Instructions For Form 943 - 2002 (Page 3 of 4) in pdf

Fractions of cents. If there is a small difference

Line 14 — Overpayment. If you deposited more than the

between net taxes (line 11) and total deposits (line 12), it

correct amount for the year, you can have the

may be caused by rounding to the nearest cent each time

overpayment refunded or applied to your next return.

you computed payroll. This rounding occurs when you

If line 14 is under $1, we will send you a refund or

figure the amount of social security and Medicare tax to

TIP

apply it to your next return only on written request.

be withheld from each employee’s wages. See Circular A

for details. If the fractions of cents adjustment is the only

entry on line 8, write “Fractions Only” in the margin.

Line 15 — Monthly Summary of Federal Tax Liability.

(Note: This is a summary of your yearly tax liability, not a

Prior year adjustments. Prior year adjustments

summary of deposits made. If line 11 is less than $2,500,

include errors in social security and Medicare taxes

do not complete line 15 or Form 943-A.)

reported on earlier returns. If you report both an

underpayment and an overpayment, show only the

Complete line 15 only if your were a monthly

difference.

schedule depositor for the entire year and line 11 is

$2,500 or more. See section 7 of Circular A for details on

Because any amount shown on line 8 increases or

the deposit rules. You are a monthly schedule depositor

decreases your tax liability, the adjustment must also be

for the calendar year if the amount of your Form 943

included on your record of Federal tax liability on Form

taxes (line 11) reported for the lookback period is not

943 (line 15) or Form 943-A, Agricultural Employer’s

more than $50,000. The lookback period is the second

Record of Federal Tax Liability. For details on how to

calendar year preceding the current calendar year. For

report adjustments on the Record of Federal Tax Liability,

example, the lookback period for 2003 is 2001.

see the instructions for line 15, later, or the instructions

for Form 943-A.

If you were a semiweekly schedule depositor

during any part of the year, do not complete line

Explain any prior year adjustments you report on line 8

15. Instead, complete Form 943-A.

on Form 941c, Supporting Statement To Correct

CAUTION

Information, or attach a statement that shows the same

Reporting adjustments on line 15. If the net

information. Enter on Form 941c or include in the

adjustment during a month is negative (e.g., correcting

statement the total wages for all your employees as

an overreported liability in a prior period) and it exceeds

previously reported and as corrected. Do not file Form

the total liability for the month, do not enter a negative

941c (or statement) separately from Form 943.

amount for the month. Instead, enter “-0-” for the month

If you are adjusting an employee’s social security or

and carry over the unused portion of the adjustment to

the next month.

Medicare wages for a prior year, you must also file Form

W-2c, Corrected Wage and Tax Statement, and Form

For example, Pine Tree Farm discovered on February

W-3c, Transmittal of Corrected Wage and Tax

6, 2002 that it overreported social security tax on its 2001

Statements, with the Social Security Administration. You

Form 943 by $2,500. Its Form 943 taxes for the first three

can get these from the IRS by calling 1-800-829-3676.

months of 2002 were: January—$2,000; February—

$2,000; and March— $2,000. Pine Tree Farm should

Income tax adjustments. Generally, you cannot

complete line 15 by entering “2,000” on line A, “-0-” on

adjust amounts reported as income tax withheld in a prior

line B, and “1,500” on line C.

calendar year unless it is to correct an administrative

error. An administrative error occurs if the amount you

The prior period adjustment ($2,500) offsets the

entered on the return is not the amount you actually

$2,000 liability for February and the excess $500 must be

withheld. See section 9 of Circular A.

used to offset the March liabilities. Since the error was

not discovered until February, it does not affect January

Line 9 — Total taxes. Combine lines 7 and 8; enter the

liabilities reported on line A.

result on line 9.

Additional information. Circular A has information you

Line 10 — Advance earned income credit (EIC)

may need about social security, Medicare, Federal

payments made to employees. Employees who are

unemployment (FUTA), and withheld income taxes, and

eligible can receive advance earned income credit (EIC)

the advance earned income credit. It includes tables

payments with their wages by giving you Form W-5,

showing the income tax to withhold from an employee’s

Earned Income Credit Advance Payment Certificate,

wages.

annually. For more information, see sections 6 and 14 of

Circular A.

Third Party Designee. If you want to allow an employee

of your business or an individual paid preparer to discuss

Line 12 —Total deposits. Enter the total amount

your 2002 Form 943 with the IRS, check the “Yes” box in

deposited for the year, including any overpayment from

the Third Party Designee section of the return. Also,

2001, as shown in your records.

enter the name, phone number, and any five numbers

Line 13 —Balance due. You do not have to pay if line

the designee chooses as his or her personal identification

13 is under $1.

number (PIN). The designation must specify an individual

and may not refer to your payroll office or a tax

Generally, you should show a balance due on line 13

preparation firm.

only if your net tax liability for the year (line 11) is less

than $2,500. However, see section 7 of Circular A

By checking the “Yes” box, you are authorizing the

regarding payments made under the accuracy of

IRS to call the designated employee or paid preparer to

deposits rule.

answer any questions that may arise during the

processing of your return. Your are also authorizing the

If you fail to make deposits as required and

designated person to:

•

instead pay the taxes with Form 943, you may be

Give the IRS any information that is missing from your

subject to a penalty.

CAUTION

return,

-3-

Instructions For Form 943 - 2002 Page 3

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