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Income Tax Form 1040

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Income Tax Form 1040

Income tax form 1040 Publication 51 - Main Content Table of Contents 1. Income tax form 1040 Taxpayer Identification NumbersWhen you receive your EIN. Income tax form 1040 Registering for SSNVS. Income tax form 1040 2. Income tax form 1040 Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. Income tax form 1040 Wages and Other Compensation 4. Income tax form 1040 Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. Income tax form 1040 Federal Income Tax WithholdingImplementation of lock-in letter. Income tax form 1040 Seasonal employees and employees not currently performing services. Income tax form 1040 Termination and re-hire of employees. Income tax form 1040 How To Figure Federal Income Tax Withholding 6. Income tax form 1040 Required Notice to Employees About Earned Income Credit (EIC) 7. Income tax form 1040 Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. Income tax form 1040 Form 943 9. Income tax form 1040 Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. Income tax form 1040 Federal Unemployment (FUTA) Tax 11. Income tax form 1040 Reconciling Wage Reporting Forms 13. Income tax form 1040 Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. Income tax form 1040 Taxpayer Identification Numbers If you are required to withhold any federal income, social security, or Medicare taxes, you will need an employer identification number (EIN) for yourself. Income tax form 1040 Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. Income tax form 1040 Employer identification number (EIN). Income tax form 1040   An employer identification number (EIN) is a nine-digit number that the IRS issues. Income tax form 1040 The digits are arranged as follows: 00-0000000. Income tax form 1040 It is used to identify the tax accounts of employers and certain others who have no employees. Income tax form 1040 Use your EIN on all of the items that you send to the IRS and SSA. Income tax form 1040   If you do not have an EIN, you may apply for one online. Income tax form 1040 Visit IRS. Income tax form 1040 gov and click on the Apply for an EIN Online link under Tools. Income tax form 1040 You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Income tax form 1040 Do not use a SSN in place of an EIN. Income tax form 1040   If you do not have an EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. Income tax form 1040 If you took over another employer's business, do not use that employer's EIN. Income tax form 1040   You should have only one EIN. Income tax form 1040 If you have more than one, and are not sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Income tax form 1040 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. Income tax form 1040 The IRS will tell you which EIN to use. Income tax form 1040   For more information, see Publication 1635 or Publication 583. Income tax form 1040 When you receive your EIN. Income tax form 1040   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS). Income tax form 1040 You will receive information in your Employer Identification Number (EIN) Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Income tax form 1040 Call the toll-free number located in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. Income tax form 1040 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. Income tax form 1040 Social security number (SSN). Income tax form 1040   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. Income tax form 1040 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. Income tax form 1040 Do not accept a social security card that says “Not valid for employment. Income tax form 1040 ” A social security number issued with this legend does not permit employment. Income tax form 1040 You may, but are not required to, photocopy the social security card if the employee provides it. Income tax form 1040 If you do not show the employee's correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. Income tax form 1040 See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. Income tax form 1040 Applying for a social security card. Income tax form 1040   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation to SSA. Income tax form 1040 You can get Form SS-5 at SSA offices, by calling 1-800-772-1213 or 1-800-325-0778 (TTY), or from the SSA website at www. Income tax form 1040 socialsecurity. Income tax form 1040 gov/online/ss-5. Income tax form 1040 html. Income tax form 1040 The employee must complete and sign Form SS-5; it cannot be filed by the employer. Income tax form 1040 You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Income tax form 1040 Applying for a social security number. Income tax form 1040   If you file Form W-2 on paper and your employee has applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. Income tax form 1040 If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. Income tax form 1040 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. Income tax form 1040 Furnish Copies B, C, and 2 of Form W-2c to the employee. Income tax form 1040 Up to 25 Forms W-2c per 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. Income tax form 1040 For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. Income tax form 1040 socialsecurity. Income tax form 1040 gov/employer. Income tax form 1040 Advise your employee to correct the SSN on his or her original Form W-2. Income tax form 1040 Correctly record the employee's name and SSN. Income tax form 1040   Record the name and number of each employee as they are shown on the employee's social security card. Income tax form 1040 If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Income tax form 1040 Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. Income tax form 1040   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number 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. Income tax form 1040 It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. Income tax form 1040 IRS individual taxpayer identification numbers (ITINs) for aliens. Income tax form 1040   Do not accept an ITIN in place of an SSN for employee identification or for work. Income tax form 1040 An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. Income tax form 1040 S. Income tax form 1040 employment. Income tax form 1040 The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). Income tax form 1040 However, it begins with the number “9” and has either a “7” or “8” as the fourth digit (for example, 9NN-7N-NNNN or 9NN-8N-NNNN). Income tax form 1040    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Income tax form 1040 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 a social security number, earlier in this section. Income tax form 1040 Do not use an ITIN in place of an SSN on Form W-2. Income tax form 1040 Verification of social security numbers. Income tax form 1040   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee 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. Income tax form 1040 Visit www. Income tax form 1040 socialsecurity. Income tax form 1040 gov/employer/ssnv. Income tax form 1040 htm for more information. Income tax form 1040 Registering for SSNVS. Income tax form 1040   You must register online and receive authorization from your employer to use SSNVS. Income tax form 1040 To register, visit SSA's website at www. Income tax form 1040 socialsecurity. Income tax form 1040 gov/employer and click on the Business Services Online link. Income tax form 1040 Follow the registration instructions to obtain a user identification (ID) and password. Income tax form 1040 You will need to provide the following information about yourself and your company. Income tax form 1040 Name. Income tax form 1040 SSN. Income tax form 1040 Date of birth. Income tax form 1040 Type of employer. Income tax form 1040 EIN. Income tax form 1040 Company name, address, and telephone number. Income tax form 1040 Email address. Income tax form 1040 When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Income tax form 1040 You must enter the activation code online to use SSNVS. Income tax form 1040 2. Income tax form 1040 Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Income tax form 1040 See Publication 15-A for details on statutory employees and nonemployees. Income tax form 1040 Employee status under common law. Income tax form 1040   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. Income tax form 1040 This is so even when you give the employee freedom of action. Income tax form 1040 What matters is that you have the right to control the details of how the services are performed. Income tax form 1040 See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Income tax form 1040 If an employer-employee relationship exists, it does not matter what it is called. Income tax form 1040 The employee may be called an agent or independent contractor. Income tax form 1040 It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Income tax form 1040 You are responsible for withholding and paying employment taxes for your employees. Income tax form 1040 You are also required to file employment tax returns. Income tax form 1040 These requirements do not apply to amounts that you pay to independent contractors. Income tax form 1040 The rules discussed in this publication apply only to workers who are your employees. Income tax form 1040 In general, you are 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; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity 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. Income tax form 1040 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. Income tax form 1040 Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. Income tax form 1040 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. Income tax form 1040 Crew Leaders If you are a crew leader, you are an employer of farmworkers. Income tax form 1040 A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. Income tax form 1040 If there is no written agreement between you and the farm operator stating that you are his or her employee and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. Income tax form 1040 For FUTA tax rules, see section 10. Income tax form 1040 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 are partners in a partnership, whether or not you have a formal partnership agreement. Income tax form 1040 See Publication 541, Partnerships, for more details. Income tax form 1040 The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Income tax form 1040 Exception—Qualified joint venture. Income tax form 1040   For tax years beginning after December 31, 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. Income tax form 1040 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 is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). Income tax form 1040   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 separate Schedules C or F as sole proprietors. Income tax form 1040 Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Income tax form 1040   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Income tax form 1040 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. Income tax form 1040 Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Income tax form 1040 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. Income tax form 1040    Note. Income tax form 1040 If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. Income tax form 1040   For more information on qualified joint ventures, visit IRS. Income tax form 1040 gov and enter “qualified joint venture” in the search box. Income tax form 1040 Exception—Community income. Income tax form 1040   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. Income tax form 1040 S. Income tax form 1040 possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Income tax form 1040 You may still make an election to be taxed as a qualified joint venture instead of a partnership. Income tax form 1040 See Exception—Qualified joint venture , earlier in this section. Income tax form 1040 3. Income tax form 1040 Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. Income tax form 1040 You may also be required to withhold, deposit, and report Additional Medicare Tax. Income tax form 1040 See section 4 for more information. Income tax form 1040 If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. Income tax form 1040 You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. Income tax form 1040 FUTA tax is discussed in section 10. Income tax form 1040 Cash wages include checks, money orders, etc. Income tax form 1040 Do not count as cash wages the value of food, lodging, and other noncash items. Income tax form 1040 For more information on what payments are considered taxable wages, see Publication 15 (Circular E). Income tax form 1040 Commodity wages. Income tax form 1040   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. Income tax form 1040 However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. Income tax form 1040 These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. Income tax form 1040 Other compensation. Income tax form 1040   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. Income tax form 1040 Family members. Income tax form 1040   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. Income tax form 1040 However, certain exemptions may apply for your child, spouse, or parent. Income tax form 1040 See the table, How Do Employment Taxes Apply to Farmwork , in section 12. Income tax form 1040 Household employees. Income tax form 1040   The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,900 in 2014. Income tax form 1040   Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. Income tax form 1040 Nor do the taxes apply to housework done by your parent unless: You have a child 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 a calendar quarter, and You are a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. Income tax form 1040   For more information, see Publication 926, Household Employer's Tax Guide. Income tax form 1040    Wages for household work may not be a deductible farm expense. Income tax form 1040 See Publication 225, Farmer's Tax Guide. Income tax form 1040 Share farmers. Income tax form 1040   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. Income tax form 1040 Compensation paid to H-2A visa holders. Income tax form 1040   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 do not 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 performed in connection with this visa is not subject to social security and Medicare taxes. Income tax form 1040 On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Income tax form 1040   An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. Income tax form 1040 In that case, the worker must give the employer a completed Form W-4. Income tax form 1040 Federal income tax withheld should be reported in box 2 of Form W-2. Income tax form 1040 These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. Income tax form 1040 For 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 945. Income tax form 1040 4. Income tax form 1040 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. Income tax form 1040 You may also be required to withhold Additional Medicare Tax. Income tax form 1040 For more information, see Additional Medicare Tax withholding , later. Income tax form 1040 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. Income tax form 1040 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). Income tax form 1040 The $150 test applies separately to each farmworker that you employ. Income tax form 1040 If you employ a family of workers, each member is treated separately. Income tax form 1040 Do not count wages paid by other employers. Income tax form 1040 The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. Income tax form 1040 Exceptions. Income tax form 1040   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: 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 his or her permanent home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Income tax form 1040   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. Income tax form 1040 Social Security and Medicare Tax Withholding The social security tax rate is 6. Income tax form 1040 2%, for both the employee and employer, on the first $117,000 paid to each employee. Income tax form 1040 You must withhold at this rate from each employee and pay a matching amount. Income tax form 1040 The Medicare tax rate is 1. Income tax form 1040 45% each for the employee and employer on all wages. Income tax form 1040 You must withhold at this rate from each employee and pay a matching amount. Income tax form 1040 There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Income tax form 1040 Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Income tax form 1040 For details, see Publication 15-A. Income tax form 1040 Additional Medicare Tax withholding. Income tax form 1040   In addition to withholding Medicare tax at 1. Income tax form 1040 45%, you must withhold a 0. Income tax form 1040 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Income tax form 1040 You are 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. Income tax form 1040 Additional Medicare Tax is only imposed on the employee. Income tax form 1040 There is no employer share of Additional Medicare Tax. Income tax form 1040 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. Income tax form 1040   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 Publication 15 (Circular E). Income tax form 1040 For more information on Additional Medicare Tax, visit IRS. Income tax form 1040 gov and enter “Additional Medicare Tax” in the search box. Income tax form 1040 Employee share paid by employer. Income tax form 1040   If you would rather pay a household or agricultural employee's share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. Income tax form 1040 If you do not withhold the taxes, however, you must still pay them. Income tax form 1040 Any employee social security and Medicare taxes that you pay is additional income to the employee. Income tax form 1040 Include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages and do not include it in boxes 3 and 5. Income tax form 1040 Also, do not count the additional income as wages for FUTA tax purposes. Income tax form 1040 Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. Income tax form 1040 See section 7 of Publication 15-A. Income tax form 1040 Withholding social security and Medicare taxes on nonresident alien employees. Income tax form 1040   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. Income tax form 1040 S. Income tax form 1040 citizen or resident alien. Income tax form 1040 However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Income tax form 1040 Also see Compensation paid to H-2A visa holders in section 3. Income tax form 1040 Religious exemption. Income tax form 1040    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. Income tax form 1040 This exemption is available only if both the employee and the employer are members of the sect. Income tax form 1040   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Income tax form 1040 5. Income tax form 1040 Federal Income Tax Withholding Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. Income tax form 1040 The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. Income tax form 1040 You may use one of several methods to determine the amount of federal income tax withholding. Income tax form 1040 They are discussed in section 13. Income tax form 1040 Form W-4. Income tax form 1040   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Income tax form 1040 Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. Income tax form 1040 Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Income tax form 1040 irs. Income tax form 1040 gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. Income tax form 1040   Ask each new employee to give you a signed Form W-4 when starting work. Income tax form 1040 Make the form effective with the first wage payment. Income tax form 1040 If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances. Income tax form 1040 Forms in Spanish. Income tax form 1040   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. Income tax form 1040 For more information, see Publicación 17(SP). Income tax form 1040 Effective date of Form W-4. Income tax form 1040   A Form W-4 remains in effect until the employee gives you a new one. Income tax form 1040 When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. Income tax form 1040 Do not adjust withholding retroactively. Income tax form 1040 If an employee gives you a replacement 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 when you received the replacement Form W-4. Income tax form 1040 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. Income tax form 1040 A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Income tax form 1040 Completing Form W-4. Income tax form 1040   The amount of federal income tax withholding is based on marital status and withholding allowances. Income tax form 1040 Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Income tax form 1040 However, the employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. Income tax form 1040   Employees may claim fewer withholding allowances than they are entitled to claim. Income tax form 1040 They may do this to ensure that they have enough withholding or to offset other sources of taxable income that are not subject to withholding. Income tax form 1040   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Income tax form 1040 Along with Form W-4, you may wish to order Publication 505 for use by your employees. Income tax form 1040    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Income tax form 1040 If an employee wants additional withholding, he or she should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. Income tax form 1040 Exemption from federal income tax withholding. Income tax form 1040   Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. Income tax form 1040 See the Form W-4 instructions for more information. Income tax form 1040 However, the wages are still subject to social security and Medicare taxes. Income tax form 1040   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Income tax form 1040 To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. Income tax form 1040 If the employee does not give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that did not claim an exemption from withholding or, if one does not exist, withhold as if he or she is single with zero withholding allowances. Income tax form 1040 If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. Income tax form 1040 Withholding income taxes on the wages of nonresident alien employees. Income tax form 1040   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Income tax form 1040 However, see Publication 515 for exceptions to this general rule. Income tax form 1040 Also see Compensation paid to H-2A visa workers in section 3. Income tax form 1040 Withholding adjustment for nonresident alien employees. Income tax form 1040   A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2014. Income tax form 1040 This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. Income tax form 1040 See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). Income tax form 1040 Nonresident alien employee's Form W-4. Income tax form 1040   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding; Request withholding as if they are single, regardless of their actual marital status; Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or Korea, he or she may claim more than one allowance); and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. Income tax form 1040   If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. Income tax form 1040    A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. Income tax form 1040 Form 8233. Income tax form 1040   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. Income tax form 1040 See Publication 515 for details. Income tax form 1040 IRS review of requested Forms W-4. Income tax form 1040   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Income tax form 1040 You may also be directed to send certain Forms W-4 to the IRS. Income tax form 1040 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. Income tax form 1040 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. Income tax form 1040 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. Income tax form 1040 When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Income tax form 1040   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). Income tax form 1040 However, if the IRS later notifies you in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding allowances specified by the IRS in the written notice, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”). Income tax form 1040 Initial lock-in letter. Income tax form 1040   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. Income tax form 1040 In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. Income tax form 1040 You will also receive a copy for the employee that identifies the maximum number of withholding allowances permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances. Income tax form 1040 If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. Income tax form 1040 You may follow any reasonable business practice to furnish the employee copy to the employee. Income tax form 1040 Implementation of lock-in letter. Income tax form 1040   When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. Income tax form 1040 You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. Income tax form 1040 The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS. Income tax form 1040 Seasonal employees and employees not currently performing services. Income tax form 1040   If you receive a notice for an employee who is not currently performing services for you, you are still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply. Income tax form 1040 You are 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. Income tax form 1040 You reasonably expect the employee to resume services within 12 months of the date of the notice. Income tax form 1040 The employee is on a bona fide leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence. Income tax form 1040 Termination and re-hire of employees. Income tax form 1040   If you are required to 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. Income tax form 1040 You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship. Income tax form 1040 Modification notice. Income tax form 1040   After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. Income tax form 1040 The modification notice may change the marital status and/or the number of withholding allowances permitted. Income tax form 1040 You must withhold federal income tax based on the effective date specified in the modification notice. Income tax form 1040 New Form W-4 after IRS notice. Income tax form 1040   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 claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. Income tax form 1040 You are required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. Income tax form 1040 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. Income tax form 1040   If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that does not claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. Income tax form 1040 Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. Income tax form 1040 Substitute Forms W-4. Income tax form 1040   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. Income tax form 1040 Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. Income tax form 1040 gov to obtain copies of Form W-4. Income tax form 1040   You may use a substitute version of Form W-4 to meet your business needs. Income tax form 1040 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. Income tax form 1040 At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4. Income tax form 1040   You cannot accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. Income tax form 1040 However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. Income tax form 1040 Invalid Forms W-4. Income tax form 1040   Any unauthorized change or addition to Form W-4 makes it invalid. Income tax form 1040 This includes taking out any language by which the employee certifies that the form is correct. Income tax form 1040 A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. Income tax form 1040 An employee who submits a false Form W-4 may be subject to a $500 penalty. Income tax form 1040 You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6. Income tax form 1040   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. Income tax form 1040 Tell the employee that it is invalid and ask for another one. Income tax form 1040 If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. Income tax form 1040 However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. Income tax form 1040   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. Income tax form 1040 R. Income tax form 1040 B. Income tax form 1040 455, available at www. Income tax form 1040 irs. Income tax form 1040 gov/irb/2007-35_IRB/ar10. Income tax form 1040 html. Income tax form 1040 Amounts exempt from levy on wages, salary, and other income. Income tax form 1040   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. Income tax form 1040 Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), and 668-W(ICS), shows the exempt amount. Income tax form 1040 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 Publication 1494 to compute the exempt amount. Income tax form 1040 How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. Income tax form 1040 Wage bracket tables. Income tax form 1040 See section 13 for directions on how to use the tables. Income tax form 1040 Percentage method. Income tax form 1040 See section 13 for directions on how to use the percentage method. Income tax form 1040 Alternative formula tables for percentage method withholding. Income tax form 1040 See Publication 15-A. Income tax form 1040 Wage bracket percentage method withholding tables. Income tax form 1040 See Publication 15-A. Income tax form 1040 Other alternative methods. Income tax form 1040 See Publication 15-A. Income tax form 1040 Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Publication 15-A useful. Income tax form 1040 If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. Income tax form 1040 Supplemental wages. Income tax form 1040   Supplemental wages are wage payments to an employee that are not regular wages. Income tax form 1040 They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. Income tax form 1040 Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Income tax form 1040   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period. Income tax form 1040   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. Income tax form 1040 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. Income tax form 1040 Withhold a flat 25% (no other percentage allowed). Income tax form 1040 If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Income tax form 1040 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. Income tax form 1040 Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Income tax form 1040 Subtract the tax withheld from the regular wages. Income tax form 1040 Withhold the remaining tax from the supplemental wages. Income tax form 1040 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, calculate the tax on the total, subtract the tax already withheld from the regular wages and previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages. Income tax form 1040 If you did not withhold federal income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. Income tax form 1040 This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Income tax form 1040    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. Income tax form 1040 See section 7 in Publication 15 (Circular E) for details. Income tax form 1040   Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes. Income tax form 1040 6. Income tax form 1040 Required Notice to Employees About 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. Income tax form 1040 Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that they may be eligible to claim the credit for 2013. Income tax form 1040 This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. Income tax form 1040 You will meet the notification requirement if you issue to 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. Income tax form 1040 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. Income tax form 1040 If a substitute Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. Income tax form 1040 If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. Income tax form 1040 If Form W-2 is not required, you must notify the employee by February 7, 2014. Income tax form 1040 7. Income tax form 1040 Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. Income tax form 1040 You must use electronic funds transfer to make all federal tax deposits. Income tax form 1040 See How To Deposit , later in this section. Income tax form 1040 The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. Income tax form 1040 For more information, see COBRA premium assistance credit under Introduction. Income tax form 1040 Payment with return. Income tax form 1040   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. Income tax form 1040 You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. Income tax form 1040 However, if you are unsure that you will report less than $2,500, deposit under the rules explained in this section so that you will not be subject to failure-to-deposit penalties. Income tax form 1040 You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. Income tax form 1040 This payment may be $2,500 or more. Income tax form 1040 Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. Income tax form 1040 Semiweekly schedule depositors must timely deposit the amount. Income tax form 1040 See Accuracy of Deposits Rule and How To Deposit, later in this section. Income tax form 1040 When To Deposit If you employ both farm and nonfarm workers, do not combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. Income tax form 1040 See Employers of Both Farm and Nonfarm Workers, later in this section. Income tax form 1040 The rules for determining when to deposit Form 943 taxes are discussed below. Income tax form 1040 See section 10 for the separate rules that apply to FUTA tax. Income tax form 1040 Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. Income tax form 1040 The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or how often you are required to make deposits. Income tax form 1040 The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). Income tax form 1040 The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 9, for the lookback period, discussed next. Income tax form 1040 If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. Income tax form 1040 If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. Income tax form 1040 Lookback period. Income tax form 1040   The lookback period is the second calendar year preceding the current calendar year. Income tax form 1040 For example, the lookback period for 2014 is 2012. Income tax form 1040 Example of deposit schedule based on lookback period. Income tax form 1040 Rose Co. Income tax form 1040 reported taxes on Form 943 as follows. Income tax form 1040 2012 — $48,000 2013 — $60,000 Rose Co. Income tax form 1040 is a monthly schedule depositor for 2014 because its taxes for the lookback period ($48,000 for calendar year 2012) were not more than $50,000. Income tax form 1040 However, for 2015, Rose Co. Income tax form 1040 is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Income tax form 1040 Adjustments to lookback period taxes. Income tax form 1040   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). Income tax form 1040 Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Income tax form 1040 Example of adjustments. Income tax form 1040 An employer originally reported total tax of $45,000 for the lookback period in 2012. Income tax form 1040 The employer discovered during March 2014 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. Income tax form 1040 The total tax reported in the lookback period is still $45,000. Income tax form 1040 The $10,000 adjustment is also not treated as part of the 2014 taxes. Income tax form 1040 Deposit period. Income tax form 1040   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Income tax form 1040 For monthly schedule depositors, the deposit period is a calendar month. Income tax form 1040 The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Income tax form 1040 Monthly Deposit Schedule If the tax liability reported on Form 943, line 9, for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Income tax form 1040 You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. Income tax form 1040 Monthly schedule example. Income tax form 1040   Red Co. Income tax form 1040 is a seasonal employer and a monthly schedule depositor. Income tax form 1040 It pays wages each Friday. Income tax form 1040 It paid wages during August 2014, but did not pay any wages during September. Income tax form 1040 Red Co. Income tax form 1040 must deposit the combined tax liabilities for the August paydays by September 15. Income tax form 1040 Red Co. Income tax form 1040 does not have a deposit requirement for September (that is, due by October 15, 2014) because no wages were paid in September; therefore, it did not have a tax liability for September. Income tax form 1040 New employers. Income tax form 1040   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. Income tax form 1040 Therefore, you are a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section). Income tax form 1040 Semiweekly Deposit Schedule You are a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 9, during your lookback period was more than $50,000. Income tax form 1040 Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Income tax form 1040 Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Income tax form 1040 Semiweekly depositors are not 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. Income tax form 1040 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. Income tax form 1040 If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Income tax form 1040 Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. Income tax form 1040 Semiweekly Deposit Schedule IF the payday falls on a. Income tax form 1040 . Income tax form 1040 . Income tax form 1040 THEN deposit taxes by the following. Income tax form 1040 . Income tax form 1040 . Income tax form 1040 Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. Income tax form 1040   Green, Inc. Income tax form 1040 , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Income tax form 1040 Green, Inc. Income tax form 1040 , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. Income tax form 1040 Green, Inc. Income tax form 1040 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). Income tax form 1040 Semiweekly deposit period spanning two quarters. Income tax form 1040   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. Income tax form 1040 For example, if you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. Income tax form 1040 Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Income tax form 1040 Deposits on Business Days Only If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Income tax form 1040 A business day is any day other than a Saturday, Sunday, or legal holiday. Income tax form 1040 For example, if a deposit is required to be made on 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). Income tax form 1040 Semiweekly schedule depositors   will always have 3 business days to make a deposit. Income tax form 1040 That is, if any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the deposit. Income tax form 1040 For example, if a semiweekly schedule depositor accumulated taxes 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). Income tax form 1040 Legal holiday. Income tax form 1040   The term “legal holiday” means any legal holiday in the District of Columbia. Income tax form 1040 Legal holidays for 2014 are listed below. Income tax form 1040 January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. Income tax form 1040 February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans' Day November 27— Thanksgiving Day December 25— Christmas Day $100,000 Next-Day Deposit Rule If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Income tax form 1040 For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. Income tax form 1040 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 does not apply because the $10,000 is accumulated in the next deposit period. Income tax form 1040 Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Income tax form 1040 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. Income tax form 1040 For example, Fir Co. Income tax form 1040 is a semiweekly schedule depositor. Income tax form 1040 On Monday, Fir Co. Income tax form 1040 accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. Income tax form 1040 On Tuesday, Fir Co. Income tax form 1040 accumulates additional taxes of $30,000. Income tax form 1040 Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Income tax form 1040 does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Income tax form 1040 If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day, 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. Income tax form 1040 Example of the $100,000 next-day deposit rule. Income tax form 1040   Elm, Inc. Income tax form 1040 , started its business on May 1, 2014. Income tax form 1040 Because Elm, Inc. Income tax form 1040 , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. Income tax form 1040 , is a monthly schedule depositor. Income tax form 1040 On May 8, Elm, Inc. Income tax form 1040 , paid wages for the first time and accumulated taxes of $50,000. Income tax form 1040 On May 9 (Friday), Elm, Inc. Income tax form 1040 , paid wages and accumulated taxes of $60,000, for a total of $110,000. Income tax form 1040 Because Elm, Inc. Income tax form 1040 , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. Income tax form 1040 Elm, Inc. Income tax form 1040 , became a semiweekly schedule depositor on May 10. Income tax form 1040 It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Income tax form 1040 Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Income tax form 1040 However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Income tax form 1040 Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. Income tax form 1040 The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Income tax form 1040 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. Income tax form 1040 You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. Income tax form 1040 Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. Income tax form 1040 For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). Income tax form 1040 How To Deposit You must deposit employment taxes by electronic funds transfer. Income tax form 1040 See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Income tax form 1040 Electronic deposit requirement. Income tax form 1040   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Income tax form 1040 Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Income tax form 1040 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 electronic deposits on your behalf. Income tax form 1040   EFTPS is a free service provided by the Department of Treasury. Income tax form 1040 To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD). Income tax form 1040 You can also visit the EFTPS website at www. Income tax form 1040 eftps. Income tax form 1040 gov. Income tax form 1040 Additional information about EFTPS is also available in Publication 966. Income tax form 1040 New employers that have a federal tax obligation will be pre-enrolled in EFTPS. Income tax form 1040 Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. Income tax form 1040 See When you receive your EIN in section 1 for more information. Income tax form 1040 Deposit record. Income tax form 1040   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Income tax form 1040 The number can be used as a receipt or to trace the payment. Income tax form 1040 Depositing on time. Income tax form 1040   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Income tax form 1040 m. Income tax form 1040 Eastern time the day before the date a deposit is due. Income tax form 1040 If you use a third party to make a deposit on your behalf, they may have different cutoff times. Income tax form 1040 Same-day payment option. Income tax form 1040   If you fail to initiate a deposit transaction on EFTPS by 8 p. Income tax form 1040 m. Income tax form 1040 Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). Income tax form 1040 To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Income tax form 1040 Please check with your financial institution regarding availability, deadlines, and costs. Income tax form 1040 Your financial institution may charge you a fee for payments made this way. Income tax form 1040 To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. Income tax form 1040 eftps. Income tax form 1040 gov to download the Same-Day Payment Worksheet. Income tax form 1040 Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. Income tax form 1040 The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. Income tax form 1040 IRS may also waive deposit penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. Income tax form 1040 For amounts not properly deposited or not deposited on time, the penalty rates are shown next. Income tax form 1040 Penalty Charged for. Income tax form 1040 . Income tax form 1040 . Income tax form 1040 2% Deposits made 1 to 5 days late. Income tax form 1040 5% Deposits made 6 to 15 days late. Income tax form 1040 10% Deposits made 16 or more days late. Income tax form 1040 Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. Income tax form 1040 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. Income tax form 1040 See Payment with return , earlier in this section, for exceptions. Income tax form 1040 15% Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. Income tax form 1040 Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Income tax form 1040 Order in which deposits are applied. Income tax form 1040   Deposits generally are applied to the most recent tax liability within the year. Income tax form 1040 If you receive a failure-to-deposit 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. Income tax form 1040 Follow the instructions on the penalty notice that you received. Income tax form 1040 For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. Income tax form 1040 You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Income tax form 1040 irs. Income tax form 1040 gov/pub/irs-irbs/irb01-50. Income tax form 1040 pdf. Income tax form 1040 Example. Income tax form 1040 Cedar, Inc. Income tax form 1040 , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Income tax form 1040 It does not make the deposit on July 15. Income tax form 1040 On August 15, Cedar, Inc. Income tax form 1040 , deposits $2,000. Income tax form 1040 Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. Income tax form 1040 Accordingly, $500 of the July 15 liability remains undeposited. Income tax form 1040 The penalty on this underdeposit will apply as explained above. Income tax form 1040 Trust fund recovery penalty. Income tax form 1040   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Income tax form 1040 The penalty is the full amount of the unpaid trust fund tax. Income tax form 1040 This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Income tax form 1040   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. Income tax form 1040   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. Income tax form 1040 A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Income tax form 1040    Willfully means voluntarily, consciously, and intentionally. Income tax form 1040 A responsible person acts willfully if the person knows that the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. Income tax form 1040 “Average” failure-to-deposit penalty. Income tax form 1040   IRS may assess an “averaged” failure-to-deposit penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. Income tax form 1040 IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following. Income tax form 1040 Completed Form 943, line 17, instead of Form 943-A. Income tax form 1040 Failed to attach a properly completed Form 943-A. Income tax form 1040 Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Income tax form 1040   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. Income tax form 1040 Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Income tax form 1040   You can avoid the penalty by reviewing your return before filing it. Income tax form 1040 Follow these steps before filing your Form 943. Income tax form 1040 If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. Income tax form 1040 If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees. Income tax form 1040 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 11. Income tax form 1040 Do not show negative amounts on Form 943, line 17, or Form 943-A. Income tax form 1040 For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A. Income tax form 1040 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 944 taxes). Income tax form 1040 Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. Income tax form 1040 If a deposit is due, deposi
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Contact My Local Office in Idaho

Face-to-Face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Boise  550 W. Fort St.
Boise, ID 83724 

Monday-Friday - 8:30 a.m.- 4:30 p.m.

 

Services Provided

(208) 387-2847 
Idaho Falls  1820 E. 17th St.
Idaho Falls, ID 83404 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:00 noon-1:00 p.m.) 

 

Services Provided

(208) 523-8041 
Pocatello  275 S. 5th Ave.
Pocatello, ID 83201 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon-1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(208) 236-6795 

* Note: The phone numbers in the chart above are not toll free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 208-363-8900 in the Boise area or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
550 W. Fort Street, MS 6610BOI
Boise, ID 83724

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Income Tax Form 1040

Income tax form 1040 Publication 584-B - Introductory Material Table of Contents What's New Introduction What's New The IRS has created a page on IRS. Income tax form 1040 gov for information about Publication 584-B, at www. Income tax form 1040 irs. Income tax form 1040 gov/pub584b. Income tax form 1040 Information about any future developments affecting Publication 584-B (such as legislation enacted after we released it) will be posted on that page. Income tax form 1040 Introduction This workbook is designed to help you figure your loss on business and income-producing property in the event of a disaster, casualty, or theft. Income tax form 1040 It contains schedules to help you figure the loss to your office furniture and fixtures, information systems, motor vehicles, office supplies, buildings, and equipment. Income tax form 1040 These schedules, however, are for your information only. Income tax form 1040 You must complete Form 4684, Casualties and Thefts, to report your loss. Income tax form 1040 Prev  Up  Next   Home   More Online Publications