Social security and Medicare tax for 2012.
The employee tax rate for social security is 4.2% and the employer tax rate for social security is 6.2%, unchanged
from 2011. The social security wage base limit is $110,100. The Medicare tax rate is 1.45% each for the employee and employer,
unchanged from 2011. There is no limit on the amount of wages subject to Medicare tax.
VOW to Hire Heroes Act of 2011.
On November 21, 2011, the President signed into law the VOW to Hire Heroes Act of 2011. This new law provides an expanded
work opportunity tax credit to businesses that hire eligible unemployed veterans and, for the first time, also makes part
of the credit available to tax-exempt organizations. Businesses claim the credit as part of the general business credit and
tax-exempt organizations claim it against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified
Tax-Exempt Organizations Hiring Qualified Veterans. The liability reported on Form 943 is not reduced by the amount of the
credit. The credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before
January 1, 2013. For more information about the credit, visit www.irs.gov/form5884c
Social security wage base for 2013.
The maximum amount of wages subject to the social security tax for 2013 will be discussed in the December 2012 revision
of Publication 51 (Circular A), Agricultural Employer's Tax Guide.
Change of address.
Beginning in 2012, employers must use new Form 8822-B, Change of Address—Business, for any address change.
Correcting a previously filed Form 943.
If you discover an error on a previously filed Form 943, make the correction using Form 943-X, Adjusted Employer's
Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Form 943-X is filed separately from Form 943. For
more information, see section 9 of Pub. 51 (Circular A), or visit IRS.gov and enter the keywords Correcting Employment Taxes
COBRA premium assistance credit.
The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between
September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. See COBRA Premium Assistance Payments,
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, Wage and Tax Statement. Compensation paid to H-2A workers for agricultural labor performed in connection
with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject
to social security tax (line 2) or Medicare tax (line 4) on Form 943, and should not be reported as social security wages
(box 3) or Medicare wages (box 5) on Form W-2.
An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural
labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. In this case,
the worker must give the employer a completed Form W-4, Employee's Withholding Allowance Certificate. Federal income tax
withheld should be reported on Form 943, line 6, and in box 2 of Form W-2. These reporting rules apply when the H-2A worker
provides his or her taxpayer identification number (TIN) to the employer. For the rules relating to backup withholding and
reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form
Federal tax deposits must be made by electronic funds transfer.
You must use electronic funds transfer to make all federal tax deposits. Generally, electronic funds transfers are
made using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax
professional, financial institution, payroll service, or other trusted third party to make 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 Treasury. Services provided by your tax professional, financial institution, payroll service,
or other third party may have a fee.
For more information on making tax deposits, see section 7 of Pub. 51 (Circular A). To get more information about
EFTPS or to enroll in EFTPS, visit the EFTPS website at www.eftps.gov
, or call 1-800-555-4477. Additional information about EFTPS is also available in Pub. 966, Electronic Federal Tax Payment
System: A Guide to Getting Started.
Paid preparers must sign Form 943.
Paid preparers must complete and sign the paid preparer's section of Form 943.
Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer
contracts with a third party. The employer remains liable if the third party fails to perform a required action.
Credit or debit card payments.
Employers can pay the balance due shown on Form 943 by credit or debit card. Do not
use a credit or debit card to make federal tax deposits. For more information on paying your taxes with a credit or debit
card, visit the IRS website at www.irs.gov/e-pay
Disregarded entities and qualified subchapter S subsidiaries (QSubs).
The IRS has published final regulations section 301.7701(c)(2)(iv) under which QSubs and eligible single-owner disregarded
entities are treated as separate entities for employment tax purposes. For more information, see Disregarded entities and qualified subchapter S subsidiaries
in Pub. 15 (Circular E), Employer's Tax Guide.
How to get forms and publications.
You can get most IRS forms and publications by visiting IRS.gov or by calling the IRS at 1-800-TAX-FORM (1-800-829-3676).
You can call the IRS Business and Specialty Tax Line toll free at 1-800-829-4933 or 1-800-829-4059 (for persons who
are deaf, hard of hearing, or have a speech disability) Monday–Friday 7 a.m.–7 p.m. local time (Alaska and Hawaii follow Pacific
time) for answers to your questions about completing Form 943, tax deposit rules, or obtaining an employer identification