Form 943 is an oddly specific federal form. Also known as the Employer’s Annual Federal Tax Return for Agricultural Employees, this form is used by employers who paid wages to farmworkers that were subject to social security and Medicare taxes or federal income tax withholding. Like other annual tax returns, the form requires employers to report the total wages paid to workers, the total tax withheld, any adjustments made, and monthly summaries of federal tax liability if you are not a semiweekly schedule depositor.
In the simplest terms, Form 943 reports payroll information to the IRS for a specific industry. This speedbump is familiar to all businesses who have employees, but agricultural workers and employers may experience their own set of problems. Understanding what constitutes an agricultural employee can be difficult on its own, but finding a comprehensive software solution that works for farmers is even harder. The easiest way to complete Form 943 is to combine tax and wage filing with payroll. Advanced Micro Solutions has the modular software support to do just that.
Finding a 943 Solution that Works for You
Form 943 looks intimidating, but it’s little more than a standard federal tax return document. As a result, the data needed to complete the form will be found in your payroll process. This should include everything from total wages paid to total taxes withheld. Essentially, you are consolidating tax and wage information in a single place for easier assessment by the IRS. For more information, see the IRS’s comprehensive instruction sheet.
Before filling out Form 943, however, you’ll need to figure out if the document applies to your farm operation. The IRS advises people in this situation to use the “$150 Test” or the “$2,500 Test.” For example, if you have paid an employee cash wages of $150 or more in a year for farm work, you will need to complete Form 943. Similarly, if you pay $2,500 or more in wages to all farm workers in a calendar year, you will need to file this form. If the $2,500 test is not met, the $150-or-more test for individuals still applies. Larger farming institutions should have a clear-cut answer to this question, but smaller family farms may need to invest time in fully understanding their tax liability.
Agricultural Payroll and Tax Solutions
Advanced Micro Solutions has a history of success in helping agricultural employers find the tax and payroll solutions they need. Form 943 requires employers to have a comprehensive understanding of payroll happenings throughout the year, but this can be tough for farmers who manage hundreds of employees. AMS Payroll ($134), one of our most popular software products, is fit for the job.
Our farm payroll software can deliver reliable and efficient payroll processing. If you’re a farmer or agricultural employer, you’ll need software that can easily handle a combination of year-round employees, seasonal workers, and a combination of employees and contractors. AMS Payroll can do just that – and more.
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Importantly, AMS Payroll supports a variety of related filing forms for any agricultural business, including form 943. The easiest way to report federal tax returns is to combine your filing process with payroll. This allows preparers to draw information directly from the payroll source, elevating both efficiency and accuracy. AMS Payroll allows users to prepare some federal forms directly in the program, making this form easier than ever.