Publication 80 - Circular Ss - Department Of The Treasury (Page 14 of 24) in pdf

Electronic or magnetic media filing requirement. If you

unemployment tax. Only the employer pays FUTA tax; it is

are required to file 250 or more Forms W-2VI, W-2GU, or

not withheld from your employees’ wages. For information,

W-2AS, you must file using magnetic media (or electroni-

see the Instructions for Form 940.

cally). See the instructions for Form W-3SS or call the

You must file Form 940 or Form 940-EZ, Employer’s

Social Security Administration (SSA) at 1-800-772-6270

Annual Federal Unemployment (FUTA) Tax Return, if you

for more information. You may also visit Social Security’s

are subject to FUTA tax under the following rules.

Employer Reporting Instructions and Information website

In general. You are subject to FUTA tax in 2004 on the

wages you pay employees who are not farmworkers or

household workers if:

When and where to file. By the last day of February (or

when filing a final return if you make final payments before

1) You paid wages of $1,500 or more in any calendar

the end of the year), send your completed forms to the

quarter of 2003 or 2004 or

following:

•

2) You had one or more employees for at least some

Employers in the U.S. Virgin Islands, Guam, Ameri-

part of a day in any 20 or more different weeks in

can Samoa, and the Commonwealth of the Northern

2003 or 20 or more different weeks in 2004.

Mariana Islands must send Copy A of Forms W-2VI,

W-2GU, W-2AS, W-2CM, and a Form W-3SS,

Household workers. You are subject to FUTA tax only if

Transmittal of Wage and Tax Statements, to the

you paid total cash wages of $1,000 or more for all house-

SSA at the address shown on Form W-3SS.

hold workers in 2004 in any calendar quarter in 2003 or

•

Send Copy 1 of Forms W-2VI, W-2GU, W-2AS, and

2004.

W-3SS to your local tax department. For more infor-

Farmworkers. You are subject to FUTA tax on the wages

mation on Copy 1, contact your local tax department.

that you pay to farmworkers in 2004 if:

Employers in the Commonwealth of the Northern

•

Mariana Islands should contact their local tax depart-

You paid total cash wages of $20,000 or more for

ment for instructions on how to file Copy 1.

the farmwork in any calendar quarter to farmworkers

during 2003 or 2004 or

If you need copies of Forms W-2VI, W-2GU, W-2AS,

•

You employed 10 or more farmworkers during at

W-2CM, and W-3SS, see How To Get Forms and Publi-

least some part of a day (whether or not at the same

cations on page 3.

time) during any 20 or more different weeks in 2003

If you need to correct a Form W-2VI, W-2GU, W-2AS, or

or 20 or more different weeks in 2004.

W-2CM after you have sent Copy A to the SSA, use Form

W-2c, Corrected Wage and Tax Statement. Furnish em-

To determine whether you meet either test above, you

ployees Copies B and C of Form W-2c. Send Copy A with

must count wages paid to aliens admitted on a temporary

Form W-3c, Transmittal of Corrected Wage and Tax

basis to the United States to perform farmwork, also known

Statements, to the SSA at the address shown on

as “H-2(A)” visa workers. However, wages paid to “H-2(A)”

Form W-3c.

visa workers are not subject to the FUTA tax.

If you go out of business during the year, give your

In most cases, farmworkers supplied by a crew leader

employees the Forms W-2 by the due date of your final

are considered employees of the farm operator for FUTA

Form 941-SS. File Copy A with the SSA by the last day of

tax purposes. However, this is not the case if either of the

the month after that due date.

following applies and the crew leader is not an employee of

If an employee loses or destroys his or her copies,

the farm operator:

furnish that employee copies of Form W-2VI, W-2GU,

W-2AS, or W-2CM marked “REISSUED STATEMENT.”

1) The crew leader is registered under the Migrant and

Do not send Copy A of the reissued form to the SSA.

Seasonal Agricultural Worker Protection Act.

If a form is corrected before you send Copy A to the

2) Substantially all of the workers supplied by the crew

SSA, furnish the employee the corrected copies. Mark the

leader operate or maintain tractors, harvesting or

original Copy A “Void” in the proper box and send the new

cropdusting machines, or other machines provided

Copy A as explained above. For more information, see the

by the crew leader.

Instructions for Forms W-2 and W-3.

If (1) or (2) applies, the farmworkers are generally em-

ployees of the crew leader.

11. Federal Unemployment

Rate. The FUTA tax rate for 2003 and 2004 is 6.2% of the

(FUTA) Tax—U.S. Virgin

first $7,000 of wages that you pay to each employee during

the calendar year. Only the employer pays this tax. Do not

Islands Employers Only

deduct it from employees’ wages. Generally, you may take

a credit of 5.4% against the FUTA tax for payments to U.S.

The Federal Unemployment Tax Act (FUTA), with state

Virgin Islands unemployment funds. Therefore, your actual

tax rate is usually 0.8% (6.2% − 5.4%). However, your

unemployment systems, provides for payments of unem-

ployment compensation to workers who have lost their

credit is reduced if you did not pay all required U.S. Virgin

jobs. Most employers pay both a Federal and a state

Islands unemployment tax by the due date of Form 940 or

Page 14

Publication 80 - Circular Ss - Department Of The Treasury Page 14

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