Social security wage base for 2007.   Stop withholding social security tax after an employee reaches $97,500 in taxable wages during 2007. (There is no limit on the amount of wages subject to Medicare tax.)

Reporting negative amounts.   When reporting a negative amount as a tax adjustment on line 7, use a “minus sign” instead of parentheses. Doing so enhances the accuracy of our scanning software. For example, report “-10.59” instead of “(10.50). ” However, if your software only allows for parentheses in reporting negative amounts, you may use them.

Annual employment tax filing for certain employers.   Certain small employers will be qualified to file Form 944-SS, Employer's ANNUAL Federal Tax Return, rather than Form 941-SS, Employer's QUARTERLY Federal Tax Return, to report their employment taxes. The IRS will notify those who will qualify to file Form 944-SS in February of each year. For more information, get the Instructions for Form 944-SS.

Correcting Form 941-SS.   If you discover an error on a previously filed Form 941-SS, make the correction using Form 941-SS for the quarter in which you discovered the error and attach Form 941c, Supporting Statement to Correct Information. For example, in March 2007, you discover that you underreported $10,000 in social security and Medicare wages on your fourth quarter 2006 Form 941-SS. Correct the error by showing $1,530 (15.3% × $10,000) on line 7e of your 2007 first quarter Form 941-SS and attaching a completed Form 941c. Be sure to include the $1,530 in any required deposit.

Credit card payments.   Employers can pay the balance due shown on Form 941-SS by credit card. However, do not use a credit card to make federal tax deposits. For more information on paying your taxes with a credit card, visit the IRS website at www.irs.gov and type “e-pay” in the Search box.

Electronic filing and payment.   Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, IRS offers you convenient programs to make filing and paying easier. Spend less time and worry on taxes and more time running your business. Use e-file and Electronic Federal Tax Payment System (EFTPS) to your benefit.

Where can you get telephone help?   You can call the IRS toll free at 1-800-829-4933 (U.S. Virgin Islands only) or 215-516-2000 (toll call) to order tax deposit coupons (Form 8109) and for answers to your questions about completing Form 941-SS, tax deposit rules, or obtaining an employer identification number (EIN). Or visit the IRS website at
www.irs.gov and type “Employment Tax” in the Search box.