Instructions For Form 943 - 2017 printable pdf download

2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 943

Employer's Annual Federal Tax Return for Agricultural Employees

Section references are to the Internal Revenue Code

Qualified small business payroll tax credit for in-

unless otherwise noted.

creasing research activities. For tax years beginning

after December 31, 2015, a qualified small business may

Future Developments

elect to claim up to $250,000 of its credit for increasing

For the latest information about developments related to

research activities as a payroll tax credit against the

Form 943 and its instructions, such as legislation enacted

employer's share of social security tax. The portion of the

after they were published, go to IRS.gov/Form943.

credit used against the employer's share of social security

tax is allowed in the first calendar quarter beginning after

What's New

the date that the qualified small business filed its income

tax return. The first Form 943 that you can claim this credit

New filing addresses. The filing addresses for

on is Form 943 filed for calendar year 2017. The election

employers located in Georgia, Illinois, Kentucky,

and determination of the credit amount that will be used

Michigan, Tennessee, and Wisconsin have changed. See

against the employer's share of social security tax are

Where To

File, later.

made on Form 6765, Credit for Increasing Research

Social security and Medicare tax for 2017. The social

Activities. The amount from Form 6765, line 44, must then

security tax rate is 6.2% each for the employee and

be reported on Form 8974, Qualified Small Business

employer, unchanged from 2016. The social security

Payroll Tax Credit for Increasing Research Activities.

wage base limit is $127,200.

Form 8974 is used to determine the amount of the credit

The Medicare tax rate is 1.45% each for the employee

that can be used in the current year. The amount from

and employer, unchanged from 2016. There is no wage

Form 8974, line 12, is reported on Form 943, line 12. If

base limit for Medicare tax.

you're claiming the research payroll tax credit on your

Form 943, you must attach Form 8974 to Form 943. For

New certification program for professional employer

more information about the payroll tax credit, see Notice

organizations. The Tax Increase Prevention Act of 2014

2017-23, 2017-16 I.R.B. 1100, available at

IRS.gov/irb/

required the IRS to establish a voluntary certification

2017-16_IRB/ar07.html. Also see

Adjusting tax liability for

program for professional employer organizations (PEOs).

the qualified small business payroll tax credit for

PEOs handle various payroll administration and tax

increasing research activities reported on line

12, later.

reporting responsibilities for their business clients and are

typically paid a fee based on payroll costs. To become

The payroll tax credit must generally be elected on an

and remain certified under the certification program,

original income tax return that is timely filed (including

certified professional employer organizations (CPEOs)

extensions). However, Notice 2017-23 provides a limited

must meet various requirements described in sections

exception to that rule, allowing a qualified small business

3511 and 7705 and related published guidance.

that timely files its income tax return for a tax year

Certification as a CPEO may affect the employment tax

beginning after December 31, 2015, but fails to make the

liabilities of both the CPEO and its customers. A CPEO is

payroll tax credit election, to make the election on an

generally treated as the employer of any individual who

amended income tax return filed on or before December

performs services for a customer of the CPEO and is

31, 2017. The Form 6765 filed with that amended income

covered by a contract described in section 7705(e)(2)

tax return must meet certain procedural requirements

between the CPEO and the customer (CPEO contract),

provided in section 4.02 of Notice 2017-23. If the payroll

but only for wages and other compensation paid to the

tax credit is elected on an amended income tax return

individual by the CPEO. For more information, go to

filed under Notice 2017-23, the payroll tax credit is

IRS.gov/CPEO. Also see Rev. Proc. 2017-14, 2017-3

allowed against the employer share of social security tax

I.R.B. 426, available at

IRS.gov/irb/2017-03_IRB/

for the quarter that begins after the amended income tax

ar14.html.

return is filed. The payroll tax credit can't be applied to an

earlier quarter.

New Schedule R (Form 943), Allocation Schedule for

Reminders

Aggregate Form 943 Filers. Agents approved by the

IRS under section 3504 and CPEOs must now complete

Work opportunity tax credit for qualified tax-exempt

and file the new Schedule R (Form 943) each time they

organizations hiring qualified veterans. The work

file an aggregate Form 943. To request approval to act as

opportunity tax credit is available for eligible unemployed

an agent for an employer under section 3504, the agent

veterans who begin work on or after November 22, 2011,

must file Form 2678 with the IRS. Form 2678 must be

and before January 1, 2020. Qualified tax-exempt

previously filed and approved by the IRS before filing

organizations that hire eligible unemployed veterans can

Schedule R. To become a CPEO, the organization must

claim the work opportunity tax credit against their payroll

apply through the IRS Online Registration System at

IRS.gov/CPEO.

Oct 10, 2017

Cat. No. 25976L

Instructions For Form 943 - 2017

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