Publication 80 - Federal Tax Guide (Circular Ss) - Internal Revenue Service - 2012 Page 9
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25Congress was discussing an extension of the 4.2% em-
the deposit rules, in order to avoid failure-to-deposit penal-
ployee tax rate for social security beyond February 29,
ties for deposits due during those quarters.
2012. Check for updates at
Only monthly schedule depositors are allowed to
!
make an Accuracy of Deposits Rule payment with
Deducting the tax. Deduct the employee tax from each
the return. Semiweekly schedule depositors must
CAUTION
wage payment. If you are not sure that the wages that you
timely deposit the amount. See
Accuracy of Deposits Rule
pay to a farmworker during the year will be taxable, you
and
How To
Deposit, later in this section.
may either deduct the tax when you make the payments or
wait until the $2,500 test or the $150 test explained in
When To Deposit
section 6
has been met.
Employee’s portion of taxes paid by employer. If you
Under the rules discussed below, the only difference be-
pay your employee’s social security and Medicare taxes
tween farm and nonfarm workers’ employment tax deposit
without deducting them from the employee’s pay, you must
rules is the lookback period. Therefore, farm and nonfarm
include the amount of the payments in the employee’s
workers are discussed together except where noted.
wages for social security and Medicare taxes. This in-
Depending on your total taxes reported during a look-
crease in the employee’s wage payment for your payment
back period (discussed below), you are either a monthly
of the employee’s social security and Medicare taxes is
schedule depositor or a semiweekly schedule depositor.
also subject to employee social security and Medicare
The terms “monthly schedule depositor” and “semi-
taxes. This again increases the amount of the additional
weekly schedule depositor” do not refer to how often you
taxes that you must pay.
pay your employees or how often you are required to make
Household and agricultural employers. This discus-
deposits. The terms identify which set of rules that you
sion does not apply to household and agricultural employ-
must follow when a tax liability arises (for example, when
ers. If you pay a household or agricultural employee’s
you have a payday).
social security and Medicare taxes, these payments must
You will need to determine your deposit schedule for a
be included in the employee’s wages. However, this wage
calendar year based on the total employment taxes re-
increase due to the tax payments is not subject to social
ported on Form 941-SS, line 10 (line 8 for quarters ending
security or Medicare taxes as discussed in this section.
before January 1, 2011); Form 944-SS, line 7; Form 943,
See Publication 15-A for details.
line 9; for your lookback period (defined below). If you filed
both Forms 941-SS and 941 during the lookback period,
Sick pay payments. Social security and Medicare taxes
combine the tax liabilities for these returns for purposes of
apply to most payments of sick pay, including payments
determining your deposit schedule. Determine your de-
made by third parties such as insurance companies. For
posit schedule for Form 943 separately from Forms
details on third-party payers of sick pay, see
941-SS and 941.
Publication 15-A.
Lookback period for employers of nonfarm workers.
8. Depositing Taxes
The lookback period for Form 941-SS (or Form 941) con-
sists of four quarters beginning July 1 of the second pre-
ceding year and ending June 30 of the prior year. These
You must deposit social security and Medicare taxes if
four quarters are your lookback period even if you did not
your tax liability (Form 941-SS, line 10; Form 944-SS, line
report any taxes for any of the quarters. For 2012, the
7; or Form 943, line 9) is $2,500 or more for the tax return
lookback period is July 1, 2010, through June 30, 2011.
period. You must make the deposit by electronic funds
transfer. For more information about electronic funds
Lookback Period for Calendar Year 2012
transfers, see
How To
Deposit, later in this section.
Lookback Period
Payment with Return
2010
2011
2012
$2,500 rule. Instead of making deposits during the current
July 1
Oct. 1
Jan. 1
Apr. 1
Calendar
↓
↓
↓
↓
quarter, you can pay your total Form 941-SS tax liability
Year
Sept.
Dec.
Mar. 31
June 30
when you timely file Form 941-SS if:
30
31
Jan.–Dec.
•
Your total Form 941 tax liability for either the current
quarter or the preceding quarter is less than $2,500
and
•
The lookback period for Form 944-SS (or Form 944) is
You do not incur a $100,000 next-day deposit obli-
the second calendar year preceding the current calendar
gation during the current quarter.
year. For example, the lookback period for calendar year
2012 is calendar year 2010. In addition, for employers who
If you are not sure your total liability for the current
filed Form 944-SS (or Form 944) for 2010 or 2011 and will
quarter will be less than $2,500, (and your liability for the
file Form 941-SS (or Form 941) for 2012, the lookback
preceding quarter was not less than $2,500), make depos-
period for 2012 is the second calendar year preceding the
its using the semiweekly or monthly rules so you won’t be
current calendar year, that is, 2010.
subject to failure to deposit penalties.
Employers who have been notified to file Form 944-SS
Lookback period for employers of farmworkers. The
can pay their tax liability due for the fourth quarter with
lookback period for Form 943 is the second calendar year
Form 944-SS, if their fourth quarter tax liability is less than
$2,500. Employers must have deposited any tax liability
preceding the current calendar year. The lookback period
for calendar year 2012 is calendar year 2010.
due for the first, second, and third quarters, according to
Publication 80 (2012)
Page 9
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Form 8804-w - Estimated Section 1446 Tax Payments - Internal Revenue Service - 2012
Financial
Form 6734 - 1984 - Waiver Of Restrictions On Assessment And Collection Of Deficiency In Tax And Acceptance Of Overassessment - Windfall Profit Tax - Department Of Tresuary - Internal Revenue Service
Financial
Form Nyc-3360 - General Corporation Tax Report Of Change In Tax Base Made By Internal Revenue Service - 2014
Financial
Form Nyc-3360 - General Corporation Tax Report Of Change In Tax Base Made By Internal Revenue Service And/or New York State Department Oftaxation And Finance - 2010
Financial
Form 3360b - Banking Corporation Tax Report Of Change In Tax Base Made By Internal Revenue Service And/or New York State Department Of Taxation And Finance - 2007
Financial
Form Nyc-3360 - General Corporation Tax Report Of Change In Tax Base Made By Internal Revenue Service And/or New York State Department Of Taxation And Finance
Financial
Form Nyc-3360 - General Corporation Tax Report Of Change In Tax Base Made By Internal Revenue Service And/or New York State Department Of Taxation And Finance - New York City Department Of Finance
Financial
Related Categories
Parent category: Financial