What IRS Form 943 (2015) Is For

IRS Form 943 (2015) serves as the annual federal tax return used by agricultural employers to report employment taxes on wages paid to farm workers. It ensures accurate reporting of federal income tax withholding, Social Security taxes, and Medicare taxes for agricultural employees whose earnings are subject to Social Security and Medicare. The form applies to cash wages and other employees' wages earned through agrarian labor.

Employers must file Form 943 if they paid wages subject to the $150 individual test or the $2,500 group test during the 2015 tax year. Filing this employment tax return ensures that payroll and federal income tax withheld are correctly recorded, reducing the risk of trust fund recovery penalty assessments. For tax purposes, it confirms compliance with federal rules for reporting total wages and employment taxes owed.

When You’d Use IRS Form 943 (2015)

You would use IRS Form 943 (2015) to report or correct employment taxes for farmworkers from that tax year.

• Late Filing: You must file Form 943 for 2015 if you failed to submit the return by its due date of February 1, 2016, or by February 10, 2016, if all employment tax deposits were made on time.
• Amended Filing: You must file Form 943-X if you need to correct any previously filed return to adjust federal income tax withheld, Social Security taxes, or Medicare taxes.
• IRS Notices: You must file if you received IRS notices about unfiled or missing employment tax returns for 2015.
• Payment Plans: You must file a return when establishing an installment agreement for unpaid tax or payroll tax liability related to agricultural businesses that still owe federal taxes.

Key Rules or Details for the 2015 Tax Year

The 2015 tax year included specific tax rates and reporting standards that differ from current requirements. Employers who filed IRS Form 943 (2015) were subject to distinct Social Security, Medicare, and deposit schedule rules.

1. Social Security Tax Rate: The Social Security tax rate in 2015 was 12.4% (6.2% employer and 6.2% employee) on wages subject to Social Security up to the wage base limit of $118,500 per employee.
2. Medicare Tax Rate: The Medicare tax rate was 2.9% (1.45% each for employer and employee) with an Additional Medicare Tax of 0.9% on employees’ wages exceeding $200,000.
3. Deposit Schedule: Employers with employment tax deposits of $2,500 or more during the year follow a monthly or semiweekly deposit schedule, depending on their payroll tax liability.
4. Filing Method: Electronic filing was limited in 2015, and most employers had to file a paper return with payment by check or money order.
5. Record Retention: Employers must keep all supporting documents and total wages records for at least four years after filing the employment tax return.

Step-by-Step (High Level)

Follow these high-level steps to correctly complete and file a late or amended IRS Form 943 (2015).

1. Gather Records: Collect your wage records, previous year returns, and IRS account transcripts to verify the employment taxes owed and payments made.
2. Complete the 2015 Form: Use the official 2015 version of Form 943, ensuring that the correct Social Security and Medicare tax rates are applied to all employees’ wages.
3. Attach Schedules: Include Form 943-A if you followed a semiweekly deposit schedule, or complete the monthly summary section if your deposits were treated separately under a different deposit schedule.
4. Submit Payment: Send your paper return with a check or money order for the balance due. If full payment is not possible, request an installment agreement to reduce interest and prevent future penalties.
5. Keep Copies: Retain copies of all filed forms, supporting documents, and payment confirmations for tax purposes, as the IRS imposes penalties for missing or inaccurate records.

Common Mistakes and How to Avoid Them

Avoiding common filing mistakes can prevent unnecessary IRS penalties and help ensure accurate reporting for IRS Form 943 (2015).

• Using Wrong Tax Rates: Always use the correct 2015 Social Security and Medicare tax rates, not the current rates, when calculating wages subject to Social Security and Medicare taxes withheld.
• Mixing Up Forms 943 and 941: Use Form 943 only for agricultural employees; Form 941 is for non-agricultural workers, and filing the wrong form can result in processing delays.
• Missing Deposit Rules: If your payroll tax liability for 2015 exceeded $2,500, you must follow the proper deposit schedule; failure to do so can result in deposit penalties.
• Incorrect Employee Count: Enter the number of agricultural workers employed during the pay period, including March 12, 2015, instead of reporting average or peak employment.
• Including Household Employees: Do not include household employees; their wages must be reported on Schedule H instead of Form 943.
• Ignoring Penalty Relief Options: If you receive penalties, you may request penalty relief by providing reasonable cause documentation or consulting a tax professional.

What Happens After You File

After submitting IRS Form 943 (2015), the IRS review process generally takes six to eight weeks for standard processing. Late or amended returns may require additional time due to manual verification of employment tax returns. The IRS will send notices acknowledging receipt or identifying unpaid tax, interest compounds, or adjustments. 

Employers with outstanding balances can request an installment agreement to avoid enforced collection actions. Interest and penalties continue until full payment is made. If discrepancies arise, the IRS Office of Appeals provides an opportunity for administrative review to resolve disputes before further collection action occurs.

FAQs

How does federal income tax withholding apply to Form 943 (2015)?

When filing IRS Form 943 (2015), employers must properly withhold federal income tax from employees’ wages paid to farmworkers during the year. The withheld amount should be reported accurately to ensure compliance and avoid underpayment issues.

Who qualifies as an agricultural employee for Form 943 (2015)?

Agricultural employees include farmworkers hired for planting, harvesting, or livestock care services. Employers must report these wages using their employer identification number to confirm the proper account for employment taxes.

How should employers complete employment tax returns for 2015?

Each employment tax return for 2015 must use the official version of Form 943 to report wages and taxes withheld from agricultural employees. Submitting the wrong year’s form can result in processing delays or IRS rejection.

What happens if I incur deposit penalties for 2015?

Deposit penalties apply when required employment tax deposits are not made on time. Employers should review their records, withhold federal income tax accurately, and contact the IRS to discuss payment options or request penalty relief.