IRS Instruction 943-A – As an agricultural employer, staying compliant with federal tax obligations is crucial for avoiding penalties and ensuring smooth operations. One key document in this process is IRS Instruction 943-A, which provides detailed guidance on completing Form 943-A, the Agricultural Employer’s Record of Federal Tax Liability. This form is essential for employers who withhold and deposit federal income tax, Social Security, and Medicare taxes on a semiweekly basis. In this article, we’ll break down everything you need to know about IRS Instruction 943-A, including its purpose, filing requirements, completion steps, and recent updates as of 2026.
Whether you’re a farm owner, ranch manager, or agribusiness operator, understanding these instructions can help you accurately report your tax liabilities and leverage available credits. Let’s dive in.
What Is Form 943-A and Its Instructions?
Form 943-A is a supplemental IRS form used by agricultural employers to document their federal tax liabilities related to employee wages. It specifically records liabilities for federal income tax withheld, as well as both the employer and employee shares of Social Security and Medicare taxes. The form does not cover Additional Medicare Tax, which is withheld from wages exceeding $200,000 per employee annually, but this is factored into overall liabilities.
IRS Instruction 943-A serves as the official guide for filling out this form. Revised in December 2025 for use with the December 2024 version of Form 943-A, these instructions outline how to report tax liabilities based on wage payment dates, not accrual or deposit dates. The IRS uses this information to verify timely deposits and assess potential failure-to-deposit (FTD) penalties.
Key point: Form 943-A is attached to Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees) and is not used for reporting actual deposits—the IRS tracks those via electronic funds transfers.
Purpose of Form 943-A
The primary goal of Form 943-A is to help semiweekly schedule depositors report their tax liabilities on a daily basis within monthly breakdowns. This ensures transparency in how liabilities accumulate and are managed throughout the year.
Under federal law, agricultural employers must withhold taxes from employees’ paychecks, crediting these amounts toward employees’ tax obligations. Employers are also responsible for their share of Social Security and Medicare taxes, which aren’t withheld from employees. Form 943-A captures these details to prevent discrepancies that could lead to penalties.
Important reminder: Do not use Form 943-A for nonfarm workers. Those taxes are reported on Form 941 (Quarterly) or Form 944 (Annual).
Who Must File Form 943-A?
Not all agricultural employers need to file Form 943-A. It’s required only if you’re classified as a semiweekly schedule depositor. Here’s how to determine if that applies to you:
- Semiweekly Depositors: If your tax liability reaches $100,000 or more on any day during a deposit period, you become a semiweekly depositor starting the next day. This status continues for the remainder of the year and the following year.
- Monthly to Semiweekly Transition: Even if you start as a monthly depositor, accumulating $100,000 or more in liability on any day triggers the switch. You must then file Form 943-A for the entire year.
- Exemption Threshold: If your total tax liability for the year (Form 943, line 13) is less than $2,500, you don’t need to complete Form 943-A.
Agricultural employers include those hiring farmworkers for activities like crop production, livestock raising, or related services. If you file Form 943, check if semiweekly rules apply—refer to Section 11 of Publication 15 (Employer’s Tax Guide) for details.
When and How to File Form 943-A?
Form 943-A must be filed alongside Form 943, with the due date matching Form 943’s deadline—typically January 31 of the following year (or the next business day if it falls on a weekend or holiday). For the 2025 tax year, filings would occur in early 2026.
In some cases, you may file an amended Form 943-A with Form 943-X if you’ve been assessed an FTD penalty and need to correct previously reported liabilities.
Filing Tips:
- Enter your Employer Identification Number (EIN), business name, and calendar year at the top.
- Report liabilities by the date wages were paid, not deposited.
- Total liability (line M) must match Form 943, line 13.
Do not adjust for prior period changes on Form 943-A—use Form 943-X for those.
Step-by-Step Guide to Completing Form 943-A
Follow these steps based on IRS Instruction 943-A:
- Business Information: Match your EIN and name exactly to IRS records.
- Calendar Year: Enter the year for the attached Form 943.
- Monthly Tax Liabilities: Break down liabilities by month (lines A-L), entering amounts for each wage payment date. For example:
- If wages are paid on the 11th and 25th, record liabilities on those lines in the respective month.
- Monthly totals feed into the annual total on line M.
- Adjustments for Credits: Account for nonrefundable credits like the qualified small business payroll tax credit for increasing research activities (from Form 6765 and 8974). Reduce employer Social Security tax first (up to $250,000 per quarter), then Medicare tax. Do not reduce liabilities below zero.
Examples from the instructions:
- A company paying wages on month-end dates records liabilities on the corresponding lines (e.g., line 31 for October 31).
- For bonuses, use the payment date (e.g., December 25 on line 25).
Ensure the form is attached to Form 943 and check the semiweekly depositor box on Form 943.
Key Adjustments and Credits in Instruction 943-A
IRS Instruction 943-A highlights several adjustments:
- Qualified Small Business Payroll Tax Credit: For tax years after 2022, up to $500,000 can be claimed for research activities (increased by the Inflation Reduction Act of 2022). Apply it quarterly, starting with Social Security tax.
- Prior Period Adjustments: Report on Form 943-X only—not on Form 943-A.
- COVID-19 Credits: Removed for tax years after 2023, as qualified sick and family leave wages are rare post-2021. Claim any eligible amounts via Form 943-X.
These updates ensure the form reflects current tax law changes.
Penalties for Non-Compliance
Failing to complete or file Form 943-A accurately can result in FTD penalties. The IRS calculates these based on deposit timeliness, using Form 943-A data. Penalties range from 2% to 15% of the undeposited amount, depending on delay length. See Publication 15 for full details.
To avoid penalties:
- File on time.
- Report liabilities correctly.
- Deposit taxes via EFTPS (Electronic Federal Tax Payment System).
If penalized, you may amend Form 943-A to correct records.
Recent Updates to IRS Instruction 943-A (As of 2026)
The December 2025 revision includes:
- Removal of COVID-19 credit instructions for post-2023 years.
- Enhanced guidance on the research credit, now up to $500,000.
- Clarifications on semiweekly depositor transitions and amended filings.
Page last reviewed by IRS on January 23, 2026. For the latest developments, visit IRS.gov/Form943A.
Spanish versions (Form 943-A (SP) and instructions) are available for Puerto Rican and other Spanish-speaking employers.
Resources and Where to Download
- Official Download: Get the latest Form 943-A and instructions from the IRS website: https://www.irs.gov/pub/irs-pdf/i943a.pdf.
- Related Publications: Publication 51 (Circular A) for agricultural tax guides.
- Help: Visit IRS.gov or call the IRS Business and Specialty Tax Line at 800-829-4933.
By following IRS Instruction 943-A, agricultural employers can maintain compliance and potentially reduce liabilities through credits. If you’re unsure about your filing status, consult a tax professional. Stay updated with IRS announcements to handle any future changes seamlessly.