1999 Department of the Treasury Internal Revenue Service Instructions for Form 943 Employer's Annual Tax Return for Agricultural Employees Items To Note New electronic deposit requirement.   Beginning January 1, 2000, the following changes have been made to the electronic deposit requirement: l  The threshold that determines whether you must use the Electronic Federal Tax Payment System (EFTPS) has been increased from $50,000 to $200,000. l  All Federal tax deposits (such as deposits for employment tax, excise tax, and corporate income tax) made during a calendar year are combined to determine whether you exceeded the $200,000 threshold. If the total of your Federal tax deposits made in 1998 exceeded $200,000, you must use EFTPS beginning January 1, 2000. l  Participation in EFTPS is voluntary if your deposits do not exceed the new $200,000 threshold, even if you were required to electronically deposit under the previous $50,000 threshold. However, businesses that exceed the new $200,000 threshold must continue to use EFTPS in all later years. l  The waiver of the penalty for failure to use EFTPS, scheduled to expire on July 1, 1999, has been extended to January 1, 2000, for taxpayers whose total Federal tax deposits in 1998 did not exceed the new $200,000 threshold. However, taxpayers will remain liable for penalties if a deposit is not made in the required manner. EFTPS must be used to make electronic deposits. If you are required to make deposits by electronic funds transfer and fail to do so, you may be subject to a 10% penalty. Taxpayers who are not required to make electronic deposits may voluntarily participate in EFTPS. To enroll in EFTPS, call 1-800-555-4477 or 1-800-945-8400. For general information about EFTPS, call 1-800-829-1040. Social security wage base for 1999.   Stop withholding social security tax after an employee reaches $72,600 in taxable wages. Photographs of Missing Children The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. General Instructions Purpose of form.   Use Form 943 to report income tax withheld and employer and employee social security and Medicare taxes on wages paid to farmworkers. If you have household employees working in your private home on your farm operated for a profit, they are considered farm employees. To report social security, Medicare, and income tax withholding on the wages of household employees, you may either: 1. File Schedule H (Form 1040), Household Employment Taxes, with your Form 1040 or 2. Include the wages with other farm employee wages on Form 943. If you paid wages to a household employee in a home that is not on a for-profit farm, you must report the taxes on Schedule H. If you paid wages to nonfarm workers, do not report these on Form 943. Report them on Form 941, Employer's Quarterly Federal Tax Return. See Pub. 926, Household Employer's Tax Guide, for more information about household employees. Who must file.   File Form 943 if you paid wages to one or more farmworkers and the wages were subject to social security and Medicare taxes or income tax withholding under the tests discussed below. For definitions of farmworkers and wages, see Circular A, Agricultural Employer's Tax Guide (Pub. 51). The $150 test or the $2,500 test.   All cash wages you pay to farmworkers are subject to social security and Medicare taxes and income tax withholding for any calendar year that you meet either of these tests: l  You pay an employee cash wages of $150 or more for farmwork. l  The total (cash and noncash) wages you pay to farmworkers is $2,500 or more. If the $2,500-or-more test for the group is not met, the $150-or-more test for an individual still applies. Exceptions.   Special rules apply to certain hand-harvest laborers who receive less than $150 in annual cash wages and household employees who receive less than $1,100 in annual cash wages.   For more information, see Circular A. When to file.   For 1999, file Form 943 by January 31, 2000. However, if you made deposits on time in full payment of the taxes due for the year, you may file the return by February 10, 2000. After you file your first return, the IRS will send you a form every year. If you receive a form for a year in which you are not liable for filing, write “NONE” on line 11 and send the form back to the IRS. If you stop paying wages during the year and do not expect to pay wages again, file a final return for 1999. Be sure to mark the box at the top. If you later become liable for any of the taxes, notify the IRS. Where to file.   Find the state and, if applicable, county location of your legal residence, principal place of business, office, or agency in the list that follows. Send your return to the Internal Revenue Service at the address listed for your location. No street address is needed. Cat. No. 25976L