Employer's Annual Federal Tax Return for Agricultural Employees

2020

Instructions for Form 943

Department of the Treasury
Internal Revenue Service

Employer's Annual Federal Tax Return for Agricultural Employees
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 943 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form943.

What's New
Changes to Form 943 for coronavirus (COVID-19) related employment tax credits and other tax relief.
The following significant changes have been made to
Form 943 to allow for the reporting of new employment tax
credits and other tax relief related to COVID-19.
• The new credit for qualified sick and family leave wages
is reported on line 12b and, if applicable, line 14d. The
qualified sick leave wages and qualified family leave
wages are reported on lines 2a and 2b, respectively. The
employee share of social security tax on qualified sick and
family leave wages are reported on lines 3a and 3b,
respectively. Qualified sick and family leave wages aren’t
subject to the employer share of social security tax.
Qualified sick and family leave wages not included on
lines 2a and 2b because the wages reported on that line
are limited by the social security wage base are included
on line 4. Qualified health plan expenses allocable to
qualified sick and family leave wages are reported on lines
18 and 19. See the instructions for line 12b for information
about the new credit for qualified sick and family leave
wages.
• The new employee retention credit is reported on
line 12c and, if applicable, line 14e. Qualified wages
(excluding qualified health plan expenses) for the
employee retention credit are reported on line 20 (these
amounts should also be included as wages on lines 2 and
4, and, if applicable, line 6). Qualified health plan
expenses allocable to the qualified wages for the
employee retention credit are reported on line 21. See the
instructions for line 12c for information about the new
employee retention credit.
• Employers, including government employers, can defer
the deposit of the employer share of social security tax
due on or after March 27, 2020, and before January 1,
2021, as well as payment due for the employer share of
social security tax for wages paid on or after March 27,
2020, and before January 1, 2021. The amount of deferral
is reported on line 14b. See the instructions for line 14b for
more information.
• Employers could defer the withholding and payment of
the employee share of social security tax on wages paid
on or after September 1, 2020, and before January 1,
2021, but only if the amount of wages for a biweekly pay
period were less than $4,000 (or an equivalent amount for
other pay periods). The amount of deferral is reported on
Nov 25, 2020

line 14c. See the instructions for line 14c for more
information.
• Employers that requested an advance of the sick and
family leave credit and/or the employee retention credit
would have filed a Form 7200, Advance Payment of
Employer Credits Due to COVID-19. The amount of all
advances received from Forms 7200 filed for the year is
reported on line 14g. See the instructions for line 14g for
more information.
• The credit for qualified sick and family leave wages
(reported on lines 12b and 14d) and the employee
retention credit (reported on lines 12c and 14e) are
figured on Worksheet 1.
Social security and Medicare tax for 2020. The rate of
social security tax on taxable wages, except for qualified
sick leave wages and qualified family leave wages, is
6.2% (0.062) each for the employer and employee or
12.4% (0.124) for both. Qualified sick leave wages and
qualified family leave wages aren't subject to the employer
share of social security tax; therefore, the tax rate on
these wages is 6.2% (0.062). The social security wage
base limit is $137,700.
The Medicare tax rate is 1.45% (0.0145) each for the
employee and employer, unchanged from 2019. There is
no wage base limit for Medicare tax.

Reminders
Qualified small business payroll tax credit for increasing research activities. For tax years beginning
after 2015, a qualified small business may elect to claim
up to $250,000 of its credit for increasing research
activities as a payroll tax credit against the employer
share of social security tax. The payroll tax credit election
must be made on or before the due date of the originally
filed income tax return (including extensions). The portion
of the credit used against the employer share of social
security tax is allowed in the first calendar quarter
beginning after the date that the qualified small business
filed its income tax return. The first Form 943 that you
could claim this credit on is Form 943 filed for calendar
year 2017. The election and determination of the credit
amount that will be used against the employer share of
social security tax are made on Form 6765, Credit for
Increasing Research Activities. The amount from Form
6765, line 44, must then be reported on Form 8974,
Qualified Small Business Payroll Tax Credit for Increasing
Research Activities. Form 8974 is used to determine the
amount of the credit that can be used in the current year.
The amount from Form 8974, line 12, is reported on Form
943, line 12a. If you're claiming the research payroll tax
credit on your Form 943, you must attach Form 8974 to
Form 943. For more information about the payroll tax
credit, see Notice 2017-23, 2017-16 I.R.B. 1100, available
at IRS.gov/irb/2017-16_IRB#NOT-2017-23, and IRS.gov/

Cat. No. 25976L

ResearchPayrollTC. Also see Adjusting tax liability for
nonrefundable credits claimed on lines 12a, 12b, and 12c,
later.

Aggregate Form 943 filers. Approved section 3504
agents and CPEOs must complete and file Schedule R
(Form 943) when filing an aggregate Form 943. Aggregate
Forms 943 are filed by agents approved by the IRS under
section 3504. To request approval to act as an agent for
an employer, the agent files Form 2678 with the IRS
unless you're a state or local government agency acting
as an agent under the special procedures provided in
Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available at
IRS.gov/irb/2013-52_IRB#RP-2013-39. Aggregate Forms
943 are also filed by CPEOs approved by the IRS under
section 7705. To become a CPEO, the organization must
apply through the IRS Online Registration System at
IRS.gov/CPEO. CPEOs file Form 8973, Certified
Professional Employer Organization/Customer Reporting
Agreement, to notify the IRS that they started or ended a
service contract with a customer. CPEOs must generally
file Form 943 and Schedule R (Form 943) electronically.
However, CPEOs are permitted to file a paper Form 943
and its accompanying schedules in lieu of electronic
submissions for the calendar year 2020. For more
information about a CPEO’s requirement to file
electronically, and the waiver for 2020, see Rev. Proc.
2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/
2017-03_IRB#RP-2017-14, and Notice 2020-35, 2020-25
I.R.B. 948, available at IRS.gov/irb/
2020-25_IRB#NOT-2020-35. For more information about
a CPEO's requirement to file electronically, see
Regulations section 31.3511-1(g)(2). Schedule R (Form
943) has been revised for 2020 to allow for reporting of
the new lines added to Form 943.
Other third-party payers that file aggregate Forms 943,
such as non-certified PEOs, must complete and file
Schedule R (Form 943) if they have clients that are
claiming the qualified small business payroll tax credit for
increasing research activities, the credit for qualified sick
and family leave wages, or the employee retention credit,
or clients deferring the employer or employee share of
social security tax.

Certification program for professional employer organizations (PEOs). The Stephen Beck Jr., Achieving a
Better Life Experience Act of 2014 required the IRS to
establish a voluntary certification program for PEOs.
PEOs handle various payroll administration and tax
reporting responsibilities for their business clients and are
typically paid a fee based on payroll costs. To become
and remain certified under the certification program,
certified professional employer organizations (CPEOs)
must meet various requirements described in sections
3511 and 7705 and related published guidance.
Certification as a CPEO may affect the employment tax
liabilities of both the CPEO and its customers. A CPEO is
generally treated for employment tax purposes as the
employer of any individual who performs services for a
customer of the CPEO and is covered by a contract
described in section 7705(e)(2) between the CPEO and
the customer (CPEO contract), but only for wages and
other compensation paid to the individual by the CPEO.
To become a CPEO, the organization must apply through
the IRS Online Registration System. For more information
or to apply to become a CPEO, go to IRS.gov/CPEO.
CPEOs must generally file Form 943 and Schedule R
(Form 943), Allocation Schedule for Aggregate Form 943
Filers, electronically. However, CPEOs are permitted to
file a paper Form 943 and its accompanying schedules in
lieu of electronic submissions for calendar year 2020. For
more information about a CPEO's requirement to file
electronically, and the waiver for 2020, see Rev. Proc.
2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/
2017-03_IRB#RP-2017-14, and Notice 2020-35, 2020-25
I.R.B. 948, available at IRS.gov/irb/
2020-25_IRB#NOT-2020-35.
Outsourcing payroll duties. Generally, as an employer,
you’re responsible to ensure that tax returns are filed and
deposits and payments are made, even if you contract
with a third party to perform these acts. You remain
responsible if the third party fails to perform any required
action. Before you choose to outsource any of your payroll
and related tax duties (that is, withholding, reporting, and
paying over social security, Medicare, FUTA, and income
taxes) to a third-party payer, such as a payroll service
provider or reporting agent, go to IRS.gov/
OutsourcingPayrollDuties for helpful information on this
topic. If a CPEO pays wages and other compensation to
an individual performing services for you, and the services
are covered by a contract described in section 7705(e)(2)
between you and the CPEO (CPEO contract), then the
CPEO is generally treated for employment tax purposes
as the employer, but only for wages and other
compensation paid to the individual by the CPEO.
However, with respect to certain employees covered by a
CPEO contract, you may also be treated as an employer
of the employees and, consequently, may also be liable
for federal employment taxes imposed on wages and
other compensation paid by the CPEO to such
employees. For more information on the different types of
third-party payer arrangements, see section 16 of Pub. 15.

If both an employer and a section 3504 authorized

TIP agent (or CPEO or other third-party payer) paid

wages to an employee during the year, both the
employer and the section 3504 authorized agent (or
CPEO or other third-party payer, if applicable) should file
Form 943 reporting the wages each entity paid to the
employee during the year and issue Forms W-2 reporting
the wages each entity paid to the employee during the
year.
If a third-party payer of sick pay is also paying qualified
sick leave wages on behalf of an employer, the third party
would be making the payments as an agent of the
employer. The employer is required to do the reporting
and payment of employment taxes with respect to the
qualified sick leave wages and claim the credit for the
qualified sick leave wages, unless the employer has an
agency agreement with the third-party payer that requires
the third-party payer to do the collecting, reporting, and/or
paying or depositing employment taxes on the qualified
sick leave wages. If the employer has an agency
agreement with the third-party payer, the third-party payer
includes the qualified sick leave wages on the third party's
aggregate Form 943, claims the sick leave credit on
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Instructions for Form 943 (2020)

may charge you a fee for payments made this way. To
learn more about the information you will need to give
your financial institution to make a same-day wire
payment, go to IRS.gov/SameDayWire.
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that isn't a business day, the
deposit is considered timely if it is made by the close of
the next business day. A business day is any day other
than a Saturday, Sunday, or legal holiday. The term “legal
holiday” for deposit purposes includes only those legal
holidays in the District of Columbia. Legal holidays in the
District of Columbia are provided in section 7 of Pub. 51.

behalf of the employer on the aggregate Form 943, and
separately reports the credit allocable to the employers on
Schedule R (Form 943). See section 6 of Pub. 15-A,
Employer's Supplemental Tax Guide, for more information
about sick pay reporting.
Work opportunity tax credit for qualified tax-exempt
organizations hiring qualified veterans. Qualified
tax-exempt organizations that hire eligible unemployed
veterans may be able to claim the work opportunity tax
credit against their payroll tax liability using Form 5884-C.
For more information, go to IRS.gov/WOTC.
Correcting a previously filed Form 943. If you
discover an error on a previously filed Form 943, make the
correction using Form 943-X. Form 943-X is filed
separately from Form 943. For more information, see the
Instructions for Form 943-X, section 9 of Pub. 51, or go to
IRS.gov/CorrectingEmploymentTaxes.

Electronic filing and payment. Businesses can enjoy
the benefits of filing tax returns and paying their federal
taxes electronically. Whether you rely on a tax
professional or handle your own taxes, the IRS offers you
convenient programs to make filing and paying easier.
Spend less time worrying about taxes and more time
running your business. Use e-file and EFTPS to your
benefit.
• For e-file, go to IRS.gov/EmploymentEfile for additional
information. A fee may be charged to file electronically.
• For EFTPS, go to EFTPS.gov or call EFTPS at one of
the numbers provided under Federal tax deposits must be
made by electronic funds transfer (EFT), earlier.
• For electronic filing of Forms W-2, Wage and Tax
Statement, go to SSA.gov/employer. You may be required
to file Forms W-2 electronically. For details, see the
General Instructions for Forms W-2 and W-3.

If you change your business name, business address, or responsible party. Notify the IRS
immediately if you change your business name, business
address, or responsible party.
• Write to the IRS office where you file your returns (using
the Without a payment address under Where To File,
later) to notify the IRS of any business name change. See
Pub. 1635 to see if you need to apply for a new employer
identification number (EIN).
• Complete and mail Form 8822-B to notify the IRS of a
business address or responsible party change. Don't mail
Form 8822-B with your Form 943. For a definition of
“responsible party,” see the Instructions for Form SS-4.

If you're filing your tax return or paying your
federal taxes electronically, a valid EIN is required
CAUTION at the time the return is filed or the payment is
made. If a valid EIN isn't provided, the return or payment
won't be processed. This may result in penalties. See
Employer Identification Number (EIN), Name, Trade
Name, and Address, later, for more information about
applying for an EIN.

!

Federal tax deposits must be made by electronic
funds transfer (EFT). You must use EFT to make all
federal tax deposits. Generally, an EFT is made using the
Electronic Federal Tax Payment System (EFTPS). If you
don't 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. Also, you may arrange for your financial institution
to initiate a same-day wire payment on your behalf.
EFTPS is a free service provided by the Department of the
Treasury. Services provided by your tax professional,
financial institution, payroll service, or other third party
may have a fee.
For more information on making federal tax deposits,
see section 7 of Pub. 51. To get more information about
EFTPS or to enroll in EFTPS, go to EFTPS.gov, or call
800-555-4477 or 800-733-4829 (TDD). Additional
information about EFTPS is also available in Pub. 966.

!

CAUTION

Electronic funds withdrawal (EFW). If you file Form
943 electronically, you can e-file and use EFW to pay the
balance due in a single step using tax preparation
software or through a tax professional. However, don't use
EFW to make federal tax deposits. For more information
on paying your taxes using EFW, go to IRS.gov/EFW.
Credit or debit card payments. You can pay the
balance due shown on Form 943 by credit or debit card.
Your payment will be processed by a payment processor
who will charge a processing fee. Don't use a credit or
debit card to make federal tax deposits. For more
information on paying your taxes with a credit or debit
card, go to IRS.gov/PayByCard.

For an EFTPS deposit to be on time, you must
submit the deposit by 8 p.m. Eastern time the day
before the date the deposit is due.

Online payment agreement. You may be eligible to
apply for an installment agreement online if you can't pay
the full amount of tax you owe when you file your return.
For more information, see What if you can't pay in full,
later.

Same-day wire payment option. If you fail to submit a
deposit transaction on EFTPS by 8 p.m. Eastern time the
day before the date a deposit is due, you can still make
your deposit on time by using the Federal Tax Collection
Service (FTCS) to make a same-day wire payment. To
use the same-day wire payment method, you will need to
make arrangements with your financial institution ahead of
time. Please check with your financial institution regarding
availability, deadlines, and costs. Your financial institution
Instructions for Form 943 (2020)

Paid preparers. If you use a paid preparer to complete
Form 943, the paid preparer must complete and sign the
paid preparer's section of the form.
Disregarded entities and qualified subchapter S subsidiaries (QSubs). Eligible single-owner disregarded
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• File Schedule H (Form 1040) with your Form 1040 or
1040-SR, or
• Include the wages with your farm employees' wages on
Form 943.

entities and QSubs are treated as separate entities for
employment tax purposes. Eligible single-member entities
that haven't elected to be taxed as corporations must
report and pay employment taxes on wages paid to their
employees using the entities' own names and EINs. See
Regulations sections 1.1361-4(a)(7) and 301.7701-2(c)(2)
(iv).

If you paid wages to other nonfarm workers, don't
report these on Form 943. Taxes on wages paid to
nonfarm workers are reported on Form 941 or 941-SS,
Employer's QUARTERLY Federal Tax Return, or Form
944, Employer's ANNUAL Federal Tax Return. See Pub.
926 for more information about household employees.

Social security wage base for 2021. The maximum
amount of wages subject to the social security tax for
2021 will be discussed in the 2021 revision of Pub. 51.
Telephone help. You can call the IRS Business and
Specialty Tax Line toll free at 800-829-4933 or
800-829-4059 (TDD/TTY for persons who are deaf, hard
of hearing, or have a speech disability), Monday–Friday
from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii
follow Pacific time), for answers to your questions about
completing Form 943 and tax deposit rules.

Who Must File

Photographs of Missing Children

After you file your first Form 943, you must file a return
for each year, even if you have no taxes to report, until
you file a final return. You’re encouraged to file Form 943
electronically. Go to IRS.gov/EmploymentEfile for more
information on electronic filing.

File Form 943 if you paid wages to one or more
farmworkers and the wages were subject to social
security and Medicare taxes or federal income tax
withholding under the tests discussed next. For more
information on farmworkers and wages, see Pub. 51.

The IRS is a proud partner with the National Center for
Missing & Exploited Children® (NCMEC). 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.

The $150 Test or the $2,500 Test

All cash wages that you pay to farmworkers are subject to
social security and Medicare taxes and federal income tax
withholding for any calendar year for which you meet
either of the tests listed next.

General Instructions
Purpose of Form 943

• You pay an employee cash wages of $150 or more in a
year for farmwork (count all wages paid on a time,
piecework, or other basis). The $150 test applies
separately to each farmworker that you employ. If you
employ a family of workers, each member is treated
separately. Don't count wages paid by other employers.
• The total (cash and noncash) wages that you pay to all
farmworkers is $2,500 or more.

These instructions give you some background information
about Form 943. They tell you who must file Form 943,
how to complete it line by line, and when and where to file
it.
If you want more in-depth information about payroll tax
topics relating to Form 943, see Pub. 51 or go to IRS.gov/
EmploymentTaxes. For tax information relevant to
agricultural employers, go to IRS.gov/
AgricultureTaxCenter.

If the $2,500-or-more test for the group isn't met, the
$150-or-more test for an individual still applies. Similarly, if
the $150-or-more test is not met for any individual, the
$2,500-or-more test for the group still applies.
Exceptions. Special rules apply to certain
hand-harvest laborers who receive less than $150 in
annual cash wages. For more information, see section 4
of Pub. 51.

Federal law requires you, as an employer, to withhold
certain taxes from your employees' pay. Each time you
pay wages, you must withhold—or take out of your
employees' pay—certain amounts for federal income tax,
social security tax, and Medicare tax. You must also
withhold Additional Medicare Tax from wages you pay to
an employee in excess of $200,000 in a calendar year.
Under the withholding system, taxes withheld from your
employees are credited to your employees in payment of
their tax liabilities.

When To File

For 2020, file Form 943 by February 1, 2021. 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,
2021.

Federal law also requires you to pay any liability for the
employer share of social security tax and Medicare tax.
This share of social security tax and Medicare tax isn't
withheld from employees.

If we receive your return after the due date, we will treat
your return as filed on time if the envelope containing your
return is properly addressed, contains sufficient postage,
and is postmarked by the U.S. Postal Service on or before
the due date, or sent by an IRS-designated private
delivery service (PDS) on or before the due date.
However, if you don't follow these guidelines, we will
generally consider your return filed when it is actually
received. For more information about PDSs, see Where
To File, later.

If you have household employees working in your
private home on your farm operated for a profit, they aren't
considered to be farm employees. To report social
security tax, Medicare tax, Additional Medicare Tax, and
federal income tax withholding on the wages of household
employees, you may either:
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Instructions for Form 943 (2020)

Forms W-2 and W-3

TIN, see the Instructions for Forms 1099-MISC and
1099-NEC and the Instructions for Form 945. For more
information on foreign agricultural workers on H-2A visas,
go to IRS.gov/H2A.

By February 1, 2021, give Form W-2 to each employee
who was working for you at the end of 2020. If an
employee stops working for you before the end of the
year, give him or her Form W-2 any time after employment
ends but no later than February 1, 2021. If the employee
asks you for Form W-2, give him or her the completed
form within 30 days of the request or the last wage
payment, whichever is later.

Forms 1099-MISC and 1099-NEC

Both paper and electronically filed Forms 1099-MISC,
Miscellaneous Income, and 1099-NEC, Nonemployee
Compensation, must be filed with the IRS by February 1,
2021. Form 1099-MISC is used to report rents paid in your
farming business, and Form 1099-NEC is generally used
to report payments to an individual who isn't your
employee. Payments made to corporations for medical
and health care payments, including payments made to
veterinarians, must generally be reported on Form
1099-MISC. Compensation of $600 or more paid in a
calendar year to an H-2A visa agricultural worker who
didn't give you a valid TIN is also reported on Form
1099-MISC; you must withhold federal income tax from
these payments under the backup withholding rules. For
more information about filing Forms 1099-MISC and
1099-NEC, see the Instructions for Forms 1099-MISC and
1099-NEC.

File Copy A of all Forms W-2 with Form W-3,
Transmittal of Wage and Tax Statements, with the Social
Security Administration (SSA) by February 1, 2021. For
electronic filing of Forms W-2, go to SSA.gov/employer.
You may be required to file Forms W-2 electronically. For
details, see the General Instructions for Forms W-2 and
W-3.
Compensation paid to H-2A visa holders. Report
compensation of $600 or more paid to foreign agricultural
workers who entered the country on H-2A visas in box 1 of
Form W-2. Compensation paid to H-2A workers for
agricultural labor performed in connection with H-2A visas
isn't subject to social security and Medicare taxes, and
therefore shouldn't be reported as wages subject to social
security tax (lines 2, 2a, and 2b), Medicare tax (line 4), or
Additional Medicare Tax withholding (line 6) on Form 943,
and shouldn't be reported as social security wages (box 3)
or Medicare wages (box 5) on Form W-2.
An employer isn't required to withhold federal income
tax from compensation paid to an H-2A worker for
agricultural labor performed in connection with this visa
unless the worker asks for withholding and the employer
agrees. In this case, the worker must give the employer a
completed Form W-4. Federal income tax withheld is
reported on Form 943, line 8, and in box 2 of Form W-2.
These reporting rules apply when the H-2A worker
provides his or her taxpayer identification number (TIN) to
the employer. For the rules relating to backup withholding
and reporting when the H-2A worker doesn't provide a

Instructions for Form 943 (2020)

Where To File

You’re encouraged to file Form 943 electronically. Go to
IRS.gov/EmploymentEfile for more information on
electronic filing. If you file a paper return, where you file
depends on whether you include a payment with Form
943. Mail your return to the address listed for your location
in the table that follows.
PDSs can't deliver to P.O. boxes. You must use the
U.S. Postal Service to mail an item to a P.O. box address.
Go to IRS.gov/PDS for the current list of PDSs. For the
IRS mailing address to use if you’re using a PDS, go to
IRS.gov/PDSstreetAddresses. Select the mailing address
listed on the webpage that is in the same state as the
address to which you would mail returns filed without a
payment, as shown in the table that follows.

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Mailing Addresses for Form 943
If you’re in . . .

Without a payment . . .

With a payment . . .

Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana,
Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire,
New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode
Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia,
Wisconsin

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0008

Internal Revenue Service
P.O. Box 806533
Cincinnati, OH 45280-6533

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,
Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi,
Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota,
Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0008

Internal Revenue Service
P.O. Box 932200
Louisville, KY 40293-2200

No legal residence or principal place of business in any state

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

Internal Revenue Service
P.O. Box 932200
Louisville, KY 40293-2200

Special filing address for exempt organizations; federal, state, and
local governmental entities; and Indian tribal governmental entities,
regardless of location

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0008

Internal Revenue Service
P.O. Box 932200
Louisville, KY 40293-2200

Your filing address may have changed from that
used to file your employment tax return in prior
CAUTION years. Don't send Form 943 or any payments to
the SSA.

determining when you must deposit. Before the beginning
of each calendar year, you must determine which of the
two deposit schedules you must use. See section 7 of
Pub. 51 for information and rules concerning federal tax
deposits and to determine your status as a monthly or
semiweekly schedule depositor.

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Reconciliation of Form 943 to Forms
W-2 and W-3

Deferring your deposits. Employers can defer the
deposit of the employer share of social security tax due on
or after March 27, 2020, and before January 1, 2021, as
well as payment due for the employer share of social
security tax for wages paid on or after March 27, 2020,
and before January 1, 2021. The deferral applies before
any of the nonrefundable credits claimed on line 12a, 12b,
or 12c. However, the deferral doesn’t reduce the amount
of the employer share of social security tax used to figure
those nonrefundable credits. See the instructions for
line 14b for more information about the deferral of the
employer share of social security tax. Employers could
also defer the withholding and payment of the employee
share of social security tax on wages paid on or after
September 1, 2020, and on or before December 31, 2020,
but only if the amount of social security wages for a
biweekly pay period was less than $4,000 (or an
equivalent amount for other pay periods). The amount of
the employee deferral is reported on line 14c. See the
instructions for line 14c for more information.

Certain amounts reported on Form 943 for 2020 should
agree with the Form W-2 totals reported on the 2020 Form
W-3. The amounts from Form 943 that should agree with
the related boxes on Form W-3 are: federal income tax
withheld (line 8 and box 2), social security wages (lines 2,
2a, and 2b and box 3), and Medicare wages (line 4 and
box 5). If the amounts don't agree, you may be contacted
by the IRS or the SSA. For more information, see section
11 of Pub. 51. Keep all records that show why the totals
don't match.

Depositing Taxes
You must deposit all depository taxes
electronically by EFT. For more information, see
CAUTION Federal tax deposits must be made by electronic
funds transfer (EFT) under Reminders, earlier.

!

You may have to deposit the federal income taxes you
withheld and both the employer and employee social
security taxes and Medicare taxes.

Reducing your deposits for COVID-19 credits.
Employers eligible to claim the credit for qualified sick and
family leave wages and/or the employee retention credit
can reduce their deposits by the amount of their
anticipated credits. Employers won’t be subject to a
failure-to-deposit (FTD) penalty for reducing their deposits
if certain conditions are met. See the instructions for
line 12b and line 12c for more information on these
credits. This reduction in deposits is in addition to the
ability employers have to reduce their deposits by the
amount of the employer share of social security tax they
defer. For more information on reducing deposits, see
Notice 2020-22, 2020-17 I.R.B. 664, available at
IRS.gov/irb/2020-17_IRB#NOT-2020-22, and IRS.gov/
ETD. Also see IRS.gov/ERC and IRS.gov/PLC for more

• If your total taxes after adjustments and
nonrefundable credits (line 13) are less than $2,500
for the year, you can pay the tax due with your return
if you file on time. You don't have to make a deposit. To
avoid a penalty, you must pay any amount due in full with
a timely filed return or you must deposit any amount you
owe by the due date of the return. For more information on
paying with a timely filed return, see the instructions for
line 15, later.
• If your total taxes after adjustments and
nonrefundable credits (line 13) are $2,500 or more
for the year. You must make deposits by EFT throughout
the year in accordance with your deposit schedule. There
are two deposit schedules—monthly or semiweekly—for
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Instructions for Form 943 (2020)

and write "Applied For" and the date you applied in this
entry space.

information, including examples, about reducing deposits.
See the instructions for line 17, later, for information on
adjusting tax liabilities reported on line 17 or Form 943-A
for nonrefundable credits.

Enter your EIN, name, and address in the spaces
provided. Don't use your social security number (SSN) or
individual taxpayer identification number (ITIN). Generally,
enter the business (legal) name you used when you
applied for your EIN on Form SS-4. For example, if you're
a sole proprietor, enter “Barbara Smith” on the “Name”
line and “Barbara's Farm” on the “Trade name” line. Leave
the “Trade name” line blank if it is the same as your
“Name.” If you pay a tax preparer to fill out Form 943,
make sure the preparer shows your business name
exactly as it appeared when you applied for your EIN.

Penalties and Interest

You can avoid paying penalties and interest if you do all of
the following.
• Deposit or pay your taxes when they are due, unless
you meet the requirements discussed in Notice 2020-22
or IRS.gov/ETD or you have chosen to use the relief
provided in Notice 2020-65, 2020-38 I.R.B. 567, available
at IRS.gov/irb/2020-38_IRB#NOT-2020-65.
• File your fully completed Form 943 on time.
• Report your tax liability accurately.
• Submit valid checks for tax payments.
• Furnish accurate Forms W-2 to employees.
• File Form W-3 and Copy A of Forms W-2 with the SSA
on time and accurately. Go to SSA.gov/employer for
information on how to file Forms W-2 electronically.

Final Return

If you stop paying wages during the year and don't expect
to pay wages again, file a final return for 2020. Be sure to
mark the box above line 1 on the form indicating that you
don't have to file returns in the future. If you later restart
paying wages, then resume filing Form 943.

Penalties and interest are charged on taxes paid late
and returns filed late at a rate set by law. See sections 7
and 8 of Pub. 51 for details. Use Form 843 to request
abatement of assessed penalties or interest. Don't
request abatement of assessed penalties or interest on
Form 943 or Form 943-X.

Attach a statement to your final return showing the
name of the person keeping the payroll records and the
address where these records will be kept. If the business
has been sold or transferred to another person, the
statement should include the name and address of such
person and the date on which the sale or transfer took
place. If no sale or transfer occurred, or you don't know
the name of the person to whom the business was sold or
transferred, that fact should be included in the statement.

If you receive a notice about a penalty after you file
your return, reply to the notice with an explanation and we
will determine if you meet reasonable-cause criteria. Don't
attach an explanation when you file your return.

Completing Form 943

If federal income, social security, and Medicare
taxes that must be withheld (that is, trust fund
CAUTION taxes) aren't withheld or aren't paid to the United
States Treasury, the trust fund recovery penalty may
apply. The penalty is 100% of the unpaid trust fund tax. If
these unpaid taxes can't be immediately collected from
the employer or business, the trust fund recovery penalty
may be imposed on all persons who are determined by
the IRS to be responsible for collecting, accounting for, or
paying over these taxes, and who acted willfully in not
doing so. See section 7 of Pub. 51 for more information.
The trust fund recovery penalty won't apply to any amount
of trust fund taxes an employer holds back in anticipation
of any credits they are entitled to. It also won't apply to
applicable taxes properly deferred under Notice 2020-65
before May 1, 2021.

Enter dollars to the left of the preprinted line and cents to
the right of it. Don't round entries to whole dollars. Always
show an amount for cents, even if it is zero.

!

Line 1. Number of Agricultural
Employees

Enter the number of agricultural employees on your
payroll during the pay period that included March 12,
2020. Don't include household employees, persons who
received no pay during the pay period, pensioners, or
members of the Armed Forces.
For purposes of these instructions, all references

TIP to “sick pay” mean ordinary sick pay, not “qualified
sick leave wages” that are reported on line 2a.

Line 2. Wages Subject to Social
Security Tax

Specific Instructions

Enter the total cash wages, including qualified wages
(other than qualified health plan expenses) for the
employee retention credit, subject to social security tax
that you paid to your employees for farmwork during the
calendar year. Don’t include the qualified sick leave
wages reported on line 2a or the qualified family leave
wages reported on line 2b. Enter the amount before
deductions. Cash wages include checks, money orders,
etc. Don't include the value of noncash items, such as
food or lodging, or pay for services other than farmwork.
See section 3 of Pub. 51 for information on cash and
noncash wages. See Purpose of Form 943, earlier, for
household employee information.

Employer Identification Number
(EIN), Name, Trade Name, and
Address

If you don't have an EIN, you may apply for one online by
visiting IRS.gov/EIN. You may also apply for an EIN by
faxing or mailing Form SS-4 to the IRS. If the principal
business was created or organized outside of the United
States or U.S. territories, you may also apply for an EIN by
calling 267-941-1099 (toll call). If you haven't received
your EIN by the due date of Form 943, file a paper return
Instructions for Form 943 (2020)

-7-

Government employers aren't eligible for the

For 2020, the rate of social security tax on cash wages,
except for qualified sick leave wages and qualified family
leave wages, is 6.2% (0.062) each for the employer and
employee or 12.4% (0.124) for both. Stop paying social
security tax on and entering an employee's wages on
lines 2, 2a, and 2b when the total of the employee's
taxable wages, including qualified sick leave wages and
qualified family leave wages, reach $137,700 for the year.
However, continue to withhold income and Medicare
taxes for the whole year on all wages, including qualified
sick leave wages and qualified family leave wages, even
when the social security wage base of $137,700 has been
reached. If you, as a qualifying employer, receive an
approved Form 4029, Application for Exemption From
Social Security and Medicare Taxes and Waiver of
Benefits, from one or more of your employees, enter
“Form 4029” on the dotted line next to the entry space.

TIP credit for qualified sick and family leave wages;

however, as with any employer, government
employers aren't liable for the employer share of the social
security tax on the qualified sick leave wages paid to
employees.
Limits on qualified sick leave wages. The EPSLA
provides different limitations for different circumstances
under which qualified sick leave wages are paid. For paid
sick leave qualifying under (1), (2), or (3) above, the
amount of qualified sick leave wages is determined at the
employee's regular rate of pay, but the wages may not
exceed $511 for any day (or portion of a day) for which the
individual is paid sick leave. For paid sick leave qualifying
under (4), (5), or (6) above, the amount of qualified sick
leave wages is determined at two-thirds the employee's
regular rate of pay, but the wages may not exceed $200
for any day (or portion of a day) for which the individual is
paid sick leave. The EPSLA also limits each individual to a
maximum of up to 80 hours of paid sick leave for the year.
Therefore, the maximum amount of paid sick leave wages
for the year can’t exceed $5,110 for an employee for leave
under (1), (2), or (3), and it can’t exceed $2,000 for an
employee for leave under (4), (5), or (6). For more
information from the Department of Labor on these
requirements and limits, see DOL.gov/agencies/whd/
pandemic.
For more information about qualified sick and family
leave wages, go to IRS.gov/PLC.

Line 2a. Qualified Sick Leave Wages

Enter the qualified taxable sick leave wages you paid to
your employees during the year. Qualified sick leave
wages aren't subject to the employer share of social
security tax; therefore, the tax rate on these wages is
6.2% (0.062). Stop paying social security tax on and
entering an employee's wages on line 2a when the
employee's taxable wages, including wages reported on
line 2, qualified sick leave wages, and qualified family
leave wages, reach $137,700 for the year. See the
instructions for line 4 and line 5 for reporting Medicare tax
on qualified sick leave wages, including the portion above
the social security wage base.

Line 2b. Qualified Family Leave
Wages

Qualified sick leave wages are wages for social
security and Medicare tax purposes required to be paid
under the Emergency Paid Sick Leave Act (EPSLA) as
enacted under the Families First Coronavirus Response
Act (FFCRA). See the instructions for line 12b for
information about the credit for qualified sick and family
leave wages.
Emergency Paid Sick Leave Act (EPSLA). The
EPSLA requires certain government employers and
private employers with fewer than 500 employees to
provide paid sick leave to employees unable to work or
telework after March 31, 2020, and before January 1,
2021, because the employee:
1. Is subject to a federal, state, or local quarantine or
isolation order related to COVID-19;
2. Has been advised by a health care provider to
self-quarantine due to concerns related to COVID-19;
3. Is experiencing symptoms of COVID-19 and
seeking a medical diagnosis;
4. Is caring for an individual subject to an order
described in (1) or who has been advised as described in
(2);
5. Is caring for a child if the school or place of care has
been closed, or the childcare provider is unavailable, due
to COVID-19 precautions; or
6. Is experiencing any other substantially similar
condition specified by the U.S. Department of Health and
Human Services.

Enter the qualified taxable family leave wages you paid to
your employees during the year. Qualified family leave
wages aren't subject to the employer share of social
security tax; therefore, the tax rate on these wages is
6.2% (0.062). Stop paying social security tax on and
entering an employee's wages on line 2b when the
employee's taxable wages, including wages reported on
line 2, qualified sick leave wages, and qualified family
leave wages, reach $137,700 for the year. See the
instructions for line 4 and line 5 for reporting Medicare tax
on qualified family leave wages, including the portion
above the social security wage base.
Qualified family leave wages are wages for social
security and Medicare tax purposes required to be paid
under the Emergency Family and Medical Leave
Expansion Act as enacted under the FFCRA. See the
instructions for line 12b for information about the credit for
qualified sick and family leave wages.
Emergency Family and Medical Leave Expansion
Act. The Emergency Family and Medical Leave
Expansion Act requires certain government employers
and private employers with fewer than 500 employees to
provide paid family leave under the Family and Medical
Leave Act of 1993 to an employee who has been
employed for at least 30 calendar days. The requirement
to provide leave generally applies when an employee is
unable to work or telework after March 31, 2020, and
before January 1, 2021, due to the need to care for a child
because the school or place of care has been closed, or
the childcare provider is unavailable, due to COVID-19

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Instructions for Form 943 (2020)

Line 6. Wages Subject to Additional
Medicare Tax Withholding

related reasons. The first 10 days for which an employee
takes leave may be unpaid. During this period, employees
may use other forms of paid leave, such as qualified sick
leave, accrued sick leave, annual leave, or other paid time
off. After an employee takes leave for 10 days, the
employer must provide the employee paid leave (that is,
qualified family leave wages) for up to 10 weeks. For more
information from the Department of Labor on these
requirements, possible exceptions, and the limitations
discussed below, see DOL.gov/agencies/whd/pandemic.

Enter all wages, including qualified sick leave wages,
qualified family leave wages, and qualified wages
(excluding qualified health plan expenses) for the
employee retention credit that are subject to Additional
Medicare Tax withholding. You're 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. Additional Medicare Tax is
only imposed on the employee. There is no employer
share of Additional Medicare Tax. 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.

Government employers aren't eligible for the

TIP credit for qualified sick and family leave wages;

however, as with any employer, government
employers aren't liable for the employer share of the social
security tax on the qualified family leave wages paid to
employees.
Rate of pay and limit on wages. The rate of pay must
be at least two-thirds of the employee’s regular rate of pay
(as determined under the Fair Labor Standards Act of
1938), multiplied by the number of hours the employee
otherwise would have been scheduled to work. The
qualified family leave wages can’t exceed $200 per day or
$10,000 in the aggregate per employee for the year.
For more information about qualified sick and family
leave wages, go to IRS.gov/PLC.

For more information on what wages are subject to
Medicare tax, see the chart, Special Rules for Various
Types of Services and Payments, in section 15 of Pub. 15.
For more information on Additional Medicare Tax, go to
IRS.gov/ADMT.

Line 7. Additional Medicare Tax
Withholding

Multiply line 6 by 0.9% (0.009) and enter the result on
line 7.

Line 3. Social Security Tax

Multiply line 2 by 12.4% (0.124) and enter the result on
line 3.

Line 8. Federal Income Tax Withheld

Enter the federal income tax you withheld from your
employees' wages, including qualified sick leave wages,
qualified family leave wages, and qualified wages
(excluding qualified health plan expenses) for the
employee retention credit. Generally, you must withhold
federal income tax from employees from whom you
withhold social security and Medicare taxes. See section
5 of Pub. 51 for more information on withholding rules.

Line 3a. Social Security Tax on
Qualified Sick Leave Wages

Multiply line 2a by 6.2% (0.062) and enter the result on
line 3a.

Line 3b. Social Security Tax on
Qualified Family Leave Wages

Line 9. Total Taxes Before
Adjustments

Multiply line 2b by 6.2% (0.062) and enter the result on
line 3b.

Line 4. Wages Subject to Medicare
Tax

Add the total social security tax (lines 3, 3a, and 3b),
Medicare tax (line 5), Additional Medicare Tax withholding
(line 7), and federal income tax withheld (line 8). Enter the
result on line 9.

Enter the total cash wages, including qualified sick leave
wages, qualified family leave wages, and qualified wages
(excluding qualified health plan expenses) for the
employee retention credit that you paid to your employees
for farmwork during the calendar year. Enter the amount
before deductions. Don't include the value of noncash
items, such as food or lodging, or pay for services other
than farmwork. There is no limit on the amount of wages
subject to Medicare tax. If you, as a qualifying employer,
receive an approved Form 4029 from one or more of your
employees, enter “Form 4029” on the dotted line next to
the entry space.

Line 10. Current Year's Adjustments
to Taxes

Use line 10 to:
• Adjust for rounding of fractions of cents, or
• Adjust for the uncollected employee share of social
security and Medicare taxes on third-party sick pay or
group-term life insurance premiums paid for former
employees. See section 9 of Pub. 51.

Use a minus sign (if possible) to show an adjustment
that decreases the total taxes shown on line 9. Otherwise,
use parentheses.

Line 5. Medicare Tax

Multiply line 4 by 2.9% (0.029) and enter the result on
line 5.

Instructions for Form 943 (2020)

Adjustment for fractions of cents. If there is a small
difference between total taxes after adjustments and
nonrefundable credits (line 13) and total deposits
(line 14a), it may be caused by rounding to the nearest
cent each time you figured payroll. This rounding occurs
-9-

when you figure the amount of social security and
Medicare taxes to be withheld from each employee's
wages. If the fractions of cents adjustment is the only
entry on line 10, enter “Fractions Only” on the dotted line
to the left of the entry space for line 10. This adjustment
may be a positive or a negative adjustment.
Adjustment for sick pay. If your third-party payer of sick
pay that isn't your agent (for example, an insurance
company) transfers the liability for the employer share of
the social security and Medicare taxes to you, enter a
negative adjustment on line 10 for the employee share of
social security and Medicare taxes that were withheld and
deposited by your third-party sick pay payer on the sick
pay. If you’re the third-party sick pay payer and you
transferred the liability for the employer share of the social
security and Medicare taxes to the employer, enter a
negative adjustment on line 10 for any employer share of
these taxes required to be paid by the employer. The sick
pay should be included on line 2, line 4, and, if the
withholding threshold is met, line 6.
No adjustment is reported on line 10 for sick pay that is
paid through a third party as an employer’s agent. An
employer’s agent bears no insurance risk and is
reimbursed on a cost-plus-fee basis for payment of sick
pay and similar amounts. If an employer uses an agent to
pay sick pay, the employer reports the wages on line 2,
line 4, and, if the withholding threshold is met, line 6,
unless the employer has an agency agreement with the
third-party payer that requires the third-party payer to do
the collecting, reporting, and/or paying or depositing
employment taxes on the sick pay. See section 6 of Pub.
15-A for more information about sick pay reporting.

Line 11. Total Taxes After
Adjustments

Combine lines 9 and 10; enter the result on line 11.

Line 12a. Qualified Small Business
Payroll Tax Credit for Increasing
Research Activities

Enter the amount of the credit from Form 8974, line 12.

If you enter an amount on line 12a, you must
attach Form 8974. The December 2017 revision
CAUTION of Form 8974 instructs you to enter the amount
from Form 8974, line 12, on Form 943, line 12. For 2020,
the amount from Form 8974, line 12, should be entered on
Form 943, line 12a.

!

Line 12b. Nonrefundable Portion of
Credit for Qualified Sick and Family
Leave Wages From Worksheet 1
Form 943 and these instructions use the terms
TIP “nonrefundable” and “refundable” when
discussing credits. The term “nonrefundable”
means the portion of the credit which is limited by law to
the amount of the employer share of social security tax.
The term “refundable” means the portion of the credit

which is in excess of the employer share of social security
tax.
Businesses and tax-exempt organizations with fewer
than 500 employees that are required to provide paid sick
leave under the EPSLA and/or to provide paid family
leave under the Emergency Family and Medical Leave
Expansion Act are eligible to claim the credit for qualified
sick and family leave wages for the period after March 31,
2020, and before January 1, 2021. Enter the
nonrefundable portion of the credit for qualified sick and
family leave wages from Worksheet 1, Step 2, line 2j. The
credit for qualified sick and family leave wages consists of
the qualified sick leave wages, the qualified family leave
wages, and the qualified health plan expenses and
employer share of Medicare tax allocable to those wages.
The nonrefundable portion of the credit is limited to the
employer share of social security tax reported on Form
943, line 3, after that share is first reduced by any credit
claimed on Form 8974 for the qualified small business
payroll tax credit for increasing research activities, or any
credit to be claimed on Form 5884-C for the work
opportunity credit for qualified tax-exempt organizations
hiring qualified veterans.
Any credit in excess of the remaining amount of the
employer share of social security tax is refundable and
reported on Form 943, line 14d. For more information on
the credit for qualified sick and family leave wages, go to
IRS.gov/PLC.
Qualified health plan expenses allocable to qualified
sick leave and family leave wages. The credit for
qualified sick leave wages and qualified family leave
wages is increased to cover the qualified health plan
expenses that are properly allocable to the qualified leave
wages for which the credit is allowed. These qualified
health plan expenses are amounts paid or incurred by the
employer to provide and maintain a group health plan but
only to the extent such amounts are excluded from the
employees’ income as coverage under an accident or
health plan. The amount of qualified health plan expenses
generally includes both the portion of the cost paid by the
employer and the portion of the cost paid by the employee
with pre-tax salary reduction contributions. However,
qualified health plan expenses don’t include amounts that
the employee paid for with after-tax contributions. For
more information, go to IRS.gov/PLC.
You must include the full amount (both the

TIP nonrefundable and refundable portions) of the

credit for qualified sick and family leave wages in
your gross income for the tax year that includes the last
day of any calendar quarter in which a credit is allowed.
You can't use the same wages for the employee retention
credit and the credits for paid sick and family leave.

Line 12c. Nonrefundable Portion of
Employee Retention Credit From
Worksheet 1
An employer may not claim the employee
retention credit if the employer receives a Small
CAUTION Business Interruption Loan under the Paycheck
Protection Program (PPP) that is authorized under the

!

-10-

Instructions for Form 943 (2020)

Coronavirus Aid, Relief, and Economic Security (CARES)
Act (“Paycheck Protection Loan”). An employer that
receives a Paycheck Protection Loan shouldn’t claim an
employee retention credit. An employer that applied for a
Paycheck Protection Loan, received payment, and repaid
the loan by May 18, 2020, will be treated as though the
employer had not received a covered loan under the PPP
for purposes of the employee retention credit.
Enter the nonrefundable portion of the employee
retention credit from Worksheet 1, Step 3, line 3h. The
employee retention credit is 50% of the qualified wages
you paid to your employees between March 13, 2020, and
December 31, 2020. Qualified wages include qualified
health plan expenses for the employee retention credit.
The nonrefundable portion of the credit is limited to the
employer share of social security tax reported on Form
943, line 3, after that share is first reduced by any credit
claimed on Form 8974 for the qualified small business
payroll tax credit for increasing research activities, or any
credit to be claimed on Form 5884-C for the work
opportunity credit for qualified tax-exempt organizations
hiring qualified veterans, and/or any credit claimed for the
nonrefundable portion of the credit for qualified sick and
family leave wages.
Any credit in excess of the remaining amount of the
employer share of social security tax is refundable and
reported on Form 943, line 14e. For more information on
the employee retention credit, go to IRS.gov/ERC.
Qualified wages for the employee retention credit.
The tax credit is equal to 50% of qualified wages paid to
employees between March 13, 2020, and December 31,
2020. Qualified wages, including qualified health plan
expenses, are limited to a maximum of $10,000 for each
employee for the year. Qualified wages are wages for
social security and Medicare tax purposes paid to certain
employees during any period in a quarter in which your
operations are fully or partially suspended due to a
government order or during a quarter in which you have
had a significant decline in gross receipts. The law
provides that the significant decline in gross receipts is the
period beginning with any quarter in which your gross
receipts are less than 50% of what they were in the same
calendar quarter in 2019 and ending with the quarter that
follows the first quarter beginning after the quarter in
which your gross receipts were greater than 80% of what
they were in the same calendar quarter in 2019.
The wages and qualified health plan expenses
considered in calculating your credit depend on the size of
your workforce. Eligible employers that had an average
number of 100 or fewer full-time employees during 2019
count wages paid to all their employees and the qualified
health plan expenses paid or incurred for all employees
during any period in the quarter in which operations are
fully or partially suspended due to a government order or
during a quarter in which there has been a significant
decline in gross receipts. Eligible employers that had an
average number of more than 100 full-time employees in
2019 may count only wages paid to employees for time
that the employees weren't working, and qualified health
plan expenses paid or incurred by the employer allocable
to the time those employees weren't working, due to the
suspension or significant decline in gross receipts; these
Instructions for Form 943 (2020)

eligible employers can count only wages that don’t
exceed what the employer would have paid that employee
for working for the same amount of time during the prior
30 days. More information on the employee retention
credit is available at IRS.gov/ERC.
Qualified health plan expenses for the employee
retention credit. Qualified wages for the employee
retention credit include qualified health plan expenses.
Qualified health plan expenses are amounts paid or
incurred by the employer to provide and maintain a group
health plan but only to the extent such amounts are
excluded from the employees' income as coverage under
an accident or health plan. The amount of qualified health
plan expenses taken into account in determining the
amount of qualified wages generally includes both the
portion of the cost paid by the employer and the portion of
the cost paid by the employee with pre-tax salary
reduction contributions. However, the qualified health plan
expenses shouldn't include amounts that the employee
paid for with after-tax contributions. Generally, the
qualified health plan expense is the amount that is
allocable to the hours for which the employees receive
qualified wages for the employee retention credit.
However, qualified health plan expenses for purposes of
the employee retention credit may include health plan
expenses allocable to the applicable periods even if the
employer isn’t paying any qualified wages to the
employee. For more information, see the frequently asked
questions for qualified health plan expenses at IRS.gov/
ERC.

Line 12d. Total Nonrefundable
Credits

Add lines 12a, 12b, and 12c. Enter the total on line 12d.

Line 13. Total Taxes After
Adjustments and Credits

Subtract line 12d from line 11. Enter the result on line 13.

Line 14a. Total Deposits

Enter your deposits for this year, including any
overpayment that you applied from filing Form 943-X, in
the current year. Also include in the amount shown any
overpayment from a previous period that you applied to
this return. Don’t include any amount that you didn’t
deposit because you chose to defer the employer or
employee share of social security tax. For more
information about the deferrals, see the line 14b and
line 14c instructions next. Also, don’t include any amount
you didn’t deposit because you reduced your deposits in
anticipation of the credit for qualified sick and family leave
wages or the employee retention credit, as discussed in
Notice 2020-22.

Line 14b. Deferred Amount of the
Employer Share of Social Security
Tax

Enter the amount of the employer share of social security
tax that you’re deferring. Employers, including
government employers, can defer the deposit of the
employer share of social security tax due on or after

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March 27, 2020, and before January 1, 2021, as well as
payment due for the employer share of social security tax
for wages paid on or after March 27, 2020, and before
January 1, 2021. The employer share of social security
tax is included on line 3 along with the employee share of
social security tax. However, you determine the amount of
the employer share of social security tax that can be
deferred by only considering social security tax on wages
related to deposits and payments due on or after March
27, 2020. Don't include the employee share of social
security tax reported on lines 3a and 3b as part of the
deferred amount of the employer share of social security
tax. If you're a third-party payer of sick pay that isn't an
agent (for example, an insurance company), you must
consider any adjustment that you make on line 10 for the
employer share of social security tax transferred to your
client before deciding the employer share of social
security tax that can be deferred. Don’t reduce the amount
reported on line 14b by any credits claimed on line 12a,
12b, or 12c or any credit to be claimed on Form 5884-C,
line 11, for the work opportunity credit for qualified
tax-exempt organizations hiring qualified veterans.
However, you can’t defer tax that you have already paid;
therefore, the maximum amount of social security tax
(both the employer and employee share of social security
tax) that can be deferred for the year is the lesser of (1)
the total of the employer and employee share of social
security tax, or (2) the excess of (a) line 11 (reduced by
the amount, if any, on line 12a) over (b) line 14a. For
more information about the deferral of employment tax
deposits, including limitations on the maximum amount
you can defer, go to IRS.gov/ETD.

employer share of social security tax for 2020 was
$20,000 and you deposited $15,000 of the $20,000 during
2020 and defer $5,000 on line 14b, then you don’t need to
pay any deferred amount by December 31, 2021,
because 50% of the amount that could have been
deferred ($10,000) has already been paid and is first
applied against your payment that would be due on
December 31, 2021. Accordingly, you must pay the
$5,000 deferral by December 31, 2022.
If you initially deferred (that is, didn't deposit) the
employer share of social security tax and later decided to
pay or deposit it in 2020, see Adjusting tax liability for the
deferred amount of social security tax that you pay or
deposit in 2020, later. For additional information, go to
IRS.gov/ETD.
How to pay the deferred amount of social security
tax. You may pay the amount you owe electronically
using EFTPS, by credit or debit card, or by a check or
money order. The preferred method of payment is EFTPS.
For more information, visit EFTPS.gov, or call
800-555-4477 or 800-733-4829 (TDD). To pay the
deferred amount, select Form 943 and the option for
payment due on an IRS notice.
To pay by credit or debit card, go to IRS.gov/
PayByCard. If you pay by check or money order, include a
2020 Form 943-V, Payment Voucher. Make the check or
money order payable to “United States Treasury.” Enter
your EIN, “Form 943,” and “2020” on your check or money
order.
Where to send payments. Payments should be sent
to:

The deferred amount of the employer share of

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0030

TIP social security tax is a deferral of deposits and

payments, not a deferral of liability. You won't
receive a refund or credit of any amount of the employer
share of social security tax already deposited or paid for
the year. However, in determining whether any amount of
the employer share of social security tax was already
deposited for this purpose, you can consider prior
deposits on or after March 27, 2020, as first being
deposited for employment taxes other than the employer
share of social security tax. Although employers
depositing taxes using EFTPS identify the subcategory of
separate deposits for the different employment taxes (for
example, social security tax and Medicare tax), those
entries are for informational purposes only. The IRS
doesn't use that information in comparing liabilities
reported on the employment tax return and the total
deposits made.
Paying the deferred amount of the employer share of
social security tax. One-half of the employer share of
social security tax is due by December 31, 2021, and the
remainder is due by December 31, 2022. Any payments
or deposits you make before December 31, 2021, are first
applied against your payment due on December 31, 2021,
and then applied against your payment due on December
31, 2022. For example, if your employer share of social
security tax for 2020 is $20,000 and you deposited $5,000
of the $20,000 during 2020 and defer $15,000 on line 14b,
then you must pay $5,000 by December 31, 2021, and
$10,000 by December 31, 2022. However, if your

or

Department of the Treasury
Internal Revenue Service
Kansas City, MO
64999-0030

Send your payment to the address above that is in the
same state as the address to which you would mail
returns filed without a payment, as shown under Where
To File, earlier.

Line 14c. Deferred Amount of the
Employee Share of Social Security
Tax

Enter the amount of the employee share of social security
tax that you're deferring for the year. On August 8, 2020,
the President issued a Presidential Memorandum
directing the Secretary of the Treasury to use his authority
pursuant to section 7508A of the Internal Revenue Code
to defer the withholding, deposit, and payment of certain
payroll tax obligations. In Notice 2020-65, the Secretary
made relief available under section 7508A to employers
required to withhold social security taxes from wages paid
to employees. Specifically, under the notice, the due date
for withholding and payment of the employee share of
social security tax on applicable wages is postponed until
the period beginning on January 1, 2021, and ending on
April 30, 2021. Applicable wages are social security
wages of less than $4,000 in any biweekly pay period (or
the equivalent threshold amount for other pay periods)
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Instructions for Form 943 (2020)

paid on a pay date during the period beginning on
September 1, 2020, and ending on December 31, 2020.
The determination of whether the deferral of withholding
or payment of the employee share of social security tax is
available is made on a pay period-by-pay period basis.
Nothing prohibits employers from getting employee input
on whether to apply the relief to postpone the due date for
the withholding and payment of the employee share of
social security tax on applicable wages paid to the
employee.
You can’t defer tax that you have already paid;
therefore, the maximum amount of social security tax
(both the employer and employee share of social security
tax) that can be deferred for the year is the lesser of (1)
the total of the employer and employee share of social
security tax, or (2) the excess of (a) line 11 (reduced by
the amount, if any, on line 12a) over (b) line 14a.
If you paid an employee supplemental wages (for

TIP example, a bonus or commission) and included

the supplemental wages with the employee’s
regular wages in a single payment (that is, in a single
paycheck) for a pay period, but you didn’t specifically
identify the amount of each, then the entire amount of the
payment must be below $4,000 (or equivalent amount for
pay periods other than a biweekly pay period) to be
eligible for the deferral of the withholding and payment of
the employee share of social security tax on the wages. If
the entire amount is below $4,000, then you may defer the
withholding and payment of the employee share of social
security tax on the entire payment of the wages. If you
paid the supplemental wages separately from the
employee’s regular wages (that is, in a separate check),
or you combined the wages in a single payment but you
specifically identified the amount of each, then the
supplemental wages are disregarded for purposes of
determining whether the regular wages are below $4,000
(or equivalent amount), but the supplemental wages aren’t
eligible for the deferral of the withholding and payment of
the employee share of social security tax.
Paying the deferred amount of the employee share
of social security tax. The due date for the withholding
and payment of the employee share of social security tax
is postponed until the period beginning on January 1,
2021, and ending on April 30, 2021. The employer must
withhold and pay the total deferred employee share of
social security tax ratably from wages paid to the
employee between January 1, 2021, and April 30, 2021. If
necessary, the employer may make arrangements to
otherwise collect the total taxes deferred from the
employee. The employer is liable to pay the deferred
taxes to the IRS and must do so before May 1, 2021, to
avoid interest, penalties, and additions to tax on those
amounts. For more information about the deferral of the
employee share of social security tax, see Notice
2020-65. For information on paying the deferred social
security tax, see How to pay the deferred amount of social
security tax, earlier.
If you initially deferred (that is, didn't deposit) the
employee share of social security tax and later decide to
pay or deposit it in 2020, see Adjusting tax liability for the
deferred amount of social security tax that you pay or
deposit in 2020, later.
Instructions for Form 943 (2020)

For information about how to report the deferred

TIP amount of the employee share of social security

tax on Form W-2 and Form W-2c for 2020, see
IRS.gov/FormW2 and the 2021 General Instructions for
Forms W-2 and W-3 (available in early 2021).

Line 14d. Refundable Portion of
Credit for Qualified Sick and Family
Leave Wages From Worksheet 1

Businesses and tax-exempt organizations with fewer than
500 employees that are required to provide paid sick
leave under the EPSLA and/or to provide paid family
leave under the Emergency Family and Medical Leave
Expansion Act are eligible to claim the credit for qualified
sick and family leave wages. Enter the refundable portion
of the credit for qualified sick and family leave wages from
Worksheet 1, Step 2, line 2k. The credit for qualified sick
and family leave wages consists of the qualified sick leave
wages, the qualified family leave wages, the allocable
qualified health plan expenses, and the employer share of
Medicare tax allocable to those wages. The refundable
portion of the credit is allowed after the employer share of
social security tax is reduced to zero by nonrefundable
credits.

Line 14e. Refundable Portion of
Employee Retention Credit From
Worksheet 1

Enter the refundable portion of the employee retention
credit from Worksheet 1, Step 3, line 3i. The employee
retention credit is 50% of the qualified wages you paid to
your employees between March 13, 2020, and December
31, 2020. The refundable portion of the credit is allowed
after the employer share of social security tax is reduced
to zero by nonrefundable credits.

Line 14f. Total Deposits, Deferrals,
and Refundable Credits

Add lines 14a, 14b, 14c, 14d, and 14e. Enter the total on
line 14f.

Line 14g. Total Advances Received
From Filing Form(s) 7200 for the Year

Enter the total advances received from filing Form(s) 7200
for the year. If you filed a Form 7200 but you haven’t
received the advance before filing Form 943, don’t include
that amount. Employers were eligible to file Form 7200 if
they paid qualified sick leave wages, qualified family leave
wages, and/or qualified wages for the employee retention
credit and the amount of employment tax deposits they
retained wasn’t sufficient to cover the cost of qualified sick
and family leave wages and the employee retention credit.
Form 7200 may be filed up to the earlier of

TIP February 1, 2021, or the filing of Form 943 for the

year. However, if you file Form 7200 after the end
of the year, it's possible that it may not be processed prior
to the processing of the filed Form 943. Advance payment
requests on Form 7200 won't be paid after your Form 943
is processed. When the IRS processes Form 943, we will
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correct the amount reported on line 14g to match the
amount of advance payments issued or contact you to
reconcile the difference before we finish processing Form
943.

Line 14h. Total Deposits, Deferrals,
and Refundable Credits Less
Advances
Subtract line 14g from line 14f. Enter the result on
line 14h.

Line 15. Balance Due

If line 13 is more than line 14h, enter the difference on
line 15. Otherwise, see Overpayment, later. Never make
an entry on both lines 15 and 16.
You don't have to pay if line 15 is under $1. Generally,
you should show a balance due on line 15 only if your total
taxes after adjustments and nonrefundable credits for the
year (line 13) are less than $2,500. However, see section
7 of Pub. 51 regarding payments made under the
accuracy of deposits rule.
If you were required to make federal tax deposits, pay
the amount shown on line 15 by EFT. If you weren't
required to make federal tax deposits or you're a monthly
schedule depositor making a payment under the accuracy
of deposits rule (see section 7 of Pub. 51), you may pay
the amount shown on line 15 by EFT, credit card, debit
card, check, money order, or EFW. For more information
on electronic payment options, go to IRS.gov/Payments.
If you pay by EFT, credit card, or debit card, file your
return using the Without a payment address under Where
To File, earlier. Don't file Form 943-V, Payment Voucher.
If you pay by check or money order, make it payable to
“United States Treasury.” Enter your EIN, “Form 943,” and
the tax period on your check or money order. Complete
Form 943-V and enclose it with Form 943.

!

CAUTION

If you didn't make deposits as required and
instead pay the taxes with Form 943, you may be
subject to a penalty.

What if you can't pay in full? If you can't pay the full
amount of tax you owe, you can apply for an installment
agreement online. You can apply for an installment
agreement online if:
• You can't pay the full amount shown on line 15,
• The total amount you owe is $25,000 or less, and
• You can pay the liability in full in 24 months.
To apply using the Online Payment Agreement
Application, go to IRS.gov/OPA.
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions
you must meet to enter into and maintain an installment
agreement, such as paying the liability within 24 months,
and making all required deposits and timely filing tax
returns during the length of the agreement.
If your installment agreement is accepted, you will be
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of
the return.

Line 16. Overpayment

If line 14h is more than line 13, enter the difference on
line 16. Never make an entry on both lines 15 and 16.
If you deposited more than the correct amount for the
year, you can choose to have the IRS either refund the
overpayment or apply it to your next return. Check only
one box on line 16. If you don't check either box or if you
check both boxes, we will generally apply the
overpayment to your next return. Regardless of any box
you check or don't check, we may apply your
overpayment to any past due tax account that is shown in
our records under your EIN.
If line 16 is under $1, we will send you a refund or apply
it to your next return only if you ask us in writing to do so.

Line 17. Monthly Summary of Federal
Tax Liability
This is a summary of your monthly tax liability, not a
summary of deposits made. If line 13 is less than $2,500,
don't complete line 17 or Form 943-A.

Complete line 17 only if you were a monthly schedule
depositor for the entire year and line 13 is $2,500 or
more. The amount entered on line 17M must equal the
amount reported on line 13. If it doesn't, your tax deposits
and payments may not be counted as timely. Don't reduce
your total liability reported on line 17 by the deferred
amount of the employer or employee share of social
security tax, the refundable portion of the credit for
qualified sick and family leave wages, or the refundable
portion of the employee retention credit. The deferred
amount of the employer or employee share of social
security tax reported on line 14b and line 14c doesn't
reflect deferred liabilities, but instead postponed due
dates for payment. Don't change your current year tax
liability reported on line 13 by adjustments reported on
any Forms 943-X. See section 7 of Pub. 51 for details on
the deposit rules. You're a monthly schedule depositor for
the calendar year if the amount of your “Total taxes after
adjustments and credits” reported for the lookback period
isn't more than $50,000. The lookback period is the
second calendar year preceding the current calendar
year. For example, the lookback period for 2021 is 2019.

!

CAUTION

If you were a semiweekly schedule depositor
during any part of the year, don't complete line 17.
Instead, complete Form 943-A.

Reporting adjustments from line 10 on line 17. If your
net adjustment during a month is negative and it exceeds
your total liability for the month, don't enter a negative
amount for the month. Instead, enter “-0-” for the month
and carry over the unused portion of the adjustment to the
next month.
Adjusting tax liability for nonrefundable credits
claimed on lines 12a, 12b, and 12c. Monthly schedule
depositors and semiweekly schedule depositors must
account for nonrefundable credits claimed on lines 12a,
12b, and 12c when reporting their tax liabilities on line 17
or Form 943-A. The total tax liability for the year must
equal the amount reported on line 13. Failure to account
for nonrefundable credits on line 17 or Form 943-A may
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Instructions for Form 943 (2020)

cause line 17 or Form 943-A to report more than the total
tax liability reported on line 13. Don't reduce your monthly
tax liability reported on lines 17a through 17l or your daily
tax liability reported on Form 943-A below zero.
Qualified small business payroll tax credit for
increasing research activities (line 12a). The qualified
small business payroll tax credit for increasing research
activities is limited to the employer share of social security
tax on wages paid in the quarter that begins after the
income tax return electing the credit has been filed. In
completing line 17 or Form 943-A, you take into account
the payroll tax credit against the liability for the employer
share of social security tax starting with the first payroll
payment of the quarter that includes payments of wages
subject to social security tax to your employees. The
credit may be taken to the extent of the employer share of
social security tax on wages associated with the first
payroll payment, and then to the extent of the employer
share of social security tax associated with succeeding
payroll payments in the quarter until the credit is used.
Consistent with the entries on line 17 or Form 943-A, the
payroll tax credit should be taken into account in making
deposits of employment tax. If any payroll tax credit is
remaining at the end of the quarter that hasn’t been used
completely because it exceeds the employer share of
social security tax for the quarter, the excess credit may
be carried forward to the succeeding quarter and allowed
as a payroll tax credit for the succeeding quarter. The
payroll tax credit may not be taken as a credit against
income tax withholding, Medicare tax, or the employee
share of social security tax.
Also, the remaining payroll tax credit may not be
carried back and taken as a credit against wages paid
from preceding quarters that are reported on the same
Form 943 or on Forms 943 for preceding years. If an
amount of payroll tax credit is unused at the end of the
calendar year because it is in excess of the employer
share of social security tax on wages paid during the
applicable quarters in the calendar year, the remaining
payroll tax credit may be carried forward to the first
quarter of the succeeding calendar year as a payroll tax
credit against the employer share of social security tax on
wages paid in that quarter.
Example. Rose Co. is an employer with a calendar tax
year that filed its timely income tax return on April 15,
2020. Rose Co. elected to take the qualified small
business payroll tax credit for increasing research
activities on Form 6765. The third quarter of 2020 is the
first quarter that begins after Rose Co. filed the income tax
return making the payroll tax credit election. Therefore,
the payroll tax credit applies against Rose Co.’s share of
social security tax on wages paid to employees in the third
quarter of 2020. Rose Co. is a semiweekly schedule
depositor. Rose Co. completes Form 943-A by reducing
the amount of liability entered for the first payroll payment
in the third quarter of 2020 that includes wages subject to
social security tax by the lesser of (1) its share of social
security tax on the wages, or (2) the available payroll tax
credit. If the payroll tax credit elected is more than Rose
Co.’s share of social security tax on the first payroll
payment of the quarter, the excess payroll tax credit
would be carried forward to succeeding payroll payments
in the third quarter until it is used. If the amount of the
Instructions for Form 943 (2020)

payroll tax credit exceeds Rose Co.’s share of social
security tax on wages paid to its employees in the third
quarter, the excess credit would be treated as a payroll
tax credit against its share of social security tax on wages
paid in the fourth quarter. If the amount of the payroll tax
credit remaining exceeded Rose Co.’s share of social
security tax on wages paid in the fourth quarter, it could be
carried forward and treated as a payroll tax credit for the
first quarter of 2021.
Nonrefundable portion of credit for qualified sick
and family leave wages (line 12b). The nonrefundable
portion of the credit for qualified sick and family leave
wages is limited to the employer share of social security
tax on wages paid in the year that is remaining after that
share is first reduced by any credit claimed on Form 943,
line 12a, for the qualified small business payroll tax credit
for increasing research activities, and/or any credit to be
claimed on Form 5884-C, line 11, for the work opportunity
credit for qualified tax-exempt organizations hiring
qualified veterans. In completing line 17 or Form 943-A,
you take into account the nonrefundable portion of the
credit for qualified sick and family leave wages (including
the qualified health plan expenses and employer share of
Medicare tax allocable to those wages) against the liability
for the first payroll payment of the year, but not below
zero. Then reduce the liability for each successive payroll
payment in the year until the nonrefundable portion of the
credit is used. Any credit for qualified sick and family
leave wages that is remaining at the end of the year
because it exceeds the employer share of social security
tax is claimed on Form 943, line 14d, as a refundable
credit. The refundable portion of the credit doesn’t reduce
the liability reported on line 17 or Form 943-A.
Example. Maple Co. is a monthly schedule depositor
that pays employees every Friday. In 2020, Maple Co.
had pay dates every Friday of 2020 starting January 3,
2020. Maple Co. paid qualified sick and family leave
wages on May 1 and May 8. The nonrefundable portion of
the credit for qualified sick and family leave wages for the
year is $1,000. On line 17, Maple Co. will use the $1,000
to reduce the liability for the January 3 pay date, but not
below zero. If any nonrefundable portion of the credit
remains, Maple Co. applies it to the liability for the
January 10 pay date, then the January 17 pay date, and
so forth until the entire $1,000 is used.
Nonrefundable portion of employee retention
credit (line 12c). The nonrefundable portion of the
employee retention credit is limited to the employer share
of social security tax on wages paid in the year that is
remaining after that share is first reduced by any credit
claimed on Form 943, line 12a, for the qualified small
business payroll tax credit for increasing research
activities; any credit to be claimed on Form 5884-C,
line 11, for the work opportunity credit for qualified
tax-exempt organizations hiring qualified veterans; and/or
any credit claimed on Form 943, line 12b, for the
nonrefundable portion of the credit for qualified sick and
family leave wages. In completing line 17 or Form 943-A,
you take into account the nonrefundable portion of the
employee retention credit against the liability for the first
payroll payment of the year, but not below zero. Then
reduce the liability for each successive payroll payment in
the year until the nonrefundable portion of the credit is
-15-

Line 19. Qualified Health Plan Expenses
Allocable to Qualified Family Leave Wages

used. Any employee retention credit that is remaining at
the end of the year because it exceeds the employer
share of social security tax is claimed on Form 943,
line 14e, as a refundable credit. The refundable portion of
the credit doesn’t reduce the liability reported on line 17 or
Form 943-A.
Example. Maple Co. is a monthly schedule depositor
that pays employees every Friday. In 2020, Maple Co.
had pay dates every Friday of 2020 starting January 3,
2020. Maple Co. paid qualified wages for the employee
retention credit on May 1 and May 8. The nonrefundable
portion of the employee retention credit for the year is
$1,000. On line 17, Maple Co. will use the $1,000 to
reduce the liability for the January 3 pay date, but not
below zero. If any nonrefundable portion of the credit
remains, Maple Co. applies it to the liability for the
January 10 pay date, then the January 17 pay date, and
so forth until the entire $1,000 is used.

Enter the qualified qualified health plan expenses
allocable to qualified family leave wages. This amount is
also entered on Worksheet 1, Step 2, line 2f.

Line 20. Qualified Wages for the Employee
Retention Credit

Enter the qualified wages for the employee retention
credit (excluding the amount of any qualified health plan
expenses allocable to these wages). This amount is also
entered on Worksheet 1, Step 3, line 3a.

Line 21. Qualified Health Plan Expenses
Allocable to Wages Reported on Line 20

Enter the qualified health plan expenses for the employee
retention credit. These expenses are generally allocable
to the wages reported on Form 943, line 20. However, in
some circumstances, qualified health plan expenses for
purposes of the employee retention credit are treated as
allocable to qualified wages for the employee retention
credit even if no wages are paid to the employees during
the applicable period (for example, when you furlough an
employee because your operations are fully or partially
suspended due to a government order but you continue to
pay qualified health plan expenses). For more information,
go to IRS.gov/ERC. The amount from line 20 is also
entered on Worksheet 1, Step 3, line 3b.

You may reduce your deposits by the amount of

TIP the nonrefundable and refundable portions of the

credit for qualified sick and family leave wages,
the nonrefundable and refundable portions of the
employee retention credit, and any deferred employment
taxes as discussed earlier under Reducing your deposit
for COVID-19 credits.

Adjusting tax liability for the deferred amount of social security tax that you pay or deposit in 2020. If
you defer the employer and/or employee share of social
security tax and subsequently pay or deposit that deferred
amount during 2020, you should report the amount of the
payment or deposit on Form 943, line 17, or Form 943-A
on the date of the payment or deposit and not the date of
liability. You shouldn’t include any portion of the deferred
amount of social security taxes already paid or deposited
by December 31, 2020, on Form 943, line 14b or 14c.
For example, if you're a monthly schedule depositor
that has an employment tax liability of $1,000 every month
in 2020 and you defer $200 of the employer share of
social security tax from your June liability, but deposit your
deferred amount of $200 together with your $1,000
deposit for your November tax liability, you would report
$800 for your June tax liability ($1,000 minus $200) and
$1,200 for your November liability ($1,000 plus $200) on
line 17. Don’t include the $200 deferral on Form 943,
line 14b.

Line 22. Credit From Form 5884-C, Line 11, for
the Year

If applicable, enter the credit to be claimed on line 11 of
Form 5884-C for the work opportunity credit for qualified
tax-exempt organizations hiring qualified veterans for
2020. Entering an amount here doesn’t change your
requirement to file Form 5884-C separately from Form
943. You’re entering the amount here to notify us that you
will file Form 5884-C for the year and therefore reduce the
amount of the employer share of social security tax that is
available to be reduced by the nonrefundable portion of
the credit for qualified sick and family leave wages and the
nonrefundable portion of the employee retention credit.

Third-Party Designee

Lines 18 Through 22
The amounts entered on lines 18 through 22 are
amounts that you use on Worksheet 1 to figure the
CAUTION credit for qualified sick and family leave wages
and the employee retention credit. If you’re claiming these
credits, you must enter the applicable amounts.

!

Line 18. Qualified Health Plan Expenses
Allocable to Qualified Sick Leave Wages

Enter the qualified health plan expenses allocable to
qualified sick leave wages. This amount is also entered on
Worksheet 1, Step 2, line 2b.

If you want to allow an employee, a paid tax preparer, or
another person to discuss your Form 943 with the IRS,
check the “Yes” box in the Third-Party Designee section.
Then tell us the name, phone number, and the five-digit
personal identification number (PIN) of the specific person
to speak with—not the name of the firm who prepared
your tax return. The designee may choose any five
numbers as his or her PIN.

By checking “Yes,” you authorize the IRS to talk to the
person you named (your designee) about any questions
we may have while we process your return. You also
authorize your designee to do all of the following.
• Give us any information that is missing from your return.
• Call us for information about processing your return.
• Respond to certain IRS notices that you have shared
with your designee about math errors and return
preparation. The IRS won't send notices to your designee.

-16-

Instructions for Form 943 (2020)

How To Get Forms, Instructions, and
Publications

You’re not authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
represent you before the IRS. If you want to expand your
designee’s authorization, see Pub. 947.
The authorization will automatically expire 1 year from
the due date (without regard to extensions) for filing your
Form 943. If you or your designee wants to terminate the
authorization, write to the IRS office for your location using
the Without a payment address under Where To File,
earlier.

Who Must Sign (Approved Roles)

You can view, download, or print most of the
forms, instructions, and publications you may
need at IRS.gov/Forms. Otherwise, you can go to
IRS.gov/OrderForms to place an order and have them
mailed to you.

The following persons are authorized to sign the return for
each type of business entity.
• Sole proprietorship—The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation)—The president, vice
president, or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization—A
responsible and duly authorized partner, member, or
officer having knowledge of its affairs.
• Single-member LLC treated as a disregarded entity
for federal income tax purposes—The owner of the
LLC or a principal officer duly authorized to sign.
• Trust or estate—The fiduciary.
Form 943 may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney has been
filed.
Alternative signature method. Corporate officers or
duly authorized agents may sign Form 943 by rubber
stamp, mechanical device, or computer software
program. For details and required documentation, see
Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at
IRS.gov/irb/2005-28_IRB#RP-2005-39.

Paid Preparer Use Only

A paid preparer must sign Form 943 and enter the
information requested in the Paid Preparer Use Only
section if the preparer was paid to prepare Form 943 and
isn't an employee of the filing entity. Paid preparers must
sign paper returns with a manual signature. The preparer
must give you a copy of the return in addition to the copy
to be filed with the IRS.
If you're a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided.
Include your complete address. If you work for a firm,
enter the firm's name and the EIN of the firm. You can
apply for a PTIN online or by filing Form W-12. For more
information about applying for a PTIN online, go to
IRS.gov/PTIN. You can't use your PTIN in place of the EIN
of the tax preparation firm.
Generally, don't complete this section if you're filing
Form 943 as a reporting agent and have a valid Form
8655 on file with the IRS. However, a reporting agent must
complete this section if the reporting agent offered legal
advice, for example, advising the client on determining
whether its workers are employees or independent
contractors for federal tax purposes.

Instructions for Form 943 (2020)

Privacy Act and Paperwork Reduction Act Notice.
We ask for the information on Forms 943, 943-A, and
943-V to carry out the Internal Revenue laws of the United
States. We need it to figure and collect the right amount of
tax. Subtitle C, Employment Taxes, of the Internal
Revenue Code imposes employment taxes on wages and
provides for income tax withholding. These forms are
used to report the amount of taxes that you owe. Section
6011 requires you to provide the requested information if
the tax applies to you. Section 6109 requires you to
provide your identification number. If you fail to provide
this information in a timely manner, or provide false or
fraudulent information, you may be subject to penalties.
You’re not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law.
Generally, tax returns and return information are
confidential, as required by section 6103. However,
section 6103 allows or requires us to disclose this
information to others as described in the Code. We may
disclose your tax information to the Department of Justice
for civil and criminal litigation, and to cities, states, the
District of Columbia, and U.S. commonwealths and
possessions to administer their tax laws. We may also
disclose this information to other countries under a tax
treaty, to federal and state agencies to enforce federal
nontax criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism.
The time needed to complete and file these forms will
vary depending on individual circumstances. The
estimated average time for Form 943 is: Recordkeeping,
14 hr., 49 min.; Learning about the law or the form, 40
min.; Preparing and sending the form to the IRS, 2 hr., 7
min. The estimated average time for Form 943-V is 14
min. If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. You can
send us comments from IRS.gov/FormComments. Or you
can write to the Internal Revenue Service, Tax Forms and
Publications Division, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Don't send Form 943 to
this address. Instead, see Where To File, earlier.

-17-

Worksheet 1. Credit for Qualified Sick and Family Leave Wages and
the Employee Retention Credit

Keep for Your Records

Determine how you will complete this worksheet
If you paid both qualified sick and family leave wages and qualified wages for purposes of the employee retention credit this year, complete Step 1,
Step 2, and Step 3. If you paid qualified sick and family leave wages this year but you didn't pay any qualified wages for purposes of the employee
retention credit this year, complete Step 1 and Step 2. If you paid qualified wages for purposes of the employee retention credit this year but you didn't
pay any qualified sick and family leave wages this year, complete Step 1 and Step 3.
Step 1.
1a
1b
1c
1d
1e
1f
Step 2.

2a
2a(i)
2a(ii)
2b
2c
2d
2e
2e(i)
2e(ii)
2f
2g
2h
2i
2j
2k

Step 3.

3a
3b
3c
3d
3e
3f
3g
3h
3i

Determine the employer share of social security tax this year after it is reduced by any credit claimed on Form 8974 and
any credit to be claimed on Form 5884-C
Enter the amount of social security tax from Form 943, line 3 . . . . . . . . . . . . . . . . . . . . 1a
Employer share of social security tax. Mulitply line 1a by 50% (0.50) . . . . . . . . . . .
1b
Enter the amount from Form 943, line 12a (credit from Form 8974) . . . . . . . . . . . . . . . 1c
Enter the amount to be claimed on Form 5884-C, line 11, for the year . . . . . . . . . . . . . 1d
Total nonrefundable credits already used against the employer share of social
security tax. Add lines 1c and 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
Employer share of social security tax remaining. Subtract line 1e
from line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
Figure the sick and family leave credit
Qualified sick leave wages reported on Form 943, line 2a . . . . . . . . . . . . . . . . . . . . . .
Qualified sick leave wages included on Form 943, line 4, but not included on Form 943,
line 2a, because the wages reported on that line were limited by the social security
wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total qualified sick leave wages. Add lines 2a and 2a(i) . . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified sick leave wages (Form 943,
line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified sick leave wages. Add lines 2a(ii), 2b, and 2c . . . . . . . . . . . . . .
Qualified family leave wages reported on Form 943, line 2b . . . . . . . . . . . . . . . . . . . .
Qualified family leave wages included on Form 943, line 4, but not included on Form 943,
line 2b, because the wages reported on that line were limited by the social security
wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total qualified family leave wages. Add lines 2e and 2e(i) . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified family leave wages (Form 943,
line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified family leave wages. Add lines 2e(ii), 2f, and 2g . . . . . . . . . . . . .
Credit for qualified sick and family leave wages. Add lines 2d and 2h . . . . . . . . . .
Nonrefundable portion of credit for qualified sick and family leave wages. Enter
the smaller of line 1f or line 2i. Enter this amount on Form 943, line 12b . . . . . . . . . . . .
Refundable portion of credit for qualified sick and family leave wages. Subtract
line 2j from line 2i and enter this amount on Form 943, line 14d . . . . . . . . . . . . . . . . . .
Figure the employee retention credit
Qualified wages (excluding qualified health plan expenses) for the employee retention
credit (Form 943, line 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified wages for the employee retention
credit (Form 943, line 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 3a and 3b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retention credit. Multiply line 3c by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount of the employer share of social security tax from Step 1, line 1f . . . . .
Enter the amount of the nonrefundable portion of the credit for qualified sick and family
leave wages from Step 2, line 2j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 3f from line 3e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nonrefundable portion of employee retention credit. Enter the smaller of line 3d or
line 3g. Enter this amount on Form 943, line 12c . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Refundable portion of employee retention credit. Subtract line 3h from line 3d and
enter this amount on Form 943, line 14e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-18-

2a
2a(i)
2a(ii)
2b
2c

2d

2e
2e(i)
2e(ii)
2f
2g

2h
2i
2j
2k

3a
3b
3c
3e

3d

3f
3g
3h
3i

Instructions for Form 943 (2020)