Department of the Treasury

Internal Revenue Service

Publication 51

Cat. No. 10320R

(Circular A), 

Agricultural 

Employer's 

Tax Guide

For use in 2023

Get forms and other information faster and easier at:

• IRS.gov (English) 

• IRS.gov/Spanish (Español) 

• IRS.gov/Chinese (中文) 

• IRS.gov/Korean (한국어) 

• IRS.gov/Russian (Pусский) 

• IRS.gov/Vietnamese (Tiếng Việt) 

Contents

What's New .............................. 1

Reminders ............................... 2

Calendar ................................. 5

Introduction .............................. 6

1. Taxpayer Identification Numbers (TINs) ...... 7

2. Who Are Employees? ..................... 9

3. Wages and Other Compensation ........... 10

4. Social Security and Medicare Taxes ........ 11

5. Federal Income Tax Withholding ........... 12

6. Required Notice to Employees About the 

Earned Income Credit (EIC) .............. 16

7. Depositing Taxes ....................... 16

8. Form 943 ............................. 21

9. Reporting Adjustments on Form 943 ........ 22

10. Federal Unemployment (FUTA) Tax ........ 23

11. Reconciling Wage Reporting Forms ........ 24

12. How Do Employment Taxes Apply to 

Farmwork? ........................... 25

How To Get Tax Help ...................... 26

Index .................................. 29

Future Developments

For the latest information about developments related to 

Pub. 51, such as legislation enacted after it was 

published, go to IRS.gov/Pub51.

What's New

Social security and Medicare tax for 2023. The rate of 

social security tax on taxable wages, including qualified 

sick leave wages and qualified family leave wages paid in 

2023 for leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee or 12.4% for both. Qualified sick leave wages and 

qualified family leave wages paid in 2023 for leave taken 

after March 31, 2020, and before April 1, 2021, aren't subject to the employer share of social security tax; therefore, 

the tax rate on these wages is 6.2%. The social security 

wage base limit is $160,200.

The Medicare tax rate is 1.45% each for the employee 

and employer, unchanged from 2022. There is no wage 

base limit for Medicare tax.

Dec 19, 2022
Social security and Medicare taxes apply to the wages 

of household workers you pay $2,600 or more in cash 

wages in 2023.

Qualified small business payroll tax credit for increasing research activities. For tax years beginning 

before January 1, 2023, a qualified small business may 

elect to claim up to $250,000 of its credit for increasing research activities as a payroll tax credit. The Inflation Reduction Act of 2022 (the IRA) increases the election 

amount to $500,000 for tax years beginning after December 31, 2022. The payroll tax credit election must be made 

on or before the due date of the originally filed income tax 

return (including extensions). The portion of the credit 

used against payroll taxes is allowed in the first calendar 

quarter beginning after the date that the qualified small 

business filed its income tax return. The election and determination of the credit amount that will be used against 

the employer’s payroll taxes are made on Form 6765, 

Credit for Increasing Research Activities. The amount 

from Form 6765, line 44, must then be reported on Form 

8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.

Starting in the first quarter of 2023, the payroll tax credit 

is first used to reduce the employer share of social security tax up to $250,000 per quarter and any remaining 

credit reduces the employer share of Medicare tax for the 

quarter. Any remaining credit, after reducing the employer 

share of social security tax and the employer share of 

Medicare tax, is then carried forward to the next quarter. 

Form 8974 is used to determine the amount of the credit 

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

Form 8974, line 12 or, if applicable, line 17, is reported on 

Form 943. For more information about the payroll tax 

credit, see IRS.gov/ResearchPayrollTC. Also see the 

line 17 instructions in the Instructions for Form 943 for information on reducing your record of tax liability for this 

credit.

Pubs. 51, 80, and 179 discontinued after 2023. Pub. 

51; Pub. 80, Federal Tax Guide for Employers in the U.S. 

Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; and Pub. 

179, Guía Contributiva Federal para Patronos Puertorriqueños, will no longer be available after 2023. Instead, information specific to agricultural employers and employers in the U.S. territories will be included in Pub. 15 

beginning with the Pub. 15 for use in 2024 (published December 2023). Beginning in 2024, there will be a new 

Pub. 15 (sp) that is a Spanish-language version of Pub. 

15.

Reminders

The COVID-19 related credit for qualified sick and 

family leave wages is limited to leave taken after 

March 31, 2020, and before October 1, 2021. Generally, the credit for qualified sick and family leave wages, 

as enacted under the Families First Coronavirus Response Act (FFCRA) and amended and extended by the 

COVID-related Tax Relief Act of 2020 for leave taken after 

March 31, 2020, and before April 1, 2021, and the credit 

for qualified sick and family leave wages under sections 

3131, 3132, and 3133 of the Internal Revenue Code, as 

enacted under the American Rescue Plan Act of 2021 (the 

ARP), for leave taken after March 31, 2021, and before 

October 1, 2021, have expired. However, employers that 

pay qualified sick and family leave wages in 2023 for 

leave taken after March 31, 2020, and before October 1, 

2021, are eligible to claim a credit for qualified sick and 

family leave wages in 2023. See the 2023 Instructions for 

Form 943 for more information.

Disaster tax relief. Disaster tax relief is available for 

those impacted by disasters. For more information about 

disaster relief, go to IRS.gov/DisasterTaxRelief.

Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of 

the Taxpayer Certainty and Disaster Tax Relief Act of 

2020 allows for a payroll tax credit for certain tax-exempt 

organizations affected by certain qualified disasters not 

related to COVID-19. This credit is claimed on Form 

5884-D (not on Form 943). Form 5884-D is filed after the 

Form 943 for the year for which the credit is being claimed 

has been filed. For more information about this credit, go 

to IRS.gov/Form5884D.

2023 withholding tables. The Percentage Method and 

Wage Bracket Method withholding tables, the employer 

instructions on how to figure employee withholding, and 

the amount to add to a nonresident alien employee's wages for figuring income tax withholding are included in 

Pub. 15-T, Federal Income Tax Withholding Methods, 

available at IRS.gov/Pub15T.

Withholding on supplemental wages. P.L. 115-97 lowered the withholding rates on supplemental wages for tax 

years beginning after 2017 and before 2026. See Supplemental wages in section 5 for the withholding rates.

Certification program for professional employer organizations (PEOs). The Stephen Beck, Jr., Achieving a 

Better Life Experience Act of 2014 required the IRS to establish a voluntary certification program for PEOs. PEOs 

handle various payroll administration and tax reporting responsibilities for their business clients and are typically 

paid a fee based on payroll costs. To become and remain 

certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705 

and related published guidance. Certification as a CPEO 

may affect the employment tax liabilities of both the CPEO 

and its customers. A CPEO is generally treated for employment tax purposes as the employer of any individual 

who performs services for a customer of the CPEO and is 

covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but 

only for wages and other compensation paid to the individual by the CPEO. To become a CPEO, the organization 

must apply through the IRS Online Registration System. 

For more information or to apply to become a CPEO, go to 

IRS.gov/CPEO. Also see Revenue Procedure 2017-14, 

2017-3 I.R.B. 426, available at IRS.gov/irb/

2017-03_IRB#RP-2017-14.

Outsourcing payroll duties. You're responsible to ensure that tax returns are filed and deposits and payments 

Page 2 Publication 51 (2023)
are made, even if you contract with a third party to perform 

these acts. You remain responsible if the third party fails 

to perform any required action. Before you choose to outsource any of your payroll and related tax duties (that is, 

withholding, reporting, and paying over social security, 

Medicare, FUTA, and income taxes) to a third-party payer, 

such as a payroll service provider or reporting agent, go to 

IRS.gov/OutsourcingPayrollDuties for helpful information 

on this topic. If a CPEO pays wages and other compensation to an individual performing services for you, and the 

services are covered by a contract described in section 

7705(e)(2) between you and the CPEO (CPEO contract), 

then the CPEO is generally treated as the employer, but 

only for wages and other compensation paid to the individual by the CPEO. However, with respect to certain employees covered by a CPEO contract, you may also be 

treated as an employer of the employees and, consequently, may also be liable for federal employment taxes 

imposed on wages and other compensation paid by the 

CPEO to such employees. For more information on the 

different types of third-party payer arrangements, see section 16 of Pub. 15.

Aggregate Form 943 filers. Approved section 3504 

agents and CPEOs must complete Schedule R (Form 

943), Allocation Schedule for Aggregate Form 943 Filers, 

when filing an aggregate Form 943. Aggregate Forms 943 

are filed by agents approved by the IRS under section 

3504 of the Internal Revenue Code. To request approval 

to act as an agent for an employer, the agent files Form 

2678 with the IRS. Aggregate Forms 943 are also filed by 

CPEOs approved by the IRS under section 7705. To become a CPEO, the organization must apply through the 

IRS Online Registration System at IRS.gov/CPEO. 

CPEOs file Form 8973, Certified Professional Employer 

Organization/Customer Reporting Agreement, to notify 

the IRS that they've started or ended a service contract 

with a client or customer. CPEOs must generally file Form 

943 and Schedule R (Form 943) electronically. For more 

information about a CPEO's requirement to file electronically, see Revenue Procedure 2017-14, 2017-3 I.R.B. 

426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14.

Other third-party payers that file aggregate Forms 943, 

such as non-certified PEOs, must complete and file 

Schedule R (Form 943) if they have clients that are claiming any employment tax credit (for example, the qualified 

small business payroll tax credit for increasing research 

activities).

Work opportunity tax credit for qualified tax-exempt 

organizations hiring qualified veterans. Qualified 

tax-exempt organizations that hire eligible unemployed 

veterans may be able to claim the work opportunity tax 

credit against their payroll tax liability using Form 5884-C. 

For more information, go to IRS.gov/WOTC.

Definition of marriage. A marriage of two individuals is 

recognized for federal tax purposes if the marriage is recognized by the state, possession, or territory of the United 

States in which the marriage is entered into, regardless of 

legal residence. Two individuals who enter into a relationship that is denominated as a marriage under the laws of 

a foreign jurisdiction are recognized as married for federal 

tax purposes if the relationship would be recognized as a 

marriage under the laws of at least one state, possession, 

or territory of the United States, regardless of legal residence. Individuals who have entered into a registered domestic partnership, a civil union, or other similar relationship that isn't denominated as a marriage under the law of 

the state, possession, or territory of the United States 

where such relationship was entered into aren't lawfully 

married for federal tax purposes, regardless of legal residence.

Differential wage payments. Qualified differential wage 

payments made by employers to individuals serving in the 

U.S. Armed Forces are subject to income tax withholding 

but not social security, Medicare, or FUTA taxes. For 

more information, see section 5 of Pub. 15.

Federal tax deposits must be made by electronic 

funds transfer (EFT). You must use EFT to make all 

federal tax deposits. Generally, an EFT is made using the 

Electronic Federal Tax Payment System (EFTPS). If you 

don't want to use EFTPS, you can arrange for your tax 

professional, financial institution, payroll service, or other 

trusted third party to make electronic deposits on your behalf. Also, you may arrange for your financial institution to 

initiate a same-day wire payment on your behalf. EFTPS 

is a free service provided by the Department of the Treasury. Services provided by your tax professional, financial 

institution, payroll service, or other third party may have a 

fee.

For more information on making federal tax deposits, 

see How To Deposit in section 7. To get more information 

about EFTPS or to enroll in EFTPS, go to EFTPS.gov or 

call 800-555-4477. To contact EFTPS using Telecommunications Relay Services (TRS) for people who are deaf, 

hard of hearing, or have a speech disability, dial 711 and 

then provide the TRS assistant the 800-555-4477 number 

above or 800-733-4829. Additional information about 

EFTPS is also available in Pub. 966.

Electronic filing and payment. Businesses can enjoy 

the benefits of filing tax returns and paying their federal 

taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier.

Spend less time worrying about taxes and more time 

running your business. Use e-file and EFTPS to your benefit.

• For e-file, go to IRS.gov/EmploymentEfile for additional information. A fee may be charged to file electronically.

• For EFTPS, go to EFTPS.gov, or call EFTPS Customer Service at 800-555-4477. To contact EFTPS 

using TRS for people who are deaf, hard of hearing, or 

have a speech disability, dial 711 and then provide the 

TRS assistant the 800-555-4477 number above or 

800-733-4829.

• For electronic filing of Form W-2, Wage and Tax 

Statement, go to SSA.gov/employer. You may be required to file Forms W-2 electronically. For details, 

see the General Instructions for Forms W-2 and W-3.

Publication 51 (2023) Page 3
If you’re filing your tax return or paying your federal taxes electronically, a valid employer identification number (EIN) is required at the time the return is filed or the payment is made. If a valid EIN isn't 

provided, the return or payment won't be processed. This 

may result in penalties. See Employer identification number (EIN) in section 1 for more information about applying 

for an EIN.

Electronic funds withdrawal (EFW). If you file your employment tax return electronically, you can e-file and use 

EFW to pay the balance due in a single step using tax 

preparation software or through a tax professional. However, don't use EFW to make federal tax deposits. For 

more information on paying your taxes using EFW, go to 

IRS.gov/EFW.

Credit or debit card payments. You can pay the balance due shown on your employment tax return by credit 

or debit card. Your payment will be processed by a payment processor who will charge a processing fee. Don't 

use a credit or debit card to make federal tax deposits. For 

more information on paying your taxes with a credit or 

debit card, go to IRS.gov/PayByCard.

Online payment agreement. You may be eligible to apply for an installment agreement online if you can't pay the 

full amount of tax you owe when you file your employment 

tax return. For more information, see the instructions for 

your employment tax return or go to IRS.gov/OPA.

Dishonored payments. Any form of payment that is dishonored and returned from a financial institution is subject 

to a penalty. The penalty is $25 or 2% of the payment, 

whichever is more. However, the penalty on dishonored 

payments of $24.99 or less is an amount equal to the payment. For example, a dishonored payment of $18 is 

charged a penalty of $18.

When you hire a new employee. Ask each new employee to complete the 2023 Form W-4, or its Spanish 

version, Formulario W-4(SP), Certificado de Retenciones 

del Empleado. Also, ask the employee to show you their 

social security card so that you can record the employee's 

name and social security number (SSN) accurately. If the 

employee has lost the card or recently changed names, 

have the employee apply for a duplicate or corrected card. 

If the employee doesn't have a card, have the employee 

apply for one on Form SS-5, Application for a Social Security Card. See section 1 for more information.

Eligibility for employment. You must verify that each 

new employee is legally eligible to work in the United 

States. This includes completing the U.S. Citizenship and 

Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You can get Form I-9 at USCIS.gov/

Forms. For more information, go to the USCIS website at 

USCIS.gov/I-9-Central, or call 800-375-5283 or 

800-767-1833 (TTY).

You may use the Social Security Number Verification 

Service (SSNVS) at SSA.gov/employer/ssnv.htm to verify 

that an employee name matches an SSN. A person may 

have a valid SSN but not be authorized to work in the United States. You may use E-Verify at E-Verify.gov to confirm the employment eligibility of newly hired employees.

CAUTION

!

New hire reporting. You’re required to report any new 

employee to a designated state new-hire registry. A new 

employee is an employee who hasn't previously been employed by you or was previously employed by you but has 

been separated from such prior employment for at least 

60 consecutive days.

Many states accept a copy of Form W-4 with employer 

information added. Go to the Office of Child Support Enforcement's website at acf.hhs.gov/css/employers for 

more information.

Forms in Spanish. You can provide Formulario W-4(SP) 

in place of Form W-4 to your Spanish-speaking employees. For more information, see Pub. 17(SP), El Impuesto 

Federal sobre los Ingresos (Para Personas Físicas).

For nonemployees, such as independent contractors, 

Formulario W-9(SP), Solicitud y Certificación del Número 

de Identificación del Contribuyente, may be used in place 

of Form W-9, Request for Taxpayer Identification Number 

and Certification.

References in this publication to Form W-4 or Form 

W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP).

Information returns. You must file Forms W-2 to report 

wages paid to employees. You may also be required to 

file information returns to report certain types of payments 

made during the year. For example, you must file Form 

1099-NEC, Nonemployee Compensation, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services 

performed for your trade or business. For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information, and the separate, 

specific instructions for each information return you file 

(for example, the Instructions for Forms 1099-MISC and 

1099-NEC). Generally, don't use Forms 1099 to report 

wages and other compensation you paid to employees; 

report these amounts on Form W-2. See the General Instructions for Forms W-2 and W-3 for details about filing 

Form W-2 and for information about required electronic filing.

Technical Services Operation (TSO). The IRS operates the TSO to answer questions about reporting on 

Forms W-2, W-3, and 1099, and other information returns. 

If you have questions related to reporting on information 

returns, call 866-455-7438 (toll free) or 304-263-8700 (toll 

call). Deaf or hard of hearing customers may call any of 

our toll-free numbers using their choice of relay service. 

The center can also be reached by email at 

mccirp@irs.gov. Don't include taxpayer identification numbers (TINs) or attachments in email because email isn't 

secure.

Web-based application for an EIN. Go to IRS.gov/EIN 

to apply for an EIN online. See section 1 for additional information.

When a crew leader furnishes workers to you. Record the crew leader's name, address, and EIN. See sections 2 and 10.

Change of business address or responsible party. 

Notify the IRS immediately if you change your business 

Page 4 Publication 51 (2023)
address or responsible party. Complete and mail Form 

8822-B to notify the IRS of a business address or responsible party change. For a definition of “responsible party,” 

see the Instructions for Form SS-4.

Ordering employer tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current 

forms, instructions, and publications; call 800-829-3676 to 

order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. 

You can get forms and publications faster online.

Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the SSA's free e-file 

service. Go to the SSA's Employer W-2 Filing Instructions 

& Information webpage at SSA.gov/employer to register 

for Business Services Online. You’ll be able to create 

Forms W-2 online and submit them to the SSA by typing 

your wage information into easy-to-use fill-in fields. In addition, you can print out completed copies of Forms W-2 

to file with state or local governments, distribute to your 

employees, and keep for your records. Form W-3 will be 

created for you based on your Forms W-2.

Tax questions. You can call the IRS Business and Specialty Tax Line with your employment tax questions at 

800-829-4933 or 800-829-4059 (TDD/TTY for persons 

who are deaf, hard of hearing, or have a speech disability). You may also use this number for assistance with unresolved tax problems.

Recordkeeping. Keep all records of employment taxes 

for at least 4 years. These should be available for IRS review. Your records should include the following information.

• Your EIN.

• Amounts and dates of all wage, annuity, and pension 

payments.

• Names, addresses, SSNs, and occupations of employees and recipients.

• Any employee copies of Forms W-2 and W-2c returned to you as undeliverable.

• Dates of employment for each employee.

• Periods for which employees and recipients were paid 

while absent due to sickness or injury and the amount 

and weekly rate of payments you or third-party payers 

made to them.

• Copies of employees' and recipients' income tax withholding certificates (Forms W-4, W-4(SP), W-4P, and 

W-4S).

• Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS.

• Copies of returns filed and confirmation numbers.

• Records of fringe benefits and expense reimbursements provided to your employees, including substantiation.

• Documentation to substantiate any credits claimed. 

Records related to qualified sick leave wages and 

qualified family leave wages for leave taken after 

March 31, 2021, and before October 1, 2021, and records related to qualified wages for the employee retention credit paid after June 30, 2021, should be kept 

for at least 6 years. For more information on substantiation requirements, go to IRS.gov/PLC and IRS.gov/

ERC.

• Documentation to substantiate the amount of any employer or employee share of social security tax that 

you deferred and paid for 2020.

If a crew leader furnished you with farmworkers, you 

must keep a record of the name, permanent mailing address, and EIN of the crew leader. If the crew leader has 

no permanent mailing address, record their present address.

Private delivery services (PDSs). You can use certain 

PDSs designated by the IRS to meet the “timely mailing 

as timely filing” rule for tax returns. Go to IRS.gov/PDS for 

the current list of PDSs.

The PDS can tell you how to get written proof of the 

mailing date.

For the IRS mailing address to use if you’re using a 

PDS, go to IRS.gov/PDSstreetAddresses. Select the mailing address listed on the webpage that is in the same 

state as the address to which you would mail returns filed 

without a payment, as shown in the instructions for your 

employment tax return.

PDSs can't deliver items to P.O. boxes. You must 

use the U.S. Postal Service to mail any item to an 

IRS P.O. box address.

Zero wage return. If you haven't filed a “final” Form 940, 

Employer's Annual Federal Unemployment (FUTA) Tax 

Return, or Form 943, you must continue to file Forms 940 

and 943 even for years during which you paid no wages. 

The IRS encourages you to file your “zero wage” Forms 

940 and 943 electronically. Go to IRS.gov/

EmploymentEfile for more information on electronic filing.

Pub. 5146 explains employment tax examinations 

and appeal rights. Pub. 5146 provides employers with 

information on how the IRS selects employment tax returns to be examined, what happens during an exam, and 

what options an employer has in responding to the results 

of an exam, including how to appeal the results. Pub. 

5146 also includes information on worker classification issues and tip exams.

Photographs of missing children. The IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring 

these children home by looking at the photographs and 

calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Calendar

The following is a list of important dates and 

responsibilities. The dates listed here haven’t been 

CAUTION

!

Publication 51 (2023) Page 5
adjusted for Saturdays, Sundays, and legal holidays (see 

the TIP next). Pub. 509, Tax Calendars (for use in 2023), 

adjusts the dates for Saturdays, Sundays, and legal 

holidays. See section 7 for information about depositing 

taxes reported on Forms 943 and 945, Annual Return of 

Withheld Federal Income Tax. See section 10 for 

information about depositing FUTA tax. Due dates for 

forms required for health coverage reporting aren’t listed 

here. For these dates, see Pub. 509.

If any date shown next for filing a return, furnishing a form, or depositing taxes falls on a Saturday, 

Sunday, or legal holiday, the due date is the next 

business day. The term “legal holiday” means any legal 

holiday in the District of Columbia. A statewide legal holiday delays a filing due date only if the IRS office where 

you’re required to file is located in that state. However, a 

statewide legal holiday doesn't delay the due date of federal tax deposits. See Deposits Due on Business Days 

Only in section 7. For any filing due date, you will meet the 

“file” or “furnish” requirement if the envelope containing 

the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated PDS on or before the due date. See Private delivery 

services under Reminders, earlier, for more information.

Fiscal year taxpayers. The due dates listed next apply 

whether you use a calendar or a fiscal year.

By January 31 

• File Form 943. If you deposited all Form 943 taxes 

when due, you may file Form 943 by February 10. See 

section 8 for more information on Form 943.

• File Form 940 to report any FUTA tax. However, if you 

deposited all the FUTA tax when due, you may file 

Form 940 by February 10. See section 10 for more information on FUTA tax.

• File with the SSA Copy A of all 2022 paper and electronic Forms W-2 with Form W-3, Transmittal of Wage 

and Tax Statements. For more information on reporting Form W-2 information to the SSA electronically, go 

to the SSA's Employer W-2 Filing Instructions & Information webpage at SSA.gov/employer. If filing electronically via the SSA's Form W-2 Online service, the 

SSA will generate Form W-3 data from the electronic 

submission of Form(s) W-2.

• Furnish each employee a completed 2022 Form W-2.

• File with the IRS Copy A of all 2022 paper and electronic Forms 1099-NEC that report nonemployee 

compensation. Paper forms must be filed with Form 

1096, Annual Summary and Transmittal of U.S. Information Returns. For information on filing information 

returns electronically with the IRS, see Pub. 1220. 

Other Forms 1099, including Forms 1099-MISC, have 

different due dates. See the General Instructions for 

Certain Information Returns for more information.

• Furnish each recipient to whom you paid $600 or 

more in nonemployee compensation a completed 

Form 1099-NEC.

TIP

• File Form 945 to report any nonpayroll federal income 

tax withheld. If you deposited all Form 945 taxes when 

due, you may file Form 945 by February 10.

By February 15 

Ask for a new Form W-4 or Formulario W-4(SP) from 

each employee who claimed exemption from federal income tax withholding last year.

On February 16 

Any Form W-4 claiming exemption from withholding for 

the previous year has now expired. Begin withholding for 

any employee who previously claimed exemption from 

withholding but hasn't given you a new Form W-4 for the 

current year. If the employee doesn't give you a new Form 

W-4, withhold tax as if they had checked the box for Single or Married filing separately in Step 1(c) and made no 

entries in Step 2, Step 3, or Step 4 of the 2023 Form W-4. 

See section 5 for more information. If the employee gives 

you a new Form W-4 claiming exemption from withholding 

after February 15, you may apply the exemption to future 

wages, but don't refund taxes withheld while the exempt 

status wasn't in place.

By April 30, July 31, October 31, and January 31 

Deposit FUTA taxes. Deposit FUTA taxes if the undeposited amount is over $500.

Before December 1 

Remind employees to submit a new Form W-4 if their 

filing status, other income, deductions, or credits have 

changed or will change for the next year.

Introduction

This publication is for employers of agricultural workers 

(farmworkers). It contains information that you may need 

to comply with the laws for agricultural labor (farmwork) 

relating to social security and Medicare taxes, FUTA tax, 

and withheld federal income tax (employment taxes). Agricultural employers report social security and Medicare 

taxes and withheld federal income tax on Form 943 and 

report FUTA tax on Form 940. References to “income tax” 

in this guide apply only to federal income tax. Contact 

your state or local tax department to determine their rules.

When you pay your employees, you don't pay them all 

the money they earned. As their employer, you have the 

added responsibility of withholding taxes from their paychecks. The federal income tax and employees' share of 

social security and Medicare taxes that you withhold from 

your employees' paychecks are part of their wages that 

you pay to the U.S. Treasury instead of to your employees. Your employees trust that you pay the withheld taxes 

to the U.S. Treasury by making federal tax deposits. This 

is the reason that these withheld taxes are called trust 

fund taxes. If federal income, social security, or Medicare 

taxes that must be withheld aren't withheld or aren't deposited or paid to the U.S. Treasury, the trust fund recovery penalty may apply. See section 7 for more information.

If you have nonfarm employees, see Pub. 15. If you 

have employees in the U.S. Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern 

Page 6 Publication 51 (2023)
Mariana Islands, see Pub. 80. Pub. 15-A contains more 

employment-related information, including information 

about sick pay and pension income. Pub. 15-B contains 

information about the employment tax treatment and valuation of various types of noncash compensation. Pub. 

15-T includes the federal income tax withholding tables 

and instructions on how to use the tables. For additional 

information about employment taxes, go to IRS.gov/

EmploymentTaxes. For general tax information relevant to 

agricultural employers, go to IRS.gov/

AgricultureTaxCenter.

Comments and suggestions. We welcome your comments about this publication and suggestions for future 

editions

You can send us comments through IRS.gov/

FormComments.

Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

Although we can’t respond individually to each comment received, we do appreciate your feedback and will 

consider your comments and suggestions as we revise 

our tax forms, instructions, and publications. Don’t send 

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have a 

tax question not answered by this publication, check 

IRS.gov and How To Get Tax Help at the end of this publication.

Disregarded entities and qualified subchapter S subsidiaries (QSubs). Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Eligible single-member entities 

must report and pay employment taxes on wages paid to 

their employees using the entities' own names and EINs. 

See Regulations sections 1.1361-4(a)(7) and 

301.7701-2(c)(2)(iv).

Useful Items

You may want to see:

Publication

1 Employer's Tax Guide

1-A Employer's Supplemental Tax Guide

1-B Employer's Tax Guide to Fringe Benefits

1-T Federal Income Tax Withholding Methods

225 Farmer's Tax Guide

535 Business Expenses

583 Starting a Business and Keeping Records

1635 Employer Identification Number: 

Understanding Your EIN

 15 

 15-A 

 15-B 

 15-T 

 225 

 535 

 583 

 1635 

1. Taxpayer Identification 

Numbers (TINs)

If you’re required to withhold any federal income, social 

security, or Medicare taxes, you will need an EIN for yourself. Also, you will need the SSN of each employee and 

the name of each employee as shown on the employee's 

social security card.

Employer identification number (EIN). An EIN is a 

nine-digit number that the IRS issues. The digits are arranged as follows: 00-0000000. It is used to identify the 

tax accounts of employers and certain others who have 

no employees. Use your EIN on all of the items that you 

send to the IRS and the SSA.

If you don't have an EIN, you may apply for one online 

by going to IRS.gov/EIN. You may also apply for an EIN 

by faxing or mailing Form SS-4 to the IRS. If the principal 

business was created or organized outside of the United 

States or U.S. territories, you may also apply for an EIN by 

calling 267-941-1099 (toll call). Don't use an SSN in place 

of an EIN.

If you don't have an EIN by the time a return is due, file 

a paper return and write “Applied For” and the date you 

applied for it in the space shown for the number. If you 

took over another employer's business, don't use that employer's EIN.

You should have only one EIN. If you have more than 

one, and aren't sure which one to use, call the toll-free 

Business and Specialty Tax Line at 800-829-4933 or 

800-829-4059 (TDD/TTY for persons who are deaf, hard 

of hearing, or have a speech disability). Provide the EINs 

that you have, the name and address to which each number was assigned, and the address of your principal place 

of business. The IRS will tell you which EIN to use. For 

more information, see Pub. 1635.

Always be sure the EIN on the form you file exactly matches the EIN the IRS assigned to your 

business. Don't use your SSN or individual taxpayer identification number (ITIN) on forms that ask for an 

EIN. If you used an EIN (including a prior owner's EIN) on 

Form 943 that is different from the EIN reported on Form 

W-3, see Box h—Other EIN used this year in the General 

Instructions for Forms W-2 and W-3. The name and EIN 

on Form 945 must match the name and EIN on your information returns where federal income tax withholding is reported (for example, backup withholding reported on Form 

1099-NEC). Filing a Form 945 with an incorrect EIN or using another business's EIN may result in penalties and delays in processing your return.

When you receive your EIN. If you’re a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. You 

will receive information in your EIN Package about Express Enrollment and an additional mailing containing 

your EFTPS personal identification number (PIN) and instructions for activating your PIN. Call the toll-free number 

CAUTION

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Publication 51 (2023) Page 7
located in your “How To Activate Your EFTPS Enrollment” 

brochure to activate your enrollment and begin making 

your employment tax deposits. If you outsource any of 

your payroll and related tax duties to a third-party payer, 

such as a payroll service provider or reporting agent, be 

sure to tell them about your EFTPS enrollment.

Social security number (SSN). An employee's SSN 

consists of nine digits arranged as follows: 000-00-0000. 

You must obtain each employee's name and SSN as 

shown on the employee's social security card because 

you must enter them on Form W-2. Don't accept a social 

security card that says “Not valid for employment.” An 

SSN issued with this legend doesn't permit employment. 

You may, but aren't required to, photocopy the social security card if the employee provides it. If you don't show 

the employee's correct name and SSN on Form W-2, you 

may owe a penalty unless you have reasonable cause. 

See Pub. 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN.

Applying for a social security card. Any employee 

who is legally eligible to work in the United States and 

doesn't have a social security card can get one by completing Form SS-5 and submitting the necessary documentation to the SSA. You can get Form SS-5 at 

SSA.gov/forms/ss-5.pdf, at SSA offices, or by calling 

800-772-1213 or 800-325-0778 (TTY). The employee 

must complete and sign Form SS-5; it can't be filed by the 

employer. You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded their 

yearly or lifetime limit for the number of replacement cards 

allowed.

Applying for an SSN. If you file Form W-2 on paper and 

your employee has applied for an SSN but doesn't have 

one when you must file Form W-2, enter “Applied For” on 

the form. If you’re filing electronically, enter all zeros 

(000-00-0000 if creating forms online or 000000000 if uploading a file) in the SSN field. When the employee receives the SSN, file Copy A of Form W-2c, Corrected 

Wage and Tax Statement, with the SSA to show the employee's SSN. Furnish Copies B, C, and 2 of Form W-2c 

to the employee. Up to 25 Forms W-2c for each Form 

W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no 

limit on the number of sessions. For more information, go 

to the SSA's Employer W-2 Filing Instructions & Information webpage at SSA.gov/employer. Advise your employee to correct the SSN on their original Form W-2.

Correctly record the employee's name and SSN. Record the name and SSN of each employee as they’re 

shown on the employee's social security card. If the employee's name isn't correct as shown on the card (for example, because of marriage or divorce), the employee 

should request an updated card from the SSA. Continue 

to report the employee's wages under the old name until 

the employee shows you an updated social security card 

with the corrected name.

If the SSA issues the employee an updated card after a 

name change, or a new card with a different SSN after a 

change in alien work status, file a Form W-2c to correct 

the name/SSN reported on the most recently filed Form 

W-2. It isn't necessary to correct other years if the previous name and SSN were used for years before the most 

recent Form W-2.

IRS individual taxpayer identification numbers 

(ITINs) for aliens. Don't accept an ITIN in place of an 

SSN for employee identification or for work. An ITIN is 

only available to resident and nonresident aliens who 

aren't eligible for U.S. employment and need identification 

for other tax purposes. You can identify an ITIN because 

it’s a nine-digit number, formatted like an SSN, that starts 

with the number “9” and has a range of numbers from “50–

65,” “70–88,” “90–92,” and “94–99” for the fourth and fifth 

digits (for example, 9NN-7N-NNNN). For more information about ITINs, see the Instructions for Form W-7 or go 

to IRS.gov/ITIN.

An individual with an ITIN who later becomes eligible to work in the United States must obtain an 

SSN. If the individual is currently eligible to work 

in the United States, instruct the individual to apply for an 

SSN and follow the instructions under Applying for an 

SSN, earlier. Don't use an ITIN in place of an SSN on 

Form W-2.

Verification of SSNs. Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify that an employee 

name matches an SSN for up to 10 names and SSNs (per 

screen) at a time, or submit an electronic file of up to 

250,000 names and SSNs and usually receive results the 

next business day. Go to SSA.gov/employer/ssnv.htm for 

more information. A person may have a valid SSN but not 

be authorized to work in the United States. Employers 

may use E-Verify at E-Verify.gov to confirm the employment eligibility of newly hired employees.

Registering for SSNVS. You must register online to 

use SSNVS. To register, go to the SSA's website at 

SSA.gov/bso and click on the Register link under Business Services Online. Follow the registration instructions 

to obtain a user identification (ID) and password. You will 

need to provide the following information about yourself 

and your company.

• Name.

• SSN.

• Date of birth.

• Type of employer.

• EIN.

• Company name, address, and telephone number.

• Email address.

When you have completed the online registration process, 

the SSA will mail a one-time activation code to you. You 

must enter the activation code online to use SSNVS. Your 

employees must receive authorization from you to use 

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Page 8 Publication 51 (2023)
SSNVS. If your employees register, the one-time activation code will be mailed to you.

2. Who Are Employees?

Generally, employees are defined either under common 

law or under statutes for certain situations. See Pub. 15-A 

for details on statutory employees and nonemployees.

Employee status under common law. Generally, a 

worker who performs services for you is your employee if 

you have the right to control what will be done and how it 

will be done. This is so even when you give the employee 

freedom of action. What matters is that you have the right 

to control the details of how the services are performed. 

See Pub. 15-A for more information on how to determine 

whether an individual providing services is an independent contractor or an employee.

If an employer-employee relationship exists, it doesn't 

matter what it is called. The employee may be called an 

agent or independent contractor. It also doesn't matter 

how payments are measured or paid, what they’re called, 

or if the employee works full or part time.

You’re responsible for withholding and paying employment taxes for your employees. You’re also required to file 

employment tax returns. These requirements don't apply 

to amounts that you pay to independent contractors. The 

rules discussed in this publication apply only to workers 

who are your employees.

In general, you’re an employer of farmworkers if your 

employees:

• Raise or harvest agricultural or horticultural products 

on your farm (including the raising and feeding of livestock);

• Work in connection with the operation, management, 

conservation, improvement, or maintenance of your 

farm and its tools and equipment, if the major part of 

such service is performed on a farm;

• Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane 

(also known as hurricane labor) if the major part of 

such service is performed on a farm;

• Handle, process, or package any agricultural or horticultural commodity in its unmanufactured state, if you 

produced over half of the commodity (for a group of 

up to 20 unincorporated operators, all of the commodity); or

• Do work for you related to cotton ginning, turpentine, 

gum resin products, or the operation and maintenance 

of irrigation facilities.

For this purpose, the term “farm” includes stock, dairy, 

poultry, fruit, fur-bearing animal, and truck farms, as well 

as plantations, ranches, nurseries, ranges, greenhouses 

or other similar structures used primarily for the raising of 

agricultural or horticultural commodities, and orchards.

Farmwork doesn't include reselling activities that don't 

involve any substantial activity of raising agricultural or 

horticultural commodities, such as a retail store or a 

greenhouse used primarily for display or storage. It also 

doesn't include processing services that change a commodity from its raw or natural state, or services performed 

after a commodity has been changed from its raw or natural state.

The table in section 12, How Do Employment Taxes 

Apply to Farmwork, distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations.

Crew Leaders

If you’re a crew leader, you’re an employer of farmworkers. A crew leader is a person who furnishes and pays (either on their own behalf or on behalf of the farm operator) 

workers to do farmwork for the farm operator. If there is no 

written agreement between you and the farm operator 

stating that you’re their employee and if you pay the workers (either for yourself or for the farm operator), then 

you’re a crew leader. For FUTA tax rules, see section 10.

If you're a crew leader, you're not considered the employee of the farm operator for services you perform in furnishing farmworkers and as a member of the crew.

Business Owned and Operated by 

Spouses

If you and your spouse jointly own and operate a farm or 

nonfarm business and share in the profits and losses, you 

may be partners in a partnership, whether or not you have 

a formal partnership agreement. See Pub. 541 for more 

details. The partnership is considered the employer of any 

employees and is liable for any employment taxes due on 

wages paid to its employees.

Exception—Qualified joint venture. For tax years beginning after 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a 

“qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. A qualified 

joint venture conducts a trade or business where:

• The only members of the joint venture are spouses 

who file a joint income tax return,

• Both spouses materially participate (see Material participation in the instructions for Schedule C (Form 

1040), line G) in the trade or business (mere joint ownership of property isn't enough),

• Both spouses elect to not be treated as a partnership, 

and

• The business is co-owned by both spouses and isn't 

held in the name of a state law entity such as a partnership or limited liability company (LLC).

To make the election, all items of income, gain, loss, 

deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on a separate Schedule C (Form 1040) 

Publication 51 (2023) Page 9
or Schedule F (Form 1040) as sole proprietors. Each 

spouse must also file a separate Schedule SE (Form 

1040) to pay self-employment taxes, as applicable.

Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally don't need an EIN. If employment taxes are owed by 

the qualified joint venture, either spouse may report and 

pay the employment taxes due on the wages paid to the 

employees using the EIN of that spouse's sole proprietorship. Generally, filing as a qualified joint venture won't increase the spouses' total tax owed on the joint income tax 

return. However, it gives each spouse credit for social security earnings on which retirement benefits are based 

and for Medicare coverage without filing a partnership return.

Note. If your spouse is your employee, not your partner, you must withhold and pay federal income, social security, and Medicare taxes for them. However, the wages 

aren’t subject to FUTA tax.

For more information on qualified joint ventures, go to 

IRS.gov/QJV.

Exception—Community income. If you and your 

spouse wholly own an unincorporated business as community property under the community property laws of a 

state, foreign country, or U.S. possession, you can treat 

the business either as a sole proprietorship (of the spouse 

who carried on the business) or a partnership. You may 

still make an election to be taxed as a qualified joint venture instead of a partnership. See Exception—Qualified 

joint venture, earlier in this section.

3. Wages and Other 

Compensation

Cash wages that you pay to employees for farmwork are 

generally subject to social security tax and Medicare tax. 

You may also be required to withhold, deposit, and report 

Additional Medicare Tax. See section 4 for more information. If the wages are subject to social security and Medicare taxes, they’re also subject to federal income tax withholding. You’re liable for the payment of these taxes to the 

federal government whether or not you collect them from 

your employees. If, for example, you withhold less than 

the correct tax from an employee's wages, you’re still liable for the full amount. You may also be liable for FUTA 

tax, which isn't withheld by you or paid by the employee. 

FUTA tax is discussed in section 10. Cash wages include 

checks, money orders, and any kind of money or cash.

For more information on what payments are considered 

taxable wages, see Pub. 15.

Noncash wages (including commodity wages). Noncash wages include food, lodging, clothing, transportation 

passes, farm products, or other goods or commodities. 

Noncash wages paid to farmworkers, including commodity wages, aren't subject to social security taxes, Medicare 

taxes, or federal income tax withholding. However, you 

and your employee can agree to have federal income tax 

withheld on noncash wages.

Noncash wages, including commodity wages, are treated as cash wages if the substance of the transaction is a 

cash payment. Noncash wages treated as cash wages 

are subject to social security taxes, Medicare taxes, and 

federal income tax withholding.

Report the value of noncash wages in box 1 of Form 

W-2 together with cash wages. Noncash wages for farmwork are subject to federal income tax unless a specific 

exclusion applies. Don't show noncash wages in box 3 or 

5 of Form W-2 (unless the substance of the transaction is 

a cash payment and they’re being treated as cash wages).

Other compensation. Pubs. 15-A and 15-B discuss 

other forms of compensation that may be taxable.

Family members. Generally, the wages that you pay to 

family members who are your employees are subject to 

social security and Medicare taxes, federal income tax 

withholding, and FUTA tax. However, certain exemptions 

may apply for your child, spouse, or parent. See the table, 

How Do Employment Taxes Apply to Farmwork, in

section 12.

Household employees. The wages of an employee who 

performs household services, such as a maid, babysitter, 

gardener, or cook, in your home aren't subject to social 

security and Medicare taxes if you pay that employee 

cash wages of less than $2,600 in 2023.

Social security and Medicare taxes don't apply to cash 

wages for housework in your private home if it was done 

by your spouse or your child under age 21. Nor do the 

taxes apply to housework done by your parent unless:

• You have a child (including an adopted child or stepchild) living in your home who is under age 18 or has a 

physical or mental condition that requires care by an 

adult for at least 4 continuous weeks in the calendar 

quarter services were performed; and

• You’re a widow or widower, or divorced and not remarried, or have a spouse in the home who, because 

of a physical or mental condition, can't care for your 

child for at least 4 continuous weeks in the calendar 

quarter services were performed.

For more information, see Pub. 926.

Wages for household work are generally not a deductible farm expense. See Nondeductible Pay in 

chapter 4 of Pub. 225 for more information.

Share farmers. You don't have to withhold or pay social 

security and Medicare taxes on amounts paid to share 

farmers under share-farming arrangements.

Compensation paid to H-2A visa holders. Report 

compensation of $600 or more paid to foreign agricultural 

workers who entered the country on H-2A visas in box 1 of 

Form W-2 but don't report it as social security wages 

(box 3) or Medicare wages (box 5) on Form W-2 because 

compensation paid to H-2A workers for agricultural labor 

CAUTION

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Page 10 Publication 51 (2023)
performed in connection with this visa isn't subject to social security and Medicare taxes. On Form W-2, don't 

check box 13 (Statutory employee), as H-2A workers 

aren't statutory employees.

An employer isn't required to withhold federal income 

tax from compensation paid to an H-2A worker for agricultural labor performed in connection with this visa but may 

withhold if the worker asks for withholding and the employer agrees. In that case, the worker must give the employer a completed Form W-4. Federal income tax withheld should be reported in box 2 of Form W-2.

These reporting rules apply when the H-2A worker provides their TIN to the employer. If the H-2A worker doesn't 

provide a TIN and the total annual wages to the H-2A 

worker are at least $600, the employer is required to 

backup withhold. See the Instructions for Forms 

1099-MISC and 1099-NEC and the Instructions for Form 

945.

For more information on foreign agricultural workers on 

H-2A visas, go to IRS.gov/H2A.

4. Social Security and 

Medicare Taxes

Generally, you must withhold social security and Medicare 

taxes on all cash wage payments that you make to your 

employees. You may also be required to withhold Additional Medicare Tax. For more information, see Additional 

Medicare Tax withholding, later.

The $150 Test or the $2,500 Test

All cash wages that you pay to an employee during the 

year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of 

the two tests below is met.

• You pay cash wages to an employee of $150 or more 

in a year for farmwork (count all cash wages paid on a 

time, piecework, or other basis). The $150 test applies 

separately to each farmworker that you employ. If you 

employ a family of workers, each member is treated 

separately. Don't count wages paid by other employers.

• The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during 

the year.

Exceptions. Annual cash wages of less than $150 you 

pay to a seasonal farmworker aren't subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more to all your farmworkers. However, these wages count toward the $2,500 test 

for determining whether other farmworkers' wages are 

subject to social security and Medicare taxes.

A seasonal farmworker is a worker who:

• Is employed in agriculture as a hand-harvest laborer,

• Is paid piece rates in an operation that is usually paid 

on a piece-rate basis in the region of employment,

• Commutes daily from their permanent home to the 

farm, and

• Had been employed in agriculture less than 13 weeks 

in the preceding calendar year.

Social Security and Medicare Tax 

Withholding

The tax rate for social security is 6.2% (amount withheld) 

each for the employer and employee (12.4% total). The 

social security wage base limit is $160,200. The tax rate 

for Medicare is 1.45% (amount withheld) each for the employee and employer (2.9% total). There is no wage base 

limit for Medicare tax; all covered wages are subject to 

Medicare tax.

Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. For details, see section 6 of Pub. 15-A.

Qualified sick leave wages and qualified family 

leave wages for leave taken after March 31, 2020, 

and before April 1, 2021, aren't subject to the employer share of social security tax; therefore, the tax rate 

on these wages is 6.2%. Qualified sick leave wages and 

qualified family leave wages for leave taken after March 

31, 2021, and before October 1, 2021, are subject to both 

the employer share (6.2%) and employee share (6.2%) of 

social security tax (12.4% total).

For purposes of this publication, all references to 

“sick pay” mean ordinary sick pay, not “qualified 

sick leave wages” under the FFCRA, as amended 

by the COVID-related Tax Relief Act of 2020, and the 

ARP.

Additional Medicare Tax withholding. In addition to 

withholding Medicare tax at 1.45%, you must withhold a 

0.9% Additional Medicare Tax from wages you pay to an 

employee in excess of $200,000 in a calendar year. 

You’re required to begin withholding Additional Medicare 

Tax in the pay period in which you pay wages in excess of 

$200,000 to an employee and continue to withhold it each 

pay period until the end of the calendar year. Additional 

Medicare Tax is only imposed on the employee. There is 

no employer share of Additional Medicare Tax. All wages 

that are subject to Medicare tax are subject to Additional 

Medicare Tax withholding if paid in excess of the 

$200,000 withholding threshold.

For more information on what wages are subject to 

Medicare tax, see the chart, Special Rules for Various 

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

15. For more information on Additional Medicare Tax, go 

to IRS.gov/ADMTfaqs.

Employee share paid by employer. If you would rather 

pay a household or agricultural employee's share of the 

social security and Medicare taxes without withholding 

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Publication 51 (2023) Page 11
them from the employee’s wages, you may do so. If you 

don't withhold the taxes, however, you must still pay them 

on behalf of the employee. Any employee social security 

and Medicare taxes that you pay are additional income to 

the employee. Include it in box 1 of the employee's Form 

W-2, but don't count it as social security and Medicare 

wages and don't include it in boxes 3 and 5. Also, don't 

count the additional income as wages for FUTA tax purposes. Different rules apply to employer payments of social 

security and Medicare taxes for non-household and 

non-agricultural employees. See section 7 of Pub. 15-A.

Example. Gavrielle operates a small family fruit farm. 

Gavrielle employs day laborers in the picking season to allow Gavrielle time to get the crops to market. Gavrielle 

doesn't deduct the employees' share of social security 

and Medicare taxes from their pay; instead, Gavrielle pays 

it on their behalf. When Gavrielle prepares the employees' 

Forms W-2, Gavrielle adds each employee's share of social security and Medicare taxes that Gavrielle paid to the 

employee's wage income (box 1 of Form W-2), but 

doesn't include it in box 3 (social security wages) or box 5 

(Medicare wages and tips).

For 2022, Gavrielle paid Dan $1,000 during the year. 

Gavrielle enters $1,076.50 in box 1 of Dan's Form W-2 

($1,000 wages plus $76.50 social security and Medicare 

taxes paid for Dan). Gavrielle enters $1,000.00 in boxes 3 

and 5 of Dan's Form W-2.

Withholding social security and Medicare taxes on 

nonresident alien employees. In general, if you pay 

wages to nonresident alien employees, you must withhold 

social security and Medicare taxes as you would for a 

U.S. citizen or resident alien. However, see Pub. 515 for 

exceptions to this general rule. One such exception is for 

foreign agricultural workers on H-2A visas, who are exempt from social security and Medicare taxes. See Compensation paid to H-2A visa holders in section 3.

Religious exemption. An exemption from social security 

and Medicare taxes is available to members of a recognized religious sect opposed to insurance. This exemption 

is available only if both the employee and the employer 

are members of the sect. For more information, see Pub. 

517.

5. Federal Income Tax 

Withholding

Farm operators and crew leaders must withhold federal 

income tax from the wages of farmworkers if the wages 

are subject to social security and Medicare taxes. The 

amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, 

etc. You may use one of several methods to determine the 

amount of federal income tax withholding. They’re discussed in Pub. 15-T.

Redesigned Form W-4. The IRS redesigned Form W-4 

for 2020 and subsequent years. Before 2020, the value of 

a withholding allowance was tied to the amount of the personal exemption. Due to changes in the law, taxpayers 

can no longer claim personal exemptions or dependency 

exemptions; therefore, Form W-4 no longer asks an employee to report the number of withholding allowances 

that they are claiming. The revised Form W-4 is divided 

into five steps. Step 1 and Step 5 apply to all employees. 

In Step 1, employees enter personal information like their 

name and filing status. In Step 5, employees sign the 

form. Employees who complete only Step 1 and Step 5 

will have their withholding figured based on their filing status’s standard deduction and tax rates with no other adjustments. If applicable, in Step 2, employees increase 

their withholding to account for higher tax rates due to income from other jobs in their household. Under Step 2, 

employees either enter an additional amount to withhold 

per payroll period in Step 4(c) or check the box in Step 

2(c) for higher withholding rate tables to apply to their wages. In Step 3, employees decrease their withholding by 

reporting the annual amount of any credits they will claim 

on their income tax return. In Step 4, employees may increase or decrease their withholding based on the annual 

amount of other income or deductions they will report on 

their income tax return and they may also request any additional federal income tax they want withheld each pay 

period.

Employees who have submitted Form W-4 in any year 

before 2020 aren’t required to submit a new form merely 

because of the redesign. Employers will continue to figure 

withholding based on the information from the employee’s 

most recently submitted Form W-4. The withholding tables in Pub. 15-T allow employers to figure withholding 

based on a Form W-4 for 2019 or earlier, as well as the redesigned Form W-4. While you may ask your employees 

first paid wages before 2020 that have not yet submitted a 

redesigned Form W-4 to submit new Forms W-4 using the 

redesigned version of the form, you should explain to 

them that they’re not required to do this and if they don’t 

submit a new Form W-4, withholding will continue based 

on a valid Form W-4 previously submitted. All newly hired 

employees must use the redesigned form. Similarly, any 

other employees who wish to adjust their withholding must 

use the redesigned form.

Pub. 15-T provides an optional computational bridge to 

treat 2019 or earlier Forms W-4 as if they were 2020 or 

later Forms W-4 for purposes of figuring federal income 

tax withholding. This computational bridge allows you to 

use computational procedures and data fields for a 2020 

and later Form W-4 to arrive at the equivalent withholding 

for an employee that would have applied using the computational procedures and data fields on a 2019 or earlier 

Form W-4. See How To Treat 2019 and Earlier Forms 

W-4 as if They Were 2020 or Later Forms W-4 in the Introduction section of Pub. 15-T.

More information. For more information about the redesigned Form W‐4 and regulations that provide guidance 

for employers concerning income tax withholding from 

employees’ wages, see Treasury Decision 9924, 2020‐44 

I.R.B. 943, available at IRS.gov/irb/

2020-44_IRB#TD-9924. For information about Form W‐4, 

go to IRS.gov/FormW4. Employer instructions on how to 

Page 12 Publication 51 (2023)
figure employee withholding are provided in Pub. 15‐T, 

available at IRS.gov/Pub15T.

Using Form W-4 to figure withholding. To know how 

much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Encourage your employees to file an updated 

Form W-4 for 2023, especially if they owed taxes or received a large refund when filing their 2022 tax return.

Ask all new employees to give you a signed Form W-4 

when they start work. Make the form effective with the first 

wage payment. If a new employee doesn't give you a 

completed Form W-4 in 2023 (including an employee who 

previously worked for you and was rehired in 2023, and 

who fails to furnish a Form W-4), treat the new employee 

as if they had checked the box for Single or Married filing 

separately in Step 1(c) and made no entries in Step 2, 

Step 3, or Step 4 of the 2023 Form W-4. An employee 

who was paid wages before 2020 and who failed to furnish a Form W-4 should continue to be treated as single 

and claiming zero allowances on a 2019 Form W-4. If you 

use the optional computational bridge, described earlier 

under Redesigned Form W-4, you may treat this employee as if they had checked the box for Single or Married filing separately in Step 1(c), and made no entries in 

Step 2 and Step 3, an entry of $8,600 in Step 4(a), and an 

entry of zero in Step 4(b) of the 2023 Form W-4.

Form in Spanish. You can provide Formulario W-4(SP) 

in place of Form W-4 to your Spanish-speaking employees. For more information, see Pub. 17(SP). The rules 

discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP).

Electronic system to receive Form W-4. You may establish a system to electronically receive Forms W-4 from 

your employees. See Regulations section 31.3402(f)

(5)-1(c), Pub. 15-A, and Pub. 15-T for more information.

Effective date of Form W-4. A Form W-4 for 2022 or 

earlier years remains in effect for 2023 unless the employee gives you a 2023 Form W-4. When you receive a 

new Form W-4 from an employee, don't adjust withholding 

for pay periods before the effective date of the new form. If 

an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of 

the first payroll period ending on or after the 30th day from 

the date you received the replacement Form W-4. For exceptions, see Exemption from federal income tax withholding, IRS review of requested Forms W-4, and Invalid 

Forms W-4, later in this section.

A Form W-4 that makes a change for the next calendar year won't take effect in the current calendar year.

Completing Form W-4. The amount of any federal income tax withholding must be based on filing status, income (including income from other jobs), deductions, and 

credits. Your employees may not base their withholding 

amounts on a fixed dollar amount or percentage. However, an employee may specify a dollar amount to be withCAUTION

!

held each pay period in addition to the amount of withholding based on filing status and other information 

reported on Form W-4.

Employees that are married filing jointly and have spouses that also currently work, or employees that hold more 

than one job at the same time, should account for their 

higher tax rate by completing Step 2 of their 2023 Form 

W-4. Employees also have the option to report on their 

2023 Form W-4 other income they will receive that isn't 

subject to withholding and other deductions they will claim 

in order to increase the accuracy of their federal income 

tax withholding.

See Pub. 505 for more information about completing 

Form W-4. Along with Form W-4, you may wish to order 

Pub. 505 for use by your employees.

Don't accept any withholding or estimated tax payments from your employees in addition to withholding 

based on their Form W-4. If an employee wants additional 

withholding, they should submit a new Form W-4 and, if 

necessary, pay estimated tax by filing Form 1040-ES or 

by using EFTPS to make estimated tax payments.

Exemption from federal income tax withholding. 

Generally, an employee may claim exemption from federal income tax withholding because they had no federal 

income tax liability last year and expect none this year. 

See the Form W-4 instructions for more information. However, the wages are still subject to social security and 

Medicare taxes. See also Invalid Forms W-4, later in this 

section.

A Form W-4 claiming exemption from withholding is effective when it is given to the employer and only for that 

calendar year. To continue to be exempt from withholding, 

an employee must give you a new Form W-4 by February 

15. If the employee doesn't give you a new Form W-4 by 

February 15, begin withholding as if they had checked the 

box for Single or Married filing separately in Step 1(c) and 

made no entries in Step 2, Step 3, or Step 4 of the 2023 

Form W-4. If the employee provides a new Form W-4 

claiming exemption from withholding on February 16 or 

later, you may apply it to future wages but don't refund any 

taxes withheld while the exempt status wasn’t in place.

Withholding income taxes on the wages of nonresident alien employees. In general, you must withhold 

federal income taxes on the wages of nonresident alien 

employees. However, see Pub. 515 for exceptions to this 

general rule. Also see Compensation paid to H-2A visa 

workers in section 3.

Withholding adjustment for nonresident alien employees. Nonresident aliens may not claim the standard 

deduction on their tax return; therefore, employers must 

add an amount to the wages of nonresident alien employees performing services within the United States in order 

to figure the amount of federal income tax to withhold from 

their wages. The amount is added to their wages solely for 

calculating federal income tax withholding. The amount 

isn’t included in any box on the employee's Form W-2 and 

doesn’t increase the income tax liability of the employee. 

The amount also doesn't increase the social security tax 

or Medicare tax liability of the employer or the employee, 

Publication 51 (2023) Page 13
or the FUTA tax liability of the employer. See Withholding 

Adjustment for Nonresident Alien Employees in the Introduction section of Pub. 15-T for the amount to add to their 

wages for the payroll period.

Supplemental wage payment. The adjustment for 

determining the amount of federal income tax withholding 

for nonresident alien employees doesn't apply to a supplemental wage payment (see Supplemental wages, later 

in this section) if the 37% mandatory flat rate withholding 

applies or if the 22% optional flat rate withholding is being 

used to calculate income tax withholding on the supplemental wage payment.

Nonresident alien employee's Form W-4. When completing Forms W-4, nonresident aliens are required to:

• Not claim exemption from income tax withholding 

(even if they meet both of the conditions to claim exemption from withholding listed in the Form W-4 instructions);

• Request withholding as if they’re single, regardless of 

their actual filing status;

• Not claim the child tax credit or credit for other dependents in Step 3 of Form W-4 (if the nonresident 

alien is a resident of Canada, Mexico, or South Korea, 

or a student from India, or a business apprentice from 

India, they may claim, under certain circumstances 

(see Pub. 519), the child tax credit or credit for other 

dependents); and

• Write “Nonresident Alien” or “NRA” in the space below 

Step 4(c) of Form W-4.

If you maintain an electronic Form W-4 system, you 

should provide a field for nonresident aliens to enter nonresident alien status instead of writing “Nonresident Alien” 

or “NRA” in the space below Step 4(c) of Form W-4. You 

should instruct nonresident aliens to see Notice 1392, 

Supplemental Form W-4 Instructions for Nonresident Aliens, before completing Form W-4.

Form 8233. If a nonresident alien employee claims a 

tax treaty exemption from withholding, the employee must 

submit Form 8233 with respect to the income exempt under the treaty, instead of Form W-4. For more information, 

see the Instructions for Form 8233 and Pay for Personal 

Services Performed under Withholding on Specific Income in Pub. 515.

IRS review of requested Forms W-4. When requested 

by the IRS, you must make original Forms W-4 available 

for inspection by an IRS employee. You may also be directed to send certain Forms W-4 to the IRS. You may receive a notice from the IRS requiring you to submit a copy 

of Form W-4 for one or more of your named employees. 

Send the requested copy or copies of Form W-4 to the 

IRS at the address provided and in the manner directed 

by the notice. The IRS may also require you to submit 

copies of Form W-4 to the IRS as directed by a revenue 

procedure or notice published in the Internal Revenue 

Bulletin. When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation.

After submitting a copy of the requested Form W-4 to 

the IRS, continue to withhold federal income tax based on 

that Form W-4 if it is valid (see Invalid Forms W-4, later in 

this section). However, if the IRS later notifies you in writing that the employee isn't entitled to claim exemption 

from withholding or a claimed amount of deductions or 

credits, withhold federal income tax based on the effective 

date, employee's permitted filing status, and withholding 

instructions specified in the IRS notice (commonly referred to as a “lock-in letter”).

Initial lock-in letter. The IRS uses information reported on Form W-2 to identify employees with withholding 

compliance problems. In some cases, if a serious underwithholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer 

specifying the employee's permitted filing status and providing withholding instructions for the specific employee. 

You’ll also receive a copy for the employee that identifies 

the permitted filing status and provides a description of 

the withholding instructions you’re required to follow and 

the process by which the employee can provide additional 

information to the IRS for purposes of determining the appropriate withholding and/or modifying the specified filing 

status. You must furnish the employee copy to the employee within 10 business days of receipt if the employee 

is employed by you as of the date of the notice. You may 

follow any reasonable business practice to furnish the employee copy to the employee. Begin withholding based on 

the notice on the date specified in the notice.

Implementation of lock-in letter. When you receive 

the notice specifying the permitted filing status and providing withholding instructions, you may not withhold immediately on the basis of the notice. You must begin withholding tax on the basis of the notice for any wages paid after 

the date specified in the notice. The delay between your 

receipt of the notice and the date to begin the withholding 

on the basis of the notice permits the employee time to 

contact the IRS.

Seasonal employees and employees not currently 

performing services. If you receive a notice for an employee who isn't currently performing services for you, 

you’re still required to furnish the employee copy to the 

employee and withhold based on the notice if any of the 

following apply.

• You’re paying wages for the employee's prior services 

and the wages are subject to income tax withholding 

on or after the date specified in the notice.

• You reasonably expect the employee to resume services within 12 months of the date of the notice.

• The employee is on a leave of absence that doesn't 

exceed 12 months or the employee has a right to reemployment after the leave of absence.

Termination and rehire of employees. If you must 

furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, 

you must continue to withhold based on the notice if you 

continue to pay any wages subject to income tax withholding. You must also withhold based on the notice or 

Page 14 Publication 51 (2023)
modification notice (explained next) if the employee resumes the employment relationship with you within 12 

months after the termination of the employment relationship.

Modification notice. After issuing the notice specifying the permitted filing status and providing withholding instructions, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. The 

modification notice may change the permitted filing status 

and withholding instructions. You must withhold federal income tax based on the effective date specified in the 

modification notice.

New Form W-4 after IRS notice. After the IRS issues 

a notice or modification notice, if the employee provides 

you with a new Form W-4 claiming complete exemption 

from withholding or a completed Form W-4 that results in 

less withholding than would result under the IRS notice or 

modification notice, disregard the new Form W-4. You 

must withhold based on the notice or modification notice 

unless the IRS notifies you to withhold based on the new 

Form W-4. If the employee wants to put a new Form W-4 

into effect that results in less withholding than required, 

the employee must contact the IRS.

If, after you receive an IRS notice or modification notice, your employee gives you a new completed Form W-4 

that results in more withholding than would result under 

the notice or modification notice, you must withhold tax 

based on the new Form W-4. Otherwise, disregard any 

subsequent Forms W-4 provided by the employee and 

withhold based on the IRS notice or modification notice.

If, in a year before 2020, you received a lock-in 

letter for an employee, then for 2023 you should 

continue to follow the instructions in the lock-in 

letter. You will use the withholding methods described in 

Pub. 15-T for an employee with a Form W-4 from 2019 or 

earlier, or you may use the optional computational bridge 

to treat 2019 or earlier Forms W-4 as if they were 2020 or 

later Forms W-4 for purposes of figuring federal income 

tax withholding. See How To Treat 2019 and Earlier 

Forms W-4 as if They Were 2020 or Later Forms W-4 in 

the Introduction section of Pub. 15-T. You should continue 

following the instructions in the pre-2020 lock-in letter until 

you receive a letter releasing your employee from the 

lock-in procedures, you receive a modification notice, or 

your employee gives you a new Form W-4 that results in 

more withholding than would result under the notice.

For additional information about employer withholding 

compliance, see IRS.gov/WHC.

Substitute Forms W-4. You’re encouraged to have your 

employees use the official version of Form W-4. You may 

use a substitute version of Form W-4 to meet your business needs. However, your substitute Form W-4 must 

contain language that is identical to the official Form W-4 

and your form must meet all current IRS rules for substitute forms. At the time you provide your substitute form to 

the employee, you must provide them with all tables, instructions, and worksheets from the current Form W-4.

CAUTION

!

You can't accept substitute Forms W-4 developed by 

employees. An employee who submits an employee-developed substitute Form W-4 after October 10, 2007, will 

be treated as failing to furnish a Form W-4. However, continue to honor any valid employee-developed Forms W-4 

you accepted before October 11, 2007.

Invalid Forms W-4. Any unauthorized change or addition to Form W-4 makes it invalid. This includes taking out 

any language by which the employee certifies the form is 

correct. A Form W-4 is also invalid if, by the date an employee gives it to you, they clearly indicate it is false. An 

employee who submits a false Form W-4 may be subject 

to a $500 penalty. You may treat a Form W-4 as invalid if 

the employee wrote “exempt” below Step 4(c) and 

checked the box in Step 2(c) or entered numbers for 

Steps 3 and 4.

When you get an invalid Form W-4, don't use it to figure 

federal income tax withholding. Tell the employee it is invalid and ask for another one. If the employee doesn't give 

you a valid one, and you have an earlier Form W-4 for this 

employee that is valid, withhold as you did before. If you 

don't have an earlier Form W-4 that is valid, withhold tax 

as if the employee had checked the box for Single or Married filing separately in Step 1(c) and made no entries in 

Step 2, Step 3, or Step 4 of the 2023 Form W-4. However, 

an employee who was paid wages in 2019 who never 

submitted a valid Form W-4 and submits an invalid Form 

W-4 in 2023 should continue to be treated as single and 

claiming zero allowances on a 2019 Form W-4. If you use 

the optional computational bridge, described earlier under 

Redesigned Form W-4, you may treat this employee as if 

they had checked the box for Single or Married filing separately in Step 1(c), and made no entries in Step 2 and 

Step 3, an entry of $8,600 in Step 4(a), and an entry of 

zero in Step 4(b) of the 2023 Form W-4.

Amounts exempt from levy on wages, salary, and 

other income. If you receive a Notice of Levy on Wages, 

Salary, and Other Income (Forms 668-W(ACS), 668-W(c)

(DO), or 668-W(ICS)), you must withhold amounts as described in the instructions for these forms. Pub. 1494 has 

tables to figure the amount exempt from levy. If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, 

use the current year Pub. 1494 to figure the exempt 

amount.

How To Figure Federal Income Tax 

Withholding

There are several ways to figure federal income tax withholding; see Pub. 15-T for more information. If an employee wants additional federal income tax withheld, have 

the employee show the extra amount on Form W-4.

Supplemental wages. Supplemental wages are wage 

payments to an employee that aren't regular wages. They 

include, but aren't limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay 

Publication 51 (2023) Page 15
increases, and payments for nondeductible moving expenses. However, employers have the option to treat 

overtime pay as regular wages instead of supplemental 

wages. Other payments subject to the supplemental wage 

rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. How you withhold 

on supplemental wages depends on whether the supplemental payment is identified as a separate payment from 

regular wages. See Regulations section 31.3402(g)-1 for 

additional guidance. Also see Revenue Ruling 2008-29, 

2008-24 I.R.B. 1149, available at IRS.gov/irb/

2008-24_IRB#RR-2008-29.

If you pay supplemental wages with regular wages but 

don't specify the amount of each, withhold federal income 

tax as if the total was a single payment for a regular payroll period.

If you pay supplemental wages separately (or combine 

them in a single payment and specify the amount of 

each), the federal income tax withholding method depends partly on whether you withhold federal income tax 

from your employee's regular wages.

1. If you withheld federal income tax from an employee's 

regular wages in the current or immediately preceding 

calendar year, you can use one of the following methods for the supplemental wages.

a. Withhold a flat 22% (no other percentage allowed).

b. If the supplemental wages are paid concurrently 

with regular wages, add the supplemental wages 

to the concurrently paid regular wages and withhold federal income tax as if the total were a single 

payment for a regular payroll period. If there are 

no concurrently paid regular wages, add the supplemental wages to, alternatively, either the regular wages paid or to be paid for the current payroll 

period or the regular wages paid for the preceding 

payroll period. Figure the income tax withholding 

as if the total of the regular wages and supplemental wages is a single payment. Subtract the tax already withheld or to be withheld from the regular 

wages. Withhold the remaining tax from the supplemental wages. If there were other payments of 

supplemental wages paid during the payroll period 

made before the current payment of supplemental 

wages, aggregate all the payments of supplemental wages paid during the payroll period with the 

regular wages paid during the payroll period, figure the tax on the total, subtract the tax already 

withheld from the regular wages and previous 

supplemental wage payments, and withhold the 

remaining tax.

2. If you didn't withhold federal income tax from the employee's regular wages in the current or immediately 

preceding calendar year, use method 1b.

Separate rules apply to any supplemental wages 

exceeding $1 million that you pay to an individual 

during the year. See section 7 of Pub. 15 for details.

CAUTION

!

Regardless of the method you use to withhold federal 

income tax on supplemental wages, they’re subject to social security, Medicare, and FUTA taxes.

6. Required Notice to 

Employees About the Earned 

Income Credit (EIC)

You must notify employees who have no federal income 

tax withheld that they may be able to claim a tax refund 

because of the EIC. Although you don't have to notify employees who claim exemption from withholding on Form 

W-4 about the EIC, you’re encouraged to notify any employees whose wages for 2022 were less than $53,057 

($59,187 if married filing jointly) that they may be eligible 

to claim the credit for 2022. This is because eligible employees may get a refund of the amount of the EIC that is 

more than the tax they owe.

You’ll meet the notification requirement if you issue the 

employee Form W-2 with the EIC notice on the back of 

Copy B, or a substitute Form W-2 with the same statement. You may also meet the requirement by providing 

Notice 797, Possible Federal Tax Refund Due to the 

Earned Income Credit (EIC), or your own statement that 

contains the same wording.

If a substitute Form W-2 is given to the employee on 

time but doesn't have the required statement, you must 

notify the employee within 1 week of the date the substitute Form W-2 is given. If Form W-2 is required but isn't 

given on time, you must give the employee Notice 797 or 

your written statement by the date Form W-2 is required to 

be given. If Form W-2 isn't required, you must notify the 

employee by February 7, 2023.

7. Depositing Taxes

If an employer is eligible to claim a credit for qualified sick and family leave wages during 2023, the 

employer can reduce their deposits by the 

amount of their anticipated credit. Employers won't be 

subject to a failure-to-deposit (FTD) penalty for properly 

reducing their deposits if certain conditions are met. For 

more information on reducing deposits, see Notice 

2020-22, 2020-17 I.R.B. 664, available at IRS.gov/irb/

2020-17_IRB#NOT-2020-22; Notice 2021-24, 2021-18 

I.R.B. 1122, available at IRS.gov/irb/

2021-18_IRB#NOT-2021-24; and the Instructions for 

Form 943. For more information about the credit for qualified sick and family leave wages, go to IRS.gov/PLC.

Generally, you must deposit federal income tax withheld and both the employer and employee social security 

and Medicare taxes. You must use EFT to make all federal tax deposits. See How To Deposit, later in this section, for information on electronic deposit requirements.

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Page 16 Publication 51 (2023)
Payment with return. You may make payments with 

Form 943 or 945 instead of depositing, without incurring a 

penalty, if one of the following applies.

• You report less than a $2,500 tax liability for the year 

(Form 943, line 13; Form 945, line 3) and you pay in 

full with a return that is filed on time. However, if you’re 

unsure that you will report less than $2,500, deposit 

under the rules explained in this section so that you 

won't be subject to an FTD penalty.

• You’re a monthly schedule depositor (defined later) 

and make a payment in accordance with the Accuracy 

of Deposits Rule, discussed later in this section. This 

payment may be $2,500 or more.

Only monthly schedule depositors are allowed to 

make an Accuracy of Deposits Rule payment with 

the return. Semiweekly schedule depositors must 

timely deposit the amount by the shortfall makeup date. 

See Accuracy of Deposits Rule and How To Deposit, later 

in this section.

When To Deposit

If you employ both farm and nonfarm workers, 

don't combine the taxes reportable on Forms 941 

or 944 with Form 943 to decide whether to make 

a deposit. See Employers of Both Farm and Nonfarm 

Workers, later in this section.

The rules for determining when to deposit Form 943 

taxes are discussed next. See section 10 for the separate 

rules that apply to FUTA tax. Under these rules, you’re 

classified as either a monthly schedule depositor or a 

semiweekly schedule depositor.

The terms “monthly schedule depositor” and “semiweekly schedule depositor” don't refer to how often your 

business pays its employees or how often you’re required 

to make deposits. The terms identify which set of deposit 

rules you must follow when you incur a tax liability (for example, when you have a payday).

The deposit schedule that you must use for a calendar 

year is determined from the total tax liability reported on 

your Form 943, line 13, for the lookback period, discussed 

next.

• If you reported $50,000 or less of Form 943 taxes for 

the lookback period, you’re a monthly schedule depositor.

• If you reported more than $50,000 of Form 943 taxes 

for the lookback period, you’re a semiweekly schedule 

depositor.

Your total tax liability for the lookback period is 

determined based on the amount of taxes you reported on Form 943, line 13. Your total liability 

isn’t reduced by the refundable portion of the credit for 

qualified sick and family leave wages, the refundable portion of the employee retention credit, or the refundable 

portion of the COBRA premium assistance credit. For 

more information about these credits, see the instructions 

CAUTION

!

CAUTION

!

TIP

for your employment tax return that were applicable during 

the lookback period.

Lookback period. The lookback period is the second 

calendar year preceding the current calendar year. For 

example, the lookback period for 2023 is 2021.

Example of deposit schedule based on lookback 

period. Rose Co. reported taxes on Form 943 as follows.

2021—$48,000

2022—$60,000

Rose Co. is a monthly schedule depositor for 2023 because its taxes for the lookback period ($48,000 for calendar year 2021) weren't more than $50,000. However, for 

2024, Rose Co. will be a semiweekly schedule depositor 

because the total taxes before adjustment for its lookback 

period ($60,000 for calendar year 2022) exceeded 

$50,000.

Adjustments to lookback period taxes. To determine your taxes for the lookback period, use only the tax 

that you reported on the original return (Form 943, 

line 13). Don't include adjustments shown on Form 943-X.

Example of adjustments. An employer originally reported total tax of $45,000 for the lookback period. The 

employer discovered during March 2023 that the tax reported for the lookback period was understated by 

$10,000 and corrected this error by filing Form 943-X. The 

total tax reported in the lookback period is still $45,000. 

The $10,000 adjustment is also not treated as part of the 

2023 taxes.

Deposit period. The term “deposit period” refers to the 

period during which tax liabilities are accumulated for 

each required deposit due date. For monthly schedule depositors, the deposit period is a calendar month. The deposit periods for semiweekly schedule depositors are 

Wednesday through Friday and Saturday through Tuesday.

If you're an agent with an approved Form 2678, 

the deposit rules apply to you based on the total 

employment taxes accumulated by you for your 

own employees and on behalf of all employers for whom 

you're authorized to act. For more information on an agent 

with an approved Form 2678, see Revenue Procedure 

2013-39, 2013-52 I.R.B. 830, available at IRS.gov/irb/

2013-52_IRB#RP-2013-39.

Monthly Deposit Schedule

If the tax liability reported on Form 943, line 13, for the 

lookback period is $50,000 or less, you’re a monthly 

schedule depositor for the current year. You must deposit 

Form 943 taxes on wage payments made during a calendar month by the 15th day of the following month.

Monthly schedule example. Spruce Co. is a monthly 

schedule depositor with seasonal employees. It paid wages each Friday during May but didn't pay any wages 

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Publication 51 (2023) Page 17
during June. Under the monthly deposit schedule, Spruce 

Co. must deposit the combined tax liabilities for the May 

paydays by June 15. Spruce Co. doesn't have a deposit 

requirement for June (due by July 15) because no wages 

were paid and, therefore, it didn't have a tax liability for 

June.

New employers. For agricultural employers, your tax liability for any year in the lookback period before the date 

you started or acquired your business is considered to be 

zero. Therefore, you’re a monthly schedule depositor for 

the first and second calendar years of your agricultural 

business (but see $100,000 Next-Day Deposit Rule, later 

in this section).

Semiweekly Deposit Schedule

You’re a semiweekly schedule depositor for a calendar 

year if the tax liability on Form 943, line 13, during your 

lookback period was more than $50,000. Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by 

the following Wednesday. Deposit taxes for payments 

made on Saturday, Sunday, Monday, and/or Tuesday by 

the following Friday. See also Deposits Due on Business 

Days Only, later in this section.

Semiweekly schedule depositors aren't required to deposit twice a week if their payments were in the same 

semiweekly period unless the $100,000 next-day deposit 

rule (discussed later in this section) applies. For example, 

if you made a payment on both Wednesday and Friday 

and incurred taxes of $10,000 for each pay date, deposit 

the $20,000 by the following Wednesday. If you made no 

additional payments on Saturday through Tuesday, no deposit is due on Friday.

Semiweekly schedule depositors must complete 

Form 943-A, Agricultural Employer's Record of 

Federal Tax Liability, and submit it with Form 943.

Semiweekly Deposit Schedule

IF the payday falls on a... THEN deposit taxes by

the following...

Wednesday, Thursday, and/or 

Friday

 Wednesday.

Saturday, Sunday, Monday, 

and/or Tuesday

 Friday.

Semiweekly schedule example. Green, Inc., is a semiweekly schedule depositor and pays wages once each 

month on the last Friday of the month. Green, Inc., will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. Green, 

Inc.'s tax liability for the April 28, 2023 (Friday), wage payment must be deposited by May 3, 2023 (Wednesday).

Semiweekly deposit period spanning two return periods. The period covered by a return is the return period. 

CAUTION

!

The return period for Form 943 is a calendar year. If you 

have more than one pay date during a semiweekly period 

and the pay dates fall in different return periods, you’ll 

need to make separate deposits for the separate liabilities. For example, if a return period ends on Thursday, 

taxes accumulated on Wednesday and Thursday are subject to one deposit obligation, and taxes accumulated on 

Friday are subject to a separate obligation. Separate deposits are required because two different return periods 

are affected.

Deposits Due on Business Days Only

If a deposit is required to be made on a day that isn't a 

business day, the deposit is considered timely if it is made 

by the close of the next business day. A business day is 

any day other than a Saturday, Sunday, or legal holiday. 

For example, if a deposit is required to be made on a Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day).

Semiweekly schedule depositors have at least 3 

business days following the close of the semiweekly period to make a deposit. If any of the 3 weekdays after the 

end of a semiweekly period is a legal holiday, you’ll have 

an additional day for each day that is a legal holiday to 

make the required deposit. For example, if a semiweekly 

schedule depositor accumulated taxes for payments 

made on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be 

made on Thursday (this allows 3 business days to make 

the deposit).

Legal holiday. The term “legal holiday” means any legal 

holiday in the District of Columbia. For purposes of the deposit rules, the term "legal holiday" doesn't include other 

statewide legal holidays. Legal holidays for 2023 are listed 

below.

• January 2, 2023—New Year's Day (observed)

• January 16—Birthday of Martin Luther King, Jr.

• February 20—Washington's Birthday

• April 17—District of Columbia Emancipation Day (observed)

• May 29—Memorial Day

• June 19—Juneteenth National Independence Day

• July 4—Independence Day

• September 4—Labor Day

• October 9—Columbus Day

• November 10—Veterans Day (observed)

• November 23—Thanksgiving Day

• December 25—Christmas Day

$100,000 Next-Day Deposit Rule

If you accumulate $100,000 or more in taxes on any day 

during a monthly or semiweekly deposit period (see 

Page 18 Publication 51 (2023)
Deposit period, earlier in this section), you must deposit 

the tax by the next business day, whether you’re a 

monthly or semiweekly schedule depositor.

For purposes of the $100,000 rule, don't continue accumulating a tax liability after the end of a deposit period. 

For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a 

$10,000 liability on Wednesday, the $100,000 next-day 

deposit rule doesn't apply because the $10,000 is accumulated in the next deposit period. Thus, $95,000 must be 

deposited by Friday and $10,000 must be deposited by 

the following Wednesday.

However, once you accumulate at least $100,000 in a 

deposit period, stop accumulating at the end of that day 

and begin to accumulate anew on the next day. For example, Fir Co. is a semiweekly schedule depositor. On Monday, Fir Co. accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. On 

Tuesday, Fir Co. accumulates additional taxes of 

$30,000. Because the $30,000 isn't added to the previous 

$110,000 and is less than $100,000, Fir Co. must deposit 

the $30,000 by Friday (following the semiweekly deposit 

schedule).

If you’re a monthly schedule depositor and accumulate a $100,000 tax liability on any day of a calendar month, you become a semiweekly schedule depositor on the next day and remain so for at least 

the rest of the calendar year and for the following calendar 

year.

Example of the $100,000 next-day deposit rule. Elm, 

Inc., started its business on May 1, 2023. Because Elm, 

Inc., is a new employer, the tax liability for its lookback period is considered to be zero; therefore, Elm, Inc., is a 

monthly schedule depositor. On Wednesday, May 3, Elm, 

Inc., paid wages for the first time and accumulated a tax 

liability of $50,000. On Friday, May 5, Elm, Inc., paid wages and accumulated a liability of $60,000, for a total of 

$110,000. Because Elm, Inc., accumulated $110,000 on 

May 5, it must deposit $110,000 by Monday, May 8, the 

next business day. Elm, Inc., became a semiweekly 

schedule depositor on May 6. It will be a semiweekly 

schedule depositor for the remainder of 2023 and for 

2024.

The $100,000 tax liability threshold requiring a 

next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits. For more information, see frequently asked 

question 17 at IRS.gov/ETD.

Accuracy of Deposits Rule

You’re required to deposit 100% of your tax liability on or 

before the deposit due date. However, penalties won't be 

applied for depositing less than 100% if both of the following conditions are met.

CAUTION

!

TIP

1. Any deposit shortfall doesn't exceed the greater of 

$100 or 2% of the amount of taxes otherwise required 

to be deposited.

2. The deposit shortfall is paid or deposited by the shortfall makeup date as described next.

Makeup Date for Deposit Shortfall: 

• Monthly schedule depositor—Deposit the shortfall 

or pay it with your return by the due date of your Form 

943. You may pay the shortfall with your Form 943 

even if the amount is $2,500 or more.

• Semiweekly schedule depositor—Deposit by the 

earlier of (a) the first Wednesday or Friday (whichever 

comes first) that falls on or after the 15th day of the 

month following the month in which the shortfall occurred, or (b) the due date for Form 943.

For example, if a semiweekly schedule depositor has a 

deposit shortfall during May 2023, the shortfall makeup 

date is June 16, 2023 (Friday). However, if the shortfall 

occurred on the required January 4, 2023, deposit due 

date for a December 29, 2022 (Thursday), pay date, the 

Form 943 due date (January 31, 2023) for the return period would come before the February 15, 2023 (Wednesday), shortfall makeup date. In this case, the shortfall must 

be deposited by January 31, 2023.

How To Deposit

You must deposit employment taxes by EFT. See Payment with return, earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited.

Electronic deposit requirement. You must use EFT to 

make all federal tax deposits. Generally, an EFT is made 

using EFTPS. If you don't want to use EFTPS, you can arrange for your tax professional, financial institution, payroll 

service, or other trusted third party to make electronic deposits on your behalf. EFTPS is a free service provided by 

the Department of the Treasury. To get more information 

or to enroll in EFTPS, go to EFTPS.gov or call 

800-555-4477. To contact EFTPS using TRS for people 

who are deaf, hard of hearing, or have a speech disability, 

dial 711 and then provide the TRS assistant the 

800-555-4477 number above or 800-733-4829. Additional 

information about EFTPS is also available in Pub. 966.

New employers that have a federal tax obligation will 

be pre-enrolled in EFTPS. Call the toll-free number located in your EIN Package to activate your enrollment and 

begin making your tax deposit payments. See When you 

receive your EIN in section 1 for more information.

Deposit record. For your records, an EFT Trace 

Number will be provided with each successful payment. 

The number can be used as a receipt or to trace the payment.

Depositing on time. For deposits made by EFTPS to 

be on time, you must submit the deposit by 8 p.m. Eastern 

time the day before the date a deposit is due. If you use a 

Publication 51 (2023) Page 19
third party to make a deposit on your behalf, they may 

have different cutoff times.

Same-day wire payment option. If you fail to submit 

a deposit transaction on EFTPS by 8 p.m. Eastern time 

the day before the date a deposit is due, you can still 

make your deposit on time by using the Federal Tax Collection Service (FTCS) to make a same-day wire payment. To use the same-day wire payment method, you’ll 

need to make arrangements with your financial institution 

ahead of time. Check with your financial institution regarding availability, deadlines, and costs. Your financial institution may charge you a fee for payments made this way. 

To learn more about the information you’ll need to give 

your financial institution to make a same-day wire payment, go to IRS.gov/SameDayWire.

Deposit Penalties

Penalties may apply if you don't make required deposits 

on time or if you make deposits for less than the required 

amount. The penalties don't apply if any failure to make a 

proper and timely deposit was due to reasonable cause 

and not to willful neglect. If you receive a penalty notice, 

you can provide an explanation of why you believe reasonable cause exists.

If you timely filed your employment tax return, the IRS 

may waive deposit penalties if you inadvertently failed to 

deposit and it was the first quarter that you were required 

to deposit any employment tax, or if you inadvertently 

failed to deposit the first time after your deposit frequency 

changed. You must also meet the net worth and size limitations applicable to awards of administrative and litigation costs under section 7430; for individuals, this means 

that your net worth can't exceed $2 million, and for businesses, your net worth can't exceed $7 million and you 

also can't have more than 500 employees.

The IRS may also waive the deposit penalty the first 

time you’re required to make a deposit if you inadvertently 

send the payment to the IRS rather than deposit it by EFT.

For amounts not properly or timely deposited, the penalty rates are as follows.

Penalty Charged for...

2% Deposits made 1 to 5 days late.

5% Deposits made 6 to 15 days late.

10% Deposits made 16 or more days late, but before 10 days 

from the date of the first notice the IRS sent asking for the 

tax due.

10% Amounts that should have been deposited, but instead 

were paid directly to the IRS or paid with your tax return. 

See Payment with return, earlier in this section, for 

exceptions.

15% Amounts still unpaid more than 10 days after the date of 

the first notice the IRS sent asking for the tax due or the 

day on which you received notice and demand for 

immediate payment, whichever is earlier.

Late deposit penalty amounts are determined using 

calendar days, starting from the due date of the liability.

Order in which deposits are applied. Deposits are 

generally applied to the most recent tax liability within the 

year. If you receive an FTD penalty notice, you may designate how your deposits are to be applied in order to minimize the amount of the penalty if you do so within 90 days 

of the date of the notice. Follow the instructions on the 

penalty notice that you receive. For more information on 

designating deposits, see Revenue Procedure 2001-58. 

You can find Revenue Procedure 2001-58 on page 579 of 

Internal Revenue Bulletin 2001-50 at IRS.gov/pub/irs-irbs/

irb01-50.pdf.

Example. Cedar, Inc., is required to make a deposit of 

$1,000 on May 15 and $1,500 on June 15. It doesn't make 

the deposit on May 15. On June 15, Cedar, Inc., deposits 

$2,000. Under the deposits rule, which applies deposits to 

the most recent tax liability, $1,500 of the deposit is applied to the June 15 deposit and the remaining $500 is applied to the May deposit. Accordingly, $500 of the May 15 

liability remains undeposited. The penalty on this underdeposit will apply as explained earlier.

Trust fund recovery penalty. If federal income, social 

security, or Medicare taxes that must be withheld (that is, 

trust fund taxes) aren't withheld or aren't deposited or paid 

to the U.S. Treasury, the trust fund recovery penalty may 

apply. The penalty is 100% of the unpaid trust fund tax. If 

these unpaid taxes can't be immediately collected from 

the employer or business, the trust fund recovery penalty 

may be imposed on all persons who are determined by 

the IRS to be responsible for collecting, accounting for, or 

paying over these taxes, and who acted willfully in not doing so. The trust fund recovery penalty won't apply to any 

amount of trust fund taxes an employer holds back in anticipation of any credits they are entitled to.

A responsible person can be an officer or employee 

of a corporation, a partner or employee of a partnership, 

an accountant, a volunteer director/trustee, or an employee of a sole proprietorship. A responsible person may 

also include one who signs checks for the business or otherwise has authority to cause the spending of business 

funds.

Willfully means voluntarily, consciously, and intentionally. A responsible person acts willfully if the person 

knows that the required actions of collecting, accounting 

for, or paying over trust fund taxes aren't taking place, or 

recklessly disregards obvious and known risks to the government's right to receive trust fund taxes.

“Averaged” FTD penalty. The IRS may assess an 

“averaged” FTD penalty of 2% to 10% if you’re a monthly 

schedule depositor and didn't properly complete Form 

943, line 17, when your tax liability shown on Form 943, 

line 13, equaled or exceeded $2,500.

The IRS may also assess an “averaged” FTD penalty of 

2% to 10% if you’re a semiweekly schedule depositor and 

your tax liability shown on Form 943, line 13, equaled or 

exceeded $2,500 and you:

• Completed Form 943, line 17, instead of

Form 943-A;

• Failed to attach a properly completed Form 943-A; or

Page 20 Publication 51 (2023)
• Improperly completed Form 943-A by, for example, 

entering tax deposits instead of tax liabilities in the 

numbered spaces.

The FTD penalty is figured by distributing your total tax 

liability shown on Form 943, line 13, equally throughout 

the tax period. Then, we apply your deposits and payments to the averaged liabilities in the date order we received your deposits. We figure the penalty on any tax not 

deposited, deposited late, or not deposited in the correct 

amounts. Your deposits and payments may not be counted as timely because the actual dates of your tax liabilities can't be accurately determined.

You can avoid an “averaged” FTD penalty by reviewing 

your return before filing it. Follow these steps before filing 

your Form 943.

• If you’re a monthly schedule depositor, report your tax 

liabilities (not your deposits) in the monthly entry 

spaces on Form 943, line 17.

• If you’re a semiweekly schedule depositor, report your 

tax liabilities (not your deposits) on Form 943-A on the 

lines that represent the dates your employees were 

paid.

• Verify that your total liability shown on Form 943, 

line 17, or Form 943-A, line M, equals your tax liability 

shown on Form 943, line 13.

• Don't show negative amounts on Form 943, line 17, or 

Form 943-A.

• For prior period errors, don't adjust your tax liabilities 

reported on Form 943, line 17, or on Form 943-A. Instead, file Form 943-X, as discussed in Prior Year Adjustments in section 9.

In addition to civil penalties, you may be subject 

to criminal prosecution (brought to trial) for willfully:

• Evading tax;

• Failing to collect or truthfully account for and pay over 

tax;

• Failing to file a return, supply information, or pay any 

tax due;

• Furnishing false or fraudulent Forms W-2 to employees or failing to furnish Forms W-2;

• Committing fraud and providing false statements;

• Preparing and filing a fraudulent return; or

• Committing identity theft.

Employers of Both Farm and Nonfarm 

Workers

If you employ both farm and nonfarm workers, you must 

treat employment taxes for the farmworkers (Form 943 

taxes) separately from employment taxes for the nonfarm 

workers (Form 941 and Form 944 taxes). Form 943 taxes 

and Form 941/944 taxes aren't combined for purposes of 

applying any of the deposit schedule rules. See 

CAUTION

!

Household employees, later, for the rules on household 

employment.

If a deposit is due, deposit the Form 941/944 taxes and 

the Form 943 taxes by making separate deposits. For example, if you’re a monthly schedule depositor for both 

Forms 941/944 and 943 taxes and your tax liability at the 

end of May is $1,500 reportable on Form 941/944 and 

$1,200 reportable on Form 943, deposit both amounts by 

June 15. Use one transaction to deposit the $1,500 of 

Form 941/944 taxes and another transaction to deposit 

the $1,200 of Form 943 taxes.

8. Form 943

You must file Form 943 for each calendar year beginning 

with the first year that you pay $2,500 or more for farmwork or you employ a farmworker who meets the $150 

test explained in section 4. Don't report these wages on 

Form 941 or Form 944.

Household employees. If you file Form 943 and pay wages to household workers, you may include the wages 

and taxes of these workers on Form 943. If you choose 

not to report these wages and taxes on Form 943, report 

the wages of these workers separately on Schedule H 

(Form 1040). You must have an EIN to file Schedule H 

(Form 1040). See section 1 for details. If you report the 

wages on Form 943, include the taxes when you figure 

deposit requirements or make deposits. If you include 

household employee wages and taxes on Schedule H 

(Form 1040), don't include the household employee taxes 

when you figure deposit requirements or make Form 943 

deposits. See Pub. 926 for more information about household workers.

If household employee wages and taxes are included 

on Form 943, you must also include FUTA tax for the employees on Form 940. See section 10 for more information.

Penalties. For each whole or part month a return isn't 

filed when required, there is a failure-to-file (FTF) penalty 

of 5% of the unpaid tax due with that return. The maximum 

penalty is generally 25% of the tax due. Also, for each 

whole or part month the tax is paid late, there is a failure-to-pay (FTP) penalty of 0.5% per month of the amount 

of tax. For individual filers only, the FTP penalty is reduced from 0.5% per month to 0.25% per month if an installment agreement is in effect. You must have filed your 

return on or before the due date of the return to qualify for 

the reduced penalty. The maximum amount of the FTP 

penalty is also 25% of the tax due. If both penalties apply 

in any month, the FTF penalty is reduced by the amount of 

the FTP penalty. The penalties won't be charged if you 

have reasonable cause for failing to file or pay. If you receive a penalty notice, you can provide an explanation of 

why you believe reasonable cause exists.

Note. In addition to any penalties, interest accrues from 

the due date of the tax on any unpaid balance.

If federal income, social security, or Medicare taxes 

that must be withheld aren't withheld or aren't paid, you 

Publication 51 (2023) Page 21
may be personally liable for the trust fund recovery penalty. See Trust fund recovery penalty in section 7.

Generally, the use of a third-party payer, such as a payroll service provider or reporting agent, doesn't relieve an 

employer of the responsibility to ensure tax returns are 

filed and all taxes are paid or deposited correctly and on 

time. See Outsourcing payroll duties, earlier, for more information.

9. Reporting Adjustments on 

Form 943

There are two types of adjustments: current year adjustments and prior year adjustments to correct errors. See 

the Instructions for Form 943 and the Instructions for Form 

943-X for more information on how to report these adjustments.

Current Year Adjustments

In certain cases, amounts reported as social security and 

Medicare taxes on Form 943, lines 3, 5, and 7, must be 

adjusted to arrive at your correct tax liability. The most 

common situation involves differences in cents totals due 

to rounding. Other situations when current year adjustments may be necessary include third-party sick pay, 

group-term life insurance for former employees, and the 

uncollected employee share of social security and Medicare taxes on tips. Current year adjustments are reported 

on Form 943, line 10. See section 13 of Pub. 15 for more 

information on these adjustments.

If you withhold an incorrect amount of federal income 

tax or Additional Medicare Tax from an employee, you 

may adjust the amount withheld in later pay periods during 

the same year to compensate for the error.

Prior Year Adjustments

If you discover an error on a previously filed Form 943, 

make the correction using Form 943-X. File a separate 

Form 943-X for each prior year you’re correcting. File 

Form 943-X separately. Don't attach Form 943-X to your 

current period Form 943. You must explain your error on 

Form 943-X, indicate when the error was discovered, and 

provide the applicable certifications.

When you discover that you underreported tax on a 

previously filed return, you must file Form 943-X no later 

than the due date of the return for the period during which 

you discovered the error. Pay the amount you owe by the 

time you file. For example, you discover on June 6, 2023, 

that you underreported $10,000 of social security and 

Medicare wages on your 2022 Form 943. You owe $1,530 

on the 2022 Form 943. To qualify for an interest-free adjustment, you must file Form 943-X by January 31, 2024, 

and pay $1,530 by the time you file. For more information, 

see the Instructions for Form 943-X or go to IRS.gov/

CorrectingEmploymentTaxes.

See Revenue Ruling 2009-39, 2009-52 I.R.B. 

951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. You can find Revenue Ruling 2009-39 at 

IRS.gov/irb/2009-52_IRB#RR-2009-39.

Form 843. Don't use Form 843 to request a refund or 

abatement of overreported social security or Medicare 

taxes. Instead, request your refund or abatement of taxes 

on Form 943-X. However, use Form 843 when requesting 

a refund or abatement of assessed interest or penalties.

Federal income tax and Additional Medicare Tax 

withholding adjustments. You can't adjust amounts reported as income tax or Additional Medicare Tax withheld 

in a prior calendar year, even if you withheld the wrong 

amount, unless it is to correct an administrative error or 

section 3509 applies. An administrative error occurs if the 

amount you entered on Form 943 isn’t the amount that 

you actually withheld. Examples include mathematical or 

transposition errors. The administrative error adjustment 

corrects the amount reported on Form 943 to agree with 

the amount actually withheld from employees.

If a prior year error was a nonadministrative error, you 

may correct only the wages subject to Additional Medicare Tax withholding.

See the Instructions for Form 943-X for more information about section 3509 and additional examples of administrative and nonadministrative errors.

Social security and Medicare tax adjustments. Correct prior year social security and Medicare tax errors by 

making an adjustment on Form 943-X.

If you withheld no tax or less than the correct amount, 

you may correct the mistake by withholding the tax from a 

later payment to the same employee.

If you withheld employee tax when no tax is due or if 

you withheld more than the correct amount, you must repay or reimburse the employee.

Collecting underwithheld taxes from employees. If 

you withheld no federal income, social security, or Medicare taxes or less than the correct amount from an employee's wages, you can make it up from later pay to that 

employee. But you’re the one who owes the underpayment. Reimbursement is a matter for settlement between 

you and the employee. Underwithheld federal income tax 

and Additional Medicare Tax must be recovered from the 

employee on or before the last day of the calendar year.

Refunding amounts incorrectly withheld from employees. If you withheld more than the correct amount of 

income, social security, or Medicare taxes from wages 

paid, repay or reimburse the employee the excess. Any 

excess income tax or Additional Medicare Tax withholding 

must be repaid or reimbursed to the employee before the 

end of the calendar year in which it was withheld. Keep in 

your records the employee's written receipt showing the 

date and amount of the repayment or record of reimbursement. If you didn't repay or reimburse the employee, you 

must report and pay each excess amount when you file 

Form 943 for the year in which you withheld too much tax.

TIP

Page 22 Publication 51 (2023)
Filing corrections to Forms W-2 and W-3. When adjustments are made to correct wages and social security 

and Medicare taxes because of a change in the wage totals reported for a previous year, you also need to file 

Form W-2c and Form W-3c. Forms W-2c may be created 

and submitted to the SSA over the Internet. For more information, go to the SSA's Employer W-2 Filing Instructions & Information website at SSA.gov/employer.

For additional information about the procedure for adjusting employment taxes, see the Instructions for Form 

943-X or go to IRS.gov/CorrectingEmploymentTaxes. 

Also see Treasury Decision 9405, 2008-32 I.R.B. 293, 

available at IRS.gov/irb/2008-32_IRB#TD-9405.

Note. Current period adjustments for fractions of cents, 

sick pay, and group-term life insurance are reported on 

your Form 943.

10. Federal Unemployment 

(FUTA) Tax

The Federal Unemployment Tax Act (FUTA), with state 

unemployment systems, provides for payments of unemployment compensation to workers who have lost their 

jobs. Most employers pay both a federal and a state unemployment tax. For a list of state unemployment agencies, go to the U.S. Department of Labor's website at 

oui.doleta.gov/unemploy/agencies.asp. Only the employer pays FUTA tax; it isn't withheld from the employees' wages. For more information, see the Instructions for 

Form 940.

For 2023, you must file Form 940 if you:

• Paid cash wages of $20,000 or more to farmworkers 

during any calendar quarter in 2022 or 2023, or

• Employed 10 or more farmworkers during at least 

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

during any 20 or more different weeks in 2022 or 20 or 

more different weeks in 2023.

To determine whether you meet either test above, you 

must count wages paid to aliens admitted on a temporary 

basis to the United States to perform farmwork, also 

known as H-2A visa workers. However, wages paid to 

H-2A visa workers aren't subject to the FUTA tax.

Generally, farmworkers supplied by a crew leader, as 

defined earlier in section 2, are considered employees of 

the farm operator for purposes of the FUTA tax unless (a) 

the crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act; or (b) substantially all of the workers supplied by the crew leader operate or maintain tractors, harvesting or crop-dusting 

machines, or other machines provided by the crew leader. 

Therefore, if (a) or (b) applies, the farmworkers are generally employees of the crew leader.

You must deposit FUTA tax by EFT. The deposit rules 

for FUTA tax are different from those for income, social 

security, and Medicare taxes. See Deposit rules for FUTA 

tax, later in this section.

FUTA tax rate. The FUTA tax rate is 6.0% for 2023. The 

tax applies to the first $7,000 you pay to each employee 

as wages during the year. The $7,000 is the federal wage 

base. Your state wage base may be different.

Generally, you can take a credit against your FUTA tax 

for amounts you paid into state unemployment funds. The 

credit may be as much as 5.4% of FUTA taxable wages. If 

you’re entitled to the maximum 5.4% credit, the FUTA tax 

rate after credit is 0.6%. You’re entitled to the maximum 

credit if you paid your state unemployment taxes in full, on 

time, and on all the same wages as are subject to FUTA 

tax, and as long as the state isn't determined to be a credit 

reduction state. See the Instructions for Form 940 to determine the credit.

In some states, the wages subject to state unemployment tax are the same as the wages subject to FUTA tax. 

However, certain states exclude some types of wages 

from state unemployment tax, even though they're subject 

to FUTA tax (for example, wages paid to corporate officers, certain payments of sick pay by unions, and certain 

fringe benefits). In such a case, you may be required to 

deposit more than 0.6% FUTA tax on those wages. See 

the Instructions for Form 940 for further guidance.

Successor employer. If you acquired a business from 

an employer who was liable for FUTA tax, you may be 

able to count the wages that employer paid to the employees who continue to work for you when you figure the 

$7,000 FUTA tax wage base. See the Instructions for 

Form 940.

Deposit rules for FUTA tax. For deposit purposes, figure FUTA tax quarterly. Determine your FUTA tax liability 

by multiplying the amount of taxable wages paid during 

the quarter by 0.6%. This amount may need to be adjusted, however, depending on your entitlement to the credit 

for state unemployment contributions. See the Instructions 

for Form 940. When an employee's wages reach $7,000 

for the calendar year, don't figure any additional FUTA tax 

for that employee.

If your total FUTA tax for the quarter (plus any undeposited FUTA tax from prior quarters) is more than $500, 

you must deposit the FUTA tax by EFT, as explained in 

section 7, by the last day of the month following the end of 

the quarter. If the amount is $500 or less, you don't have 

to deposit it, but you must add it to the amount of tax for 

the next quarter to determine whether a deposit is required for that quarter.

If your liability for the fourth quarter (plus any undeposited amount from any earlier quarter) is over $500, deposit 

the entire amount by the due date of Form 940 (January 

31). If it is $500 or less, you can make a deposit, pay the 

tax with a credit card or debit card, or pay the tax with a 

check or money order with your Form 940 by January 31. 

If you file Form 940 electronically, you can e-file and use 

EFW to pay the balance due. For more information on 

paying your taxes with a credit or debit card or using EFW, 

go to IRS.gov/Payments.

Filing Form 940. File your 2022 Form 940 by January 

31, 2023. If you make deposits on time in full payment of 

Publication 51 (2023) Page 23
the tax due for the year, you may file Form 940 by February 10.

11. Reconciling Wage 

Reporting Forms

When there are discrepancies between amounts reported 

on Form 943 filed with the IRS and Forms W-2 and W-3 

filed with the SSA, the IRS or the SSA may contact you to 

resolve the discrepancies.

Take the following actions to help reduce discrepancies.

1. Report bonuses as wages and as social security and 

Medicare wages on Forms W-2 and 943.

2. Report both social security and Medicare wages and 

taxes separately on Forms W-2, W-3, and 943.

3. Report the employee share of social security taxes on 

Form W-2 in the box for social security tax withheld 

(box 4), not as social security wages.

4. Report the employee share of Medicare taxes on 

Form W-2 in the box for Medicare tax withheld 

(box 6), not as Medicare wages.

5. Make sure that social security wages for each employee don't exceed the annual social security wage 

base limit ($160,200 for 2023).

6. Don't report noncash wages that aren't subject to social security or Medicare taxes, as discussed earlier in 

section 3, as social security or Medicare wages.

7. If you used an EIN on any Form 943 for the year that 

is different from the EIN reported on Form W-3, enter 

the other EIN on Form W-3 in the box for “Other EIN 

used this year” (box h).

8. Be sure the amounts on Form W-3 are the total of 

amounts from Forms W-2.

9. Reconcile Form W-3 with your Form 943 by comparing amounts reported for the following items.

a. Federal income tax withheld.

b. Social security and Medicare wages.

c. Social security and Medicare taxes. Generally, the 

amounts shown on Form 943, including current 

year adjustments, should be approximately twice 

the amounts shown on Form W-3 because Form 

943 reports both the employer and employee social security and Medicare taxes while Form W-3 

reports only the employee taxes.

Amounts reported on Forms W-2, W-3, and 943 may 

not match for valid reasons. For example, if you withheld 

any Additional Medicare Tax from your employee's wages, the amount of Medicare tax that is reported on Form 

943, line 5, won't be twice the amount of the Medicare tax 

withheld that is reported in box 6 of Form W-3 because 

the Additional Medicare Tax is only imposed on the employee; there is no employer share of Additional Medicare 

Tax. If they don't match, you should determine that the 

reasons are valid. Keep your reconciliation so that you’ll 

have a record of why amounts didn't match in case there 

are inquiries from the IRS or the SSA.

When reconciling Forms W-2 and W-3 to Form 

943, you should consider that qualified sick leave 

wages and qualified family leave wages for leave 

taken after March 31, 2020, and before April 1, 2021, 

aren't subject to the employer share of social security tax.

CAUTION

!

Page 24 Publication 51 (2023)
12. How Do Employment Taxes 

Apply to Farmwork?

Type of Employment

Income Tax Withholding, Social 

Security, and Medicare (including 

Additional Medicare Tax when 

wages are paid in excess of 

$200,000) Federal Unemployment Tax

Farm Employment Includes:

1. Cultivating soil; raising or harvesting any 

agricultural or horticultural commodity; the care 

of livestock, poultry, bees, fur-bearing animals, 

or wildlife on a farm. 

Taxable if $150 test or $2,500 test is 

met. See section 4.

Taxable if either test in section 10 is 

met.

2. Work on a farm if major farm duties are in 

management or maintenance, etc., of farm 

tools or equipment or salvaging timber, or 

clearing brush or other debris, left by hurricane.

3. Work in connection with the production and 

harvesting of turpentine and other oleoresinous 

products. 

4. Cotton ginning.

5. Operation or maintenance of ditches, 

reservoirs, canals, or waterways used only for 

supplying or storing water for farming purposes 

and not owned or operated for profit. 

6. Processing, packaging, etc., any commodity in 

its unmanufactured state if employed by farm 

operator who produced over half of commodity 

processed or by group of up to 20 

unincorporated farm operators if they produced 

all the commodity.* 

7. Hatching poultry on a farm. 

8. Production or harvesting of maple syrup on a 

farm.

Farm Employment Doesn't Include:

1. Handling or processing commodities after 

delivery to terminal market for commercial 

canning or freezing. 

Taxable under general employment 

rules. Farm rules don't apply.

Taxable under general FUTA rules. 

Farm rules don't apply.

2. Operation or maintenance of ditches, canals, 

reservoirs, or waterways not meeting tests in 

(5) above. 

3. Processing, packaging, delivering, etc., any 

commodity in its unmanufactured state if group 

of farm operators doesn't meet the tests in (6) 

above.

4. Household employment.

Special Employment Situations:

1. Services not in the course of employer's trade or 

business on farm operated for profit (cash 

payments only).

Taxable if $150 test or $2,500 test is 

met (see section 4), unless performed 

by parent employed by child.

Taxable only if $50 or more is paid in a 

quarter and employee works on 24 or 

more different days in current or prior 

quarter.

2. Workers admitted under section 101(a)(15)(H)

(ii)(a) of the Immigration and Nationality Act on a 

temporary basis to perform agricultural labor 

(H-2A workers).

Exempt. Exempt.

3. Family employment of a child if the farm is a 

sole proprietorship or a partnership in which 

each partner is a parent of the child.**

Exempt from social security and 

Medicare tax for employer's child 

under age 18, but counted for $150 

test or $2,500 test. The wages are 

subject to federal income tax 

withholding if they're subject to social 

security and Medicare taxes. 

Taxable for spouse of employer.

Exempt if services performed by 

employer's parent or spouse or by 

employer's child under age 21.

* For federal unemployment tax, farmwork includes workers employed by a group of operators if they produce more than one-half of the 

commodity.

** Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA 

taxes if they work for a corporation, even if it is controlled by you; a partnership, even if you’re a partner (this doesn't apply to wages paid to your 

child if each partner is a parent of the child); or an estate, even if it is the estate of a deceased parent. In these situations, the child or spouse is 

considered to work for the corporation, partnership, or estate, not you. 

Publication 51 (2023) Page 25
How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, 

forms, or instructions, go to IRS.gov to find resources that 

can help you right away.

Preparing and filing your tax return. Go to IRS.gov/

EmploymentEfile for more information on filing your employment tax returns electronically.

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax 

changes and interactive links to help you find answers 

to your questions.

• You may also be able to access tax law information in 

your electronic filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including enrolled 

agents, certified public accountants (CPAs), accountants, 

and many others who don’t have professional credentials. 

If you choose to have someone prepare your tax return, 

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the information required for the preparer to accurately prepare your 

return. Anyone paid to prepare tax returns for others 

should have a thorough understanding of tax matters. For 

more information on how to choose a tax preparer, go to 

Tips for Choosing a Tax Preparer on IRS.gov.

Coronavirus. Go to IRS.gov/Coronavirus for links to information on the impact of the coronavirus, as well as tax 

relief available for individuals and families, small and large 

businesses, and tax-exempt organizations.

Employers can register to use Business Services Online. The SSA offers online service at SSA.gov/employer 

for fast, free, and secure online W-2 filing options to 

CPAs, accountants, enrolled agents, and individuals who 

process Form W-2 and Form W-2c.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are 

our highest priority. We use these tools to share public information with you. Don’t post your social security number 

(SSN) or other confidential information on social media 

sites. Always protect your identity when using any social 

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter (OPI) Service. The 

IRS is committed to serving our multilingual customers by 

offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance 

Centers (TACs), other IRS offices, and every VITA/TCE 

return site. The OPI Service is accessible in more than 

350 languages.

Accessibility Helpline available for taxpayers with 

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and 

future accessibility products and services available in alternative media formats (for example, braille, large print, 

audio, etc.). The Accessibility Helpline doesn’t have access to your IRS account. For help with tax law, refunds, 

or account-related issues, go to IRS.gov/LetUsHelp.

Disasters. Go to Disaster Assistance and Emergency 

Relief for Individuals and Businesses to review the available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print most of the forms, instructions, and publications you may need. Or, you can go 

to IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook 

format. You can also download and view popular tax 

publications and instructions (including Pub. 51) on mobile devices as eBooks at IRS.gov/eBooks.

Note. IRS eBooks have been tested using Apple's 

iBooks for iPad. Our eBooks haven’t been tested on other 

dedicated eBook readers, and eBook functionality may 

not operate as intended.

Getting a transcript of your return. You can get a 

copy of your tax transcript or a copy of your return by calling 800-829-4933 or by mailing Form 4506-T (transcript 

request) or Form 4506 (copy of return) to the IRS.

Page 26 Publication 51 (2023)
Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your EIN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages (including shortened links), telephone calls, or social media channels to request or 

verify personal or financial information. This includes 

requests for personal identification numbers (PINs), 

passwords, or similar information for credit cards, 

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your EIN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Making a tax payment. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

• Debit or Credit Card: Choose an approved payment 

processor to pay online or by phone.

• Electronic Funds Withdrawal: Schedule a payment 

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to 

ensure that the electronic payments you make online, by 

phone, or from a mobile device using the IRS2Go app are 

safe and secure. Paying electronically is quick, easy, and 

faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you’ll receive immediate notification of whether your agreement has been 

approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Contacting your local IRS office. Keep in mind, many 

questions can be answered on IRS.gov without visiting an 

IRS TAC. Go to IRS.gov/LetUsHelp for the topics people 

ask about most. If you still need help, IRS TACs provide 

tax help when a tax issue can’t be handled online or by 

phone. All TACs now provide service by appointment, so 

you’ll know in advance that you can get the service you 

need without long wait times. Before you visit, go to 

IRS.gov/TACLocator to find the nearest TAC and to check 

hours, available services, and appointment options. Or, 

on the IRS2Go app, under the Stay Connected tab, 

choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. Their job is 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. Your local advocate’s number is in your 

local directory and at TaxpayerAdvocate.IRS.gov/

Contact-Us. You can also call them at 877-777-4778.

Publication 51 (2023) Page 27
How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

report it to them at IRS.gov/SAMS.

TAS for Tax Professionals

TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice.

Page 28 Publication 51 (2023)
To help us develop a more useful index, please let us know if you have ideas for index entries.

Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A

Accuracy of Deposits Rule 19

Additional Medicare Tax 11

Adjustments 22

Aliens, nonresident 13

Assistance (See Tax help)

C

Calendar 5

Certified professional employer 

organizations (CPEOs) 2

Change of address 4

Commodity wages 10

Correcting employment taxes 22

Crew leaders 9

Criminal prosecution 21

D

Deposit:

Penalties 20

Deposit rules:

Electronic funds transfer 16

Legal holiday 18

Lookback period 17

Monthly deposit schedule 17

Semiweekly deposit schedule 18

Differential wage payments 3

Disaster tax relief 2

E

E-file 3

Electronic deposits 19

Electronic filing 3

Electronic payment 3

Employee defined 9

Employer identification number (EIN) 7

Employers of farmworkers 9

Exemption from withholding 13

F

Farmworkers:

Crew leaders 9

Defined 9

Federal unemployment (FUTA) taxes 23

Forms:

843 22

940 23

943 21

943-X 22

I-9 4

Schedule H (Form 1040) 21

Schedule R (Form 943) 3

W-2 4, 23

W-4 4, 13

W-4(SP) 4, 13

H

H-2A visa holders 10

Household employees:

Employment tax withholding 10

I

Income tax withholding:

How to figure 15

Who must withhold 12

Independent contractor 9

L

Legal holiday 18

Lookback period 17

M

Marriage, definition of 3

N

New employees 4

Noncash wages 10

O

Outsourcing payroll duties 2

P

Penalties 20

Prior year adjustments 22

Private delivery services (PDSs) 5

Publications (See Tax help)

R

Reconciling Forms W-2, W-3, and 943 24

Reconciling wage reporting forms 24

Recordkeeping 5

S

Share farmers 10

Social security and Medicare 

withholding 11

Social security number (SSN) 8

Spouses who own and operate a 

business together 9

Supplemental wages 15

T

Tax help 26

Taxpayer identification number (TINs) 7

Trust fund recovery penalty 20

U

Unemployment tax, federal 23

W

Withholding:

Income tax 12

Nonresident aliens 13

Supplemental wages 15

Work opportunity tax credit 3

Z

Zero wage return 5

Publication 51 (2023) Page 29