Form 943

When agricultural employers need to file Form 943

Your IRS Form 943 tax obligation depends on two wage thresholds.  

File Form 943 if you meet either of the following:

• You pay $150 or more in cash wages to any one agricultural employee for farm work during the year

• You pay $2,500 or more in total wages (cash and noncash combined) to all agricultural workers

If you meet either threshold, you file Form 943. If wages stay below both thresholds across all farm workers for the year, you do not have a Form 943 filing requirement.

Agricultural work covers the full scope of farm operations: planting, harvesting, raising livestock, and operating farm equipment. Once you meet the thresholds, you must withhold and report Social Security, Medicare and federal income tax withholding using Form 943.  

Form 943 is an annual return, due January 31 after the tax year ends, reflecting how farm payroll typically follows a seasonal cycle.

Set up withholding when you meet the threshold so you can run payroll correctly for the full year.  

SurePayroll By Paychex is built for small business payroll – payroll tax calculations, deposits and filings, including Form 943 for agricultural employers.  

Which employment tax form should you file?

If you pay both agricultural and non-agricultural employees, you must file Form 943 for farm wages and Form 941 or Form 944 for non-agricultural wages.

You’ll use these forms to report the same federal payroll taxes: Social Security, Medicare, and federal income tax withheld from employee wages. The difference comes down to the type of wages you pay (agricultural vs non-agricultural) and how often you’re required to file (quarterly vs annually).

Federal Employment Tax Forms Comparison

Forms 941, 944 and 943 report the same types of federal payroll taxes: the difference is which employees you pay and how often you file.

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Form 943 wage thresholds and how to track them

Watch two numbers during the year: $150 per individual agricultural worker and $2,500 in total wages across your total agricultural employee payroll. Meet either threshold during the calendar year, and you must file Form 943 for the full year.

What counts toward the thresholds

Count cash and noncash wages: paychecks and direct deposit payments plus meals and lodging you provide as part of compensation. Independent contractor payments (Form 1099) do not count.  

Tax-Exempt Family Members

Wages paid to tax-exempt family members under IRS exemptions do not count towards the thresholds.

Family labor exemptions apply in limited situations:

•          Parents employing their own children under 21 in agricultural work

•          Spouses employing spouses in agricultural work

These wages are exempt from Social Security and Medicare taxes, but federal income tax withholding still applies if the family member is your employee.

Even with these exemptions, you may still have to file Form 943 depending on whether you meet the wage thresholds or withhold federal income tax.  

If your operation includes a mix of family and non-family workers, count all applicable wages when determining your filing obligations. Wages paid to H-2A visa workers are generally subject to Form 943 reporting and count toward applicable thresholds.  

How to track during the season

Track two totals throughout the year:  

• Wages paid to each individual agricultural worker (for the $150 per-employee limit)  

• Total wages paid across all agricultural workers (for the $2,500 aggregate limit)

Use a spreadsheet or payroll software to track both numbers.  

Seasonal scenario: You start the season with two workers at $100 each per month. In July, you add three more for harvest. By August, total wages across all five workers exceed $2,500.  

At that point, Form 943 applies for the full calendar year. Continue tracking all wages and report Social Security, Medicare, and federal income tax on Form 943 at year-end.

An employee vs. contractor classification also matters. Misclassifying agricultural workers as contractors may bypass these thresholds in practice, but it doesn’t eliminate the federal tax obligation.

Track wages throughout the season so your Form W-2s are complete at year-end.

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Form 943 deposit requirements and schedules

You file Form 943 once per year and make tax deposits throughout the year.  

The IRS determines your deposit schedule (monthly or semi-weekly) based on your total tax liability from the second preceding calendar year (for example the lookback period for 2027 will be the 2025 calendar year):

•          $50,000 or less in the prior year: monthly deposit schedule

•          More than $50,000 in the prior year: semiweekly deposit schedule

•          First-year filers default to monthly for their first two calendar years, unless you accumulate $100,000 or more in a single deposit period, in which case you deposit the next business day

Monthly depositors

Pay by the 15th of the month following payroll. For example, deposit August 15 for July wages.

Semiweekly depositors

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‍The peak-season reality

When your payroll spikes at harvest, it can shift your federal tax deposit schedule from monthly to semiweekly. That shift reflects how seasonal farm labor works. Hired farmworker employment peaks in midsummer — reaching about 1.2 million workers in July and August — and drops to roughly 800,000 in January and February, according to USDA Economic Research Service data.

That payroll processing swing directly affects your payroll totals, federal tax liability and deposit timing throughout the year. To stay on schedule, enroll in EFTPS (Electronic Federal Tax Payment System) before your first deposit is due. Enrollment can take five to ten business days.

You’re managing peak harvest. SurePayroll calculates your federal payroll taxes each pay period, automates deposits on your schedule, and files Form 943 at year-end

"We own a small farm and just hired our first part-time employee. We had no idea how to calculate or file taxes, so we decided to use the full service. The UI is intuitive and allows us to run the payroll on a schedule that aligns with the part-time work for our employee."  Therese, Trustpilot review

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How to file Form 943 and related forms

File Form 943 by January 31 following the tax year. If you made all required tax deposits on time throughout the year, your deadline is February 10.  

What Form 943 reports

Form 943 reports total wages you paid, taxes you withheld (Social Security, Medicare, federal income tax), and your total tax liability for the year. It also reflects any applicable adjustments or credits that reduce your liability, if eligible.

How to file

E-file through the IRS or an authorized payroll service. It’s faster and more reliable than mailing a paper form. If you mail, find your state’s address on IRS.gov.

Related forms

Form 943-A (Agricultural Employer’s Record of Federal Tax Liability): Attach to Form 943 if you’re a semiweekly depositor. It breaks down your federal tax liability by specific deposit date. Monthly depositors don’t file Form 943-A.

Form 943-X (Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees): Use this to correct errors on a previously filed Form 943: wage miscalculations, withholding errors, or deposit timing issues. File Form 943-X as soon as you identify an error.

Form W-2 (Wage and Tax Statement): File for each agricultural employee by January 31. Form 943 reports your aggregate totals. W-2 forms report individual employees’ wages and withholding for the tax year.

Form 940 (Employer’s Annual Federal Unemployment Tax Return): The annual federal unemployment tax return. If your agricultural employees meet the Federal Unemployment Tax Act (FUTA) wage threshold, file Form 940 separately. It’s a different obligation from Form 943.

State tax obligations

Form 943 covers your federal tax liability. State unemployment insurance (SUI) and any state-specific agricultural employer taxes are separate: Rates, thresholds, and due dates vary by state. Check your state department of labor or revenue agency for filing requirements that apply to your operation.

Penalties for late filing or missed deposits

File late or miss a deposit and the IRS charges penalties that start at 2% and climb to 15%. Know the brackets. Know your schedule.

Late filing penalty

The late filing penalty runs 5% of unpaid tax per month, or part of a month, up to a 25% maximum. Returns more than 60 days late, carry a minimum penalty of the lesser of $450 or 100% of the total taxes due.

Late deposit penalties

•          1–5 days late: 2% of the unpaid deposit

•          6–15 days late: 5%

•          16 or more days late, or within 10 days of first IRS notice: 10%

•          More than 10 days after first IRS notice: 15%

The rate does not stack. Each bracket replaces the last. Stay current on your deposit schedule and the brackets don’t apply.  

Failure to withhold

If you don’t withhold employment tax when required, you’re liable for the employee’s share of Social Security and Medicare taxes, plus penalties and interest.  

If you miss a deadline, file or deposit immediately. Paying the penalty quickly stops interest from compounding on the amount owed. If you receive an IRS notice, respond within the stated timeframe (typically 30 days). If you disagree with a penalty, request abatement with a reasonable cause explanation. Responding within 30 days keeps what you owe from climbing.

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How to manage Form 943 with payroll software

You have two options: Track thresholds, calculate deposits, and file manually, or use payroll software to automate all three.

SurePayroll calculates your state and federal payroll taxes each pay period and automates deposits and filings on your schedule. SurePayroll supports Form 943 filing, deposit schedules, and year-end W-2s.

Run agricultural payroll with SurePayroll.

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