Form 943 (2022) Tax Year Purpose
Form 943 is an IRS form used by an agricultural employer to report annual federal payroll tax obligations of farming employees under the U.S. federal tax system. It reports employment taxes withheld and paid, including Social Security taxes, Medicare taxes, and federal income tax withholding, to the Internal Revenue Service (IRS) for the applicable tax year. Unlike Form 941, which is filed quarterly by most employers, Form 943 is filed annually and is specifically designed for agricultural employers.
For 2022, filers must separately report qualified sick and family leave wages paid in 2022 for leave taken after March 31, 2021, and before October 1, 2021, on dedicated lines (2, 3a–3b, 22–27), reflecting expanded American Rescue Plan Act (ARPA) sick-leave credit provisions unique to this calendar year. These provisions directly affect the employer’s tax liability and overall federal tax liability. Employers correcting previously filed returns for 2022 may be required to use Form 943-X to amend reported amounts.
Required Filing Steps
1. Employee Count Reporting
Enter the number of agricultural employees on the March 12, 2022, payroll snapshot (line 1). Note that March 12 is a recurring annual date used for Form 943 across all tax years—only the year changes (March 12, 2022, for 2022 returns, March 12, 2023, for 2023 returns, etc.). This date must match the employer's payroll records for the pay period that included March 12, 2022, as outlined in Circular A (Publication 51).
Do not include household employees, persons who received no pay during the pay period, pensioners, or members of the Armed Forces in this count. Employee withholding information should align with the most recent Form W-4 on file for each worker.
2. Wage Reporting for Social Security Tax
Report all wages subject to Social Security on line 2, and separately itemize qualified sick leave wages (line 2a) and qualified family leave wages (line 2b) paid in 2022 for leave taken between April 1, 2021, and September 30, 2021—a leave-period window unique to 2022 ARPA reconciliation.
Lines 2a and 2b specifically capture wages paid in 2022 for leave taken after March 31, 2020, and before April 1, 2021, under the original FFCRA provisions. These must be distinguished from the later ARPA period to ensure accurate Social Security tax reporting and compliance with IRS form requirements, especially where independent contractor payments reported on Form 1099-NEC or Form 1099-MISC are excluded from wage calculations.
3. Social Security Tax Calculation
Calculate Social Security tax on line 3 at 12.4% (0.124) of line 2. Calculate reduced rates (6.2% or 0.062) on lines 3a and 3b for the separately reported qualified leave wages on lines 2a and 2b.
The reduced 6.2% rate on lines 3a and 3b reflects that qualified sick and family leave wages for leave taken before April 1, 2021, are not subject to the employer's share of Social Security tax, as this aligns with the employer’s partial credit offset structure for the 2022 tax year.
4. Medicare Tax Reporting
Report Medicare taxes by entering Medicare wages on line 4 and calculating Medicare tax at 2.9% (0.029) on line 5. These are standard rates for 2022 with no year-specific threshold changes.
Separately identify wages subject to Additional Medicare Tax withholding on line 6 and calculate at 0.9% (0.009) on line 7. Additional Medicare Tax applies to wages exceeding $200,000 in a calendar year. It must be reconciled with amounts reported on Form W-2 issued to employees using valid Social Security numbers obtained when the employer applied for an EIN using Form SS-4.
5. Federal Income Tax and Total Taxes
Enter federal income tax withholding on line 8. Sum all taxes on line 9 (lines 3, 3a, 3b, 5, 7, and 8 combined), then apply any current-year adjustments on line 10 to derive total taxes after adjustments on line 11.
Adjustments on line 10 may include corrections for fractions of cents, sick pay adjustments, or other authorized modifications to employment tax calculations under IRS guidance. Employers who withhold backup withholding on nonpayroll payments may separately report those amounts on Form 945, rather than Form 943.
6. Nonrefundable Credits
Claim nonrefundable credits on line 12:
● Line 12a: Attach Form 8974 for the qualified small business payroll tax credit for increasing research activities
● Line 12b: Report nonrefundable portion of sick and family leave credits for leave taken after March 31, 2020, and before April 1, 2021
● Line 12c: Reserved and unused for 2022
● Line 12d: Report nonrefundable portion of sick and family leave credits for leave taken after March 31, 2021, and before October 1, 2021
The nonrefundable credits are limited to the employer share of the applicable taxes and cannot exceed the employer’s tax liability reported on Form 943.
7. Refundable Credits and Balance Calculation
Claim refundable sick and family leave credit portions on lines 14d (for leave taken after March 31, 2020, and before April 1, 2021) and 14f (for leave taken after March 31, 2021, and before October 1, 2021).
Combine line 14a deposits—typically made through the Electronic Federal Tax Payment System (EFTPS) or the IRS e-file system—with refundable credits on line 14h. Subtract line 13 (total tax after nonrefundable credits) from line 14h to determine overpayment (line 16) or add line 13 minus line 14h to assess balance due (line 15).
Refundable credits may exceed the employer’s federal tax liability and can result in a refund or be applied to future returns.
8. Monthly Tax Liability Schedule
Complete line 17 (monthly tax liability summary, January through December) only if BOTH of the following conditions are met:
● You were a monthly schedule depositor for the entire year, AND
● Line 13 equals or exceeds $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 to report your semiweekly tax liabilities, regardless of whether line 13 is above or below $2,500.
If line 13 is below $2,500, do not complete line 17 or Form 943-A—this $2,500 threshold applies to 2022 filing requirements and deposit schedules. Your deposit schedule (monthly or semiweekly) is determined by the total taxes reported during the lookback period, which for 2022 is calendar year 2020.
9. Health Plan Expenses for Pre-April 1, 2021 Leave
Report qualified health plan expenses allocable to qualified sick leave and family leave wages on lines 18–19 for leave taken before April 1, 2021.
These expenses represent employer costs for maintaining group health plan coverage during the qualified leave period and are included in calculating the total credit available under ARPA.
10. Wages and Expenses for Post-March 31, 2021 Leave
Report qualified sick leave and family leave wages (lines 22 and 25) for leave taken in the post-March 31, 2021, window (April 1, 2021, through September 30, 2021).
Separately itemize:
● Qualified health plan expenses (lines 23 and 26)
● Amounts under collectively bargained agreements (lines 24 and 27)
These lines are unique to the 2022 ARPA credit reconciliation and support documentation for refundable credit offsets shown on line 14f.
11. Signature and Preparer Requirements
Sign and date the return under penalties of perjury. Ensure the preparer (if applicable) signs, dates, and provides PTIN and firm information. All three pages must be completed before submission.
The signature section certifies that the information provided is accurate, correct, and complete to the best of the filer’s knowledge. Employers filing electronically through the IRS e-file system may use approved electronic signature methods.
12. Payment Voucher and Submission
If paying with Form 943 (only when line 13 is less than $2,500 or under the monthly depositor accuracy rules), complete Form 943-V payment voucher.
Make checks payable to “United States Treasury” and write the Employer Identification Number, “Form 943,” and “2022” on the check. Do not staple the voucher or payment to Form 943.
Payments accompanying the return should be mailed to the designated IRS mailing address for submissions with payment, which differs from the address for returns filed without payment. Employers making corrections after submission must use Form 943-X rather than submitting a second original return.
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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.
