Form 943 (2016) Filing Checklist Guide
Form 943 reports annual social security, Medicare, Additional Medicare Tax withholding, and federal income tax withheld from agricultural employees. For 2016, the $2,500 threshold determines whether you must deposit taxes electronically or may pay with Form 943. The monthly liability detail on line 17 is required only for employers who were monthly schedule depositors for the entire year and whose total taxes, after adjustments, equal or exceed $2,500.
Filing Steps
1. Verify the agricultural employee count as of the March 12, 2016, payroll period
Enter on line 1 the number of agricultural employees employed during the pay period that includes March 12, 2016. This specific date is the designated snapshot date as outlined in the 2016 instructions for reporting agricultural employee headcount. Do not include household employees, persons who received no pay during the pay period, pensioners, or members of the Armed Forces.
If you report 250 or more employees on line 1, you must file Form W-2 electronically with the Social Security Administration.
2. Calculate social security tax on line 3 using a 12.4% (0.124) rate for 2016
Multiply total wages subject to social security tax (line 2) by the flat 12.4% rate in effect for 2016. This represents the combined employer and employee portions (6.2% each). The social security wage base limit for 2016 is $118,500 per employee. Do not report an employee’s social security wages over this amount.
Report only cash wages on line 2. Do not include the value of non-cash items, such as food or lodging, or pay for services other than farm workers.
3. Calculate Medicare tax on line 5 using 2.9% (0.029) rate for 2016
Multiply total wages subject to Medicare tax (line 4) by 2.9%. This represents the combined employer and employee portions (1.45% each). Verify that no wage base limit applies to regular Medicare tax—all Medicare wages are subject to this tax regardless of amount.
Enter the total cash wages subject to Medicare tax on line 4 before deductions. There is no limit on the amount of wages subject to Medicare tax.
4. Calculate Additional Medicare Tax withholding on line 7 using a 0.9% (0.009) rate for 2016
Report on line 6 all wages subject to Additional Medicare Tax withholding, then multiply by 0.9% to determine line 7.
You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee. Continue withholding it each pay period until the end of the calendar year. This $200,000 threshold applies regardless of the employee’s filing status or marital status—employers use this single withholding threshold for all employees.
Additional Medicare Tax is imposed only on the employee. There is no employer share of the Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.
5. Enter federal income tax withheld on line 8
Report the total amount of federal income tax you withheld from agricultural employees during 2016. This amount should reflect all federal income tax withholding based on employees’ Form W-4 elections.
6. Complete line 10 (current year adjustments) only if required by 2016 guidance
If you are eligible to make adjustments under the rules published in the 2016 instructions, document the adjustment amount on line 10. Use line 10 to adjust for rounding of fractions of cents or to adjust for the uncollected employee share of social security and Medicare taxes on third-party sick pay or group-term life insurance premiums paid for former employees.
Use a minus sign (if possible) to show a decrease in the amounts reported on lines 3, 5, or 7. Otherwise, use parentheses. If the fractions of cents adjustment is the only entry on line 10, write “Fractions Only” on the dotted line to the left of the entry space. Otherwise, leave line 10 blank if no adjustments apply.
7. Record total deposits for 2016 on line 12
Include all electronic fund transfers and any amounts claimed via Form 943-X (Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees) filed during 2016. Also include any overpayment you applied from filing Form 943-X and any overpayment you applied from your 2015 return.
8. Complete line 17 (monthly summary) only if you were a monthly schedule depositor for the entire year and line 11 is $2,500 or more
Line 17 is a summary of your monthly tax liability, not a summary of deposits made. Complete line 17 only if you were a monthly schedule depositor for the entire year and your total taxes after adjustments (line 11) equal or exceed $2,500.
If you were a semiweekly schedule depositor during any part of the year, do not complete line 17. Instead, complete Form 943-A and attach it to Form 943.
You are a monthly schedule depositor for the calendar year if the amount of your total taxes after adjustments reported for the lookback period is not more than $50,000. The lookback period is the second calendar year preceding the current calendar year. For 2016 filings, the lookback period is calendar year 2014.
If line 11 is less than $2,500, do not complete line 17 or Form 943-A.
9. Determine whether to file Form 943-A (agricultural employer’s record of federal tax liability)
Form 943-A is required only if you were a semiweekly schedule depositor during any part of 2016. Use it to report your daily tax liability. If you were a semiweekly depositor, check the box on Form 943 indicating this status and attach Form 943-A.
Do not complete Form 943-A if you were a monthly schedule depositor for the entire year or if your total taxes after adjustments (line 11) are less than $2,500.
10. Ensure the employer identification number (EIN) is correctly entered at the top
Your EIN must appear at the top of Form 943. If you have not received your EIN by the filing deadline, write “Applied For” and the date you applied in the EIN field per the 2016 instructions. You can apply for an EIN online at IRS.gov, by fax, or by mailing Form SS-4.
11. Sign and date the return under penalties of perjury
The authorized person must sign Form 943. For sole proprietorships, the individual who owns the business must sign. For corporations (including LLCs treated as corporations), the president, vice president, or other principal officer duly authorized to sign must complete this section. For partnerships or unincorporated organizations, a responsible and duly authorized partner, member, or officer who is familiar with its affairs must sign.
Enter the signatory’s name, title, date of signature, and best daytime phone number.
12. If paying with Form 943 (only if line 11 is less than $2,500 and paying in full), complete Form 943-V
If your total taxes after adjustments for the year (line 11) are less than $2,500, you can pay the tax due with your return if you file on time. Make your check or money order payable to “United States Treasury.” Write your EIN, “Form 943,” and “2016” on your check or money order.
Complete Form 943-V (Payment Voucher) and enclose it with Form 943 in the same envelope, but do not attach the voucher or payment to Form 943 itself. The voucher and payment should remain loose in the envelope with the return.
If you pay by electronic funds transfer, credit card, or debit card, file your return using the “Without a payment” address and do not file Form 943-V.
Year-Specific IRS Forms Updates for 2016
Monthly depositor requirement for line 17
Monthly summary (line 17) is required only if you were a monthly schedule depositor for the entire year and your total taxes after adjustments equal or exceed $2,500. If your deposits were required to be made on a semiweekly schedule during any part of the year, skip the monthly liability detail on line 17 and complete Form 943-A instead.
$2,500 payment threshold remains unchanged for 2016
Employers with total taxes after adjustments of $2,500 or less may pay with Form 943 if they file timely and pay in full. Amounts of $2,500 or more must be deposited electronically, except under the Accuracy of Deposits Rule for monthly depositors making timing corrections.
Form 943-X integration into line 12
Total deposits on line 12 must include any Form 943-X amounts applied during the 2016 tax year. File Form 943-X separately from Form 943—never attach them. Reference any Form 943-X adjustments on line 12 of your Form 943.
Additional Medicare Tax withholding threshold
The 0.9% Additional Medicare Tax on line 7 applies to all wages exceeding $200,000 paid to an individual employee in the calendar year. This $200,000 withholding threshold is consistent for all employees regardless of their filing status. There is no annual wage cap for Additional Medicare Tax in 2016. Employers withhold this tax only from the employee and do not pay a matching employer share.
Reserved lines contain no instruction
Lines 13a, 13b, and 14 appear on the 2016 form but are not used. Leave them blank. Do not attempt to complete or reference these reserved lines.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
