What IRS Form 943 (2018) Is For

Form 943 is the Employer's Annual Federal Tax Return for Agricultural Employees, used by employers who paid wages to farmworkers during the 2018 calendar year (IRS Instructions for Form 943 (2018)). You must file this form if you paid wages to one or more farmworkers that were subject to Social Security and Medicare taxes or federal income tax withholding, specifically when you paid an employee $150 or more in cash wages for farmwork, or when your total wages to all farmworkers reached $2,500 or more for the year.

When You'd Use Form 943 for 2018 (Late or Amended Filing)

You'll need to file Form 943 for 2018 as a late return if you never filed your original return by the January 31, 2019 deadline, or if you filed by February 11, 2019 after making timely deposits throughout the year. Common scenarios include receiving IRS notices about unfiled returns, discovering you owed employment taxes that weren't paid, or needing to correct errors on a previously filed return. If you need to make corrections to an already-filed Form 943 for 2018, you'll use Form 943-X, the amended return, rather than filing another Form 943 (IRS Topic No. 760). Unlike individual income tax refunds, there's no three-year statute of limitations for claiming employment tax refunds, so you can still recover overpaid amounts even when filing years later.

Key Rules Specific to 2018

For 2018, the Social Security tax rate was 6.2% each for employer and employee (12.4% total), with a wage base limit of $128,400 per employee. Medicare tax remained at 1.45% each for employer and employee (2.9% total) with no wage limit (IRS Instructions for Form 943 (2018)). Additional Medicare Tax of 0.9% applied only to employees earning over $200,000, with no employer match required. The deposit threshold requiring electronic deposits throughout the year was $2,500 in total employment taxes. These rates and thresholds may differ from current year requirements, so ensure you're using the correct 2018 figures when completing your late return.

Step-by-Step (High Level)

• Gather your records: Obtain wage and tax records for all agricultural employees from 2018, including any account transcripts from the IRS showing previous deposits or correspondence about this tax year
• Complete Form 943 for 2018: Use the official 2018 version of Form 943, available from IRS.gov/PriorYearForms, ensuring all wage and tax calculations use 2018 rates and limits
• Attach supporting schedules: Include Form 943-A if you were a semiweekly depositor, and Form 8974 if claiming the qualified small business payroll tax credit for increasing research activities
• File your return: Mail paper returns to the address specified in the 2018 instructions (addresses changed in 2019), or check if electronic filing is still available for prior years through approved software
• Keep complete copies: Retain copies of all filed forms, payments made, and correspondence with the IRS for your records

Common Mistakes and How to Avoid Them

• Using current year forms: Always use the 2018 version of Form 943 and its instructions, as tax rates, wage bases, and filing addresses have changed since then
• Mixing farmworker and non-farmworker wages: Report only agricultural employee wages on Form 943; wages for household employees or other non-farm workers belong on different forms like Schedule H or Form 941
• Incorrect deposit reporting: Report actual deposits made during 2018 on line 14, not what should have been deposited; mismatched deposit records can trigger additional IRS correspondence
• Missing the $150/$2,500 tests: Ensure you actually meet the filing requirements before submitting; not all farm labor wages require Form 943 filing
• Forgetting about penalties: Late filing typically incurs a 5% monthly penalty on unpaid taxes (up to 25% maximum), plus interest; don't ignore these when calculating amounts owed (IRS Failure to File Penalty guidelines)
• Incomplete employer information: Verify your EIN, business name, and address match IRS records exactly as they appeared in 2018 to avoid processing delays

What Happens After You File

The IRS typically processes employment tax returns within 6-8 weeks for paper returns, though late returns may take longer due to additional verification steps. You'll receive acknowledgment of your filing and any balance due notices if additional amounts are owed. If you can't pay the full amount immediately, you can request an installment agreement using Form 9465 or apply online through IRS.gov/PaymentPlans for amounts under $50,000. Interest and penalties continue accruing until the balance is paid in full. If you disagree with IRS actions such as liens or levies related to your 2018 employment taxes, you have appeal rights including Collection Due Process hearings by filing Form 12153 within 30 days of receiving certain IRS notices (IRS Collection Due Process FAQs).

FAQs

Can I still get a refund for overpaid 2018 employment taxes?

Yes, unlike individual income taxes, employment tax refunds have no three-year limitation period, so you can still claim overpayments from 2018.

What penalties will I owe for filing my 2018 Form 943 late?

The failure-to-file penalty is 5% of unpaid taxes per month (maximum 25%), plus failure-to-pay penalties of 0.5% per month, along with interest calculated from the original due date (IRS Topic No. 653).

Should I also file amended state employment tax returns?

Check with your state tax agency, as most states require separate filings and have their own deadlines and penalty structures for employment taxes.

How do I get copies of my 2018 tax account information?

Request wage and income transcripts or account transcripts from IRS.gov/Transcripts or by calling 800-908-9946 to verify what the IRS has on file for 2018.

Can I set up a payment plan if I owe money from 2018?

Yes, you can request an installment agreement online at IRS.gov/PaymentPlans for balances under $50,000, or use Form 9465 for larger amounts or more complex situations (IRS About Form 9465).

What if I discover more errors after filing my late 2018 return?

Use Form 943-X to make additional corrections; you can file multiple amended returns for the same year if needed to correct different errors.

Do I need to file Form 943 for 2018 if I had no employees that year?

If you previously filed Form 943 returns, you must continue filing annual returns (even showing zero wages) until you file a final return indicating you've permanently stopped paying agricultural wages (IRS Instructions for Form 943 (2018)).

‍