Instructions For Form 943 - 2016 (Page 5 of 7) in pdf

Line 6. Total Wages Subject to

Specific Instructions

Additional Medicare Tax Withholding

Line 1. Number of Agricultural

Enter all wages that are subject to Additional Medicare

Employees

Tax withholding. You're required to begin withholding

Additional Medicare Tax in the pay period in which you

Enter the number of agricultural employees on your

pay wages in excess of $200,000 to an employee and

payroll during the pay period that included March 12,

continue to withhold it each pay period until the end of the

2016. Don't include household employees, persons who

calendar year. Additional Medicare Tax is only imposed

received no pay during the pay period, pensioners, or

on the employee. There is no employer share of

members of the Armed Forces.

Additional Medicare Tax. All wages that are subject to

Medicare tax are subject to Additional Medicare Tax

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

withholding if paid in excess of the $200,000 withholding

must file Forms W-2 electronically. Visit the SSA's

threshold.

Employer W-2 Filing Instructions & Information website at

or call the SSA at

For more information on what wages are subject to

1-800-772-6270 for more information about filing

Medicare tax, see the chart, Special Rules for Various

electronically.

Types of Services and Payments, in section 15 of Pub. 15.

Line 2. Total Wages Subject to Social

For more information on Additional Medicare Tax, visit

IRS.gov and enter "Additional Medicare Tax" in the search

Security Tax

box.

Enter the total cash wages subject to social security tax

Line 7. Additional Medicare Tax

that you paid to your employees for farmwork during the

calendar year. Enter the amount before deductions. Cash

Withholding

wages include checks, money orders, etc. Don't include

Multiply line 6 by 0.9% (0.009) and enter the result on

the value of noncash items, such as food or lodging, or

line 7.

pay for services other than farmwork. See Purpose of

Form 943, earlier, for household employee information.

Line 8. Federal Income Tax Withheld

See section 3 of Pub. 51 for information on taxable

Enter federal income tax withheld on wages paid to your

wages.

employees. Generally, you must withhold federal income

For 2016, the rate of social security tax on taxable

tax from employees from whom you withhold social

wages is 6.2% (0.062) for the employer and 6.2% (0.062)

security and Medicare taxes. See sections 5 and 13 of

for the employee or 12.4% (0.124) for both. Don't report

Pub. 51 for more information on withholding rules.

an employee's social security wages over $118,500 for

Line 9. Total Taxes Before

2016. If you, as a qualifying employer, receive an

approved Form 4029, Application for Exemption From

Adjustments

Social Security and Medicare Taxes and Waiver of

Add the total social security tax (line 3), Medicare tax

Benefits, from one or more of your employees, write

(line 5), Additional Medicare Tax withholding (line 7), and

“Form 4029” to the right of the entry space.

federal income tax withheld (line 8). Enter the result on

Line 3. Social Security Tax

line 9.

Multiply line 2 by 12.4% (0.124) and enter the result on

Line 10. Current Year's Adjustments

line 3.

to Taxes

Line 4. Total Wages Subject to

Use line 10 to:

Medicare Tax

Adjust for rounding of fractions of cents, or

Adjust for the uncollected employee share of social

Enter the total cash wages subject to Medicare tax that

security and Medicare taxes on third-party sick pay or

you paid to your employees for farmwork during the

group-term life insurance premiums paid for former

calendar year. Enter the amount before deductions. Don't

employees. See section 9 in Pub. 51.

include the value of noncash items, such as food or

lodging, or pay for services other than farmwork. There is

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

no limit on the amount of wages subject to Medicare tax. If

the amounts reported on lines 3, 5, or 7. Otherwise, use

you, as a qualifying employer, receive an approved Form

parentheses.

4029 from one or more of your employees, write “Form

4029” to the right of the entry space.

Adjustment for fractions of cents. If there is a small

difference between total taxes after adjustments (line 11)

Line 5. Medicare Tax

and total deposits (line 12), it may be caused by rounding

Multiply line 4 by 2.9% (0.029) and enter the result on

to the nearest cent each time you computed payroll. This

line 5.

rounding occurs when you figure the amount of social

security and Medicare taxes to be withheld from each

employee's wages. If the fractions of cents adjustment is

the only entry on line 10, write “Fractions Only” on the

dotted line to the left of the entry space for line 10.

-5-

Instructions for Form 943 (2016)

Instructions For Form 943 - 2016 Page 5

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