Employment Tax Burden Survey (8)

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Employment Tax Burden Survey

Your experience matters to us.

ETB

Employment Tax Burden Survey
Frequently Asked Questions

How will my answers be used?
Please be assured that your responses will be used
for research and aggregate reporting purposes
only and will not be used for other non-statistical or
non-research purposes such as direct enforcement
activities.

The survey is part of a larger effort the IRS takes to
measure federal tax compliance burden for all tax
paying populations, including individuals, businesses,
and other entities.

Why should I participate?
While participation is voluntary, information about
your organization’s employment tax return compliance
experience will help the IRS reduce taxpayer burden.
We encourage you to take a few minutes of your
time to participate. By doing so, you will make sure
employers like yours are represented. You will also
have the opportunity to help IRS identify the most
burdensome tasks associated with employment
tax compliance.

Please be assured that you will not be asked about the
income or other financial details of your organization’s
tax return.
A Glossary and Dictionary of Forms are available
at the back of this booklet.

How long will this survey take?
Public reporting burden for this collection information
is estimated to average 15 to 20 minutes, including
the time for reviewing instructions, searching existing
data sources, gathering and maintaining the data
needed, and completing and reviewing the collection
of information.

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Who should complete this survey?
The individual most responsible for performing or
supervising the employment tax activities for your
organization should complete this survey. Please feel
free to consult with others to complete the survey. If
your organization has separate divisions, please review
the address label of this mailing to see which division
was randomly selected to receive this survey.

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What is the Employment Tax Burden Survey?
This survey is about the time and money your
organization spent on its Tax Year 2019 employment
tax returns (e.g., Forms 940 and 941) and wage
statement activities (e.g., Forms W-2, W-3, W-4,
1099-MISC, and I-9).

Who can I contact with questions?
If you have questions about the content of this
survey please contact Betsy Kaeberle at Westat by
phone at 855-549-3558 or send an email to
[email protected]. If you would like to
speak to someone at the IRS, please email Scott
Leary at [email protected]. To read the official
IRS announcement regarding this survey, please visit
the following URL on the IRS website:
https://www.irs.gov/statistics/2019-employment-taxburden-survey.

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Should I send this survey to my external service
provider or contractor?
No, please do not forward this survey to your external
service provider or contractor if you have one, because
this survey concerns time and money spent by your
organization, not theirs.
How was my organization selected for this survey?
You are one of a few randomly selected organizations
to receive this survey.

Web Survey Instructions

If you would prefer to complete the survey on the web, please follow the instructions below.
Web responses are processed more quickly and will help ensure that you don’t receive follow-up
contacts.

1.

Go to the website.

To take the survey securely online, please go to:

2.

www.IRS-ETBSurvey.org

Log in.

You will need the following PIN
to access the survey:

Problems?

PIN: [PIN]

If you have any technical difficulties, including problems with the website, please call 855-549-3558
or send an email to [email protected].

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Instructions:
Please use a black or blue pen to complete this form.
Mark

to indicate your answer.

If you want to change your answer, darken the box

and mark the correct answer.

Persons Involved in Tax Year 2019 Employment Tax Activities

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The following questions are about the persons involved in your organization’s Tax Year 2019
employment tax returns (e.g., Forms 940 and 941) and wage statement activities (e.g., Forms W-2,
W-3, W-4, 1099-MISC, and I-9).

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1.

For each row, mark all that apply.

Owner

External service
provider or
Employee(s)
contractor

Other

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A. Who maintained the records needed for
your organization’s Tax Year 2019
employment tax returns and wage
statement activities?
B. Who prepared and filed your
organization’s Tax Year 2019
employment tax returns and
wage statement activities?

Form

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

1

Department of the Treasury - Internal Revenue Service

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Fees Paid to External Service Providers or Contractors for Tax Year 2019 Employment
Tax Return Services
2.

For which of the following services did your organization pay an external service provider or
contractor?
Mark all that apply.
a. General Tax Year 2019 employment tax recordkeeping, including collecting, organizing, tracking,
and/or creating necessary records
b. Preparing and filing Tax Year 2019 quarterly employment tax returns, including amended
returns (e.g., Form 941, Form 941-X, and Form CT-2)

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c. Preparing and filing the Tax Year 2019 annual employment tax returns, including amended
returns (e.g., Form 940, Form 940-EZ, Form 943, Form 943-X, Form 944, Form 944-X,
Form CT-1)

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d. Preparing and filing Tax Year 2019 Employer’s Annual Information Return of Tip Income and
Allocated Tips (Form 8027)
e. Preparing and depositing Tax Year 2019 withheld income and payroll taxes

f. Responding to IRS notices regarding Tax Year 2019 or prior-year employment tax returns

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g. Preparing and providing Tax Year 2019 Forms W-2 to employees

h. Submitting Tax Year 2019 Forms W-2 to the Social Security Administration, including preparing
and submitting Form W-3
i. Before the Social Security Administration receives Form W-2 information: Preparing and providing
revised Tax Year 2019 Forms W-2
j. After the Social Security Administration receives Form W-2 information: Preparing and providing
Tax Year 2019 Forms W-2c
k. Preparing and filing Tax Year 2019 Form 1099-MISC for contract workers
l. Receiving and processing Tax Year 2019 Forms I-9 for employment eligibility and Forms W-4
for withholding
m. Other Tax Year 2019 employment tax return or wage statement activities (e.g., printing of forms
and additional reporting requirements), please describe:

n. Did not use an external service provider or contractor

Form

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

2



Skip to Question 4

Department of the Treasury - Internal Revenue Service

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3.

How much money did your organization
spend on all external service providers or
contractors for the Tax Year 2019 services
you marked in Question 2?

$

.
Cents

Dollars

Did not use an external service provider or contractor

3A. Of the amount in Question 3, how
much was spent only on the Tax Year
2019 Form W-2 services you marked
in Question 2 (i.e., 2g through 2j)?

$

.
Cents

Dollars

3B. Of the amount in Question 3, how
much was spent only on the Tax Year
2019 Form 1099-MISC services you
marked in Question 2 (i.e., 2k)?

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Did not use an external service provider or contractor

$

.

Cents

Dollars

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Did not use an external service provider or contractor

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Tax Year 2019 Employment Tax Return Activities
4.

How much time did your organization spend on the following activities related to your Tax Year 2019
Employment Tax Returns (e.g., Forms 940 and 941)? We will ask about wage statement activities
later.
This time is for in-house staff only, not any external service providers or contractors. Please feel free
to consult with others to complete these questions. If you do not know the exact amount, please
provide your best estimate.
TIME YOUR ORGANIZATION
SPENT ON LISTED ACTIVITY

TAX YEAR 2019 EMPLOYMENT TAX RETURN ACTIVITY

A. Recordkeeping
Include time spent on activities such as:
 Tracking, collecting, and organizing records
such as payroll and employee benefits


:
Hours

Minutes

No time spent

Making special effort to obtain records

B. Reviewing, selecting, or learning to use off-the-shelf software

:
Hours

Minutes

No time spent

Form

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

3

Department of the Treasury - Internal Revenue Service

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4.

(Continued from previous page.) How much time did your organization spend on the following
activities related to your Tax Year 2019 Employment Tax Returns (e.g., Forms 940 and 941)?
We will ask about wage statement activities later.
This time is for in-house staff only, not any external service providers or contractors.
TIME YOUR ORGANIZATION
SPENT ON LISTED ACTIVITY

TAX YEAR 2019 EMPLOYMENT TAX RETURN ACTIVITY

C. Creating, maintaining, or updating customized or proprietary
tax preparation software that has been developed specifically
for your organization

:
Hours

Minutes

No time spent

:

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D. Preparing and filing Tax Year 2019 quarterly employment tax
returns, including amended returns (e.g., Form 941, Form
941-X, Form CT-2)

Hours

Minutes

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No time spent

E. Preparing and filing the Tax Year 2019 annual employment tax
return, including amended returns (e.g., Form 940, Form 940-EZ,
Form 943, Form 943-X, Form 944, Form 944-X, Form CT-1)

:

Hours

Minutes

No time spent

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F. Preparing and filing the Tax Year 2019 Employer’s Annual
Information Return of Tip Income and Allocated Tips (Form
8027)

:
Hours
No time spent

G. Preparing and depositing Tax Year 2019 withheld income and
payroll taxes



Reading the notice(s)
Preparing response(s)




:
Hours

Minutes

No time spent

H. Responding to IRS notices regarding Tax Year 2019 or prior-year
employment tax returns
Include time spent on activities such as:


Minutes

Providing additional documentation
Paying or protesting additional tax and
penalties

:
Hours

Minutes

No time spent

I. Other Tax Year 2019 employment tax return activities,
please describe:

:
Hours

Minutes

No time spent

Form

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

4

Department of the Treasury - Internal Revenue Service

012345678901
50885

Tax Year 2019 Wage Statement Activities
5.

How much time did your organization spend on the following activities related to your Tax Year 2019
Employee Wage Statements (Form W-2) and Contractor Information Returns (Form 1099-MISC)?
This time is for in-house staff only, not any external service providers or contractors. Please feel
free to consult with others to complete these questions. If you do not know the exact amount,
please provide your best estimate.
TIME YOUR ORGANIZATION
SPENT ON LISTED ACTIVITY

TAX YEAR 2019 WAGE STATEMENT ACTIVITY
A. Preparing and providing Tax Year 2019 Forms W-2 to employees

:
Hours

Minutes

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No time spent

B. Submitting Tax Year 2019 Forms W-2 to the Social Security
Administration, including preparing and submitting Form W-3

:

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Hours

Minutes

No time spent

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C. Before the Social Security Administration receives Form W-2
information: Preparing and providing revised Tax Year 2019
Forms W-2
Include time spent on activities such as:
 Addressing recipient issues
 Requesting and tracking down missing or erroneous data
 Researching and sending information to external service providers
or contractors
 Issuing amended Forms W-2 to employees
D. After the Social Security Administration receives Form W-2
information: Preparing and providing Tax Year 2019 Forms W-2c
Include time spent on activities such as:
 Addressing recipient issues
 Requesting and tracking down missing or erroneous data
 Researching and sending information to external service providers
or contractors
 Issuing corrected documents to employees
 Submitting Forms W-2c and Form W-3c to IRS

:

Hours

Minutes

No time spent

:
Hours

Minutes

No time spent

E. Preparing and filing Tax Year 2019 Forms 1099-MISC for contract
workers

:
Hours

Minutes

No time spent
F. Receiving and processing Tax Year 2019 Forms I-9 for
employment eligibility and Forms W-4 for withholding

:
Hours

Minutes

No time spent

Form

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

5

Department of the Treasury - Internal Revenue Service

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5.

(Continued from previous page.) How much time did your organization spend on the following
activities related to your Tax Year 2019 Employee Wage Statements (Form W-2) and Contractor
Information Returns (Form 1099-MISC)?
This time is for in-house staff only, not any external service providers or contractors.
TIME YOUR ORGANIZATION
SPENT ON LISTED ACTIVITY

TAX YEAR 2019 WAGE STATEMENT ACTIVITY

G. Answering general questions from employees about Tax Year 2019
employment tax-related issues

:
Hours

Minutes

No time spent
H. Other Tax Year 2019 wage statement activities, please describe:

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:

Hours

Minutes

6.

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No time spent

Think only about those in your organization who are responsible for employment tax return and wage
statement activities. If all of your employment tax return and wage statement activities are managed
entirely by an external service provider or contractor and you do not have employees in your
organization responsible for these tasks, select “not applicable.”

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What is the average hourly pay rate of employees responsible for employment tax return and
wage statement activities? If you do not know the exact amount, please provide your best
estimate.

$

.

Dollars

/Hour

Cents

Not Applicable

Form

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

6

Department of the Treasury - Internal Revenue Service

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7.

Think about your organization’s internal, non-labor costs for all Tax Year 2019 employment tax return
and wage statement activities.
Do NOT include money your organization spent on external service providers or contractors.
7A. How much money, if any, did your organization
spend during Tax Year 2019 on purchasing,
creating, or updating tax-specific software (either
off-the-shelf or customized) for employment tax
return and wage statement activities?

$

7B. How much money, if any, did your organization
spend during Tax Year 2019 on electronic
submissions, photocopies, tax research services,
tax publications and journals, transportation,
postage, or IRS user fees for employment tax
return and wage statement activities?

$

.
Cents

Dollars
No money spent

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Dollars

No money spent

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8.

Cents

Do your employees have the option to import their W-2 information directly into their
software-prepared tax returns?

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Yes
No

Don’t know

9.

Form

Considering all aspects of employment tax activities, what do employers find to be the most difficult
part of complying with IRS’s reporting regulations?

14637

(Rev. 2-2019)

Catalog Number 66833N

irs.gov

7

Department of the Treasury - Internal Revenue Service

Form

Description

Title

Glossary
An individual or business under contract to perform day-to-day
work as set forth in the contract. The contractor retains control
over much of the work process.

Employee

An individual who is hired for a wage, salary, or other payment to
perform work on behalf of the employer. An employee’s earnings
are reported on Form W-2.

Employment tax return activities

Employment tax return activities refers to all activities associated
with preparation and filing of Forms 940 and 941. Question 4 on
the survey details these activities.

Owner

An individual who owns and operates a business. In the case
of a corporation or S corporation, this individual may also be an
employee of the business, but his or her primary connection to
the business is as an owner.

External service provider

A professional organization engaged by an employer to provide
services in the name of the employer. An example of an external
service provider is a payroll service engaged by an employer to
print its Forms W-2.

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Wage statement activities refers to all activities associated with
preparation and filing of wage statements such as Forms W-2,
W-2c, W-3, W-3c, 1099-MISC, and I-9. Question 5 on the survey
details these activities.

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Wage statement activities

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Contractor

Dictionary of Forms

940

Employer’s Annual Federal
Unemployment (FUTA) Tax Return

Form 940 is used to report annual Federal Unemployment Tax

940-EZ

Employer’s Annual Federal
Unemployment (FUTA) Tax Return

Form 940-EZ is used to report FUTA tax when unemployment
contributions were paid to only one state, all state unemployment
contributions were paid by January 31, and all wages that
were taxable for FUTA tax were also taxable for your state’s
unemployment tax.

941

Employer’s QUARTERLY Federal
Tax Return

Form 941 is filed quarterly by employers who withhold income
taxes, social security tax, or Medicare tax from employee’s
paychecks or who must pay the employer’s portion of social
security or Medicare tax.

941-X

Adjusted Employer’s QUARTERLY
Federal Tax Return or Claim for Refund

Form 941-X is used to correct errors on a Form 941 that was
previously filed.

943

Employer’s Annual Federal Tax Return
for Agricultural Employees

Form 943 is filed 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.

Act (FUTA) tax.

Form

Description

Title

Dictionary of Forms continued
Adjusted Employer’s Annual Federal
Tax Return for Agricultural Employees
or Claim for Refund

Form 943-X is used to correct errors on a previously filed
Form 943 (e.g., Income tax withheld from wages, taxable social
security wages, taxable Medicare wages, total wages subject
to additional Medicare Tax withholding, and credits for COBRA
premium assistance payments.)

944

Employer’s ANNUAL Federal Tax Return

Form 944 is designed so the smallest employers (those whose
annual liability for social security, Medicare, and withheld federal
income taxes is $1,000 or less) will file and pay these taxes only
once a year instead of every quarter.

944-X

Adjusted Employer’s ANNUAL Federal
Tax Return or Claim for Refund

Form 944-X is used to correct errors on a Form 944 that you
previously filed.

1099-

Miscellaneous Income

Form 1099-MISC is used for trade or business reporting only.
Form 1099-MISC is used only when payments are made in the
course of your trade or business. Personal payments are not
reported on Form 1099-MISC.

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943-X

Employer’s Annual Information Return
of Tip Income and Allocated Tips

Form 8027 is used by large food or beverage establishments
when they are required to make annual reports to the IRS on
receipts from food or beverage operations and tips reported
by employees.

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8027

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MISC

CT-1

Employer’s Annual Railroad Retirement
Tax Return

Form CT-1 is used to report taxes imposed by the Railroad
Retirement Tax Act (RRTA).

CT-2

Employee Representative’s Quarterly
Railroad Tax Return

Form CT-2 is used to report railroad retirement taxes imposed
on compensation received by employee representatives.

I-9

Employment Eligibility Verification

Form I-9 is used for verifying the identity and employment
authorization of individuals hired for employment in the United
States. All U.S. employers must ensure proper completion of
Form I-9 for each individual they hire for employment in the
United States. This includes citizens and noncitizens. Both
employees and employers (or authorized representatives
of the employer) must complete the form. On the form, an
employee must attest to his or her employment authorization.

W-2

Wage and Tax Statement

Every employer engaged in a trade or business who pays
remuneration, including noncash payments of $600 or more for
the year (all amounts if any income, social security, or Medicare
tax was withheld) for services performed by an employee must file
a Form W-2 for each employee (even if the employee is related to
the employer) from whom income, social security, or Medicare tax
was withheld.

W-2c

Corrected Wage and Tax Statement

Form W-2c is used to correct errors on Form W-2, W-2AS,
W-2CM, W-2GU, W-2VI, or W-2c filed with the Social Security
Administration (SSA).

Form

Description

Title

Dictionary of Forms continued
W-3

Transmittal of Wage and Tax Statements

A Form W-3 Transmittal is completed only when paper Copy A
of Form(s) W-2, Wage and Tax Statement, is being filed. Do not
file Form W-3 alone.

W-3c

Transmittal of Corrected Wage
and Tax Statements

Form W-3c is used to transmit Copy A of Form(s) W-2c, Corrected
Wage and Tax Statement.

W-4

Employee’s Withholding Allowance
Certificate

Form W-4 is used so that employers can withhold the correct

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federal income tax from employee pay.

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Thank you for completing our survey.

Privacy and Paperwork Reduction Act Notice for Employment Tax Burden Data Collection
The Privacy Act of 1974 states that when we ask you for information, we must first tell you our legal right to ask for the information, why we are asking
for it, and how it will be used. We must also tell you what could happen if you do not provide it and whether or not you must respond under the law.
Our legal right to ask for this information is 5 U.S.C. 301.

The primary purpose for requesting the information is to analyze the role of taxpayer burden in tax administration. We will also use the information to fulfill
the IRS’ statutory obligations to the Office of Management and Budget and Congress for information required by the Paperwork Reduction Act, and to
provide tax policy analysis support to the Office of Tax Analysis at the Department of the Treasury. We will also use the information provided to better
understand taxpayer needs and burden reduction opportunities.
Tax information may be disclosed only as provided by 26 U.S.C. 6103. Providing the information is voluntary. Not providing all or part of the information
requested may reduce our ability to address taxpayer concerns regarding paperwork reduction.
OMB No: 1545-2212. This report is authorized under the Paperwork Reduction Act. Data collected will be shared with IRS staff, but your responses
will be used for research and aggregate reporting purposes only and will not be used for other non-statistical or non-research purposes such as
direct enforcement activities. The information that you provide will be protected to the fullest extent allowable under the Freedom of Information
Act (FOIA). Public reporting burden for this collection of information is estimated to average 15 to 20 minutes, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to
Special Services Section,SE:W:CAR:MP:T:M:S, Room 6129, 1111 Constitution Avenue, NW, Washington, DC 20224

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