Publication 225
taxmap/pubs/p225-055.htm#en_us_publink1000218785taxmap/pubs/p225-055.htm#en_us_publink1000218787Social security and Medicare tax for 2012.
(p76)The employee tax rate for social security is 4.2% and the employer tax rate for social security is 6.2%, unchanged from 2011. The Medicare tax rate is 1.45% each for employers and
employees.
Do not withhold or pay social security tax after an employee reaches $110,100 in social security wages for the year. There is no limit on the amount of wages subject to Medicare
tax.
VOW to Hire Heroes Act of 2011.
(p76)On November 21, 2011, the President signed into law the VOW to Hire Heroes Act of 2011. This new law provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and, for the first time, also makes part of the credit available to certain tax-exempt organizations. Businesses claim the credit as part of the general business credit and tax-exempt organizations claim it against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. The liability reported on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, is not reduced by the amount of the credit. The credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2013. For more information about the credit, visit
www.irs.gov/form5884c.
Social security and Medicare tax for 2013.
(p76)The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2013 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in
2013).
The Medicare tax rate for 2013 will also be discussed in Publication 51 (Circular A) (For use in 2013). There is no limit on the amount of wages subject to Medicare
tax.
Additional employment tax information for farmers.
(p76)For more detailed guidance on employment taxes see Publication
51
(Circular A). For the latest information about employment tax developments
impacting farmers, go to
www.irs.gov/pub51.
Correcting a previously filed Form 943.
(p76)If you discover an error on a previously filed Form 943, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Form 943-X is filed separately from Form 943. For more information on correcting Form 943, see the Instructions for Form
943-X.
Federal tax deposits must be made by electronic funds transfer.
(p76)You must use electronic funds transfer to make all federal tax deposits. Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of Treasury. Services provided by your tax professional, financial institution, payroll service, or other third party may have a
fee.
For more information on making federal tax deposits, see section 7 of Publication
51
(Circular A). To get more information about EFTPS or to enroll in EFTPS, visit
www.eftps.gov
or call 1-800-555-4477. Additional information about EFTPS is also available in
Publication 966, Electronic Federal Tax Payment System: A Guide to Getting
Started.
You should take the action indicated by the dates listed. See
By February 15 and
On February 16
for Form W-4, Employee's Withholding Allowance Certificate, information. Due
dates for deposits of withheld federal income taxes, social security taxes, and
Medicare taxes are not listed here. For these dates, see Publication
509, Tax Calendars (For use in 2013).
If any date shown below for filing a return, furnishing a form, or depositing taxes, falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. For any due date, you will meet the "file" or "furnish" date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. See
Private delivery services in Publication
51 (Circular A).
Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. Statewide holidays no longer apply. For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication
51 (Circular A).
Fiscal year taxpayers.
(p77)Generally, the due dates listed apply whether you use a calendar or a fiscal year. However, if you have a fiscal year, see Publication
509 for certain exceptions that may apply to you.
- File Form 943 with the IRS. If you deposited all Form 943 taxes when due, you have 10 additional days to
file.
- Furnish each employee with a completed Form W-2, Wage and Tax
Statement.
- Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form
1099-MISC).
- File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. If you deposited all the FUTA tax when due, you have 10 additional days to
file.
- File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2012. If you deposited all Form 945 taxes when due, you have 10 additional days to
file.
Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last
year.
Any Form W-4 claiming exemption from withholding for the previous year has now expired. Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in
place.
File paper Forms 1099 and 1096.
File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the IRS. For electronically filed returns, see
By March 31 below.
File paper Forms W-2 and W-3.File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). For electronically filed returns, see
By March 31 below.
File electronic Forms W-2 and 1099.
File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at
www.socialsecurity.gov/employer. For information on filing information returns electronically with the IRS, see Publication
1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G
Electronically.
By April 30, July 31, October 31, and
January 31
(p77)Deposit FUTA taxes.
Deposit FUTA tax due if it is more than $500.
Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next
year.
You are generally required to withhold federal income tax from the wages of your employees. You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). This chapter includes information about these
taxes.
You must also pay self-employment tax on your net earnings from farming. See
chapter 12 for information on self-employment tax.
Useful items
You may want to see:
Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2:
Wage and Tax Statement W-4:
Employee's Withholding Allowance Certificate W-9:
Request for Taxpayer Identification Number and Certification 940:
Employer's Annual Federal Unemployment (FUTA) Tax Return 943:
Employer's Annual Federal Tax Return for Agricultural Employees 943-X:
Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for
Refund See
chapter 16 for information about getting publications and forms.
In general, you are an employer of farmworkers if your employees do any of the following types of work.
- Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of
livestock.
- Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment.
- Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane
labor).
- Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the
commodity).
- Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation
facilities.
For more information, see Publication
51 (Circular A).
Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed. You are responsible for withholding and paying employment taxes for your employees. You are also required to file employment tax returns. These requirements do not apply to amounts that you pay to independent contractors. See Publication
15-A
for more information on how to determine whether an individual providing
services is an independent contractor or an employee.
If you employ a family of workers, each worker subject to your control (not just the head of the family) is an
employee.
Special rules apply to crew leaders. See
Crew Leaders, later.
If you have employees, you must have an EIN. If you do not have an EIN, you may apply for one online. Go to IRS.gov and click on the
Apply for an EIN Online link under
Tools. You may also apply for an EIN by calling 1-800-829-4933 (hours of operation are Monday - Friday, 7:00 a.m. to 7:00 p.m. local time; Alaska and Hawaii follow Pacific time), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the
IRS.
taxmap/pubs/p225-055.htm#en_us_publink1000218804An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). It is also available from the SSA's website at
www.socialsecurity.gov.
The employee must furnish evidence of age, identity, and U.S. citizenship or lawful immigration status permitting employment with the Form SS-5. An employee who is age 18 or older must appear in person with this evidence at an SSA
office.
taxmap/pubs/p225-055.htm#en_us_publink1000218805You must verify that each new employee is legally eligible to work in the United States. This includes completing the Form I-9, Employment Eligibility Verification. Form I-9 is available from the U.S. Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676.
Form I-9 is also available from the USCIS website at
www.uscis.gov. You can also contact the USCIS at 1-800-375-5283 for more
information.
You are required to report any new employee to a designated state new hire registry. Many states accept a copy of Form W-4 with employer information added. Call the Office of Child Support Enforcement at 202-401-9267 or visit their Employer Services webpage at
www.acf.hhs.gov/programs/cse/newhire for more information.
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