IRS Form 943 (2022): Late & Amended Filing Guide

What IRS Form 943 (2022) Is For

IRS Form 943 (2022) is the Employer’s Annual Federal Tax Return for Agricultural Employees. It allows agricultural employers to report federal income tax withheld, Social Security tax, and Medicare taxes on wages paid to farmworkers. The form is specifically designed for farming businesses that pay wages subject to federal income tax withholding and Social Security and Medicare taxes during the 2022 tax year. It helps the IRS ensure proper collection of payroll taxes tied to agricultural labor across the United States.

Agricultural employers must file IRS Form 943 (2022) if they paid at least $150 in cash wages to any individual farmworker during the year or if total salaries paid to all agricultural employees reached $2,500 or more. The form applies to wages subject to Social Security and Medicare tax, including any wages paid to employees for farm labor. 

Before completing the return, employers may review an IRS account transcript to confirm that all 2022 tax deposits and wage amounts align with IRS records.

When You’d Use IRS Form 943 (2022)

Employers use IRS Form 943 (2022) when specific conditions apply to their agricultural operations and tax obligations.

1. Late Filing: You must file IRS Form 943 (2022) if you missed the original due date of January 31, 2023, or February 10, 2023, when deposits were made on time, and you paid wages subject to Social Security or Medicare tax.
   
   
2. Amended Return: You should use this form to correct any errors on previously filed returns, including adjustments to wages paid, federal income tax withheld, or Medicare taxes withheld during the 2022 tax year.
   
   
3. Unreported Tax Liability: Agricultural employers should file Form 943 if they discover unpaid employment taxes or previously unreported tax liability related to farmworkers’ wages.
   
   
4. Reestablishing Compliance: If your business has received notices for unfiled employment tax returns, you can submit Form 943 to reestablish compliance and resolve outstanding federal tax issues.
   
   
5. Payment Arrangements: Employers who cannot make full payment immediately may still file Form 943 and then request a payment plan or installment agreement to address their remaining balance.

If you received IRS notices for unfiled tax returns, understanding the IRS collection process helps you anticipate what steps the IRS might take and how to respond effectively.

Key Rules or Details for the 2022 Tax Year

For the 2022 tax year, IRS Form 943 had several key requirements that affected agricultural employers in calculating Social Security and Medicare taxes.

1. Social Security Tax Rate: The Social Security tax rate remained at 6.2% for both the employer and the employee, with a wage base limit of $147,000 applying to each farmworker’s earnings.
   
   
2. Medicare Tax Rate: The Medicare tax rate stayed at 1.45% for both employers and employees, and an additional Medicare tax of 0.9% applied to wages exceeding $200,000 paid to any employee.
   
   
3. COVID-Era Credits: Employers could still claim tax credits for qualified sick pay and family leave wages paid in 2022 for leave taken before October 1, 2021.
   
   
4. Deferred Social Security Taxes: The deferral period for employer Social Security taxes from prior years ended in 2022, and any outstanding balances must be repaid promptly.
   
   
5. Filing Methods: Employers could file Form 943 electronically or mail it to the appropriate IRS mailing address, depending on whether a payment was included with the return.
   
   
6. Record Retention: Agricultural employers were required to keep records of total wages paid, tax calculations, and supporting documentation for at least four years after filing.

If the IRS assesses penalties for late filing or incorrect wage reporting, employers may request penalty abatement by showing reasonable cause for their filing delays or tax errors.

Step-by-Step (High Level)

Filing IRS Form 943 (2022) correctly requires careful preparation, accurate wage reporting, and compliance with federal deposit rules.

1. Gather Your Records: Collect all wage records, payroll summaries, and documentation for federal income tax withheld, Social Security, and Medicare taxes before completing your return.
   
   
2. Complete the Correct Form: Use the 2022 version of IRS Form 943 to accurately report wages paid to agricultural employees and calculate the total employment tax liability.
   
   
3. Attach Required Schedules: Include all supporting schedules, such as Schedule R for third-party payers or payroll service provider reports when applicable.
   
   
4. Choose a Payment Method: Decide whether to make employment tax deposits electronically through EFTPS, send a check, or mail a money order with your completed form.
   
   
5. File Electronically or by Mail: Submit the return electronically using approved IRS e-file providers or mail it to the designated address listed in the 2022 filing instructions.
   
   
6. Maintain Complete Records: Keep copies of your filed Form 943, proof of payments, and any correspondence with the IRS to verify your compliance for the tax year.

Those unable to pay their full tax balance may apply for an IRS payment plan to manage their remaining 2022 employment tax liability over time.

Common Mistakes and How to Avoid Them

Standard errors can cause processing delays, penalties, or notices when filing IRS Form 943 (2022). Avoiding these mistakes helps ensure timely and accurate reporting.

1. Filing Form 941 Instead of Form 943: Agricultural employers must use Form 943 to report wages for farmworkers, while Form 941 applies only to non-agricultural employees.
   
   
2. Incorrect Wage Thresholds: Employers must remember that the $150 per worker and $2,500 total wage thresholds apply separately, and meeting either one requires filing Form 943.
   
   
3. Ignoring Deposit Schedules: To avoid denials and interest charges, always follow the correct monthly or semiweekly deposit schedule as required.
   
   
4. Miscalculating Social Security or Medicare Taxes: Always verify the calculations for each employee’s wages to ensure the withheld Social Security and Medicare taxes are accurate.
   
   
5. Incomplete Business Information: Employers should confirm that their business name, address, and employer identification number are correct before submitting their tax return.
   
   
6. Combining Different Employee Types: Keep agricultural workers separate from household or non-farm employees, and do not report both groups on the same form to avoid duplication.

Issues such as miscalculating wages, mixing employee types, or missing deposit deadlines can quickly turn into payroll tax problems that may require professional assistance.

What Happens After You File

After filing IRS Form 943 (2022), the IRS generally processes the return within six to eight weeks; however, late submissions may take longer for verification. If taxes are owed, the IRS will issue a bill that includes penalties and interest, which must be paid promptly or arranged through an installment agreement using Form 9465. 

Employers should retain copies of their tax returns, proof of payment, and correspondence with the IRS for a minimum of four years. This documentation helps verify compliance and provides essential records in case of future audits or employment tax inquiries.

FAQs

How does federal income tax withholding apply to IRS Form 943 (2022)?

Federal income tax withholding must be reported on IRS Form 943 for all wages subject to Social Security and Medicare taxes. Employers are responsible for ensuring accurate reporting of withheld amounts and may consult a tax professional if calculations or filing requirements are uncertain.

Who qualifies as an agricultural employee under IRS Form 943 (2022)?

Agricultural employees include anyone performing farm-related services such as harvesting, planting, or caring for livestock. Employers who paid cash or in-kind wages to these workers during the year must report them under their own taxes on Form 943.

Are farm workers treated differently for Social Security and Medicare purposes?

Farmworkers’ wages are generally subject to Social Security and Medicare taxes, like those of other employees. However, agricultural employers must file IRS Form 943 specifically to report these taxes rather than Form 941, which is used for different industries.

Do I need to report employee cash wages on IRS Form 943 (2022)?

Yes, all employee cash wages paid to farmworkers must be reported if they meet or exceed $150 per worker or total $2,500 for all workers combined. Employers should consult a qualified tax professional for guidance on calculating the correct tax liability.