This publication reflects changes included in the recently enacted American Recovery and Reinvestment Act of 2009 (ARRA).taxmap/pubs/p15-000.htm#en_us_publink1000140962
New tables for wage withholding and advance earned income credit (EIC) payments.(p1)
New tables for wage withholding and advance earned income credit (EIC) payments have been developed due to changes made to the tax law by ARRA.
The tables for wage withholding and advance earned income credit payments published in Publication 51 (Circular A), Agricultural Employer's Tax Guide, and the tables for alternative methods for figuring withholding published in Publication 15-A, Employer's Supplemental Tax Guide, are also replaced with the tables published in Publication 15-T.
The new withholding tables in Publication 15-T also apply for figuring income tax withholding on pension payments.
Employers should begin using these tables as soon as possible after February 17, 2009, but no later than April 1, 2009.taxmap/pubs/p15-000.htm#en_us_publink1000141007
Withholding income taxes on the wages of nonresident alien employees.(p2)taxmap/pubs/p15-000.htm#en_us_publink1000141008
COBRA premium assistance credit.(p2)
ARRA allows a credit against employment taxes for providing COBRA premium assistance for certain involuntarily terminated employees once the employees' reduced share of the premiums has been paid. See COBRA premium assistance credit
in the Introduction
Social security and Medicare tax for 2009.(p2)
Do not withhold social security tax after an employee reaches $106,800 in social security wages. There is no limit on the amount of wages subject to Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $1,700 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,500 or more.taxmap/pubs/p15-000.htm#en_us_publink100011531
Disregarded entities and qualified subchapter S subsidiaries (QSubs).(p2)taxmap/pubs/p15-000.htm#en_us_publink1000120195
New employment tax adjustment and claim process in 2009.(p2)
If you discover an error on a previously filed Form 941 or Form 944 after December 31, 2008, make the correction using new Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund. For errors discovered before January 1, 2009, taxpayers make corrections to Forms 941 and 944 using Form 941c, Supporting Statement To Correct Information, that is filed with Form 941 or Form 944 or by requesting a claim for refund or abatement on Form 843, Claim for Refund and Request for Abatement. Forms 941-X and 944-X are stand-alone forms, meaning taxpayers can file them when an error is discovered, rather than wait until the end of the quarter or year to file Form 941c with Form 941 or 944. Lines 7d, 7e, 7f, and 7g have been deleted from Form 941 beginning with the first quarter of 2009 and lines 6b, 6c, 6d, and 6e will be deleted from Form 944 for 2009. Adjustments previously made on those lines are now made on the new Forms 941-X and 944-X. Claims for refund or abatement previously made on Form 843 are now made on Forms 941-X and 944-X. For more information, visit the IRS website at www.irs.gov
and enter the keywords Correcting Employment Taxes
Credit card payments.(p2)
You can pay the balance due on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and Form 945, Annual Return of Withheld Federal Income Tax, by credit card. Do not use a credit card to make federal tax deposits. For more information on paying your taxes with a credit card, visit the IRS website at www.irs.gov
and click on the electronic IRS link.
Social Security Administration and magnetic media.(p2)
Employers and authorized reporting agents requesting verification of names and social security numbers of between 51 and 250,000 employees can no longer use magnetic media to submit their requests to the Social Security Administration. Employers can upload a file through the Social Security Number Verification System (SSNVS) and will usually receive the results the next government business day. For more information, see Verification of social security numbers
in section 4.
Paid preparers must sign Form 941 and Form 944.(p2)
The paid preparer's section is no longer optional and is included in Part 5 of Form 941 and Form 944.taxmap/pubs/p15-000.htm#en_us_publink1000120568
Differential wage payments.(p2)
Differential wage payments will be treated as wages, subject to income tax withholding, but not social security, Medicare, or FUTA taxes, beginning with wages paid after December 31, 2008. See Differential wage payments
in section 5 for more information.
Certain foreign persons treated as American employers.(p2)taxmap/pubs/p15-000.htm#en_us_publink100011534
The following is a list of important dates. Also see Publication 509, Tax Calendars for 2009.
If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or federal holiday, use the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. For any due date, you will meet the "file" or "furnish" requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated private delivery service on or before the due date. See Private Delivery Services
on page 6 for more information.
Furnish each employee a completed Form W-2, Wage and Tax Statement. Furnish each other payee a completed Form 1099 (for example, Form 1099-MISC, Miscellaneous Income).taxmap/pubs/p15-000.htm#en_us_publink100011538
File Form 941, Employer's QUARTERLY Federal Tax Return, for the fourth quarter of the previous calendar year and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. File Form 944, Employer's ANNUAL Federal Tax Return, for the previous calendar year instead of Form 941 if the IRS has notified you in writing to file Form 944 and pay any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 944 if your total tax liability for the year is less than $2,500. For additional rules on when you can pay your taxes with your return, see Payment with return
on page 21. If you timely deposited all taxes when due, you have 10 additional calendar days from the due date above to file the appropriate return.
File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file. taxmap/pubs/p15-000.htm#en_us_publink100011540
File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld in 2008. If you deposited all taxes when due, you have 10 additional calendar days to file. See Nonpayroll Income Tax Withholding
on page 5 for more information.
Ask for a new Form W-4, Employee's Withholding Allowance Certificate, from each employee who claimed exemption from income tax withholding last year.taxmap/pubs/p15-000.htm#en_us_publink100011543taxmap/pubs/p15-000.htm#en_us_publink100011544
Any Form W-4 previously given to you claiming exemption from withholding has 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 tax as if he or she is single, with zero withholding allowances. See section 9
for more information. However, if you have an earlier Form W-4 for this employee that is valid, withhold based on the earlier Form W-4.
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
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
File paper Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, with the IRS. See section 6
. For electronically filed returns, see By March 31
File electronic Forms 1099 and 8027 with the IRS. File electronic Forms W-2 with the SSA. For information on reporting Form W-2 information to the SSA electronically, visit the Social Security Administration'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 1098, 1099, 5498, and W-2G Electronically, and Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips Electronically.
Deposit federal unemployment (FUTA) tax due if it is more than $500.taxmap/pubs/p15-000.htm#en_us_publink100011554
File Form 941 and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. If you timely deposited all taxes when due, you have 10 additional calendar days from the due dates above to file the return.taxmap/pubs/p15-000.htm#en_us_publink100011555taxmap/pubs/p15-000.htm#en_us_publink100011556
Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year.taxmap/pubs/p15-000.htm#en_us_publink100011557taxmap/pubs/p15-000.htm#en_us_publink100011558
Form W-5, Earned Income Credit Advance Payment Certificate, expires each year on December 31. Eligible employees who want to receive advance payments of the earned income credit next year must give you a new Form W-5.