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the pay period, pensioners, or members of the Armed

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

Forces.

how to report adjustments on the Monthly Summary of

Federal Tax Liability, see the instructions for line 15, later, or

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

the instructions for Form 943-A.

file Forms W-2 electronically. Call the SSA at

Explain any prior year adjustments on Form 941c,

1-800-772-6270 or access the SSA’s Employer Reporting

Supporting Statement To Correct Information, or attach a

Instructions and Information website at

statement that shows the same information. Enter on

for more information on

electronic filing requirements. SSA no longer accepts

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

magnetic media submissions of wage information.

of your employees as previously reported and as corrected.

Do not file Form 941c (or statement) separately from

Line 2 — Total wages subject to social security tax.

Form 943.

Enter the total cash wages subject to social security tax that

you paid to your employees for farmwork during the

If you are adjusting an employee’s social security or

calendar year. Enter the amount before deductions. Cash

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

wages include checks, money orders, etc. Do not include (a)

W-2c, Corrected Wage and Tax Statement, and Form W-3c,

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

Transmittal of Corrected Wage and Tax Statements, with

pay for services other than farmwork. See section 3 of

the Social Security Administration. You can get these from

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

the IRS by calling 1-800-829-3676.

employee’s social security wages over $94,200 for 2006. If

Federal income tax adjustments. Generally, you

you, as a qualifying employer, receive an approved

cannot adjust amounts reported as federal income tax

Form 4029, Application for Exemption From Social Security

withheld in a prior calendar year unless it is to correct an

and Medicare Taxes and Waiver of Benefits, from one or

administrative error. An administrative error occurs if the

more of your employees, write “Form 4029” to the right of

amount that you entered on the return is not the amount that

the entry space.

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

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

for details.

total cash wages subject to Medicare tax that you paid to

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

your employees for farmwork during the calendar year.

result on line 9.

Enter the amount before deductions. Do not include (a) the

Line 10 — Advance earned income credit (EIC) payments

value of noncash items such as food or lodging, or (b) pay

made to employees. Employees who are eligible can

for services other than farmwork. There is no limit on the

receive advance earned income credit (EIC) payments with

amount of wages subject to Medicare tax. If you, as a

their wages by giving you Form W-5, Earned Income Credit

qualifying employer, receive an approved Form 4029,

Advance Payment Certificate, annually. For more

Application for Exemption From Social Security and

information, see sections 6 and 14 of Pub. 51 (Circular A).

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

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

Line 12 — Total deposits. Enter the total amount deposited

space.

for the year, including any overpayment from 2005, as

shown in your records.

Line 6 — Federal income tax withheld. Enter federal

income tax withheld on wages paid to your employees.

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

Generally, you must withhold federal income tax from

under $1.

employees from whom you withhold social security and

Generally, you should show a balance due on line 13

Medicare taxes. See sections 5 and 13 of Pub. 51

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

(Circular A) for more information on withholding rules.

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

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

(Circular A) regarding payments made under the “accuracy

•

Adjust for rounding of fractions of cents,

of deposits” rule.

•

Correct errors in social security and Medicare taxes

If you fail to make deposits as required and instead

reported on a prior year return, and

•

pay the taxes with Form 943, you may be subject to

Correct an administrative error in reporting federal income

a penalty.

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

CAUTION

Pub. 51 (Circular A).

•

Line 14 — Overpayment. If you deposited more than the

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

correct amount for the year, you can have the overpayment

amounts reported on lines 3 or 5. Otherwise, use

refunded or applied to your next return.

parentheses.

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

Fractions of cents. If there is a small difference

TIP

apply it to your next return only on written request.

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

may be caused by rounding to the nearest cent each time

you computed payroll. This rounding occurs when you figure

Line 15 — Monthly Summary of Federal Tax Liability.

the amount of social security and Medicare tax to be

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

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

of deposits made. If line 11 is less than $2,500, do not

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

complete line 15 or Form 943-A.

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

Complete line 15 only if you were a monthly schedule

of Form 943.

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

Prior year adjustments. Prior year adjustments include

The amount entered on line 15M must equal the amount

errors in social security and Medicare taxes reported on

reported on line 11. See section 7 of Pub. 51 (Circular A) for

earlier returns. If you report both an underpayment and an

details on the deposit rules. You are a monthly schedule

overpayment, show only the difference.

depositor for the calendar year if the amount of your

Because any amount shown on line 8 increases or

Form 943 taxes (line 9) reported for the lookback period is

decreases your tax liability, the adjustment must also be

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

included on your Monthly Summary of Federal Tax Liability

calendar year preceding the current calendar year. For

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

example, the lookback period for 2007 is 2005.

-3-

Instructions For Form 943 - Employer'S Annual Federal Tax Return For Agricultural Employees - 2006 Page 3

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