Form 943 (2011): Agricultural Employee Tax Return
Checklist
IRS Form 943 is the employer’s annual tax return used by agricultural employers in the United
States to report federal income tax withholding and Social Security and Medicare taxes for agricultural workers. For the 2011 tax year, Form 943 reflects the temporary employee Social
Security tax reduction and the $106,800 Social Security wage base applicable for that year under Internal Revenue Service guidance.
Verify Agricultural Employee Classification
Confirm that workers meet the definition of agricultural employees for 2011 federal employment tax purposes. Agricultural workers generally include individuals engaged in cultivating soil, harvesting crops, raising livestock, or performing related farm labor directly connected to agricultural production. Proper classification is essential, as agricultural employers file IRS Form
943 instead of Form 941, the Employer’s Quarterly Federal Tax Return, or Form 944.
Confirm Employer Filing Obligation and Filing Frequency
Verify that your business is required to file an employer’s annual tax return using Form 943 rather than a quarterly federal tax return. Agricultural employers typically file Form 943 annually instead of Form 941 or Form 941-SS, depending on the type of employment and payroll activity.
Filing frequency is determined by the nature of agricultural wages, not by the deposit schedule alone.
Gather 2011 Social Security and Medicare Information
Identify the applicable Social Security and Medicare tax rates for 2011 before completing wage and tax calculations. The Social Security wage base limit for 2011 was $106,800, with a temporary employee rate of 4.2 percent and an employer rate of 6.2 percent. Medicare taxes are applied at a combined rate of 2.9 percent on all covered wages, with no wage base limitation.
Steps to Complete Form 943 Wage and Tax Lines
Step 1: Report Number of Agricultural Workers
Enter the number of agricultural workers employed during the pay period that included March
12, 2011, as required by IRS Form 943. Do not include household employees, unpaid individuals, retirees, or members of the Armed Forces when completing this line.
Step 2: Enter Social Security Wages
Report total cash wages subject to Social Security tax up to the 2011 wage base limit. Wages must be entered before deductions and should exclude noncash compensation such as meals or lodging provided to agricultural employees.
Step 3: Calculate Social Security Tax
Multiply taxable Social Security wages by the combined 10.4 percent rate for 2011. This rate reflects the temporary employee reduction and the unchanged employer portion applicable to agricultural employers filing IRS Form 943.
Step 4: Report Medicare Wages
Enter all cash wages subject to Medicare tax with no wage cap applied. All Medicare wages must be reported in full regardless of earnings level.
Step 5: Calculate Medicare Tax
Apply the combined 2.9 percent Medicare tax rate to total Medicare wages. This calculation represents both the employee and employer shares of Medicare tax for the 2011 tax year.
Step 6: Report Federal Income Tax Withheld
Enter the total federal income tax withheld from agricultural workers during 2011. This amount should reconcile with employee Forms W-2 and your company's federal tax information to avoid discrepancies during processing by the Internal Revenue Service.
Step 7: Record Total Deposits Made
Report all federal tax deposits made for the year, including payments submitted through EFTPS.
If you were subject to a semiweekly schedule, confirm that all required deposits were made timely based on your deposit rules rather than your annual filing status.
Step 8: Review Schedule A and Form 943-A Requirements
If applicable, complete 943 Schedule A or Form 943-A to report tax liability by period. These schedules are required when agricultural employers must detail monthly or semiweekly tax liability rather than total annual amounts, depending on deposit requirements.
Step 9: Address Overpayments or Adjustments
If total deposits exceed total tax liability, indicate whether you want a refund or a credit applied to a future return. Use Form 943-X to correct errors discovered after filing, rather than adjusting amounts directly on a previously filed return.
- Advance earned income credit reporting: Agricultural employers were required to
- Correct employment tax form usage: Agricultural employers were required to file IRS
- Record retention and audit readiness: Agricultural employers were required to retain
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Sign, Date, and Submit the Return
Sign and date IRS Form 943 using an authorized signature before submission. Ensure all identifying information is complete and accurate, including confirmation that the form used matches OMB No. 1545-0035 and is the correct fill-in version for the 2011 tax year.
Additional 2011 Compliance Considerations track advance earned income credit payments in 2011 and ensure payroll records supported all amounts reported on IRS Form 943.
Form 943 instead of Form 941, Form 941-SS, or Form 944 when reporting wages paid to agricultural workers. filed returns and supporting payroll documentation to substantiate Form 943 figures during an Internal Revenue Service review or audit.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
