If you hire farmworkers, you may need to file IRS Form 943, the Employer’s Annual Federal Tax Return for Agricultural Employees. This form helps the IRS track income tax, Social Security, and Medicare taxes on wages you pay to agricultural workers. Think of it as the farming counterpart to Form 941, which most nonfarm businesses use.
Who Needs to File Form 943?
You must file if you paid wages to one or more farmworkers and either of these apply:
- You paid any single farmworker $150 or more in cash wages during the year.
- You paid $2,500 or more in total wages (cash and noncash) to all farmworkers during the year.
Once you start filing this form type, you must continue filing every year until you file a final return.
When Is It Due?
The deadline to file is the January 31st following the tax year. If all deposits were made on time and in full, filers may submit by February 10th.
How to File Form 943
- Confirm eligibility – Make sure your farm wages meet the $150 or $2,500 test.
- Withhold and track taxes – Withhold income tax (if applicable) and Social Security/Medicare on covered wages. Special rules apply to H-2A workers.
- Deposit taxes – Make deposits electronically through EFTPS. Small employers with under $2,500 in taxes may pay with the return.
- Reconcile at year end – Prepare W-2s for employees and ensure totals match what you report.
- File – E-file or mail to the IRS by the applicable deadline.
Common Questions
How is Form 943 different from Form 941?
Form 943 is for agricultural wages and filed annually. Form 941 is for most nonfarm businesses and filed quarterly.
Do I have to withhold taxes for H-2A workers?
No, Social Security or Medicare taxes apply to H-2A wages. Federal income tax withholding is not required unless the worker asks and you agree. If you do withhold, report it on Form 943 and their W-2.
What if I make a mistake?
File Form 943-X to correct errors from a previously filed return.
Should You Get Help?
Form 943 rules can be tricky if you have both farm and nonfarm employees, H-2A visa workers, or need to follow deposit schedules. Many agricultural employers use payroll services or filing providers to stay compliant. E-filing through an IRS-authorized service can also save time and reduce errors.
Tip: Always check the latest IRS instructions for Form 943 to ensure you’re meeting current requirements.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
About Author
