Instructions For Form 943 - 2004 (Page 3 of 5) in pdf

pay during the pay period, pensioners, or members of the

corrected. Do not file Form 941c (or statement)

Armed Forces.

separately from Form 943.

An entry of 250 or more on line 1 indicates that you

If you are adjusting an employee’s social security or

must file Forms W-2 electronically or on magnetic media.

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

Call the SSA at 1-800-772-6270 or access the SSA’s

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

Employer Reporting Instructions and Information website

W-3c, Transmittal of Corrected Wage and Tax

at for more information

Statements, with the Social Security Administration. You

on electronic or magnetic media filing requirements.

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

Line 2 — Total wages subject to social security tax.

Income tax adjustments. Generally, you cannot

Enter the total cash wages subject to social security tax

adjust amounts reported as income tax withheld in a prior

that you paid to your employees for farmwork during the

calendar year unless it is to correct an administrative

calendar year. Enter the amount before deductions. Cash

error. An administrative error occurs if the amount that

wages include checks, money orders, etc. Do not include

you entered on the return is not the amount that you

(a) the value of noncash items such as food or lodging or

actually withheld. See section 9 of Pub. 51 (Circular A).

(b) pay for services other than farmwork. See section 3 of

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

Pub. 51 (Circular A) for more information. Do not report

result on line 9.

an employee’s social security wages over $87,900 for

Line 10 — Advance earned income credit (EIC)

2004.

payments made to employees. Employees who are

Line 4 — Total wages subject to Medicare tax. Enter

eligible can receive advance earned income credit (EIC)

the total cash wages subject to Medicare tax that you

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

paid to your employees for farmwork during the calendar

Earned Income Credit Advance Payment Certificate,

year. Enter the amount before deductions. Do not include

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

(a) the value of noncash items such as food or lodging or

Pub. 51 (Circular A).

(b) pay for services other than farmwork. There is no limit

Line 12 —Total deposits. Enter the total amount

on the amount of wages subject to Medicare tax.

deposited for the year, including any overpayment from

Line 6 — Federal income tax withheld. Enter federal

2003, as shown in your records.

income tax withheld on wages paid to your employees.

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

Generally, you must withhold income tax from employees

13 is under $1.

from whom you withhold social security and Medicare

Generally, you should show a balance due on line 13

taxes. See sections 5 and 13 of Pub. 51 (Circular A) for

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

more information on withholding rules.

than $2,500. However, see section 7 of Pub. 51 (Circular

Line 8 — Adjustment to taxes. Use line 8 to:

•

A) regarding payments made under the “accuracy of

Adjust for rounding of fractions of cents,

•

deposits” rule.

Correct errors in social security and Medicare taxes

reported on a prior year return, and

If you fail to make deposits as required and

•

Correct an administrative error in reporting income tax

instead pay the taxes with Form 943, you may be

withholding on a prior year return. See section 9 in Pub.

subject to a penalty.

CAUTION

51 (Circular A). Use parentheses (if possible) to show a

Line 14 — Overpayment. If you deposited more than the

decrease to the amounts reported on lines 3 or 5.

correct amount for the year, you can have the

Fractions of cents. If there is a small difference

overpayment refunded or applied to your next return.

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

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

may be caused by rounding to the nearest cent each time

TIP

apply it to your next return only on written request.

you computed payroll. This rounding occurs when you

figure the amount of social security and Medicare tax to

be withheld from each employee’s wages. See Pub. 51

Line 15 — Monthly Summary of Federal Tax Liability.

(Circular A) for details. If the fractions of cents adjustment

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

is the only entry on line 8, write “Fractions Only” in the

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

margin.

do not complete line 15 or Form 943-A.

Prior year adjustments. Prior year adjustments

Complete line 15 only if you were a monthly schedule

include errors in social security and Medicare taxes

depositor for the entire year and line 11 is $2,500 or

reported on earlier returns. If you report both an

more. The amount entered on line 15M must equal the

underpayment and an overpayment, show only the

amount reported on line 11. See section 7 of Pub. 51

difference.

(Circular A) for details on the deposit rules. You are a

Because any amount shown on line 8 increases or

monthly schedule depositor for the calendar year if the

decreases your tax liability, the adjustment must also be

amount of your Form 943 taxes (line 9) reported for the

included on your Monthly Summary of Federal Tax

lookback period is not more than $50,000. The lookback

Liability on Form 943 (line 15) or Form 943-A, Agricultural

period is the second calendar year preceding the current

Employer’s Record of Federal Tax Liability. For details on

calendar year. For example, the lookback period for 2005

how to report adjustments on the Monthly Summary of

is 2003.

Federal Tax Liability, see the instructions for line 15,

If you were a semiweekly schedule depositor

later, or the instructions for Form 943-A.

during any part of the year, do not complete line

Explain any prior year adjustments on Form 941c,

15. Instead, complete Form 943-A.

CAUTION

Supporting Statement To Correct Information, or attach a

statement that shows the same information. Enter on

Reporting adjustments on line 15. If your net

Form 941c or include in the statement the total wages for

adjustment during a month is negative (for example,

all of your employees as previously reported and as

correcting an overreported liability in a prior period) and it

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Instructions For Form 943 - 2004 Page 3

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