What IRS Form 943 (2016) Is For

Form 943 is the annual federal tax return that agricultural employers must file to report wages paid to farmworkers and related employment taxes. You must file Form 943 if you paid wages to one or more agricultural employees and those wages were subject to Social Security and Medicare taxes or federal income tax withholding, specifically if you paid cash wages of $150 or more to any farmworker during 2016, or if total wages (cash and noncash) to all farmworkers reached $2,500 or more (IRS Instructions for Form 943 (2016)).

When You'd Use Form 943 for 2016 (Late or Amended Filing)

You might be filing Form 943 for 2016 now because you received IRS notices about unfiled returns, discovered you owed employment taxes that weren't previously reported, or need to correct errors on a previously filed return. Late filing scenarios often arise when employers realize they met the $150/$2,500 thresholds but didn't file originally, or when payroll records review reveals unreported agricultural wages. If you have overpaid taxes and want a refund, remember that the refund statute of limitations generally allows claims within three years of the return due date or two years from when you paid the tax—whichever is later (IRS Topic No. 160).

Key Rules Specific to 2016

For 2016, the Social Security tax rate was 6.2% each for employee and employer (12.4% total) with a wage base limit of $118,500, and Medicare tax was 1.45% each (2.9% total) with no wage base limit. Additional Medicare Tax withholding of 0.9% applied to wages exceeding $200,000 per employee. Form 943 for 2016 was originally due January 31, 2017 (or February 10, 2017, if all deposits were made timely). Electronic filing requirements applied to employers with 250 or more W-2 forms, and all federal tax deposits had to be made by electronic funds transfer through EFTPS (IRS Instructions for Form 943 (2016)).

Step-by-Step (High Level)

• Gather transcripts and records: Obtain wage records, tax deposit history, and any IRS account transcripts to verify previously reported amounts
• Complete Form 943 (2016): Use the correct 2016 version, reporting total wages subject to Social Security and Medicare taxes, calculating employment taxes, and accounting for any federal tax deposits made
• Attach required schedules: Include Form 943-A if you were a semiweekly depositor, and Form W-3 with Copy A of all Forms W-2 for your agricultural employees
• Choose filing method: Mail to the appropriate IRS processing center based on your location, or file electronically if eligible
• Keep copies: Maintain copies of all forms, supporting documents, and proof of mailing or electronic submission confirmation

Common Mistakes and How to Avoid Them

• Confusing Form 943 with Form 941: Form 943 is annual and only for agricultural employees; Form 941 is quarterly for all other employees—never report the same wages on both forms (IRS Topic No. 760)
• Missing the wage thresholds: Remember both tests—$150 cash wages to any individual farmworker OR $2,500 total wages to all farmworkers triggers filing requirements
• Incorrect Social Security wage limits: Don't report Social Security wages above $118,500 per employee for 2016, but there's no limit for Medicare wages
• Mishandling H-2A visa workers: Report their compensation in Box 1 of Form W-2 but don't include it as Social Security or Medicare wages unless specifically required
• Deposit timing errors: If you owed $2,500+ in taxes, deposits should have been made during 2016 according to your monthly or semiweekly schedule—paying with the return may trigger penalties
• Reconciliation problems: Ensure wage amounts on Form 943 match the totals on Form W-3 for Social Security wages, Medicare wages, and federal income tax withheld

What Happens After You File

The IRS typically processes Form 943 within several weeks of receipt, though late-filed returns may take longer due to additional verification requirements. You'll receive notices if there are discrepancies, missing information, or if you owe additional taxes, penalties, or interest. If you owe money, you can request an installment agreement online at IRS.gov if the balance is $25,000 or less and can be paid within 24 months. Penalties and interest accrue from the original due date, calculated at rates set by federal law and updated quarterly (IRS Instructions for Form 943 (2016)). You have appeal rights if you disagree with any IRS determinations, and can request penalty abatement using Form 843 if you have reasonable cause.

FAQs

What penalties apply for filing Form 943 late?

Failure-to-file penalties are typically 5% of unpaid taxes per month (up to 25%), while failure-to-pay penalties are 0.5% per month. Interest accrues on both taxes and penalties from the original due date (IRS Publication 15).

Can I get a refund for overpaid 2016 employment taxes?

Yes, but you must file within the refund statute of limitations—generally three years from the return due date (January 31, 2017) or two years from when you paid the tax, whichever is later.

Do I need transcripts before filing my late 2016 Form 943?

While not required, obtaining account transcripts helps verify any previous filings or payments, ensuring your late return accurately reflects your tax situation and avoiding duplicate reporting.

Should I file Form 943 or 943-X for corrections?

File Form 943 if you never filed for 2016. Use Form 943-X only to correct a previously filed Form 943—you cannot file 943-X before filing the original return (IRS Instructions for Form 943-X).

What if I also have non-agricultural employees?

File both Form 943 for agricultural workers and Form 941 (quarterly) for non-agricultural employees—never report the same wages on both forms (IRS Topic No. 758).

Do I need to amend my state returns too?

Check with your state tax authority, as employment tax requirements vary by state and may not automatically conform to federal corrections.

How long should I keep Form 943 records?

Maintain payroll records and tax returns for at least four years after the due date or date filed, whichever is later, as the IRS may need to verify employment tax reporting during examinations (IRS Publication 15).

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