questions. On • Youtube.com/irsvideosmultilingua.
IRS.gov, you can get up-to-date information on
• Youtube.com/irsvideosASL.
current events and changes in tax law.
• IRS.gov/Help: A variety of tools to help you get an- Watching IRS videos. The IRS Video portal
swers to some of the most common tax questions. (IRSVideos.gov) contains video and audio presentations
for individuals, small businesses, and tax professionals.
• IRS.gov/Forms: Find forms, instructions, and publica-
tions. You will find details on 2021 tax changes and Online tax information in other languages. You can
hundreds of interactive links to help you find answers find information on IRS.gov/MyLanguage if English isn’t
to your questions. your native language.
• You may also be able to access tax law information in
your electronic filing software. Free Over-the-Phone Interpreter (OPI) Service. The
IRS is committed to serving our multilingual customers by
offering OPI services. The OPI Service is a federally fun-
Need someone to prepare your tax return? There are ded program and is available at Taxpayer Assistance
various types of tax return preparers, including tax prepar- Centers (TACs), other IRS offices, and every VITA/TCE
ers, enrolled agents, certified public accountants (CPAs), return site. The OPI Service is accessible in more than
attorneys, and many others who don’t have professional 350 languages.
credentials. If you choose to have someone prepare your
tax return, choose that preparer wisely. A paid tax pre- Accessibility Helpline available for taxpayers with
parer is: disabilities. Taxpayers who need information about ac-
cessibility services can call 833-690-0598. The Accessi-
• Primarily responsible for the overall substantive accu- bility Helpline can answer questions related to current and
racy of your return, future accessibility products and services available in al-
• Required to sign the return, and ternative media formats (for example, braille, large print,
• Required to include their preparer tax identification audio, etc.).

number (PTIN). Getting tax forms and publications. Go to IRS.gov/
Although the tax preparer always signs the return, Forms to view, download, or print most of the forms, in-
you're ultimately responsible for providing all the informa- structions, and publications you may need. Or, you can go
tion required for the preparer to accurately prepare your to IRS.gov/OrderForms to place an order.
return. Anyone paid to prepare tax returns for others
should have a thorough understanding of tax matters. For Getting tax publications and instructions in eBook
more information on how to choose a tax preparer, go to format. You can also download and view popular tax
Tips for Choosing a Tax Preparer on IRS.gov. publications and instructions (including Pub. 51) on mo-
bile devices as eBooks at IRS.gov/eBooks.
Coronavirus. Go to IRS.gov/Coronavirus for links to in-
formation on the impact of the coronavirus, as well as tax Note. IRS eBooks have been tested using Apple's
relief available for individuals and families, small and large iBooks for iPad. Our eBooks haven’t been tested on other
businesses, and tax-exempt organizations. dedicated eBook readers, and eBook functionality may
not operate as intended.
Employers can register to use Business Services On-
line. The Social Security Administration (SSA) offers on- Reporting and resolving your tax-related identity
line service at SSA.gov/employer for fast, free, and secure theft issues.
online W-2 filing options to CPAs, accountants, enrolled • Tax-related identity theft happens when someone
agents, and individuals who process Form W-2, Wage steals your personal information to commit tax fraud.
and Tax Statement, and Form W-2c, Corrected Wage and Your taxes can be affected if your EIN is used to file a
Tax Statement. fraudulent return or to claim a refund or credit.
IRS social media. Go to IRS.gov/SocialMedia to see the • The IRS doesn’t initiate contact with taxpayers by
various social media tools the IRS uses to share the latest email, text messages, telephone calls, or social media

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channels to request personal or financial information. you’ll know in advance that you can get the service you
This includes requests for personal identification num- need without long wait times. Before you visit, go to
bers (PINs), passwords, or similar information for IRS.gov/TACLocator to find the nearest TAC and to check
credit cards, banks, or other financial accounts. hours, available services, and appointment options. Or,
• Go to IRS.gov/IdentityTheft, the IRS Identity Theft on the IRS2Go app, under the Stay Connected tab,
Central webpage, for information on identity theft and choose the Contact Us option and click on “Local Offices.”
data security protection for taxpayers, tax professio-
nals, and businesses. If your SSN has been lost or The Taxpayer Advocate Service (TAS)
stolen or you suspect you’re a victim of tax-related Is Here To Help You
identity theft, you can learn what steps you should
take. What Is TAS?

Making a tax payment. Go to IRS.gov/Payments for in- TAS is an independent organization within the IRS that
formation on how to make a payment using any of the fol- helps taxpayers and protects taxpayer rights. Their job is
lowing options. to ensure that every taxpayer is treated fairly and that you
know and understand your rights under the Taxpayer Bill
• Debit or Credit Card: Choose an approved payment of Rights.
processor to pay online or by phone.
• Electronic Funds Withdrawal: Schedule a payment How Can You Learn About Your Taxpayer
when filing your federal taxes using tax return prepara- Rights?
tion software or through a tax professional.
• Electronic Federal Tax Payment System: Best option The Taxpayer Bill of Rights describes 10 basic rights that
for businesses. Enrollment is required. all taxpayers have when dealing with the IRS. Go to
TaxpayerAdvocate.IRS.gov to help you understand what
• Check or Money Order: Mail your payment to the ad- these rights mean to you and how they apply. These are
dress listed on the notice or instructions. your rights. Know them. Use them.
• Cash: You may be able to pay your taxes with cash at
a participating retail store. What Can TAS Do for You?
• Same-Day Wire: You may be able to do same-day
TAS can help you resolve problems that you can’t resolve
wire from your financial institution. Contact your finan-
with the IRS. And their service is free. If you qualify for
cial institution for availability, cost, and time frames.
their assistance, you will be assigned to one advocate
Note. The IRS uses the latest encryption technology to who will work with you throughout the process and will do
ensure that the electronic payments you make online, by everything possible to resolve your issue. TAS can help
phone, or from a mobile device using the IRS2Go app are you if:
safe and secure. Paying electronically is quick, easy, and • Your problem is causing financial difficulty for you,
faster than mailing in a check or money order. your family, or your business;
What if I can’t pay now? Go to IRS.gov/Payments for • You face (or your business is facing) an immediate
more information about your options. threat of adverse action; or
• Apply for an online payment agreement IRS.gov/ ( • You’ve tried repeatedly to contact the IRS but no one
OPA) to meet your tax obligation in monthly install- has responded, or the IRS hasn’t responded by the
ments if you can’t pay your taxes in full today. Once date promised.
you complete the online process, you will receive im-
mediate notification of whether your agreement has How Can You Reach TAS?
been approved.
TAS has offices in every state, the District of Columbia,
• Use the Offer in Compromise Pre-Qualifier to see if and Puerto Rico. Your local advocate’s number is in your
you can settle your tax debt for less than the full local directory and at TaxpayerAdvocate.IRS.gov/
amount you owe. For more information on the Offer in Contact-Us. You can also call them at 877-777-4778.
Compromise program, go to IRS.gov/OIC.
Understanding an IRS notice or letter you’ve re- How Else Does TAS Help Taxpayers?
ceived. Go to IRS.gov/Notices to find additional informa-
TAS works to resolve large-scale problems that affect
tion about responding to an IRS notice or letter.
many taxpayers. If you know of one of these broad issues,
Contacting your local IRS office. Keep in mind, many report it to them at IRS.gov/SAMS.
questions can be answered on IRS.gov without visiting an
IRS TAC. Go to IRS.gov/LetUsHelp for the topics people TAS for Tax Professionals
ask about most. If you still need help, IRS TACs provide
tax help when a tax issue can’t be handled online or by TAS can provide a variety of information for tax professio-
phone. All TACs now provide service by appointment, so nals, including tax law updates and guidance, TAS

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programs,  and  ways  to  let  TAS  know  about  systemic 
problems you’ve seen in your practice.

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                      To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                 See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                        Forms:
                                          843 23
A                                         940 24                          Q
Accuracy of Deposits Rule   20            943 22                          Qualified small business payroll tax 
Additional Medicare Tax   12              943-X 23                         credit for increasing research 
Adjustments   23                          I-9 4                            activities 3
Aliens, nonresident  14                   Schedule H (Form 1040)   22     Qualified subchapter S subsidiaries 
Assistance (See Tax help)                 Schedule R (Form 943)   3        (QSubs)   4
                                          W-2 5 23, 
                                          W-4 5 13, 
                                          W-4(SP) 5 13, 
C                                                                         R
Calendar 6                                                                Reconciling Forms W-2, W-3, and 943              24
Certified professional employer                                           Reconciling wage reporting forms               24
  organizations (CPEOs)     3           H                                 Recordkeeping 5
Change of address    5                  H-2A visa holders 11
Commodity wages     11                  Household employees:
Correcting employment taxes    23         Employment tax withholding  11
Crew leaders  10                                                          S
Criminal prosecution   22                                                 Share farmers 11
                                                                          Social security and Medicare 
                                        I                                  withholding  11
                                        Income tax withholding:           Social security number (SSN)     8
D                                         How to figure 16                Spouses who own and operate a 
Deposit:                                  Who must withhold 13             business together  10
  Penalties 21                          Independent contractor  9         Supplemental wages  16
Deposit rules:
  Electronic funds transfer 17
  Legal holiday 19
  Lookback period   18                  L                                 T
  Monthly deposit schedule  18          Legal holiday 19                  Tax help 27
  Semiweekly deposit schedule  19       Lookback period  18               Taxpayer identification number (TINs)            8
Differential wage payments   4                                            Trust fund recovery penalty    21
Disaster tax relief 2
Disregarded entities  4                 M
                                        Marriage, definition of 4         U
                                                                          Unemployment tax, federal      24
E
E-file 4                                N
Electronic deposits  20                                                   W
Electronic filing 4                     New employees   4
Electronic payment   4                  Noncash wages   11                Withholding:
Employee defined    9                                                      Income tax 13
Employer identification number (EIN) 8                                     Nonresident aliens 14
                                                                           Supplemental wages 16
Employers of farmworkers    9           O                                 Work opportunity tax credit    3
Exemption from withholding    14        Outsourcing payroll duties  3

                                                                          Z
F                                       P                                 Zero wage return 6
Farmworkers:                            Penalties 21
  Crew leaders  10                      Prior year adjustments  23
  Defined 9                             Private delivery services (PDSs) 6
Federal unemployment (FUTA) taxes    24 Publications (See Tax help)

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