Form 943 Checklist for 2013 Tax Year
Form 943 is the annual federal tax return used exclusively by agricultural employers to report federal income tax withholding, Social Security taxes, Medicare taxes, and Additional Medicare
Tax for farmworkers. The 2013 tax year marked the introduction of the Additional Medicare Tax, a new 0.9 percent employee tax on wages exceeding $200,000 annually.
Understanding Form 943 Requirements
Agricultural employers must file Form 943 if they paid wages to one or more farmworkers subject to federal employment taxes during the calendar year. Agricultural labor is defined under
Internal Revenue Code Section 3121(g) and includes services such as crop cultivation, livestock management, and seasonal harvest work. Employers with both agricultural and non-agricultural employees must file both Form 943 for farm wages and Form 941 for non-farm wages.
Step-by-Step Filing Instructions
Step 1: Verify Agricultural Employee Classification
Confirm that all reported workers meet the agricultural labor definition under Internal Revenue
Code Section 3121(g), which governs tax treatment for farmworkers. This classification determines whether you use Form 943 instead of Form 941 for quarterly payroll reporting.
Step 2: Complete Line 1 for Employee Count
Enter the total number of agricultural employees on your payroll during the pay period that included March 12, 2013. This count excludes household employees, unpaid workers, pensioners, and members of the Armed Forces who received no compensation during that specific period.
Step 3: Report Social Security Wages on Line 2
Enter the total cash wages, subject to Social Security tax, that you paid to agricultural employees during 2013 before any deductions. The maximum Social Security tax base in 2013 was $113,700 per employee, and you should exclude noncash compensation, such as meals or lodging.
Step 4: Calculate Social Security Tax on Line 3
Multiply the amount on Line 2 by 12.4 percent to determine the combined employer and employee Social Security tax liability. This combined rate includes 6.2 percent withheld from employees plus 6.2 percent paid by the employer for each eligible worker.
Step 5: Report Medicare Wages on Line 4
Enter the total cash wages, subject to Medicare tax, that you paid to farmworkers during the calendar year without applying any wage ceiling. Unlike the Social Security tax, the Medicare tax applies to all wages, with no maximum earnings limit, for covered agricultural employment.
Step 6: Calculate Medicare Tax on Line 5
Multiply the amount on Line 4 by 2.9 percent to calculate the combined employer and employee
Medicare tax. This rate consists of 1.45 percent withheld from each employee and 1.45 percent contributed by the employer.
Step 7: Report Additional Medicare Tax Wages on Line 6
Enter all wages subject to Additional Medicare Tax withholding, which applies only to employees whose wages exceeded $200,000 during 2013. This employee-only tax has no employer match and requires withholding at 0.9 percent on wages above the $200,000 threshold.
Step 8: Calculate Additional Medicare Tax on Line 7
Multiply the amount on Line 6 by 0.9 percent to determine the Additional Medicare Tax withholding liability. This tax was introduced in 2013 and applies exclusively to high-earning employees, with no corresponding employer contribution.
Step 9: Enter Federal Income Tax Withheld on Line 8
Report the total federal income tax you withheld from agricultural employee wages throughout the year based on each worker’s Form W-4 elections. Federal income tax withholding is generally required for employees subject to Social Security and Medicare taxes under standard payroll procedures.
Step 10: Calculate Total Taxes on Line 9
Add Lines 3, 5, 7, and 8 to determine your total tax liability before any adjustments or corrections. This sum represents the combined Social Security, Medicare, Additional Medicare
Tax, and federal income tax withholding for the entire year.
Step 11: Make Current Year Adjustments on Line 10
Enter any adjustments for rounding differences, uncollected employee share of Social Security or Medicare taxes on third-party sick pay, or group-term life insurance premiums. Use a minus sign for decreases or parentheses if your system does not support negative number formatting.
Step 12: Determine Total Taxes After Adjustments on Line 11
Combine Lines 9 and 10 to calculate your final tax liability after all adjustments have been applied. This adjusted total determines whether you owe additional taxes or have an overpayment eligible for a refund or credit.
Step 13: Report Total Deposits on Line 12
Enter the total amount of federal tax deposits you made during 2013, including any overpayments from your 2012 return or Form 943-X. Electronic funds must have been used to make deposits through the Electronic Federal Tax Payment System throughout the year.
Step 14: Complete Monthly Summary on Line 17 or Form 943-A
Monthly schedule depositors must complete Line 17 showing tax liability for each month, while semiweekly depositors must attach Form 943-A. Employers with total annual taxes of $2,500 or less may skip this requirement and pay the balance due with their return.
- Additional Medicare Tax Introduction: Employers must withhold 0.9 percent Additional
- Social Security Tax Rate Restoration: The employee Social Security tax rate returned
- Electronic Filing Availability: Beginning in January 2014, agricultural employers could
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 15: Sign and Date the Return
The employer or authorized representative must sign Form 943 under penalties of perjury, certifying that all information is accurate and complete. Unsigned returns will not be processed by the Internal Revenue Service, resulting in penalties and delayed tax deposit credits.
Key 2013 Tax Year Updates
Medicare Tax on employee wages exceeding $200,000 per calendar year. This employee-only tax has no employer match and appears on Lines 6 and 7 of the 2013
Form 943. to 6.2 percent in 2013 after a temporary reduction to 4.2 percent during 2011 and 2012.
The employer rate remained unchanged at 6.2 percent, and the wage base limit increased to $113,700 for the year. electronically file Form 943 for the 2013 tax year. Electronic filing streamlines processing
and reduces errors compared to traditional paper filing methods previously required for all agricultural employers.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
