Instructions For Form 943 - 2010 (Page 3 of 6) in pdf

made by not including that employee or that employee’s wages

Specific Instructions

on lines 7a – 7c and lines 13c – 13e. An election not to apply the

social security tax exemption for a qualified employee may

State code. If you made your deposits by FTD coupon (Form

allow a qualified employer to claim the Work Opportunity Credit

8109) or by using an EFTPS bank account in a state other than

for that employee. A qualified employer cannot apply the social

that shown in your address on Form 943, enter the state code

security tax exemption on Form 943 and claim the Work

for the state where you made deposits or initiated EFTPS

Opportunity Credit for the same employee. For more

transfers in the box provided in the upper-left corner of Form

information, see Form 5884, Work Opportunity Credit. For more

943. Use the two-letter United States Postal Service state

information about the employer’s social security tax exemption,

abbreviation as the state code. Enter the code “MU” in the state

visit the IRS website at IRS.gov and enter the keywords HIRE

code box if you deposit in more than one state. If you deposit in

Act in the search box.

the same state as shown in your address, do not make an entry

Line 7a — Number of qualified employees paid wages after

in this box.

March 31, 2010. A qualified employee is an employee who:

Line 1 — Number of agricultural employees. Enter the

•

number of agricultural employees on your payroll during the pay

Begins employment with you after February 3, 2010, and

period that included March 12, 2010. Do not include household

before January 1, 2011;

•

employees, persons who received no pay during the pay

Certifies by signed affidavit (Form W-11, Hiring Incentives to

period, pensioners, or members of the Armed Forces.

Restore Employment (HIRE) Act Employee Affidavit, or similar

statement) under penalties of perjury that he or she has not

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

been employed for more than 40 hours during the 60-day

Forms W-2 electronically. Call the SSA at 1-800-772-6270 or

period (including 2009) ending on the date the employee begins

visit the SSA’s Employer W-2 Filing Instructions and Information

employment with you;

website at

for more

•

Is not employed by you to replace another employee unless

information on electronic filing requirements. SSA no longer

the other employee separated from employment voluntarily or

accepts magnetic media submissions of wage information.

for cause (including downsizing); and

Line 2 — Total wages subject to social security tax. Enter

•

Is not related to you. An employee is related to you if he or

the total cash wages subject to social security tax that you paid

she is your child or a descendant of your child, your sibling or

to your employees for farmwork during the calendar year. Enter

stepsibling, your parent or ancestor of your parent, your

the amount before deductions. Cash wages include checks,

stepparent, your niece or nephew, your aunt or uncle, or your

money orders, etc. Do not include (a) the value of noncash

in-law. An employee is also related to you if he or she is related

items such as food or lodging, or (b) pay for services other than

to anyone who owns more than 50% of your outstanding stock

farmwork. See Purpose of form on page 1 for household

or capital and profits interest or is your dependent or a

employee information. See section 3 of Pub. 51 (Circular A) for

dependent of anyone who owns more than 50% of your

information on taxable wages. Do not report an employee’s

outstanding stock or capital and profits interest.

social security wages over $106,800 for 2010. If you, as a

If you are an estate or trust, see section 51(i)(1) and section

qualifying employer, receive an approved Form 4029,

152(d)(2) for more details.

Application for Exemption From Social Security and Medicare

Taxes and Waiver of Benefits, from one or more of your

Exempt wages are the wages paid to qualified employees

employees, write “Form 4029” to the right of the entry space.

for which the employer is exempt from paying the employer’s

6.2% share of social security tax. Enter on line 7a the number

Do not reduce the amount reported on line 2 by any

of qualified employees paid wages to which you applied the

amount paid to qualified new employees. The social

social security tax exemption.

security tax exemption on wages will be figured on line

CAUTION

7c and will reduce the tax on line 7d.

Line 7b — Exempt wages paid to qualified employees after

Line 4 — Total wages subject to Medicare tax. Enter the

March 31, 2010. Enter the amount of exempt wages paid after

total cash wages subject to Medicare tax that you paid to your

March 31, 2010, to all qualified employees reported on line 7a.

employees for farmwork during the calendar year. Enter the

See the instructions for line 7a for the definition of exempt

amount before deductions. Do not include (a) the value of

wages.

noncash items such as food or lodging, or (b) pay for services

Line 7c — Social security tax exemption. Multiply the

other than farmwork. There is no limit on the amount of wages

amount of exempt wages reported on line 7b by 6.2% (.062).

subject to Medicare tax. If you, as a qualifying employer,

See the instructions for line 17 for details about applying this

receive an approved Form 4029 from one or more of your

exemption to your tax liability.

employees, write “Form 4029” to the right of the entry space.

Line 7d — Total taxes before adjustments. Add the total

Do not reduce the amount reported on line 4 by any

social security tax (line 3), Medicare tax (line 5), and federal

amount paid to qualified new employees. The social

income tax withheld (line 6), and subtract the qualified

security tax exemption does not apply to Medicare tax.

CAUTION

employer’s social security tax exemption for wages paid after

Line 6 — Federal income tax withheld. Enter federal income

March 31, 2010 (line 7c). Enter the result on line 7d.

tax withheld on wages paid to your employees. Generally, you

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

must withhold federal income tax from employees from whom

•

Adjust for rounding of fractions of cents.

you withhold social security and Medicare taxes. See sections 5

•

Adjust for the uncollected employee share of social security

and 13 of Pub. 51 (Circular A) for more information on

and Medicare taxes on (a) third-party sick pay or (b) group-term

withholding rules.

life insurance premiums paid for former employees. See

Line 7 — Employer’s social security tax exemption.

section 9 in Pub. 51 (Circular A).

Complete lines 7a – 7c to figure the payroll tax exemption for the

employer’s share (6.2%) of social security tax on wages paid to

Use a minus sign (if possible) to show a decrease to the

one or more qualified employees.

amounts reported on lines 3 or 5. Otherwise, use parentheses.

An employer must be a qualified employer to be eligible for

Current year adjustment, fractions of cents. If there is a

the employer’s social security tax exemption. A qualified

small difference between net taxes (line 11) and total deposits

employer is any employer other than Federal, State, and any

(line 12), it may be caused by rounding to the nearest cent each

related government entities. All public institutions of higher

time you computed payroll. This rounding occurs when you

education and Indian tribal governments are also qualified

figure the amount of social security and Medicare tax to be

employers.

withheld from each employee’s wages. If the fractions of cents

An employer may elect not to apply the social security tax

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

exemption with respect to a qualified employee. The election is

the dotted line to the left of the entry space for line 8.

-3-

Instructions for Form 943 (2010)

Instructions For Form 943 - 2010 Page 3

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