What IRS Form 943 (2018) Is For
IRS Form 943 (2018) is the Employer’s Annual Federal Tax Return for Agricultural Employees. It is used by employers who paid wages to farmworkers subject to Social Security, Medicare, or federal income tax withholding during the 2018 tax year. You must file this annual federal tax return if you paid any employee $150 or more in cash wages for agricultural work or if the total wages for all agricultural employees reached $2,500 or more. The form ensures the correct reporting and payment of employment taxes for agricultural labor.
Unlike Form 941, which applies to non-agricultural employers, IRS Form 943 (2018) explicitly covers farm-related employment. The return for agricultural employees helps the IRS track and verify employer compliance with federal tax laws. Always use the 2018 version of the form and its official instructions since tax rates, due dates, and deposit thresholds vary yearly.
When You’d Use IRS Form 943 (2018)
Employers should file IRS Form 943 (2018) when specific conditions apply to their agricultural payroll reporting. This section outlines when the form is used for late and amended filings.
- Filing a late return: Employers must file if they missed the original January 31, 2019, due date or the grace period ending February 11, 2019, even if deposits were made on time.
- Correcting reporting errors: Use Form 943-X if prior filings contained errors in reported wages, deposits, or withholding amounts that require correction.
- Responding to IRS notices: File the return if you received an IRS letter or notice requesting a missing or corrected annual federal tax return.
- Recovering overpaid taxes: Submit the form to claim refunds for any overpaid Social Security or Medicare taxes from 2018.
If you are unsure whether your 2018 deposits were applied correctly, request an IRS account transcript to verify your tax history before completing the return.
Key Rules or Details for 2018
The 2018 version of IRS Form 943 follows specific tax rates, wage limits, and deposit requirements that differ from those in later years. Employers should verify all calculations and thresholds before filing.
- Social Security and Medicare tax rates: Each employer and employee owed 6.2% for Social Security and 1.45% for Medicare, with a wage base limit of $128,400 for 2018.
- Deposit requirements: Employers with employment taxes totaling $2,500 or more were required to make electronic deposits, and late payments could result in a deposit penalty.
- Additional Medicare Tax: A 0.9% Additional Medicare Tax applied to employees earning over $200,000, though employers were not required to match this amount.
- Filing deadlines and due dates: The employer’s annual federal tax return for 2018 was due January 31, 2019, with penalties applied for late filing.
- Supporting documents: Employers must include Form 943-A and Form 8974 when applicable, depending on deposit frequency and credit eligibility.
If you received a notice asking for missing employment tax filings, the IRS collection process may already be underway, making it important to file the 2018 return promptly.
Step-by-Step (High Level)
Employers completing IRS Form 943 (2018) should follow these steps carefully to ensure proper filing and compliance with IRS requirements.
- Gather wage and deposit records: Collect all payroll information for 2018, including employee wages, tax withholdings, and payment records, along with any related IRS correspondence.
- Use the correct form version: Download the official 2018 version from IRS.gov/PriorYearForms, since newer editions contain updated rates and instructions that do not apply.
- Complete all required sections: Enter accurate totals for taxes, wages, and deposits as instructed, ensuring all amounts match your internal payroll documentation.
- Attach the necessary schedules: Include Form 943-A for semiweekly depositors and Form 8974 if you claim a qualified small business payroll tax credit.
- File the return properly: You can submit your annual federal tax return by mail to the correct 2018 address or file electronically through authorized IRS software.
- Keep complete copies: Retain all supporting documents, deposit confirmations, and IRS letters for your permanent business records.
Employers facing failure-to-file or deposit penalties may qualify for penalty abatement if they can demonstrate reasonable cause for late or incorrect filings.
Common Mistakes and How to Avoid Them
Late or amended IRS Form 943 (2018) filings often contain preventable errors. Attention to these details helps employers avoid penalties, interest, and additional IRS notices.
- Using the wrong tax year form: Always file using the 2018 version of Form 943 to ensure your tax rates and wage bases are accurate.
- Mixing agricultural and non-agricultural wages: Report only wages for agricultural employees on this form to prevent processing errors or audits.
- Incorrect deposit reporting: To prevent mismatched deposit records, report the actual deposits made during 2018, not estimated or expected amounts.
- Missing filing thresholds: Verify that you met the $150-per-employee or $2,500 total wages threshold before filing to confirm your filing obligation.
- Ignoring penalties and interest: Unpaid taxes are subject to a 5% failure-to-file penalty and ongoing interest until the balance is paid in full.
- Incomplete employer information: Double-check your EIN, business name, and mailing address to ensure your return matches IRS records.
If you cannot pay your 2018 tax balance in full, applying for an IRS payment plan can help reduce additional penalties and keep your business in compliance.
What Happens After You File
After submitting IRS Form 943 (2018), the IRS typically processes paper filings within six to eight weeks, though older-year submissions may take additional time. Employers may receive a notice or letter confirming acceptance, requesting supporting documents, or advising of an extra payment or refund.
If you cannot pay the full amount, you may apply for an installment agreement using Form 9465. Interest and penalties continue to accrue until the balance is satisfied. Always keep all IRS correspondence, payment records, and filing confirmations for your business’s permanent tax file. Businesses that discover misclassified workers, missing deposits, or unfiled agricultural payroll forms may need expert help resolving payroll tax problems before penalties escalate.
FAQs
How do agricultural employees affect my Form 943 filing?
Agricultural employees are workers who perform farm-related labor subject to employment taxes. If you paid them $150 or more in cash wages or $2,500 total for the year, you must file Form 943 for 2018. Note that non-farm salaries should not be reported on this form.
Does Form 943 include income tax withholding?
You must report federal income tax withheld from your agricultural employees’ wages. Always review IRS guidance for 2018 before you sign and send your return.
What is a deposit penalty on Form 943?
A deposit penalty applies when required employment tax deposits are not made on time. Missing deposit deadlines can lead to additional interest and penalties from the IRS.
What does the annual federal tax return include?
The annual federal tax return reports wages, deposits, and taxes withheld for farmworkers. Employers should follow IRS guidance and keep copies of every form they send for recordkeeping.
Does Form 943 cover federal unemployment tax?
No, the federal unemployment tax is reported separately on Form 940. If unsure which forms apply, contact the IRS or review official employer tax filing guidance for assistance.
