Form 943: What it is and how to file
What is Form 943 and how do you file it?
Form 943 is the IRS tax form that farm employers use to report federal income tax, Social Security, and Medicare withheld from agricultural workers, and you file it once a year with the IRS.
- You must file if you pay a farm worker $150 or more in a year.
- You also file if total farm wages reach $2,500 or more.
- The form is due by January 31 each year.
It is no secret that businesses must file taxes to stay compliant. In fact, no industry can escape the process of filing taxes, and that includes farming. So this is where Form 943 comes in.
If you run an agricultural business, you need to know what Form 943 is and how to file it. So this article serves as a simple guide to the form.
What is Form 943?
Form 943 is the Employer’s Annual Federal Tax Return for Agricultural Employees. In short, it tracks the taxes withheld from farm workers. Like other payroll forms, it reports federal income tax, Social Security, and Medicare withholdings.
Who needs to file Form 943?
Anyone who employs farm workers must file Form 943. In short, this covers farming, ranch work, and related jobs. For example, other agricultural employees include harvesters, soil surveyors, and farm managers. So there are two simple tests to see if you must file:
- You pay $150 or more to a farm worker during the year.
- Total cash and non-cash wages to farm workers reach $2,500 or more.
If either test applies, then you must file Form 943. In addition, many farm owners hand this task to an outsourced accounting team to save time.
How to file Form 943
To file Form 943, you need your Employer Identification Number (EIN), legal name, and business address. You will also need the following details:
- Total wages paid to agricultural workers
- The employer’s and employee’s share of Social Security and Medicare taxes
- Amount of federal income tax withheld from wages
- Additional Medicare tax withheld
Other details may be asked of you, but only if they apply. For example:
- Employee Retention Tax Credit amounts, for eligible past years
- Tax credit for COBRA payments, for eligible past periods
- Payroll tax credit for the Credit for Increasing Research Activities
Note that some of these credits applied only to specific past years. So check the current IRS instructions to see which still appear on your form. In any case, keeping clean records helps a lot here. For example, steady payroll processing makes these numbers easy to pull.
Page 1
Once you have the details, download the form from the IRS website. First, write your name, EIN, and address at the top. From there, follow the line-by-line instructions.
- Line 1: Number of employees during your pay period
- Line 2: Total wages subject to Social Security tax
- Line 3: Line 2 multiplied by 12.4% for Social Security tax
- Line 4: Total wages subject to Medicare tax
- Line 5: Line 4 multiplied by 2.9% for Medicare tax
- Line 6: Total wages subject to additional Medicare withholding
- Line 7: Line 6 multiplied by 0.9% for additional Medicare tax
- Line 8: Federal income tax withheld from employees
- Line 9: Total taxes before adjustment
- Line 10: Any tax adjustments that apply
- Line 11: Total tax adjustments (add Line 9 and Line 10)
Page 2
Next, fill out the second page with the correct details.
- Line 14: Any deposits made over the year
- Line 15: The difference when Line 13 is more than Line 14j
- Line 16: The difference when Line 14j is more than Line 13
- Section 17 and Form 943-A stay blank unless Line 13 is at least $2,500. Otherwise, fill them out as follows:
- Check the box and fill out Form 943-A if you are a semiweekly depositor.
- If you are a monthly depositor, complete Section 17 and check the box.
Some lines cover sick leave and family leave wages from the IRS worksheets. These applied to certain past years. So you may skip this section if it does not apply to you.
Page 3
Finally, the last page needs a few more details.
- Report any amounts tied to past Employee Retention Credit, if your business was eligible.
If you want a third party to discuss your return with the IRS, add their name, phone number, and PIN. Once the form is complete and correct, sign and date it. For related filings, it also helps to know what goes on Form W-2 and how Form W-9 works for contractors.
When to file Form 943
File Form 943 on or before January 31. However, you get until February 10 if you deposited all taxes on time. Also, you must file it every year until your business closes.
To keep things accurate, you should reconcile Form 943 with other forms, such as W-2 and W-3. In addition, you can submit Form 943 online or as a hard copy.
If you file on paper, print the form from the IRS website and fill it in by hand. However, that takes more time and effort. You will also need to mail it through a reliable service.
Meanwhile, the IRS free e-filing system lets you file online. In addition, pairing it with tax software cuts errors when you calculate.
Frequently asked questions about Form 943
What is Form 943 used for?
In short, it reports the federal income tax, Social Security, and Medicare withheld from farm workers. So farm employers file it once a year with the IRS.
Who has to file Form 943?
Any employer of farm workers who meets the wage tests must file. For example, that means paying one worker $150 or more, or paying $2,500 or more in total farm wages.
When is Form 943 due?
It is due by January 31 for the prior year. However, you get until February 10 if you made all your tax deposits on time.
What is the difference between Form 943 and Form 941?
Form 943 is for agricultural workers and is filed once a year. In contrast, Form 941 is for most other employees and is filed each quarter.
Can I file Form 943 electronically?
Yes. The IRS offers free e-filing, and tax software makes it easier. E-filing also cuts down on math errors.
Key takeaways
- Form 943 reports federal tax withheld from agricultural workers.
- You file it if you pay $150 to one worker or $2,500 in total farm wages.
- You need your EIN, wage totals, and withholding details to file.
- The deadline is January 31, or February 10 with on-time deposits.
- Reconcile it with your W-2 and W-3, and e-file to reduce errors.
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