IRS Form 943: Overview

Updated on August 24, 2022 - 10:30 AM by Admin, TaxBandits

If your business has farm workers, your business should report agricultural employment taxes. Employers that have paid wages subject to FICA taxes or federal income tax withholding to one or more farm workers throughout the year must file Form 943.

Here's everything you need to know about IRS Form 943 and how to file form 943 with the IRS.

Table of Content :

1. What is IRS Form 943 for 2022?

IRS Form 943, (Employer's Annual Federal Tax Return for Agricultural Employees) is used by employers to report employment taxes for wages paid to agricultural workers.

  • You pay an employee cash wages of $150 or more in a year for farmwork (count all wages paid on a time, piecework, or another basis). The $150 test applies separately to each farmworker that you employ. If you employ a family of workers, each member is treated separately. Don't count wages paid by other employers.
  • The total (cash and noncash) wages that you pay to all farmworkers is $2,500 or more.
Form 940

Note: If the $2,500-or-more test for the group isn't met, the $150-or-more test for an individual still applies. Similarly, if the $150-or-more test is not met for any individual, the $2,500-or-more test for the group still applies.

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2. What are the IRS changes in Form 943 for 2021?

Changes have been made for the reporting of new employment tax credits and other tax relief related to COVID-19 in Form 943 for the 2021 Tax Year. The following lines have been added or updated:

Lines that have been added/updated for 2021

  • Line 12b:

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

  • Line 12d:

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

  • Line 12e:

    Non Refundable 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 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 your 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 your business is a recovery startup business, enter the total of any amounts included on lines 12c and 14e for the fourth quarter.

Lines that have only been renumbered and updated for the 2021 tax year:

Line Form 943 for 2020 Line Form 943 for 2021
12d Total nonrefundable credits. Add lines 12a, 12b, and 12c. 12g Total nonrefundable credits. Add lines 12a, 12b, 12c, 12d, and 12e.
14f Total deposits, deferrals, and refundable credits. Add lines 14a, 14b, 14c, 14d, and 14e 14h Total deposits and refundable credits. Add lines 14a, 14d, 14e, 14f, and 14g.
14g Total advances received from filing Form(s) 7200 for the year. 14i Total advances received from filing Form(s) 7200 for the year.
14h Total deposits, deferrals, and refundable credits less advances. Subtract line 14g from line 14f. 14j Total deposits and refundable credits less advances. Subtract line 14i from line 14h.

Lines that were present on the 2020 form, but removed for 2021

  • Line 14b:

    Deferred amount of the employer share of social security tax

  • Line 14c:

    Deferred amount of the employer share of social security tax

  • Line 22:

    Credit from Form 5884-C, line 11, for the year

3. When is Form 943 due?

Form 943 is due by January 31st every year, regardless of the filing method (paper or electronic filing).

However, if you made deposits on time in full payment of the taxes due for the year, you may file the return by February 10, 2023.

If the Form 943 due date falls on any Federal holidays or weekend, the next business day will be the due date.

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4. Reconciliation of Form 943 to Forms W-2 and W-3

Certain amounts reported on Form 943 for 2022 should agree with the Form W-2 totals reported on the 2022 Form W-3.

The amounts from Form 943 that must agree with the related boxes on Form W-3 include:

  • Federal income tax withheld (line 8 and box 2)
  • Social security wages (lines 2, 2a, and 2b and box 3)
  • Medicare wages (line 4 and box 5).

If the amounts don't agree, you may be contacted by the IRS or the SSA.

5. How to File Form 943 electronically?

File your Form 943 electronically with the IRS, and get instant IRS approval using TaxBandits, an IRS authorized e-file provider supporting e-filing for all 1099, W2, 94x, and ACA Forms.

Simply follow the steps below to file your Form 943:

  • Step 1: Create a free TaxBandits account or Login If you have one already
  • Step 2: Select Form 943 and enter Form Information
  • Step 3: Review Form Information and select payment
  • Step 4: E-file 943 with the IRS

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

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6. Form 943 Penalties and Interest

You can avoid paying penalties and interest for Form 943 by doing the following:

  • Deposit or pay your taxes when they are due.
  • File your fully completed Form 943 on time.
  • Report your tax liability accurately.
  • Submit valid checks for tax payments.
  • Furnish accurate Forms W-2 to employees.
  • File Form W-3 and Copy A of Forms W-2 with the SSA on time and accurately.

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

IRS Update: If you receive a notice about a penalty after you file your return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Don't attach an explanation when you file your return.

Know about the penalty rates for Form 943 under different conditions.

Avoid being penalized by the IRS by filing your 943 on time and with accurate information. Get started with TaxBandits Today