Form 943 Instructions

Form 943 is used by employers to report agricultural employment taxes annually. This form reports wages paid to farmworkers and the taxes withheld from their wages, including:

1. Social Security and Medicare Taxes: Report the employer and employee portions of Social Security and Medicare taxes.
2. Federal Income Tax Withholding: Report any federal income tax withheld from the employees' wages.
3. Advance Earned Income Credit (EIC) Payments: If applicable, report any EIC payments made to employees.

Who needs to file Form 943?

• Employers who pay wages to one or more farmworkers are subject to federal income tax withholding or Social Security and Medicare taxes must file Form 943.
• Once you file Form 943, you must continue to file it annually even if you have no taxes to report, until you file a final return.

Wage Tests:

1. $150 Test: Pay an employee $150 or more in a year for farmwork.
• This applies separately to each farmworker.
• Does not include wages paid by other employers.
2. $2,500 Test: The total wages (cash and noncash) paid to all farmworkers is $2,500 or more.
• If the group test ($2,500) isn't met, the individual test ($150) still applies, and vice versa.

Exceptions:

• Special rules apply for certain hand-harvest laborers who earn less than $150 annually. See section 4 of Pub. 51 for details.

Final Return:

• If you stop paying wages and don't expect to resume, file a final return. Mark the box above line 1 on the form to indicate no future returns.
• Attach a statement with:
• Name of the person keeping payroll records.
• If sold/transferred: Name, address of the new owner, and sale/transfer date.
• If there is no sale/transfer or if the new owner is unknown, include this information in the statement.

Step-by-Step Instructions:

Step 1: Basic Information

• Enter your business details.
• Check the box if your address has changed.
• Check the box if you are closing your business or no longer employ agricultural employees.

Step 2: Calculate Wages and Taxes

Line 1: Number of employees during your pay period, excluding household employees, pensioners, active Armed Forces members, and those below the income threshold.

Line 2: Total wages paid, including sick and family leave taken between April 1, 2021, and September 31, 2021.

Line 2a: Qualified sick leave wages paid in 2022 for leave taken between April 1, 2020, and March 31, 2021.

Line 2b: Qualified family leave wages paid in 2022 for leave taken between April 1, 2020, and March 31, 2021.

Line 3: Multiply line 2 by 12.4%.

Line 3a: Multiply line 2a by 6.2%.

Line 3b: Multiply line 2b by 6.2%.

Line 4: Total wages paid, including qualified leave.

Line 5: Multiply line 4 by 2.9%.

Line 6: Wages subject to Additional Medicare tax (over $200,000).

Line 7: Multiply line 6 by 0.9%.

Line 8: Total federal income tax withheld.

Line 9: Add lines 3, 3a, 3b, 5, 7, and 8.

Line 10: Round fractions and add uncollected sick pay or life insurance payments.

Line 11: Combine lines 9 and 10.

Line 12a: Enter tax credits from research activity (Form 8974).

Line 12b: Enter nonrefundable credits from Worksheet 1.

Line 12d: Enter nonrefundable credits from Worksheet 2.

Line 12e: Enter nonrefundable COBRA credits from Worksheet 3.

Line 12f: Number of individuals provided COBRA benefits.

Line 12g: Total of lines 12a, 12b, 12d, and 12e.

Line 13: Subtract line 12g from line 11 (cannot be less than zero).

Line 14a: Total deposits made for the year.

Line 14d: Refundable credit for qualified leave from Worksheet 1.

Line 14f: Refundable credit for qualified leave from Worksheet 2.

Line 14g: Refundable credit for COBRA premiums from Worksheet 3.

Line 14h: Total of lines 14a, 14d, 14f, and 14g.

Line 15: If line 13 is more than 14h, enter the difference. If not, enter the difference on line 16.

Line 16: Overpayment can be applied to next year’s return or refunded.

Line 17: Enter the monthly summary of federal tax liability. If line 13 is less than $2,500, do not complete line 17 or Form 943-A. If you were a monthly schedule depositor for the entire year and line 13 is $2,500 or more, fill out line 17.

• Monthly Depositors: Complete line 17.
• Semiweekly Depositors: Complete Form 943-A.

Line 18: Enter qualified health plan expenses for qualified sick leave wages taken before April 1, 2021.

Line 19: Allocates qualifying health plan expenses to qualified family leave wages taken before April 1, 2021.

Line 22: Enter qualifying sick leave earnings for leave taken after March 31, 2021, but before October 1, 2021.

Line 23: Allocates eligible health plan expenses to qualified sick leave wages stated on line 22.

Line 24: Enter the amounts allocated to qualifying sick leave earnings in some collective bargaining agreements, as reported on line 22.

Line 25: Wages for qualified family leave taken after March 31, 2021, but before October 1, 2021.

Line 26: Allocates qualified health plan expenses to qualified family leave wages provided on line 25.

Line 27: Shows the amounts allocated to qualifying family leave earnings in certain collective bargaining agreements, as reported in line 25.

Third-party designee: If an employee, a paid tax preparer, or another person wishes to discuss Form 943 with the IRS, select the "Yes" box in the Third-Party Designee section and provide the necessary information.

Sign here: To declare, sign, enter the date, and print the name and title.

Paid Preparer: If the preparer was paid to prepare Form 943 and is not an employee of the filing entity, they must fill it out this section.