Schedule R (Form 943): Allocation Schedule for Aggregate Form 943 Filers

(December 2017)

Department of the Treasury — Internal Revenue Service

OMB No. 1545-0035

430417

Employer identification number (EIN) —

Name as shown on Form 943

Type of filer (check one): Section 3504 Agent Certified Professional Employer Organization (CPEO)

Report for calendar year:

(Same as Form 943):

Read the instructions before you complete Schedule R. Type or print within the boxes. Complete a separate line for the amounts allocated to each of your clients. The term “client” as used on this form 

includes the term “customer.” See the instructions.

 (a)

Client’s 

Employer 

identification 

number (EIN)

(b) 

Type of wages 

and other 

compensation 

(CPEO Use Only)

(c) 

Social security tax 

allocated to the 

listed client EIN from 

Form 943, line 3

(d) 

Medicare tax allocated 

to the listed client EIN 

from Form 943, line 5

(e) 

Additional Medicare 

Tax withholding 

allocated to the 

listed client EIN from 

Form 943, line 7

(f) 

Federal income tax 

withheld allocated 

to the listed 

client EIN from 

Form 943, line 8

(g) 

Qualified small business 

payroll tax credit for 

increasing research 

activities allocated to the 

listed client EIN from 

Form 943, line 12

(h) 

Total taxes 

after adjustments and 

credits 

allocated to the 

listed client EIN from 

Form 943, line 13

(i) 

Total deposits 

from Form 943, line 14,

plus any payments 

made with the return 

allocated to the 

 listed client EIN

 

 

1 . . . . . . .

2 . . . . . . .

3 . . . . . . .

4 . . . . . . .

5 . . . . . . .

6 . . . . . . .

7 . . . . . . .

8 . . . . . . .

9 . . . . . . .

10 . . . . . . .

11 Subtotals for 

clients. Add all

amounts on lines 

1 through 10 . . . . . . .

12 Enter the 

combined 

subtotal from 

line 24 of all 

Continuation 

Sheets for 

Schedule R . . . . . . .

13 Enter Form 943 

amounts for 

your 

agricultural 

employees

. . . . . . .

14 Totals. Add lines

11, 12, and 13.

The column 

totals must 

match the 

related lines on

the aggregate

Form 943. . . . . . . .

For Paperwork Reduction Act Notice, see the instructions. www.irs.gov/Form943 Cat. No. 69329E Schedule R (Form 943) (12-2017)
Page of

Continuation Sheet for Schedule R (Form 943)

(December 2017)

430517

Employer identification number (EIN) —

Name as shown on Form 943

Type of filer (check one): Section 3504 Agent Certified Professional Employer Organization (CPEO)

Report for calendar year:

(Same as Form 943):

 (a)

Client’s 

Employer 

identification 

number (EIN)

(b) 

Type of wages 

and other 

compensation 

(CPEO Use Only)

(c) 

Social security tax 

allocated to the 

listed client EIN from 

Form 943, line 3

(d) 

Medicare tax allocated 

to the listed client EIN 

from Form 943, line 5

(e) 

Additional Medicare 

Tax withholding 

allocated to the 

listed client EIN from 

Form 943, line 7

(f) 

Federal income tax 

withheld allocated

to the listed 

client EIN from 

Form 943, line 8

(g) 

Qualified small business 

payroll tax credit for 

increasing research 

activities allocated to the 

listed client EIN from 

Form 943, line 12

(h) 

Total taxes 

after adjustments and 

credits

allocated to the 

listed client EIN from 

Form 943, line 13

(i) 

Total deposits 

from Form 943, line 14,

plus any payments 

made with the return 

allocated to the 

 listed client EIN

 

 

1 . . . . . . .

2 . . . . . . .

3 . . . . . . .

4 . . . . . . .

5 . . . . . . .

6 . . . . . . .

7 . . . . . . .

8 . . . . . . .

9 . . . . . . .

10 . . . . . . .

11 . . . . . . .

12 . . . . . . .

13 . . . . . . .

14 . . . . . . .

15 . . . . . . .

16 . . . . . . .

17 . . . . . . .

18 . . . . . . .

19 . . . . . . .

20 . . . . . . .

21 . . . . . . .

22 . . . . . . .

23 . . . . . . .

24 Subtotals for 

clients. Add 

lines 1 through 

23. Include the 

subtotals from 

line 24 on line 12 

of Schedule R. . . . . . . .

Schedule R (Form 943) (12-2017)
Schedule R (Form 943) (12-2017)

Section references are to the Internal Revenue Code unless otherwise 

noted.

Future Developments

For the latest information about developments related to Schedule R 

and its instructions, such as legislation enacted after they were 

published, go to www.irs.gov/Form943.

General Instructions

Purpose of Schedule R 

Use Schedule R to allocate information reported on Form 943 to each 

client. For purposes of Schedule R, the term “client” means (a) an 

“employer or payer” identified on the Form 2678, Employer/Payer 

Appointment of Agent; (b) a customer who enters into a contract that 

meets the requirements under section 7705(e)(2); or (c) a client who 

enters into a service agreement described under Regulations section 

31.3504-2(b)(2) with a CPEO. If you have more than 10 clients, complete 

as many continuation sheets as necessary. Attach Schedule R, including 

any continuation sheets, to your aggregate Form 943.

Who Must File?

Agents approved by the IRS under section 3504 and CPEOs must 

complete Schedule R each time they file an aggregate Form 943. To 

request approval to act as an agent for an employer under section 3504, 

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

previously filed and approved by the IRS before filing Schedule R. To 

become a CPEO, the organization must apply through the IRS Online 

Registration System. Visit the IRS website at www.irs.gov/CPEO for 

more information.

When Must You File?

If you’re an aggregate Form 943 filer, file Schedule R with your 

aggregate Form 943 every year. Form 943 and Schedule R can be filed 

electronically or by paper submission.

Specific Instructions

Completing Schedule R 

Enter Your Business Information

Carefully enter your EIN and the name of your business at the top of the 

schedule. Make sure they exactly match the EIN and name shown on 

the attached Form 943. Check one of the “Type of filer” boxes to tell us 

if you’re a section 3504 agent or a CPEO.

Calendar Year

Enter the calendar year of the Form 943 to which Schedule R is 

attached.

Client and Employee Information

On Schedule R, including any continuation sheets, you must report the 

following for each client.

Note: When entering amounts over 999.99 on Schedule R, don’t enter 

commas.

Column a. The client’s EIN.

Column b (CPEO Use Only). Type of wages and other compensation. 

Enter a code to report the type of wages and other compensation paid 

to the individual(s) performing services for the client. If you paid more 

than one type of wages or other compensation, you must use more than 

one line to report for that client and enter the applicable code for each 

line. The following four codes are the only entries that can be made in 

column b.

• A: Wages and other compensation paid under section 3511(a).

• B: Wages and other compensation paid under section 3511(c).

• C: Wages and other compensation not reported under Code A or 

Code B paid as a payor under a service agreement described in 

Regulations section 31.3504-2(b)(2).

• D: Wages and other compensation paid as an agent under 

Regulations section 31.3504-1.

Column c. Social security tax allocated to the listed client EIN from 

Form 943, line 3.

Column d. Medicare tax allocated to the listed client EIN from Form 

943, line 5.

Column e. Additional Medicare Tax withholding allocated to the listed 

client EIN from Form 943, line 7.

Column f. Federal income tax withheld from wages and other 

compensation allocated to the listed client EIN from Form 943, line 8.

Column g. Qualified small business payroll tax credit for increasing 

research activities allocated to the listed client EIN from Form 943, line 

12. You must attach a separate Form 8974 for each client claiming this 

credit.

Column h. Total taxes after adjustments and credits allocated to the 

listed client EIN from Form 943, line 13.

Column i. Total deposits from Form 943, line 14, plus any payments 

made with the return allocated to the listed client EIN.

You must also report the same information for your agricultural 

employees on Schedule R, line 13.

Compare the total of each column on Schedule R, line 14, to the 

amounts reported on the aggregate Form 943. For each column total of 

Schedule R, the relevant line from Form 943 is noted in the column 

heading.

The totals on Schedule R, line 14, must match the totals on Form 943. 

If the totals don’t match, there is an error that must be corrected before 

submitting Form 943 and Schedule R.

Paperwork Reduction Act Notice. We ask for the information on

Schedule R to carry out the Internal Revenue laws of the United States. 

You’re required to give us this information. We need it to ensure that 

you’re complying with these laws and to allow us to figure and collect 

the right amount of tax.

You’re not required to provide the information requested on a form 

that is subject to the Paperwork Reduction Act unless the form displays 

a valid OMB control number. Books or records relating to a form or its 

instructions must be retained as long as their contents may become 

material in the administration of any Internal Revenue law. Generally, tax 

returns and return information are confidential, as required by section 

6103.

The time needed to complete and file Schedule R will vary depending 

on individual circumstances. The estimated average time is:

Recordkeeping . . . . . . . . . . . . 11 hr, 43 min.

Learning about the law or the form . . . . . . . . 32 min.

Preparing, copying, and assembling the form . . . . . 49 min.

If you have comments concerning the accuracy of these time 

estimates or suggestions for making Schedule R simpler, we would be 

happy to hear from you. You can send us comments from www.irs.gov/

FormComments. Or you can send your comments to Internal Revenue 

Service, Tax Forms and Publications Division, 1111 Constitution Ave. 

NW, IR-6526, Washington, DC 20224. Don’t send Schedule R to this 

address. Instead, see Where To File in the Instructions for Form 943.

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