IRS Form 943: Line by Line Instruction for 2021

Updated on December 03, 2021 - 10:30 AM by Admin, TaxBandits

Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees) is used to report the federal income tax, social security, or Medicare withholdings from agricultural employees. This must be filed by the employer who is responsible for withholding the taxes for the IRS. Form 943 is only used by companies that employ and pay farmworkers.

For a clear understanding of the 943 agricultural Form, employers should be familiar with the instructions before filing. Read through this article to learn more about Form 943 instruction and the IRS changes for the 2021 tax year.

Table of Content :

1. Form 943 changes for the 2021 tax year

The IRS has enhanced the Form 943. Listed below are the lines that differ compared to the 2020 tax year 943 Form.

Line No Newly added in Form 2021
Line 12b Nonrefundable portion of credit for qualified sick and family leave wages for leave taken before
April 1, 2021
Line 12d Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after
March 31, 2021
Line 12e Nonrefundable portion of COBRA premium assistance credit
Line 12f Number of individuals provided COBRA premium assistance
Line 14d Refundable portion of credit for qualified sick and family leave wages for leave taken before
April 1, 2021
Line 14f Refundable portion of credit for qualified sick and family leave wages for leave taken after
March 31, 2021.
Line 14g Refundable portion of COBRA premium assistance credit
Line 14h Total deposits and refundable credits. Add lines 14a, 14d, 14e, 14f, and 14g
Line 14i Total advances received from filing Form(s) 7200 for the year
Line 14j Total deposits and refundable credits less advances. Subtract line 14i from line 14h
Line 15 If line 13 is more than line 14j, enter the difference as balance due.
Line 16 If line 14j is more than line 13, enter the difference as overpayment
Line 18 Qualified health plan expenses allocable to qualified sick leave wages for leave taken before
April 1, 2021
Line 19 Qualified health plan expenses allocable to qualified family leave wages for leave taken before
April 1, 2021
Line 21 Qualified health plan expenses for the employee retention credit.
Line 22 Qualified sick leave wages for leave taken after March 31, 2021
Line 23 Qualified health plan expenses allocable to qualified sick leave wages reported on line 22
Line 24 Amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on line 22.
Line 25 Qualified family leave wages for leave taken after March 31, 2021
Line 26 Qualified health plan expenses allocable to qualified family leave wages reported on line 25
Line 27 Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 25
Line 28 If you're eligible for the employee retention credit in the third quarter solely because the business is a recovery startup business, enter the total of any amounts included on lines 12c and 14e for the third quarter
Line 29 If you're eligible for the employee retention credit in the fourth quarter solely because the business is a recovery startup business, enter the total of any amounts included on lines 12c and 14e for the fourth quarter

Line 14b & 14c are reserved for future use, which could be the Deferred amount of the employer share of social security tax and Deferred amount of the employee share of social security tax, respectively.

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2. How to fill out Form 943 for 2021?

Form 943 has about 29 lines for the 2021 tax year. The following information is needed before
filing the Form 943.

  • Name, address, and EIN
  • Total agricultural workers employed
  • Federal income, Medicare and Social Security taxes
  • Monthly or semiweekly deposition
  • Signing authorization
2021 Form 943 - Line 1 to 11
  • Line 1:

    Enter the Number of agricultural employees employed in the pay period that includes March 12, 2021. Note: Household employees, persons who received no pay during the pay period, pensioners, or members of the Armed Forces should not be included.

  • Line 2:

    Enter the total wages subject to social security tax. Include taxable qualified sick and family leave wages for leave taken after March 31, 2021.

  • LLine 2a & 2b:

    Report wages paid for leave taken before April 1, 2021.

  • Line 3a & 3b:

    Enter the social security tax on qualified sick and family leave wages, respectively in 3a and 3b (multiply line 2a by 6.2% (0.062))

  • Line 4:

    Enter the total wages that are subject to medicare taxes.

  • Line 5:

    Multiply line 4 by 2.9% (0.029) and enter the result on line 5.

  • Line 6:

    Enter the wages that are subject to additional medicare tax withholding.

  • Line 7:

    Multiply line 6 by 0.9% (0.009) and enter the result on line 7.

  • Line 8:

    Enter the federal income tax withheld from the employees.

  • Line 9:

    Add lines 3, 3a, 3b, 5, 7, and 8 and enter the total taxes before adjustments.

  • Line 10:

    Enter the current year’s adjustment. A minus sign can be used to show an adjustment that decreases the total taxes shown on line 9. Otherwise, parentheses can be used.

  • Line 11:

    Enter the result on line 11 by combining line 9 and 10.

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2021 Form 943 - Line 12a to 13
  • Line 12a:

    Enter the amount of the credit from Form 8974 (Qualified Small Business Payroll Tax Credit for Increasing Research Activities), line 12.

  • Line 12b:

    Enter the nonrefundable portion of credit for qualified sick and family leave wages for leave taken before April 1, 2021 from Worksheet 1.

  • Line 12c:

    Enter the nonrefundable portion of employee retention credit. Use Worksheet 2 for calculating it for the qualified wages paid after December 31, 2020, and before July 1, 2021. If the qualified wages are paid after June 30, 2021, and before January 1, 2022, use Worksheet 4.

  • Line 12d:

    Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021 (Use Worksheet 3 for calculating)

  • Line 12e:

    Enter the nonrefundable portion of the COBRA premium assistance credit from Worksheet 5,
    Step 2, line 2g.

  • Line 12f:

    Enter the total number of individuals who are provided with COBRA premium assistance.

  • Line 12g:

    Add lines 12a, 12b, 12c, 12d, and 12e and enter the total non refundable credits.

  • Line 13:

    Enter the total taxes after adjustments and nonrefundable credits by subtracting line 12g from line 11.

2021 Form 943 - Line 14a to 16
  • Line 14a:

    Enter the deposits for the year, including any overpayment applied from filing Form 943-X, in
    the current year.

  • Line 14b and 14c:

    Reserved for future use

  • Line 14d:

    Enter the refundable portion of credit for qualified sick and family leave wages for leave taken before
    April 1, 2021.

  • Line 14e:

    Refundable portion of employee retention credit

  • Line 14f:

    Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021.

  • Line 14g:

    Refundable portion of COBRA premium assistance credit.

  • Line 14h:

    Add lines 14a, 14d, 14e, 14f, and 14g and enter the total deposits and refundable credits.

  • Line 14i:

    Total advances received from filing Form(s) 7200 for the year.

  • Line 14j:

    Subtract line 14i from line 14h and enter the total deposits and refundable credits less advances.

  • Line 15:

    If line 13 is more than line 14j, enter the difference on line 15.

  • Line 16:

    If line 14j is more than line 13, enter the difference on line 16.

2021 Form 943 - Line 17 to 21
  • Line 17:

    Enter the monthly summary of federal tax liability. If line 13 is less than $2,500, don't 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, enter the line 17.

  • Line 18:

    Enter the qualified health plan expenses allocable to qualified sick leave wages for leave taken before
    April 1, 2021.

  • Line 19:

    Qualified health plan expenses allocable to qualified family leave wages for leave taken before
    April 1, 2021.

  • Line 20:

    Enter the qualified wages for the employee retention credit.

  • Line 21:

    Qualified health plan expenses for the employee retention credit.

Form 943 - Line 22 to 29
  • Line 22:

    Enter the qualified sick leave wages for leave taken after March 31, 2021.

  • Line 23:

    Qualified health plan expenses allocable to qualified sick leave wages reported on line 22.

  • Line 24:

    Enter the amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on line 22.

  • Line 25:

    Qualified family leave wages for leave taken after March 31, 2021.

  • Line 26:

    Qualified health plan expenses allocable to qualified family leave wages reported on line 25.

  • Line 27:

    Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 25.

  • Line 28:

    If the business is a recovery startup business and eligible for employee retention credit solely because of this, then enter the total of any amounts included on lines 12c and 14e for the third quarter.

  • Line 29:

    If you're eligible for the employee retention credit in the fourth quarter solely because your business is a recovery startup business, enter the total of any amounts included on lines 12c and 14e for
    the fourth quarter.

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2021 Form 943 Instruction
  • Third party designee: If an employee, a paid tax preparer, or another person wanted to be allowed to discuss Form 943 with the IRS, check the “Yes” box in the Third-Party Designee section and enter the details.
  • Sign here: To declare, this part has to be completed by signing and entering the date & printing the name and title.
  • Paid preparer: If the preparer was paid to prepare Form 943 and isn't an employee of the filing entity, then it has to be filled by them.

3. When is Form 943 due for 2021?

The employers are responsible for filing the 943 with the IRS before the due date. For 2021, the due date for filing Form 943 is January 31, 2022. If the deposits are made on time in full payment of the taxes, the return can be filed by February 10, 2022. Failing to file Form 943 before the due date may result in a penalty of about 5% and increases.

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4.How to e-file Form 943?

IRS recommends e-filing of Form 943 rather than paper filing to avoid errors and for faster processing. TaxBandits, an IRS authorized e-file provider supports e-filing for all 1099, W2, 94x, and ACA Forms.

Follow the below steps to file 943 electronically with TaxBandits.

  • Step 1: Choose the Form 943
  • Step 2: Enter Form Information
  • Step 3: Review, Pay and Transmit to the IRS

Visit https://www.taxbandits.com/payroll-forms/e-file-irs-form-943-online/ to learn more about Form 943 e-filing.

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