Employment Taxes for Tribes


Indian tribes in their role as employers are subject to federal employment tax laws.


Topic Description
Employment Taxes Overview Provides information about reporting, making payments and deposits, correcting mistakes, due dates and forms.
Tax Calendar View due dates and actions for each month.
Worker Classification Determine whether an individual is an employee or independent contractor.
Election Workers Learn about what you should withhold and report.
Foreign Persons Learn about what defines a foreign person; how and when to withhold for certain payments and when to use Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. Foreign students may have certain exemptions.
Backup Withholding The IRS requires government entities to withhold from certain payments. You may also have to withhold if you receive a notice about a missing or incorrect tax identification number (TIN).
Tip Reporting Employee and employer reporting responsibilities, tip agreements and other resources. 
Recordkeeping Learn about what you should keep and how to hold them.
Fringe Benefits Provides information about how and when to tax fringe benefits.
Agricultural Employees Indian tribes are subject to    filing Form 943, Employer’s Annual Tax Return for Agricultural EmployeesPDF.
Scholarships Chapter one of Publication 970, Tax Benefits for EducationPDF explains the tax treatment of various types of educational assistance including scholarships, fellowship grants and tuition reductions.

Specific to tribes

Topic Description
Tribal Council Pay Determine when tribal council members should be treated as employees.
FUTA Exception for Tribes Tribes are not required to file Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax ReturnPDF if they chose to participate in the State Unemployment (SUTA) system
Information Reporting for Tribes Find out about the different types of income tribal entities may have to report.
Helpful Hints to Avoid PenaltiesPDF A guide for tribes to help mitigate federal tax and trust fund recovery penalties.
ITG Tax Kit Forms, publications and information frequently requested by tribal governments.
Publication 4268PDF Indian Tribal Governments Employment Tax Desk Guide - contains employment tax information specific to tribal governments. It also includes information about record keeping, deposit rules and related penalties.
Publication 3908PDF Gaming Tax Law for Indian Tribal Governments - all tribal governments conducting or sponsoring gaming activities must understand and comply with federal requirements regarding income tax reporting, tip reporting employment tax and excise tax.
Voluntary Closing Agreements Information for Indian tribes that are interested in an effective way of correcting a past error, mistake or misinterpretation of tax law or filing requirement.