Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Myfreetaxes Com Taxtime

1040 Tax Forms PrintableFree Federal And State Efile 20132012 1040ez FormTaxact2011onlineOrder 2012 Tax Forms From IrsPrintable 1040ez FormTax Correction Form1040ez Tax Form 20131040 Long FormHr Block Online Free Tax FilingFederal Tax Forms 1040 EzH & R Block EfileFile State Tax Return Online1040x Tax Amendment FormForm 1040 Schedule ACan You E File An Amended 1040xCan You Amend A Tax ReturnState Tax Filing SoftwareTurbotax Free 1040ezIrs Forms For 20102009 Form 1040 EzTurbotax Login Tax Return 2012Amending My 2011 Tax ReturnFree Federal & State Tax Filing1040nr 2011H&r Block Free State FileAmend 2010 ReturnHow To Fill Out A 1040ezWww Hrblock Com W2Free Filing For 2012 TaxesFiling Income Tax ReturnIrs 1040x FormFiling Amended Tax Return 2013Berkheimer Online Tax Filing2009 1040xH&rblock Free OnlineTax Amendments1040a 2012 Tax FormFree Tax PreparationFile State Taxes Online

Myfreetaxes Com Taxtime

Myfreetaxes com taxtime 3. Myfreetaxes com taxtime   Credit for Withholding and Estimated Tax for 2013 Table of Contents Introduction Topics - This chapter discusses: WithholdingForm W-2 Form W-2G The 1099 Series Form Not Correct Form Received After Filing Separate Returns Fiscal Years (FY) Estimated TaxSeparate Returns Divorced Taxpayers Excess Social Security or Railroad Retirement Tax WithholdingJoint returns. Myfreetaxes com taxtime Worksheet for Nonrailroad Employees Worksheets for Railroad Employees Introduction When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Myfreetaxes com taxtime Also take credit for the estimated tax you paid for 2013. Myfreetaxes com taxtime These credits are subtracted from your total tax. Myfreetaxes com taxtime Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Myfreetaxes com taxtime If the total of your withholding and your estimated tax payments for any payment period is less than the amount you needed to pay by the due date for that period, you may be charged a penalty, even if the total of these credits is more than your tax for the year. Myfreetaxes com taxtime Topics - This chapter discusses: How to take credit for withholding, How to take credit for estimated taxes you paid, and How to take credit for excess social security, Medicare, or railroad retirement tax withholding. Myfreetaxes com taxtime Withholding If you had income tax withheld during 2013, you generally should be sent a statement by January 31, 2014, showing your income and the tax withheld. Myfreetaxes com taxtime Depending on the source of your income, you will receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Myfreetaxes com taxtime Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Myfreetaxes com taxtime You should receive a separate Form W-2 from each employer you worked for. Myfreetaxes com taxtime If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Myfreetaxes com taxtime However, your employer must provide or send it to you by January 31, 2014. Myfreetaxes com taxtime If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Myfreetaxes com taxtime If you have not received your Form W-2 by January 31, contact your employer or payer to request a copy. Myfreetaxes com taxtime If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Myfreetaxes com taxtime The phone number for the IRS is listed in chapter 5. Myfreetaxes com taxtime You will be asked for the following information. Myfreetaxes com taxtime Your name, address, city and state, zip code, and social security number. Myfreetaxes com taxtime Your employer's name, address, city, state, zip code, and the employer's identification number (if known). Myfreetaxes com taxtime An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. Myfreetaxes com taxtime The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible. Myfreetaxes com taxtime Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Myfreetaxes com taxtime Total the federal income tax withheld (shown in box 2 of all Forms W-2 received) and enter that amount on the appropriate line of your tax return. Myfreetaxes com taxtime In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Myfreetaxes com taxtime Your sick pay may be combined with other wages in one Form W-2 or you may receive a separate Form W-2 for sick pay. Myfreetaxes com taxtime If you file a paper tax return, attach Copy B of Form W-2 to your return. Myfreetaxes com taxtime Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Myfreetaxes com taxtime If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Myfreetaxes com taxtime Report the amounts you won on line 21 of Form 1040. Myfreetaxes com taxtime Take credit for the tax withheld on line 62 of Form 1040. Myfreetaxes com taxtime If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Myfreetaxes com taxtime Gambling losses can be deducted on Schedule A (Form 1040) as a miscellaneous itemized deduction. Myfreetaxes com taxtime However, you cannot deduct more than the gambling winnings you report on Form 1040. Myfreetaxes com taxtime File Form W-2G with your income tax return only if it shows any federal income tax withheld in box 2. Myfreetaxes com taxtime The 1099 Series Most forms in the 1099 series are not filed with your return. Myfreetaxes com taxtime In general, these forms should be furnished to you by January 31, 2014. Myfreetaxes com taxtime Unless instructed to file any of these forms with your return, keep them for your records. Myfreetaxes com taxtime There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-C, Cancellation of Debt; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third-Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received From Cooperatives; Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530); Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Myfreetaxes com taxtime ; Form SSA-1099, Social Security Benefit Statement; and Form RRB-1099, Payments by the Railroad Retirement Board. Myfreetaxes com taxtime If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Myfreetaxes com taxtime See the instructions to these forms for details. Myfreetaxes com taxtime Reporting your withholding. Myfreetaxes com taxtime   Report on your tax return all federal income tax withholding shown on your Form 1099, Form SSA-1099, and/or Form RRB-1099. Myfreetaxes com taxtime Include the amount withheld in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Myfreetaxes com taxtime Form 1099-R. Myfreetaxes com taxtime   Attach Form 1099-R to your paper return if federal income tax withholding is shown in box 4. Myfreetaxes com taxtime Do not attach any other Form 1099. Myfreetaxes com taxtime Form Not Correct If you receive a form with incorrect information, you should ask the payer for a corrected form. Myfreetaxes com taxtime Call the telephone number or write to the address given for the payer on the form. Myfreetaxes com taxtime The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Myfreetaxes com taxtime A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Myfreetaxes com taxtime In certain situations, you will receive two forms in place of the original incorrect form. Myfreetaxes com taxtime This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Myfreetaxes com taxtime One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Myfreetaxes com taxtime This form will have an “X” in the “CORRECTED” box at the top of the form. Myfreetaxes com taxtime The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Myfreetaxes com taxtime Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Individual Income Tax Return. Myfreetaxes com taxtime Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Myfreetaxes com taxtime Do not include any amount withheld from your spouse's income. Myfreetaxes com taxtime However, different rules may apply if you live in a community property state. Myfreetaxes com taxtime Community property states. Myfreetaxes com taxtime   The following are community property states. Myfreetaxes com taxtime Arizona. Myfreetaxes com taxtime California. Myfreetaxes com taxtime Idaho. Myfreetaxes com taxtime Louisiana. Myfreetaxes com taxtime Nevada. Myfreetaxes com taxtime New Mexico. Myfreetaxes com taxtime Texas. Myfreetaxes com taxtime Washington. Myfreetaxes com taxtime Wisconsin. Myfreetaxes com taxtime Generally, if you live in a community property state and file a separate return, you and your spouse each must report half of all community income in addition to your own separate income. Myfreetaxes com taxtime If you are required to report half of all community income, you are entitled to take credit for half of all taxes withheld on the community income. Myfreetaxes com taxtime If you were divorced during the year, each of you generally must report half the community income and can take credit for half the withholding on that community income for the period before the divorce. Myfreetaxes com taxtime   For more information on these rules, and some exceptions, see Publication 555, Community Property. Myfreetaxes com taxtime Fiscal Years (FY) If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules, described below, to determine your credit for federal income tax withholding. Myfreetaxes com taxtime Fiscal year withholding. Myfreetaxes com taxtime    You can claim credit on your tax return only for the tax withheld during the calendar year (CY) ending within your fiscal year. Myfreetaxes com taxtime You cannot claim credit for any of the tax withheld during the calendar year beginning in your fiscal year. Myfreetaxes com taxtime You will be able to claim credit for that withholding on your return for your next fiscal year. Myfreetaxes com taxtime   The Form W-2 or 1099 you receive for the calendar year that ends during your fiscal year will show the tax withheld and the income you received during that calendar year. Myfreetaxes com taxtime   Although you take credit for all the withheld tax shown on the form, report only the part of the income shown on the form that you received during your fiscal year. Myfreetaxes com taxtime Add to that the income you received during the rest of your fiscal year. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime Miles Hanson files his return for a fiscal year ending June 30, 2013. Myfreetaxes com taxtime In January 2013, he received a Form W-2 that showed that his wages for 2012 were $31,200 and that his income tax withheld was $3,380. Myfreetaxes com taxtime His records show that he had received $15,000 of the wages by June 30, 2012, and $16,200 from July 1 through December 31, 2012. Myfreetaxes com taxtime See Table 3-1 . Myfreetaxes com taxtime On his return for the fiscal year ending June 30, 2013, Miles will report the $16,200 he was paid in July through December of 2012, plus the $18,850 he was paid during the rest of the fiscal year, January 1, 2013, through June 30, 2013. Myfreetaxes com taxtime However, he takes credit for all $3,380 that was withheld during 2012. Myfreetaxes com taxtime On his return for the fiscal year ending June 30, 2012, he reported the $15,000 he was paid in January through June 2012, but took no credit for the tax withheld during that time. Myfreetaxes com taxtime On his return for the fiscal year ending June 30, 2014, he will take the credit for any tax withheld during 2013 but not for any tax withheld during 2014. Myfreetaxes com taxtime Table 3-1. Myfreetaxes com taxtime Example for Fiscal Year Ending June 30, 2013—Miles Hanson Date Form W-2 Miles' records Tax return for FY ending 6/30/20121 Tax return for FY ending 6/30/2013 Wages With- holding Wages With- holding Wages With- holding Wages With- holding CY 20122 $31,200 $3,380             1/1/2012 –  6/30/2012     $15,000 $1,600 $15,000       7/1/2012 –  12/31/2012     $16,200 $1,780     $16,200 $3,380 CY 2013 $37,700 $4,316 3             1/1/2013 –  6/30/2013     $18,850 $2,158     $18,850   7/1/2013 –  12/31/2013     $18,850 4 $2,158         1Miles' tax return for FY ending 6/30/2012 also included his wages for 7/1–12/31/2011 and the withholding shown on his 2011 Form W-2. Myfreetaxes com taxtime  2Calendar year (January 1 – December 31). Myfreetaxes com taxtime   3Withholding shown on 2013 Form W-2 ($4,316) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which calendar year 2013 ends. Myfreetaxes com taxtime   4Wages for 7/1–12/31/2013 ($18,850) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which the wages were received. Myfreetaxes com taxtime Backup withholding. Myfreetaxes com taxtime   If income tax has been withheld under the backup withholding rule, take credit for it on your tax return for the fiscal year in which you received the income. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime Emily Smith's records show that she received income in November 2013 and February 2014 from which there was backup withholding ($100 and $50, respectively). Myfreetaxes com taxtime Emily takes credit for the entire $150 of backup withholding on her tax return for the fiscal year ending September 30, 2014. Myfreetaxes com taxtime Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Myfreetaxes com taxtime Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Myfreetaxes com taxtime You must use Form 1040 or Form 1040A if you paid estimated tax. Myfreetaxes com taxtime You cannot file Form 1040EZ. Myfreetaxes com taxtime If you were a beneficiary of an estate or trust, you should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Myfreetaxes com taxtime , from the fiduciary. Myfreetaxes com taxtime If you have estimated taxes credited to you from the estate or trust (from Schedule K-1 (Form 1041)), you must report the estimated taxes on Schedule E (Form 1040). Myfreetaxes com taxtime On the dotted line next to the entry space for line 37 of Schedule E (Form 1040), enter “ES payment claimed” and the amount. Myfreetaxes com taxtime However, do not include this amount in the total on line 37. Myfreetaxes com taxtime Instead, enter the amount on Form 1040, line 63. Myfreetaxes com taxtime This estimated tax payment for 2013 is treated as being made by you on January 15, 2014. Myfreetaxes com taxtime Name changed. Myfreetaxes com taxtime   If you changed your name, and you made estimated tax payments using your former name, attach a statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and The social security number under which you made the payments. Myfreetaxes com taxtime  The statement should cover payments you made jointly with your spouse as well as any you made separately. Myfreetaxes com taxtime   Be sure to report the change to your local Social Security Administration office before filing your 2014 tax return. Myfreetaxes com taxtime This prevents delays in processing your return and issuing refunds. Myfreetaxes com taxtime It also safeguards your future social security benefits. Myfreetaxes com taxtime For more information, call the Social Security Administration at 1-800-772-1213. Myfreetaxes com taxtime Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Myfreetaxes com taxtime If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Myfreetaxes com taxtime One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Myfreetaxes com taxtime If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime James and Evelyn Brown made joint estimated tax payments for 2013 totaling $3,000. Myfreetaxes com taxtime They file separate 2013 Forms 1040. Myfreetaxes com taxtime James' tax is $4,000 and Evelyn's is $1,000. Myfreetaxes com taxtime If they do not agree on how to divide the $3,000, they must divide it proportionately between their returns. Myfreetaxes com taxtime Because James' tax ($4,000) is 80% of the total tax ($5,000), his share of the estimated tax is $2,400 (80% of $3,000). Myfreetaxes com taxtime The balance, $600 (20% of $3,000), is Evelyn's share. Myfreetaxes com taxtime Divorced Taxpayers If you made joint estimated tax payments for 2013 and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Myfreetaxes com taxtime If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Myfreetaxes com taxtime See Example earlier under Separate Returns. Myfreetaxes com taxtime If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided at the top of page 1 of Form 1040 or Form 1040A. Myfreetaxes com taxtime If you divorced and remarried in 2013, enter your present spouse's SSN in that space. Myfreetaxes com taxtime Enter your former spouse's SSN, followed by “DIV,” under Payments to the left of Form 1040, line 63, or in the blank space to the left of Form 1040A, line 37. Myfreetaxes com taxtime Excess Social Security or Railroad Retirement Tax Withholding Most employers must withhold social security tax from your wages. Myfreetaxes com taxtime In some cases, however, the federal government and state and local governments do not have to withhold social security tax from their employees' wages. Myfreetaxes com taxtime If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Myfreetaxes com taxtime Two or more employers. Myfreetaxes com taxtime   If you worked for two or more employers in 2013, too much social security tax or tier 1 RRTA tax may have been withheld from your pay. Myfreetaxes com taxtime You may be able to claim the excess as a credit against your income tax when you file your return. Myfreetaxes com taxtime Table 3-2 shows the maximum amount that should have been withheld for any of these taxes for 2013. Myfreetaxes com taxtime Figure the excess withholding on the appropriate worksheet. Myfreetaxes com taxtime    Table 3-2. Myfreetaxes com taxtime Maximum Social Security and RRTA Withholding for 2013 Type of tax Maximum wages subject to tax Tax rate Maximum tax to be withheld Social security $113,700 6. Myfreetaxes com taxtime 2% $7,049. Myfreetaxes com taxtime 40 Tier 1 RRTA $113,700 6. Myfreetaxes com taxtime 2% $7,049. Myfreetaxes com taxtime 40 Tier 2 RRTA $84,300 4. Myfreetaxes com taxtime 4% $3,709. Myfreetaxes com taxtime 20 Joint returns. Myfreetaxes com taxtime   If you are filing a joint return, you and your spouse must figure any excess social security or tier 1 RRTA separately. Myfreetaxes com taxtime Note. Myfreetaxes com taxtime All wages are subject to Medicare tax withholding. Myfreetaxes com taxtime Employer's error. Myfreetaxes com taxtime   If you had only one employer and he or she withheld too much social security, Medicare, or tier 1 RRTA tax, ask the employer to refund the excess amount to you. Myfreetaxes com taxtime If the employer refuses to refund the overcollection, ask for a statement indicating the amount of the overcollection to support your claim. Myfreetaxes com taxtime File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Myfreetaxes com taxtime Worksheet for Nonrailroad Employees If you did not work for a railroad during 2013, figure the excess social security withholding on Worksheet 3-1. Myfreetaxes com taxtime Note. Myfreetaxes com taxtime If you worked for both a railroad employer and a nonrailroad employer, use Worksheet 3-2, to figure excess social security and tier 1 RRTA tax. Myfreetaxes com taxtime Where to claim credit for excess social security withholding. Myfreetaxes com taxtime   If you file Form 1040, enter the excess on line 69. Myfreetaxes com taxtime   If you file Form 1040A, include the excess in the total on line 41. Myfreetaxes com taxtime Write “Excess SST” and show the amount of the credit in the space to the left of the line. Myfreetaxes com taxtime   You cannot claim excess social security tax withholding on Form 1040EZ. Myfreetaxes com taxtime Worksheets for Railroad Employees If you worked for a railroad during 2013, figure your excess withholding on Worksheet 3-2 and 3-3, as appropriate. Myfreetaxes com taxtime Where to claim credit for excess tier 1 RRTA withholding. Myfreetaxes com taxtime   If you file Form 1040, enter the excess on line 69. Myfreetaxes com taxtime   If you file Form 1040A, include the excess in the total on line 41. Myfreetaxes com taxtime Write “Excess SST” and show the amount of the credit in the space to the left of the line. Myfreetaxes com taxtime   You cannot claim excess tier 1 RRTA withholding on Form 1040EZ. Myfreetaxes com taxtime How to claim refund of excess tier 2 RRTA. Myfreetaxes com taxtime   To claim a refund of tier 2 tax, use Form 843. Myfreetaxes com taxtime Be sure to attach a copy of all of your Forms W-2. Myfreetaxes com taxtime   See Worksheet 3-3 and the Instructions for Form 843, for more details. Myfreetaxes com taxtime Worksheet 3-1. Myfreetaxes com taxtime Excess Social Security—Nonrailroad Employees 1. Myfreetaxes com taxtime Add all social security tax withheld (but not more than  $7,049. Myfreetaxes com taxtime 40 for each employer). Myfreetaxes com taxtime This tax should be shown  in box 4 of your Forms W-2. Myfreetaxes com taxtime Enter the total here 1. Myfreetaxes com taxtime   2. Myfreetaxes com taxtime Enter any uncollected social security tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Myfreetaxes com taxtime   3. Myfreetaxes com taxtime Add lines 1 and 2. Myfreetaxes com taxtime If $7,049. Myfreetaxes com taxtime 40 or less, stop here. Myfreetaxes com taxtime You cannot claim the credit 3. Myfreetaxes com taxtime   4. Myfreetaxes com taxtime Social security limit 4. Myfreetaxes com taxtime $7,049. Myfreetaxes com taxtime 40 5. Myfreetaxes com taxtime Excess. Myfreetaxes com taxtime Subtract line 4 from line 3 5. Myfreetaxes com taxtime   Worksheet 3-2. Myfreetaxes com taxtime Excess Social Security and Tier 1 RRTA—Railroad Employees 1. Myfreetaxes com taxtime Add all social security and tier 1 RRTA tax withheld (but not more than $7,049. Myfreetaxes com taxtime 40 for each employer). Myfreetaxes com taxtime Social security tax should be shown in box 4 and tier 1 RRTA should be shown  in box 14 of your Forms W-2. Myfreetaxes com taxtime Enter the total here 1. Myfreetaxes com taxtime   2. Myfreetaxes com taxtime Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Myfreetaxes com taxtime   3. Myfreetaxes com taxtime Add lines 1 and 2. Myfreetaxes com taxtime If $7,049. Myfreetaxes com taxtime 40 or less, stop here. Myfreetaxes com taxtime You cannot claim the credit 3. Myfreetaxes com taxtime   4. Myfreetaxes com taxtime Social security and tier 1 RRTA tax limit 4. Myfreetaxes com taxtime $7,049. Myfreetaxes com taxtime 40 5. Myfreetaxes com taxtime Excess. Myfreetaxes com taxtime Subtract line 4 from line 3 5. Myfreetaxes com taxtime   Worksheet 3-3. Myfreetaxes com taxtime Excess Tier 2 RRTA—Railroad Employees 1. Myfreetaxes com taxtime Add all tier 2 RRTA tax withheld (but not more than $3,709. Myfreetaxes com taxtime 20 for each employer). Myfreetaxes com taxtime Box 14 of your Forms W-2 should show tier 2 RRTA tax. Myfreetaxes com taxtime Enter the total here 1. Myfreetaxes com taxtime   2. Myfreetaxes com taxtime Enter any uncollected tier 2 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Myfreetaxes com taxtime   3. Myfreetaxes com taxtime Add lines 1 and 2. Myfreetaxes com taxtime If $3,709. Myfreetaxes com taxtime 20 or less, stop here. Myfreetaxes com taxtime You cannot claim the credit. Myfreetaxes com taxtime 3. Myfreetaxes com taxtime   4. Myfreetaxes com taxtime Tier 2 RRTA tax limit 4. Myfreetaxes com taxtime $3,709. Myfreetaxes com taxtime 20 5. Myfreetaxes com taxtime Excess. Myfreetaxes com taxtime Subtract line 4 from line 3. Myfreetaxes com taxtime 5. Myfreetaxes com taxtime   Prev  Up  Next   Home   More Online Publications
Español

Visitors to the United States

Learn more about the U.S. and find resources on immigration, citizenship, travel, and more.

The Myfreetaxes Com Taxtime

Myfreetaxes com taxtime Publication 80 - Main Content Table of Contents Introduction 1. Myfreetaxes com taxtime Employer Identification Number (EIN) 2. Myfreetaxes com taxtime Who Are Employees?Tests. Myfreetaxes com taxtime Business Owned and Operated by Spouses Farm Crew Leaders 3. Myfreetaxes com taxtime Employee's Social Security Number (SSN)Registering for SSNVS. Myfreetaxes com taxtime 4. Myfreetaxes com taxtime Wages and Other CompensationFringe Benefits 5. Myfreetaxes com taxtime TipsOrdering rule. Myfreetaxes com taxtime 6. Myfreetaxes com taxtime Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Myfreetaxes com taxtime How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Myfreetaxes com taxtime 8. Myfreetaxes com taxtime Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Myfreetaxes com taxtime Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Myfreetaxes com taxtime Wage and Tax StatementsWaiver. Myfreetaxes com taxtime 11. Myfreetaxes com taxtime Federal Unemployment (FUTA) Tax—U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands Employers Only How To Get Tax Help Introduction This publication is for employers whose principal place of business is in the U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, or who have employees who are subject to income tax withholding for any of these jurisdictions. Myfreetaxes com taxtime Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Myfreetaxes com taxtime See section 6 and section 7 for more information. Myfreetaxes com taxtime This publication summarizes employer responsibilities to collect, pay, and report these taxes. Myfreetaxes com taxtime Whenever the term “United States” is used in this publication, it includes U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Myfreetaxes com taxtime This publication also provides employers in the U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Myfreetaxes com taxtime See section 11 for more information. Myfreetaxes com taxtime Except as shown in the table in section 12, social security, Medicare, and FUTA taxes apply to every employer who pays taxable wages to employees or who has employees who report tips. Myfreetaxes com taxtime This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Myfreetaxes com taxtime See Publication 570, Tax Guide for Individuals With Income From U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Possessions, if you need this information. Myfreetaxes com taxtime This publication also does not include information relating to income tax withholding. Myfreetaxes com taxtime In U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, contact your local tax department for information about income tax withholding. Myfreetaxes com taxtime See Publication 15 (Circular E), for information on U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime federal income tax withholding. Myfreetaxes com taxtime Comments and suggestions. Myfreetaxes com taxtime   We welcome your comments about this publication and your suggestions for future editions. Myfreetaxes com taxtime   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Myfreetaxes com taxtime NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Myfreetaxes com taxtime Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Myfreetaxes com taxtime    You can also send us comments from www. Myfreetaxes com taxtime irs. Myfreetaxes com taxtime gov/formspubs. Myfreetaxes com taxtime Click on More Information and then click on Comment on Tax Forms and Publications. Myfreetaxes com taxtime   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Myfreetaxes com taxtime 1. Myfreetaxes com taxtime Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Myfreetaxes com taxtime Its format is 00-0000000. Myfreetaxes com taxtime It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Myfreetaxes com taxtime Use your EIN on all of the items that you send to the IRS and SSA for your business. Myfreetaxes com taxtime If you do not have an EIN, you may apply for one online. Myfreetaxes com taxtime Go to IRS. Myfreetaxes com taxtime gov and click on the Apply for an EIN Online link under Tools. Myfreetaxes com taxtime You may also apply for an EIN by calling 1-800-829-4933, (U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands only) or 267-941-1099 (toll call), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Myfreetaxes com taxtime Do not use a social security number (SSN) in place of an EIN. Myfreetaxes com taxtime If you do not have an EIN by the time a return is due, file a paper return and enter “Applied For” and the date that you applied for it in the space shown for the number. Myfreetaxes com taxtime If you took over another employer's business, do not use that employer's EIN. Myfreetaxes com taxtime You should have only one EIN. Myfreetaxes com taxtime If you have more than one, write to the IRS office where you file your returns using the “without a payment” address in the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943. Myfreetaxes com taxtime Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands only) or 267-941-1000 (toll call). Myfreetaxes com taxtime Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands may call 1-800-829-4059. Myfreetaxes com taxtime The IRS will tell you which EIN to use. Myfreetaxes com taxtime For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Myfreetaxes com taxtime 2. Myfreetaxes com taxtime Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Myfreetaxes com taxtime See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Myfreetaxes com taxtime Employee status under common law. Myfreetaxes com taxtime   Generally, a worker who performs services for you is your employee if you can control what will be done and how it will be done. Myfreetaxes com taxtime This is so even when you give the employee freedom of action. Myfreetaxes com taxtime What matters is that you have the right to control the details of how the services are performed. Myfreetaxes com taxtime See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Myfreetaxes com taxtime    Generally, people in business for themselves are not employees. Myfreetaxes com taxtime For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Myfreetaxes com taxtime However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Myfreetaxes com taxtime   If an employer-employee relationship exists, it does not matter what it is called. Myfreetaxes com taxtime The employee may be called an agent or independent contractor. Myfreetaxes com taxtime It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Myfreetaxes com taxtime Statutory employees. Myfreetaxes com taxtime   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Myfreetaxes com taxtime   While the following persons may not be common law employees, they are considered employees for social security and Medicare purposes if the conditions under Tests , discussed later, are met. Myfreetaxes com taxtime a. Myfreetaxes com taxtime   An agent (or commission) driver who delivers food or beverages (other than milk) or picks up and delivers laundry or dry cleaning for someone else. Myfreetaxes com taxtime b. Myfreetaxes com taxtime   A full-time life insurance salesperson who sells primarily for one company. Myfreetaxes com taxtime c. Myfreetaxes com taxtime   A homeworker who works by the guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Myfreetaxes com taxtime d. Myfreetaxes com taxtime   A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Myfreetaxes com taxtime The orders must be for merchandise for resale or supplies for use in the customer's business. Myfreetaxes com taxtime The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Myfreetaxes com taxtime Tests. Myfreetaxes com taxtime   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Myfreetaxes com taxtime The service contract states or implies that almost all of the services are to be performed personally by them. Myfreetaxes com taxtime They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Myfreetaxes com taxtime The services are performed on a continuing basis for the same payer. Myfreetaxes com taxtime Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands only). Myfreetaxes com taxtime   Publication 15-A gives examples of the employer-employee relationship. Myfreetaxes com taxtime Statutory nonemployees. Myfreetaxes com taxtime   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Myfreetaxes com taxtime They are generally treated as self-employed for employment tax purposes. Myfreetaxes com taxtime See Publication 15-A for details. Myfreetaxes com taxtime H-2A agricultural workers. Myfreetaxes com taxtime   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Myfreetaxes com taxtime Treating employees as nonemployees. Myfreetaxes com taxtime   If you incorrectly treated an employee as a nonemployee and did not withhold social security and Medicare taxes, you will be liable for the taxes. Myfreetaxes com taxtime See Treating employees as nonemployees in section 2 of Publication 15 (Circular E), for details on Internal Revenue Code section 3509, which may apply. Myfreetaxes com taxtime IRS help. Myfreetaxes com taxtime   If you want the IRS to determine if a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Myfreetaxes com taxtime Voluntary Classification Settlement Program (VCSP). Myfreetaxes com taxtime   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Myfreetaxes com taxtime To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Myfreetaxes com taxtime For more information, visit IRS. Myfreetaxes com taxtime gov and enter “VCSP” in the search box. Myfreetaxes com taxtime Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Myfreetaxes com taxtime See Publication 541, Partnerships, for more details. Myfreetaxes com taxtime The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Myfreetaxes com taxtime Exception—Qualified Joint Venture. Myfreetaxes com taxtime   If you and your spouse materially participate as the only members of a jointly owned and operated business, and you file a joint Form 1040, U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Individual Income Tax Return, or joint Form 1040-SS, U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Self-Employment Tax Return—U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or Puerto Rico, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. Myfreetaxes com taxtime See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Myfreetaxes com taxtime Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Myfreetaxes com taxtime Either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship. Myfreetaxes com taxtime For more information on qualified joint ventures, visit IRS. Myfreetaxes com taxtime gov and enter “qualified joint venture” in the search box. Myfreetaxes com taxtime Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime 3. Myfreetaxes com taxtime Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Myfreetaxes com taxtime You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Myfreetaxes com taxtime If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Myfreetaxes com taxtime See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Myfreetaxes com taxtime Employee's social security card. Myfreetaxes com taxtime   You should ask the employee to show you his or her social security card. Myfreetaxes com taxtime The employee may show the card if it is available. Myfreetaxes com taxtime Do not accept a social security card that says “Not valid for employment. Myfreetaxes com taxtime ” A social security number issued with this legend does not permit employment. Myfreetaxes com taxtime You may, but you are not required to, photocopy the social security card if the employee provides it. Myfreetaxes com taxtime If an employee does not have a social security card or needs a new one, the employee should apply for one on Form SS-5 and submit the necessary documentation. Myfreetaxes com taxtime The employee must complete and sign Form SS-5; it cannot be filed by the employer. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime If your employee has applied for an SSN but has not received the card before you must file your Form W-2 reports, and you are filing your reports on paper, enter “Applied For” in box d. Myfreetaxes com taxtime Enter all zeroes in the SSN field if filing electronically. Myfreetaxes com taxtime When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Myfreetaxes com taxtime Correctly record the employee's name and SSN. Myfreetaxes com taxtime   Record the name and number of each employee as they appear on his or her social security card. Myfreetaxes com taxtime If the 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. Myfreetaxes com taxtime Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Myfreetaxes com taxtime   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-2AS, W-2CM, W-2GU, or W-2VI. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime Where to get and file social security number application forms. Myfreetaxes com taxtime    U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands—U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Myfreetaxes com taxtime Thomas, VI 00802. Myfreetaxes com taxtime  Guam—U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Myfreetaxes com taxtime  American Samoa—U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Myfreetaxes com taxtime  Commonwealth of the Northern Mariana Islands—U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Myfreetaxes com taxtime Verification of social security numbers. Myfreetaxes com taxtime   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Myfreetaxes com taxtime Visit www. Myfreetaxes com taxtime socialsecurity. Myfreetaxes com taxtime gov/employer/ssnv. Myfreetaxes com taxtime htm for more information. Myfreetaxes com taxtime Registering for SSNVS. Myfreetaxes com taxtime   You must register online and receive authorization from your employer to use SSNVS. Myfreetaxes com taxtime To register, visit SSA's website at www. Myfreetaxes com taxtime ssa. Myfreetaxes com taxtime gov/employer and click on the Business Services Online link. Myfreetaxes com taxtime Follow the registration instructions to obtain a user identification (ID) and password. Myfreetaxes com taxtime You will need to provide the following information about yourself and your company. Myfreetaxes com taxtime Name. Myfreetaxes com taxtime SSN. Myfreetaxes com taxtime Date of birth. Myfreetaxes com taxtime Type of employer. Myfreetaxes com taxtime EIN. Myfreetaxes com taxtime Company name, address, and telephone number. Myfreetaxes com taxtime Email address. Myfreetaxes com taxtime   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Myfreetaxes com taxtime You must enter the activation code online to use SSNVS. Myfreetaxes com taxtime 4. Myfreetaxes com taxtime Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands employers). Myfreetaxes com taxtime However, wages subject to social security tax and FUTA tax are limited by a wage base amount that you pay to each employee for the year. Myfreetaxes com taxtime The wage base for social security tax is $117,000 for 2014. Myfreetaxes com taxtime After you pay $117,000 to an employee in 2014, including tips, do not withhold social security tax on any amount that you later pay to the employee for the year. Myfreetaxes com taxtime The wage base for FUTA tax is $7,000 for 2014. Myfreetaxes com taxtime All wages are subject to Medicare tax. Myfreetaxes com taxtime The wages may be in cash or in other forms, such as an automobile for personal use. Myfreetaxes com taxtime Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Myfreetaxes com taxtime It does not matter how payments are measured or paid. Myfreetaxes com taxtime See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Myfreetaxes com taxtime See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Myfreetaxes com taxtime Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Myfreetaxes com taxtime Special rules apply to the reporting of third-party sick pay. Myfreetaxes com taxtime For details, see Publication 15-A. Myfreetaxes com taxtime Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Myfreetaxes com taxtime However, see Fringe Benefits , later in this section. Myfreetaxes com taxtime Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Myfreetaxes com taxtime Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Myfreetaxes com taxtime For information on reporting back pay to the Social Security Administration, see Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. Myfreetaxes com taxtime Travel and business expenses. Myfreetaxes com taxtime   Payments to your employee for travel and other necessary expenses of your business generally are included in taxable wages if (a) your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, or (b) you advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount that he or she does not substantiate. Myfreetaxes com taxtime Sick pay. Myfreetaxes com taxtime   In general, sick pay is any amount that you pay, under a plan that you take part in, to an employee because of sickness or injury. Myfreetaxes com taxtime These amounts are sometimes paid by a third party, such as an insurance company. Myfreetaxes com taxtime In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands employers). Myfreetaxes com taxtime Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Myfreetaxes com taxtime Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Myfreetaxes com taxtime Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Myfreetaxes com taxtime Examples of fringe benefits include the use of an automobile, aircraft flights that you provide, free or discounted commercial airline flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Myfreetaxes com taxtime In general, the amount included in the employee's income is the excess of the fair market value of the benefit over the sum of any amount paid for it by the employee and any amount excluded by law. Myfreetaxes com taxtime For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Myfreetaxes com taxtime When fringe benefits are treated as paid. Myfreetaxes com taxtime   You can choose to treat certain noncash fringe benefits (including personal use of an automobile provided by you) as paid by the pay period, quarter, or on any other basis that you choose, but they must be treated as paid at least annually. Myfreetaxes com taxtime You do not have to make a formal choice of payment dates or notify the IRS. Myfreetaxes com taxtime You do not have to use the same basis for all employees. Myfreetaxes com taxtime You may change methods as often as you like, as long as all benefits provided in a calendar year are treated as paid no later than December 31 of the calendar year. Myfreetaxes com taxtime However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Myfreetaxes com taxtime   You can treat the value of a single taxable noncash fringe benefit as paid on one or more dates in the same calendar year, even if the employee gets the entire benefit at one time. Myfreetaxes com taxtime However, once you elect the payment dates, you must report the taxes on your return in the same tax period in which you treated them as paid. Myfreetaxes com taxtime This election does not apply to a fringe benefit where real property or investment personal property is transferred. Myfreetaxes com taxtime Withholding social security and Medicare taxes on fringe benefits. Myfreetaxes com taxtime   You add the value of fringe benefits to regular wages for a payroll period and figure social security and Medicare taxes on the total. Myfreetaxes com taxtime   If you withhold less than the required amount of social security and Medicare taxes from the employee in a calendar year but report and pay the proper amount, you may recover the taxes from the employee. Myfreetaxes com taxtime Depositing taxes on fringe benefits. Myfreetaxes com taxtime   Once you choose payment dates for taxable noncash fringe benefits, you must deposit taxes in the same deposit period that you treat the fringe benefits as paid. Myfreetaxes com taxtime You may make a reasonable estimate of the value of the fringe benefits. Myfreetaxes com taxtime In general, the value of taxable noncash fringe benefits provided in a calendar year must be determined by January 31 of the following year. Myfreetaxes com taxtime   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Myfreetaxes com taxtime If deposits are underpaid, see Deposit Penalties in section 8. Myfreetaxes com taxtime Valuation of vehicles provided to employees. Myfreetaxes com taxtime    If you provide a vehicle to your employees, you may either determine the actual value of the benefit for the entire calendar year, taking into account the business use of the vehicle, or consider the entire use for the calendar year as personal and include 100% of the value of the vehicle in the employee's income. Myfreetaxes com taxtime For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Myfreetaxes com taxtime Special accounting rule for fringe benefits provided during November and December. Myfreetaxes com taxtime   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Myfreetaxes com taxtime However, this applies only to those benefits that you actually provided during November and December, not to those you merely treated as paid during those months. Myfreetaxes com taxtime   If you use this rule, you must notify each affected employee between the time of the employee's last paycheck of the calendar year and at or near the time that you give the employee Form W-2AS, W-2CM, W-2GU, or W-2VI. Myfreetaxes com taxtime If you use the special accounting rule, your employee must also use it for the same period that you use it. Myfreetaxes com taxtime You cannot use this rule for a fringe benefit of real property or tangible or intangible real property of a kind normally held for investment that is transferred to your employee. Myfreetaxes com taxtime 5. Myfreetaxes com taxtime Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Myfreetaxes com taxtime Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Myfreetaxes com taxtime The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Myfreetaxes com taxtime Both directly and indirectly tipped employees must report tips to you. Myfreetaxes com taxtime The report should not include tips that the employee paid out to other employees. Myfreetaxes com taxtime No report is required for months when tips are less than $20. Myfreetaxes com taxtime Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Myfreetaxes com taxtime They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Myfreetaxes com taxtime Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Myfreetaxes com taxtime gov. Myfreetaxes com taxtime The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period that the report covers, and The total tips received during the month or period. Myfreetaxes com taxtime You are permitted to establish a system for electronic tip reporting by employees. Myfreetaxes com taxtime See Regulations section 31. Myfreetaxes com taxtime 6053-1(d). Myfreetaxes com taxtime Collecting taxes on tips. Myfreetaxes com taxtime   You must collect the employee social security and Medicare taxes on the employee's tips. Myfreetaxes com taxtime You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Myfreetaxes com taxtime Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Myfreetaxes com taxtime Collect the employee Medicare tax for the whole year on all wages and tips. Myfreetaxes com taxtime   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Myfreetaxes com taxtime You are responsible for the employer Medicare tax for the whole year on all wages and tips. Myfreetaxes com taxtime File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Myfreetaxes com taxtime The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Myfreetaxes com taxtime Ordering rule. Myfreetaxes com taxtime   If, by the 10th of the month after the month you received an employee's report on tips, you do not have enough employee funds available to deduct the employee social security and Medicare tax on tips, you no longer have to collect it and are not liable for it. Myfreetaxes com taxtime Reporting tips. Myfreetaxes com taxtime   Report tips and any collected and uncollected social security in boxes 1, 5, 7, and 12 on Forms W-2AS, W-2CM, W-2GU, or W-2VI and on Form 941-SS, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Myfreetaxes com taxtime Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Myfreetaxes com taxtime Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Myfreetaxes com taxtime The table in section 12 shows how tips are treated for FUTA tax purposes. Myfreetaxes com taxtime   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Myfreetaxes com taxtime See Revenue Ruling 2012-18, 2012-26 I. Myfreetaxes com taxtime R. Myfreetaxes com taxtime B. Myfreetaxes com taxtime 1032, available at www. Myfreetaxes com taxtime irs. Myfreetaxes com taxtime gov/irb/2012-26_IRB/ar07. Myfreetaxes com taxtime html. Myfreetaxes com taxtime 6. Myfreetaxes com taxtime Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Myfreetaxes com taxtime 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. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime A “share farmer” working for you is not your employee. Myfreetaxes com taxtime However, the share farmer may be subject to self-employment tax. Myfreetaxes com taxtime In general, share farming is an arrangement in which certain commodity products are shared between the farmer and the owner (or tenant) of the land. Myfreetaxes com taxtime For details, see Regulations section 31. Myfreetaxes com taxtime 3121(b)(16)-1. Myfreetaxes com taxtime The $150 Test or the $2,500 Test All cash wages that you pay to any employee for farmwork are subject to social security and Medicare taxes if either of the following two tests is met. Myfreetaxes com taxtime You pay cash wages to the employee of $150 or more in a year (count all cash wages paid on a time, piecework, or other basis) for farmwork. Myfreetaxes com taxtime The $150 test applies separately to each farmworker that you employ. Myfreetaxes com taxtime If you employ a family of workers, each member is treated separately. Myfreetaxes com taxtime Do not count wages paid by other employers. Myfreetaxes com taxtime The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Myfreetaxes com taxtime Exceptions. Myfreetaxes com taxtime   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 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 home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Myfreetaxes com taxtime   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. Myfreetaxes com taxtime 7. Myfreetaxes com taxtime How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Myfreetaxes com taxtime 2% (amount withheld) each for the employer and employee (12. Myfreetaxes com taxtime 4% total). Myfreetaxes com taxtime The social security wage base limit is $117,000. Myfreetaxes com taxtime The tax rate for Medicare is 1. Myfreetaxes com taxtime 45% (amount withheld) each for the employee and employer (2. Myfreetaxes com taxtime 9% total). Myfreetaxes com taxtime There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Myfreetaxes com taxtime Multiply each wage payment by these percentages to figure the tax to withhold from employees. Myfreetaxes com taxtime Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Myfreetaxes com taxtime See section 5 for information on tips. Myfreetaxes com taxtime Additional Medicare Tax withholding. Myfreetaxes com taxtime   In addition to withholding Medicare tax at 1. Myfreetaxes com taxtime 45%, you must withhold a 0. Myfreetaxes com taxtime 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime Additional Medicare Tax is only imposed on the employee. Myfreetaxes com taxtime There is no employer share of Additional Medicare Tax. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime   For more information on what wages are subject to Medicare tax, see the chart Special Rules for Various Types of Employment and Payments in section 12. Myfreetaxes com taxtime For more information on Additional Medicare Tax, visit IRS. Myfreetaxes com taxtime gov and enter “Additional Medicare Tax” in the search box. Myfreetaxes com taxtime Deducting the tax. Myfreetaxes com taxtime   Deduct the employee tax from each wage payment. Myfreetaxes com taxtime If you are not sure that the wages that you pay to a farmworker during the year will be taxable, you may either deduct the tax when you make the payments or wait until the $2,500 test or the $150 test explained in section 6 has been met. Myfreetaxes com taxtime Employee's portion of taxes paid by employer. Myfreetaxes com taxtime   If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for social security and Medicare taxes. Myfreetaxes com taxtime This increase in the employee's wage payment for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. Myfreetaxes com taxtime This again increases the amount of the additional taxes that you must pay. Myfreetaxes com taxtime Household and agricultural employers. Myfreetaxes com taxtime   This discussion does not apply to household and agricultural employers. Myfreetaxes com taxtime If you pay a household or agricultural employee's social security and Medicare taxes, these payments must be included in the employee's wages. Myfreetaxes com taxtime However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Myfreetaxes com taxtime See Publication 15-A for details. Myfreetaxes com taxtime Sick pay payments. Myfreetaxes com taxtime   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Myfreetaxes com taxtime For details on third-party payers of sick pay, see Publication 15-A. Myfreetaxes com taxtime 8. Myfreetaxes com taxtime Depositing Taxes You must deposit social security and Medicare taxes if your tax liability (Form 941-SS, line 10; Form 944, line 7; or Form 943, line 11) is $2,500 or more for the tax return period. Myfreetaxes com taxtime You must make the deposit by electronic funds transfer. Myfreetaxes com taxtime For more information about electronic funds transfers, see How To Deposit , later in this section. Myfreetaxes com taxtime Payment with Return $2,500 rule. Myfreetaxes com taxtime   Instead of making deposits during the current quarter, you can pay your total Form 941-SS tax liability when you timely file Form 941-SS if: Your total Form 941-SS tax liability for either the current quarter or the preceding quarter is less than $2,500 and You do not incur a $100,000 next-day deposit obligation during the current quarter. Myfreetaxes com taxtime   If you are not sure your total liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure to deposit penalties. Myfreetaxes com taxtime Employers who have been notified to file Form 944 can pay their tax liability due for the fourth quarter with Form 944, if their fourth quarter tax liability is less than $2,500. Myfreetaxes com taxtime Employers must have deposited any tax liability due for the first, second, and third quarters, according to the deposit rules, in order to avoid failure-to-deposit penalties for deposits due during those quarters. Myfreetaxes com taxtime Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Myfreetaxes com taxtime Semiweekly schedule depositors must timely deposit the amount. Myfreetaxes com taxtime See Accuracy of Deposits Rule and How To Deposit, later in this section. Myfreetaxes com taxtime When To Deposit Under the rules discussed below, the only difference between farm and nonfarm workers' employment tax deposit rules is the lookback period. Myfreetaxes com taxtime Therefore, farm and nonfarm workers are discussed together except where noted. Myfreetaxes com taxtime Depending on your total taxes reported during a lookback period (discussed later), you are either a monthly schedule depositor or a semiweekly schedule depositor. Myfreetaxes com taxtime The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often you pay your employees or how often you are required to make deposits. Myfreetaxes com taxtime The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Myfreetaxes com taxtime You will need to determine your deposit schedule for a calendar year based on the total employment taxes reported on Forms 941-SS, line 10; Form 944, line 7; or Form 943, line 9, for your lookback period (defined below). Myfreetaxes com taxtime If you filed both Forms 941-SS and 941 during the lookback period, combine the tax liabilities for these returns for purposes of determining your deposit schedule. Myfreetaxes com taxtime Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Myfreetaxes com taxtime Lookback period for employers of nonfarm workers. Myfreetaxes com taxtime   The lookback period for Form 941-SS (or Form 941) consists of four quarters beginning July 1 of the second preceding year and ending June 30 of the prior year. Myfreetaxes com taxtime These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Myfreetaxes com taxtime For 2014, the lookback period is July 1, 2012, through June 30, 2013. Myfreetaxes com taxtime    Table 1. Myfreetaxes com taxtime Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Myfreetaxes com taxtime 1, 2012 Jan. Myfreetaxes com taxtime 1, 2013 Apr. Myfreetaxes com taxtime 1, 2013 through through through through Sep. Myfreetaxes com taxtime 30, 2012 Dec. Myfreetaxes com taxtime 31, 2012 Mar. Myfreetaxes com taxtime 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Myfreetaxes com taxtime For example, the lookback period for calendar year 2014 is calendar year 2012. Myfreetaxes com taxtime In addition, for employers who filed Form 944 for 2012 or for 2013 and will file Form 941-SS (or Form 941) for 2014, the lookback period for 2014 is the second calendar year preceding the current calendar year, that is, 2012. Myfreetaxes com taxtime Lookback period for employers of farmworkers. Myfreetaxes com taxtime   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Myfreetaxes com taxtime The lookback period for calendar year 2014 is calendar year 2012. Myfreetaxes com taxtime Adjustments to lookback period taxes. Myfreetaxes com taxtime   To determine your taxes for the lookback period, use only the tax that you reported on the original returns (Forms 941-SS, 943, or 944). Myfreetaxes com taxtime Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime   An employer originally reported total taxes of $45,000 for the lookback period. Myfreetaxes com taxtime The employer discovered during January 2014 that the tax reported during the lookback period was understated by $10,000 and corrected this error by filing Form 941-X. Myfreetaxes com taxtime The employer is a monthly schedule depositor for 2014 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less. Myfreetaxes com taxtime Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Myfreetaxes com taxtime For monthly schedule depositors, the deposit period is a calendar month. Myfreetaxes com taxtime The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Myfreetaxes com taxtime Monthly Deposit Schedule If your total tax reported for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Myfreetaxes com taxtime You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Myfreetaxes com taxtime New employers. Myfreetaxes com taxtime   Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Myfreetaxes com taxtime Therefore, you are a monthly schedule depositor for the first calendar year of your business (but see the $100,000 Next-Day Deposit Rule , later in this section). Myfreetaxes com taxtime Semiweekly Deposit Schedule If your total tax reported for the lookback period is more than $50,000, you are a semiweekly schedule depositor for the current year. Myfreetaxes com taxtime If you are a semiweekly schedule depositor, you must deposit on Wednesday and/or Friday, depending on what day of the week that you make wage payments, as follows. Myfreetaxes com taxtime Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Myfreetaxes com taxtime Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Myfreetaxes com taxtime Semiweekly depositors are generally 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. Myfreetaxes com taxtime 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 on the following Wednesday. Myfreetaxes com taxtime If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Myfreetaxes com taxtime Semiweekly deposit period spanning two quarters. Myfreetaxes com taxtime   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. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime   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. Myfreetaxes com taxtime Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Myfreetaxes com taxtime Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Myfreetaxes com taxtime   Rose Co. Myfreetaxes com taxtime reported Form 941-SS taxes as follows: 2013 Lookback Period 3rd Quarter 2011 $12,000 4th Quarter 2011 12,000 1st Quarter 2012 12,000 2nd Quarter 2012 12,000   $48,000 2014 Lookback Period 3rd Quarter 2012 $12,000 4th Quarter 2012 12,000 1st Quarter 2013 12,000 2nd Quarter 2013 15,000   $51,000 Rose Co. Myfreetaxes com taxtime is a monthly schedule depositor for 2013 because its taxes for the four quarters in its lookback period ($48,000 for the 3rd quarter of 2011 through the 2nd quarter of 2012) were not more than $50,000. Myfreetaxes com taxtime However, for 2014, Rose Co. Myfreetaxes com taxtime is a semiweekly schedule depositor because the total taxes for the four quarters in its lookback period ($51,000 for the 3rd quarter of 2012 through the 2nd quarter of 2013) exceeded $50,000. Myfreetaxes com taxtime Employers of farmworkers. Myfreetaxes com taxtime   Red Co. Myfreetaxes com taxtime reported taxes on its 2012 Form 943, line 9, of $48,000. Myfreetaxes com taxtime On its 2013 Form 943, line 11, it reported taxes of $60,000. Myfreetaxes com taxtime   Red Co. Myfreetaxes com taxtime is a monthly schedule depositor for 2014 because its taxes for its lookback period ($48,000 for calendar year 2012) were not more than $50,000. Myfreetaxes com taxtime However, for 2015, Red Co. Myfreetaxes com taxtime is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Myfreetaxes com taxtime New agricultural employers. Myfreetaxes com taxtime   New agricultural employers filing Form 943 are monthly schedule depositors for the first and second calendar years of their business because their taxes for the lookback period (2 years) are considered to be zero. Myfreetaxes com taxtime However, see the $100,000 Next-Day Deposit Rule , later in this section. Myfreetaxes com taxtime Deposits on Business Days Only If a deposit due date falls 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. Myfreetaxes com taxtime A business day is any day other than a Saturday, Sunday, or legal holiday. Myfreetaxes com taxtime For example, if a deposit is required to be made on Friday, but Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). Myfreetaxes com taxtime Semiweekly schedule depositors have at least 3 business days to make a deposit. Myfreetaxes com taxtime 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 required deposit. Myfreetaxes com taxtime For example, if a semiweekly schedule depositor accumulated taxes for payments made 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). Myfreetaxes com taxtime Legal holiday. Myfreetaxes com taxtime   The term “legal holiday” means any legal holiday in the District of Columbia. Myfreetaxes com taxtime Legal holidays for 2014 are listed below. Myfreetaxes com taxtime January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Myfreetaxes com taxtime 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 Application of Monthly and Semiweekly Schedules The following examples illustrate the procedure for determining the deposit date under the two different deposit schedules. Myfreetaxes com taxtime Monthly schedule example. Myfreetaxes com taxtime   Spruce Co. Myfreetaxes com taxtime is a monthly schedule depositor with seasonal employees. Myfreetaxes com taxtime It paid wages each Friday during August but did not pay any wages during September. Myfreetaxes com taxtime Under the monthly deposit schedule, Spruce Co. Myfreetaxes com taxtime must deposit the combined tax liabilities for the four August paydays by September 15. Myfreetaxes com taxtime Spruce Co. Myfreetaxes com taxtime does not have a deposit requirement for September (due by October 15) because no wages were paid and, therefore, it did not have a tax liability for September. Myfreetaxes com taxtime Semiweekly schedule example. Myfreetaxes com taxtime   Green, Inc. Myfreetaxes com taxtime is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Myfreetaxes com taxtime Although Green, Inc. Myfreetaxes com taxtime , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Myfreetaxes com taxtime The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Myfreetaxes com taxtime ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Myfreetaxes com taxtime Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Myfreetaxes com taxtime $100,000 Next-Day Deposit Rule If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Myfreetaxes com taxtime For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Myfreetaxes com taxtime For example, if a semiweekly schedule depositor has accumulated taxes of $95,000 on Tuesday and $10,000 on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. Myfreetaxes com taxtime Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime For example, Fir Co. Myfreetaxes com taxtime is a semiweekly schedule depositor. Myfreetaxes com taxtime On Monday, Fir Co. Myfreetaxes com taxtime accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Myfreetaxes com taxtime On Tuesday, Fir Co. Myfreetaxes com taxtime accumulates additional taxes of $30,000. Myfreetaxes com taxtime Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Myfreetaxes com taxtime does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Myfreetaxes com taxtime If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day during a month, you become a semiweekly schedule depositor on the next day and remain so for the remainder of the calendar year and for the following calendar year. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime   Elm, Inc. Myfreetaxes com taxtime started its business on May 1, 2014. Myfreetaxes com taxtime On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Myfreetaxes com taxtime On Friday, May 9, Elm, Inc. Myfreetaxes com taxtime paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Myfreetaxes com taxtime Elm, Inc. Myfreetaxes com taxtime must deposit $100,000 by Monday, May 12, the next business day. Myfreetaxes com taxtime Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. Myfreetaxes com taxtime However, because Elm, Inc. Myfreetaxes com taxtime accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Myfreetaxes com taxtime It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Myfreetaxes com taxtime Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Myfreetaxes com taxtime However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Myfreetaxes com taxtime Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited, and The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Myfreetaxes com taxtime Makeup date for deposit shortfall: Monthly schedule depositor. Myfreetaxes com taxtime Deposit or pay the shortfall by the due date of your Form 941-SS, 944, or 943 for the period in which the shortfall occurred. Myfreetaxes com taxtime You may pay the shortfall with your return even if the amount is $2,500 or more. Myfreetaxes com taxtime Semiweekly schedule depositor. Myfreetaxes com taxtime Deposit by the earlier of: The first Wednesday or Friday (whichever comes first) that comes on or after the 15th of the month following the month in which the shortfall occurred, or The return due date for the period in which the shortfall occurred. Myfreetaxes com taxtime For example, if a semiweekly schedule depositor filing Form 941-SS has a deposit shortfall during July 2014, the shortfall makeup date is August 15, 2014 (Friday). Myfreetaxes com taxtime However, if the shortfall occurred on the required April 2 (Wednesday), deposit date for a March 28 (Friday) pay date, the return due date for the March 28 pay date (April 30) would come before the May 16 (Friday) shortfall makeup date. Myfreetaxes com taxtime In this case, the shortfall must be deposited by April 30, 2014. Myfreetaxes com taxtime 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-SS or 944 taxes). Myfreetaxes com taxtime Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Myfreetaxes com taxtime If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Myfreetaxes com taxtime How To Deposit You must deposit employment taxes by electronic funds transfer. Myfreetaxes com taxtime See Payment with Return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Myfreetaxes com taxtime Electronic deposit requirement. Myfreetaxes com taxtime   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Myfreetaxes com taxtime Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Myfreetaxes com taxtime 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. Myfreetaxes com taxtime   EFTPS is a free service provided by the Department of the Treasury. Myfreetaxes com taxtime To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands only) or 303-967-5916 (toll call). Myfreetaxes com taxtime You can also visit the EFTPS website at www. Myfreetaxes com taxtime eftps. Myfreetaxes com taxtime gov. Myfreetaxes com taxtime Additional information about EFTPS is also available in Publication 966. Myfreetaxes com taxtime When you receive your EIN. Myfreetaxes com taxtime   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Myfreetaxes com taxtime You will receive information about Express Enrollment in your Employer Identification Number (EIN) Package and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Myfreetaxes com taxtime Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime Deposit record. Myfreetaxes com taxtime   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Myfreetaxes com taxtime The number can be used as a receipt or to trace the payment. Myfreetaxes com taxtime Depositing on time. Myfreetaxes com taxtime   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Myfreetaxes com taxtime m. Myfreetaxes com taxtime Eastern time the day before the date the deposit is due. Myfreetaxes com taxtime If you use a third party to make deposits on your behalf, they may have different cutoff times. Myfreetaxes com taxtime Same-day payment option. Myfreetaxes com taxtime   If you fail to initiate a deposit transaction on EFTPS by 8 p. Myfreetaxes com taxtime m. Myfreetaxes com taxtime 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). Myfreetaxes com taxtime To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Myfreetaxes com taxtime Please check with your financial institution regarding availability, deadlines, and costs. Myfreetaxes com taxtime Your financial institution may charge you a fee for payments made this way. Myfreetaxes com taxtime To learn more about the information you will need to provide your financial institution to make a same-day wire payment, please visit www. Myfreetaxes com taxtime eftps. Myfreetaxes com taxtime gov to download the Same-Day Payment Worksheet. Myfreetaxes com taxtime How to claim credit for overpayments. Myfreetaxes com taxtime   If you deposited more than the right amount of taxes for a tax period, you can choose on Form 941-SS, 941, 944, or 943 for that tax period to have the overpayment refunded or applied as a credit to your next return. Myfreetaxes com taxtime Do not ask EFTPS to request a refund from the IRS for you. Myfreetaxes com taxtime Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits of less than the required amount. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime The IRS may also waive 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. Myfreetaxes com taxtime For amounts not properly or timely deposited, the penalty rates are as follows. Myfreetaxes com taxtime 2% - Deposits made 1 to 5 days late. Myfreetaxes com taxtime 5% - Deposits made 6 to 15 days late. Myfreetaxes com taxtime 10% - Deposits made 16 or more days late. Myfreetaxes com taxtime Also applies to amounts paid within 10 days of the date of the first notice that the IRS sent asking for the tax due. Myfreetaxes com taxtime 10% - Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return (but see Payment with Return , earlier in this section, for exceptions). Myfreetaxes com taxtime 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. Myfreetaxes com taxtime Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Myfreetaxes com taxtime Special rule for former Form 944 filers. Myfreetaxes com taxtime    If you filed Form 944 for the prior year and must file Forms 941-SS for the current year because your employment tax liability for the prior year exceeded the Form 944 eligibility requirement ($1,000 or less), the failure-to-deposit penalty will not apply to a late deposit of employment taxes for the first month of the current year if the taxes are deposited in full by March 15 of the current year. Myfreetaxes com taxtime Order in which deposits are applied. Myfreetaxes com taxtime   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Myfreetaxes com taxtime However, if you receive a failure-to-deposit penalty notice, you may designate how your payment is 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. Myfreetaxes com taxtime Follow the instructions on the penalty notice that you received. Myfreetaxes com taxtime For more information on designating deposits, see Revenue Procedure 2001-58. Myfreetaxes com taxtime You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Myfreetaxes com taxtime irs. Myfreetaxes com taxtime gov/pub/irs-irbs/irb01-50. Myfreetaxes com taxtime pdf. Myfreetaxes com taxtime Example. Myfreetaxes com taxtime Cedar, Inc. Myfreetaxes com taxtime is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Myfreetaxes com taxtime It does not make the deposit on July 15. Myfreetaxes com taxtime On August 15, Cedar, Inc. Myfreetaxes com taxtime deposits $2,000. Myfreetaxes com taxtime 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. Myfreetaxes com taxtime Accordingly, $500 of the July 15 liability remains undeposited. Myfreetaxes com taxtime The penalty on this underdeposit will apply as explained earlier. Myfreetaxes com taxtime Trust fund recovery penalty. Myfreetaxes com taxtime   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. Myfreetaxes com taxtime The penalty is the full amount of the unpaid trust fund tax. Myfreetaxes com taxtime This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Myfreetaxes com taxtime   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. Myfreetaxes com taxtime   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, or any other person or entity that is responsible for collecting, accounting for, and paying over trust fund taxes. Myfreetaxes com taxtime A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Myfreetaxes com taxtime    Willfully means voluntarily, consciously, and intentionally. Myfreetaxes com taxtime A responsible person acts willfully if the person knows 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. Myfreetaxes com taxtime “Averaged” failure-to-deposit penalty. Myfreetaxes com taxtime   The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941-SS, line 14, when your tax liability shown on Form 941-SS, line 10, was $2,500 or more. Myfreetaxes com taxtime IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 941-SS, line 10, was $2,500 or more and you did any of the following. Myfreetaxes com taxtime Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Myfreetaxes com taxtime Failed to attach a properly completed Schedule B (Form 941). Myfreetaxes com taxtime Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Myfreetaxes com taxtime   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Myfreetaxes com taxtime Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Myfreetaxes com taxtime   You can avoid the penalty by reviewing your return before filing it. Myfreetaxes com taxtime Follow these steps before filing your Form 941-SS. Myfreetaxes com taxtime If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 941-SS, line 14. Myfreetaxes com taxtime If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates you paid your employees. Myfreetaxes com taxtime Verify that your total liability shown on Form 941-SS, line 14, or the bottom of Schedule B (Form 941) equals your tax liability shown on Form 941-SS,  line 10. Myfreetaxes com taxtime Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Myfreetaxes com taxtime For prior period errors, do not adjust your tax liabilities reported on your current Form 941-SS, line 14, or on Schedule B (Form 941). Myfreetaxes com taxtime Instead, file an adjusted return (Form 941-X (if you are adjusting a previously filed Form 941-SS) or Form 944-X (if you are adjusting a previously filed Form 944-SS or 944)) if you are also adjusting your tax liability. Myfreetaxes com taxtime If you are only adjusting your deposits in response to a failure-to-deposit penalty notice, see the Instructions for Schedule B (Form 941) (if you previously filed Form 941-SS) or the Instructions for Form 944-X (if you previously filed Form 944-SS or 944). Myfreetaxes com taxtime If you filed Form 944 for 2013 and line 7 was $2,500 or more, you were required to complete Form 944, lines 13a–13m, or attach Form 945-A, Annual Record of Federal Tax Liability. Myfreetaxes com taxtime If you failed to complete lines 13a–13m, or failed to attach Form 945-A, whichever was required, IRS may assess an “averaged” failure-to-deposit (FTD) penalty. Myfreetaxes com taxtime 9. Myfreetaxes com taxtime Employer's Returns General instructions. Myfreetaxes com taxtime   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Myfreetaxes com taxtime (U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Myfreetaxes com taxtime ) Employers with employees subject to U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime income tax withholding. Myfreetaxes com taxtime   If you have both employees who are subject to U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime income tax withholding and employees who are not subject to U. Myfreetaxes com taxtime S. Myfreetaxes com taxtime income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Myfreetaxes com taxtime Nonfarm employers. Myfreetaxes com taxtime   File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Myfreetaxes com taxtime Due dates for each quarter of the calendar year are as follows. Myfreetaxes com taxtime Quarter Due Jan. Myfreetaxes com taxtime , Feb. Myfreetaxes com taxtime , Mar. Myfreetaxes com taxtime Apr. Myfreetaxes com taxtime 30 Apr. Myfreetaxes com taxtime , May, June July 31 July, Aug. Myfreetaxes com taxtime , Sept. Myfreetaxes com taxtime Oct. Myfreetaxes com taxtime 31 Oct. Myfreetaxes com taxtime , Nov. Myfreetaxes com taxtime , Dec. Myfreetaxes com taxtime Jan. Myfreetaxes com taxtime 31   However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates to file the return. Myfreetaxes com taxtime If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. Myfreetaxes com taxtime   If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 15 of your final Form 941-SS and show the date final wages were paid. Myfreetaxes com taxtime Form 944. Myfreetaxes com taxtime   If IRS notified you to file Form 944, file your 2013 Form 944 by January 31, 2014, or by February 10, 2014 (if you deposited all taxes when due). Myfreetaxes com taxtime Household employers reporting social security and Medicare taxes. Myfreetaxes com taxtime   If you are a sole proprietor and file Forms 941-SS (or Form 944) for business employees, you may include taxes for household employees on your Forms 941-SS (or Form 944). Myfreetaxes com taxtime Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Myfreetaxes com taxtime See Publication 926, Household Employer's Tax Guide, for more information. Myfreetaxes com taxtime Employers of farmworkers. Myfreetaxes com taxtime   Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6. Myfreetaxes com taxtime   File a Form 943 each year for all taxable wages paid for farmwork. Myfreetaxes com taxtime You may report household workers in a private home on a farm operated for profit on Form 943. Myfreetaxes com taxtime Do not report wages for farmworkers on Form 941-SS or 944. Myfreetaxes com taxtime   Send Form 943 to the IRS by January 31 of the following year. Myfreetaxes com taxtime Send it with payment of any taxes due that you are not required to deposit. Myfreetaxes com taxtime If you deposited all taxes when due, you have 10 additional days to file. Myfreetaxes com taxtime Penalties. Myfreetaxes com taxtime   For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. Myfreetaxes com taxtime The maximum penalty is generally 25% of the tax due. Myfreetaxes com taxtime Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0. Myfreetaxes com taxtime 5% per month of the amount of tax. Myfreetaxes com taxtime For individual filers only, the failure-to-pay penalty is reduced from 0. Myfreetaxes com taxtime 5% per month to 0. Myfreetaxes com taxtime 25% per month if an installment agreement is in effect. Myfreetaxes com taxtime You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Myfreetaxes com taxtime The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Myfreetaxes com taxtime If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Myfreetaxes com taxtime The penalties will not be charged if you have a reasonable cause for failing to file or pay. Myfreetaxes com taxtime If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Myfreetaxes com taxtime Reporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, 944, or 943. Myfreetaxes com taxtime See the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943 for information on how to report these adjustments. Myfreetaxes com taxtime Prior Period Adjustments Forms for prior period adjustments. Myfreetaxes com taxtime   Use Form 941-X or Form 944-X to make a correction after you discover an error on a previously filed Form 941 or Form 944. Myfreetaxes com taxtime There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Myfreetaxes com taxtime Form 941-X and Form 944-X also replace Form 843, Claim for Refund and Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Myfreetaxes com taxtime Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Myfreetaxes com taxtime See Revenue Ruling 2009-39, 2009-52 I. Myfreetaxes com taxtime R. Myfreetaxes com taxtime B. Myfreetaxes com taxtime 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Myfreetaxes com taxtime You can find Revenue Ruling 2009-39, at www. Myfreetaxes com taxtime irs. Myfreetaxes com taxtime gov/irb/2009-52_IRB/ar14. Myfreetaxes com taxtime html. Myfreetaxes com taxtime Background. Myfreetaxes com taxtime   Treasury Decision 9405 changed the process for making interest-free adjustments to employment taxes reported on Forms 941-SS, 943, 944-SS, and 944, and for filing a claim for refund of employment taxes. Myfreetaxes com taxtime Treasury Decision 9405, 2008-32 I. Myfreetaxes com taxtime R. Myfreetaxes com taxtime B. Myfreetaxes com taxtime 293, is available at www. Myfreetaxes com taxtime irs. Myfreetaxes com taxtime gov/irb/2008-32_IRB/ar13. Myfreetaxes com taxtime html. Myfreetaxes com taxtime You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941-SS, 943, or 944 period during which you file Forms 941-X, 943-X, or 944-X, respectively. Myfreetaxes com taxtime You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Myfreetaxes com taxtime We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code. Myfreetaxes com taxtime Correcting employment taxes. Myfreetaxes com taxtime   When you discover an error on a previously filed Form 941-SS, 943, 944-SS, or 944, you must: Correct that error using Form 941-X, Form 943-X, or Form 944-X, File a separate Form 941-X, Form 943-X, or Form 944-X for