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Military Income Tax

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Military Income Tax

Military income tax Publication 80 - Main Content Table of Contents Introduction 1. Military income tax Employer Identification Number (EIN) 2. Military income tax Who Are Employees?Tests. Military income tax Business Owned and Operated by Spouses Farm Crew Leaders 3. Military income tax Employee's Social Security Number (SSN)Registering for SSNVS. Military income tax 4. Military income tax Wages and Other CompensationFringe Benefits 5. Military income tax TipsOrdering rule. Military income tax 6. Military income tax Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Military income tax How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Military income tax 8. Military income tax Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Military income tax Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Military income tax Wage and Tax StatementsWaiver. Military income tax 11. Military income tax Federal Unemployment (FUTA) Tax—U. Military income tax S. Military income tax Virgin Islands Employers Only How To Get Tax Help Introduction This publication is for employers whose principal place of business is in the U. Military income tax S. Military income tax Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, or who have employees who are subject to income tax withholding for any of these jurisdictions. Military income tax Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Military income tax See section 6 and section 7 for more information. Military income tax This publication summarizes employer responsibilities to collect, pay, and report these taxes. Military income tax Whenever the term “United States” is used in this publication, it includes U. Military income tax S. Military income tax Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Military income tax This publication also provides employers in the U. Military income tax S. Military income tax Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Military income tax See section 11 for more information. Military income tax Except as shown in the table in section 12, social security, Medicare, and FUTA taxes apply to every employer who pays taxable wages to employees or who has employees who report tips. Military income tax This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Military income tax See Publication 570, Tax Guide for Individuals With Income From U. Military income tax S. Military income tax Possessions, if you need this information. Military income tax This publication also does not include information relating to income tax withholding. Military income tax In U. Military income tax S. Military income tax Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, contact your local tax department for information about income tax withholding. Military income tax See Publication 15 (Circular E), for information on U. Military income tax S. Military income tax federal income tax withholding. Military income tax Comments and suggestions. Military income tax   We welcome your comments about this publication and your suggestions for future editions. Military income tax   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Military income tax NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Military income tax Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Military income tax    You can also send us comments from www. Military income tax irs. Military income tax gov/formspubs. Military income tax Click on More Information and then click on Comment on Tax Forms and Publications. Military income tax   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Military income tax 1. Military income tax Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Military income tax Its format is 00-0000000. Military income tax It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Military income tax Use your EIN on all of the items that you send to the IRS and SSA for your business. Military income tax If you do not have an EIN, you may apply for one online. Military income tax Go to IRS. Military income tax gov and click on the Apply for an EIN Online link under Tools. Military income tax You may also apply for an EIN by calling 1-800-829-4933, (U. Military income tax S. Military income tax Virgin Islands only) or 267-941-1099 (toll call), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Military income tax Do not use a social security number (SSN) in place of an EIN. Military income tax If you do not have an EIN by the time a return is due, file a paper return and enter “Applied For” and the date that you applied for it in the space shown for the number. Military income tax If you took over another employer's business, do not use that employer's EIN. Military income tax You should have only one EIN. Military income tax If you have more than one, write to the IRS office where you file your returns using the “without a payment” address in the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943. Military income tax Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Military income tax S. Military income tax Virgin Islands only) or 267-941-1000 (toll call). Military income tax Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Military income tax S. Military income tax Virgin Islands may call 1-800-829-4059. Military income tax The IRS will tell you which EIN to use. Military income tax For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Military income tax 2. Military income tax Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Military income tax See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Military income tax Employee status under common law. Military income tax   Generally, a worker who performs services for you is your employee if you can control what will be done and how it will be done. Military income tax This is so even when you give the employee freedom of action. Military income tax What matters is that you have the right to control the details of how the services are performed. Military income tax See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Military income tax    Generally, people in business for themselves are not employees. Military income tax For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Military income tax However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Military income tax   If an employer-employee relationship exists, it does not matter what it is called. Military income tax The employee may be called an agent or independent contractor. Military income tax It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Military income tax Statutory employees. Military income tax   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Military income tax   While the following persons may not be common law employees, they are considered employees for social security and Medicare purposes if the conditions under Tests , discussed later, are met. Military income tax a. Military income tax   An agent (or commission) driver who delivers food or beverages (other than milk) or picks up and delivers laundry or dry cleaning for someone else. Military income tax b. Military income tax   A full-time life insurance salesperson who sells primarily for one company. Military income tax c. Military income tax   A homeworker who works by the guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Military income tax d. Military income tax   A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Military income tax The orders must be for merchandise for resale or supplies for use in the customer's business. Military income tax The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Military income tax Tests. Military income tax   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Military income tax The service contract states or implies that almost all of the services are to be performed personally by them. Military income tax They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Military income tax The services are performed on a continuing basis for the same payer. Military income tax Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Military income tax S. Military income tax Virgin Islands only). Military income tax   Publication 15-A gives examples of the employer-employee relationship. Military income tax Statutory nonemployees. Military income tax   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Military income tax They are generally treated as self-employed for employment tax purposes. Military income tax See Publication 15-A for details. Military income tax H-2A agricultural workers. Military income tax   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Military income tax Treating employees as nonemployees. Military income tax   If you incorrectly treated an employee as a nonemployee and did not withhold social security and Medicare taxes, you will be liable for the taxes. Military income tax See Treating employees as nonemployees in section 2 of Publication 15 (Circular E), for details on Internal Revenue Code section 3509, which may apply. Military income tax IRS help. Military income tax   If you want the IRS to determine if a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Military income tax Voluntary Classification Settlement Program (VCSP). Military income tax   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Military income tax To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Military income tax For more information, visit IRS. Military income tax gov and enter “VCSP” in the search box. Military income tax Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Military income tax See Publication 541, Partnerships, for more details. Military income tax The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Military income tax Exception—Qualified Joint Venture. Military income tax   If you and your spouse materially participate as the only members of a jointly owned and operated business, and you file a joint Form 1040, U. Military income tax S. Military income tax Individual Income Tax Return, or joint Form 1040-SS, U. Military income tax S. Military income tax Self-Employment Tax Return—U. Military income tax S. Military income tax Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or Puerto Rico, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. Military income tax See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Military income tax Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Military income tax Either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship. Military income tax For more information on qualified joint ventures, visit IRS. Military income tax gov and enter “qualified joint venture” in the search box. Military income tax Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Military income tax A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. Military income tax If there is no written agreement between you and the farm operator stating that you are his or her employee, and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. Military income tax 3. Military income tax Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Military income tax You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Military income tax If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Military income tax See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Military income tax Employee's social security card. Military income tax   You should ask the employee to show you his or her social security card. Military income tax The employee may show the card if it is available. Military income tax Do not accept a social security card that says “Not valid for employment. Military income tax ” A social security number issued with this legend does not permit employment. Military income tax You may, but you are not required to, photocopy the social security card if the employee provides it. Military income tax If an employee does not have a social security card or needs a new one, the employee should apply for one on Form SS-5 and submit the necessary documentation. Military income tax The employee must complete and sign Form SS-5; it cannot be filed by the employer. Military income tax You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Military income tax If your employee has applied for an SSN but has not received the card before you must file your Form W-2 reports, and you are filing your reports on paper, enter “Applied For” in box d. Military income tax Enter all zeroes in the SSN field if filing electronically. Military income tax When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Military income tax Correctly record the employee's name and SSN. Military income tax   Record the name and number of each employee as they appear on his or her social security card. Military income tax If the name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Military income tax Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Military income tax   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2AS, W-2CM, W-2GU, or W-2VI. Military income tax It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. Military income tax Where to get and file social security number application forms. Military income tax    U. Military income tax S. Military income tax Virgin Islands—U. Military income tax S. Military income tax Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Military income tax Thomas, VI 00802. Military income tax  Guam—U. Military income tax S. Military income tax Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Military income tax  American Samoa—U. Military income tax S. Military income tax Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Military income tax  Commonwealth of the Northern Mariana Islands—U. Military income tax S. Military income tax Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Military income tax Verification of social security numbers. Military income tax   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Military income tax Visit www. Military income tax socialsecurity. Military income tax gov/employer/ssnv. Military income tax htm for more information. Military income tax Registering for SSNVS. Military income tax   You must register online and receive authorization from your employer to use SSNVS. Military income tax To register, visit SSA's website at www. Military income tax ssa. Military income tax gov/employer and click on the Business Services Online link. Military income tax Follow the registration instructions to obtain a user identification (ID) and password. Military income tax You will need to provide the following information about yourself and your company. Military income tax Name. Military income tax SSN. Military income tax Date of birth. Military income tax Type of employer. Military income tax EIN. Military income tax Company name, address, and telephone number. Military income tax Email address. Military income tax   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Military income tax You must enter the activation code online to use SSNVS. Military income tax 4. Military income tax Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Military income tax S. Military income tax Virgin Islands employers). Military income tax However, wages subject to social security tax and FUTA tax are limited by a wage base amount that you pay to each employee for the year. Military income tax The wage base for social security tax is $117,000 for 2014. Military income tax After you pay $117,000 to an employee in 2014, including tips, do not withhold social security tax on any amount that you later pay to the employee for the year. Military income tax The wage base for FUTA tax is $7,000 for 2014. Military income tax All wages are subject to Medicare tax. Military income tax The wages may be in cash or in other forms, such as an automobile for personal use. Military income tax Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Military income tax It does not matter how payments are measured or paid. Military income tax See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Military income tax See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Military income tax Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Military income tax Special rules apply to the reporting of third-party sick pay. Military income tax For details, see Publication 15-A. Military income tax Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Military income tax However, see Fringe Benefits , later in this section. Military income tax Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Military income tax Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Military income tax For information on reporting back pay to the Social Security Administration, see Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. Military income tax Travel and business expenses. Military income tax   Payments to your employee for travel and other necessary expenses of your business generally are included in taxable wages if (a) your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, or (b) you advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount that he or she does not substantiate. Military income tax Sick pay. Military income tax   In general, sick pay is any amount that you pay, under a plan that you take part in, to an employee because of sickness or injury. Military income tax These amounts are sometimes paid by a third party, such as an insurance company. Military income tax In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Military income tax S. Military income tax Virgin Islands employers). Military income tax Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Military income tax Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Military income tax Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Military income tax Examples of fringe benefits include the use of an automobile, aircraft flights that you provide, free or discounted commercial airline flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Military income tax In general, the amount included in the employee's income is the excess of the fair market value of the benefit over the sum of any amount paid for it by the employee and any amount excluded by law. Military income tax For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Military income tax When fringe benefits are treated as paid. Military income tax   You can choose to treat certain noncash fringe benefits (including personal use of an automobile provided by you) as paid by the pay period, quarter, or on any other basis that you choose, but they must be treated as paid at least annually. Military income tax You do not have to make a formal choice of payment dates or notify the IRS. Military income tax You do not have to use the same basis for all employees. Military income tax You may change methods as often as you like, as long as all benefits provided in a calendar year are treated as paid no later than December 31 of the calendar year. Military income tax However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Military income tax   You can treat the value of a single taxable noncash fringe benefit as paid on one or more dates in the same calendar year, even if the employee gets the entire benefit at one time. Military income tax However, once you elect the payment dates, you must report the taxes on your return in the same tax period in which you treated them as paid. Military income tax This election does not apply to a fringe benefit where real property or investment personal property is transferred. Military income tax Withholding social security and Medicare taxes on fringe benefits. Military income tax   You add the value of fringe benefits to regular wages for a payroll period and figure social security and Medicare taxes on the total. Military income tax   If you withhold less than the required amount of social security and Medicare taxes from the employee in a calendar year but report and pay the proper amount, you may recover the taxes from the employee. Military income tax Depositing taxes on fringe benefits. Military income tax   Once you choose payment dates for taxable noncash fringe benefits, you must deposit taxes in the same deposit period that you treat the fringe benefits as paid. Military income tax You may make a reasonable estimate of the value of the fringe benefits. Military income tax In general, the value of taxable noncash fringe benefits provided in a calendar year must be determined by January 31 of the following year. Military income tax   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Military income tax If deposits are underpaid, see Deposit Penalties in section 8. Military income tax Valuation of vehicles provided to employees. Military income tax    If you provide a vehicle to your employees, you may either determine the actual value of the benefit for the entire calendar year, taking into account the business use of the vehicle, or consider the entire use for the calendar year as personal and include 100% of the value of the vehicle in the employee's income. Military income tax For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Military income tax Special accounting rule for fringe benefits provided during November and December. Military income tax   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Military income tax However, this applies only to those benefits that you actually provided during November and December, not to those you merely treated as paid during those months. Military income tax   If you use this rule, you must notify each affected employee between the time of the employee's last paycheck of the calendar year and at or near the time that you give the employee Form W-2AS, W-2CM, W-2GU, or W-2VI. Military income tax If you use the special accounting rule, your employee must also use it for the same period that you use it. Military income tax You cannot use this rule for a fringe benefit of real property or tangible or intangible real property of a kind normally held for investment that is transferred to your employee. Military income tax 5. Military income tax Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Military income tax Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Military income tax The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Military income tax Both directly and indirectly tipped employees must report tips to you. Military income tax The report should not include tips that the employee paid out to other employees. Military income tax No report is required for months when tips are less than $20. Military income tax Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Military income tax They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Military income tax Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Military income tax gov. Military income tax The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period that the report covers, and The total tips received during the month or period. Military income tax You are permitted to establish a system for electronic tip reporting by employees. Military income tax See Regulations section 31. Military income tax 6053-1(d). Military income tax Collecting taxes on tips. Military income tax   You must collect the employee social security and Medicare taxes on the employee's tips. Military income tax You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Military income tax Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Military income tax Collect the employee Medicare tax for the whole year on all wages and tips. Military income tax   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Military income tax You are responsible for the employer Medicare tax for the whole year on all wages and tips. Military income tax File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Military income tax The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Military income tax Ordering rule. Military income tax   If, by the 10th of the month after the month you received an employee's report on tips, you do not have enough employee funds available to deduct the employee social security and Medicare tax on tips, you no longer have to collect it and are not liable for it. Military income tax Reporting tips. Military income tax   Report tips and any collected and uncollected social security in boxes 1, 5, 7, and 12 on Forms W-2AS, W-2CM, W-2GU, or W-2VI and on Form 941-SS, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Military income tax Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Military income tax Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Military income tax The table in section 12 shows how tips are treated for FUTA tax purposes. Military income tax   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Military income tax See Revenue Ruling 2012-18, 2012-26 I. Military income tax R. Military income tax B. Military income tax 1032, available at www. Military income tax irs. Military income tax gov/irb/2012-26_IRB/ar07. Military income tax html. Military income tax 6. Military income tax Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Military income tax In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Military income tax For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. Military income tax Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. Military income tax A “share farmer” working for you is not your employee. Military income tax However, the share farmer may be subject to self-employment tax. Military income tax In general, share farming is an arrangement in which certain commodity products are shared between the farmer and the owner (or tenant) of the land. Military income tax For details, see Regulations section 31. Military income tax 3121(b)(16)-1. Military income tax The $150 Test or the $2,500 Test All cash wages that you pay to any employee for farmwork are subject to social security and Medicare taxes if either of the following two tests is met. Military income tax You pay cash wages to the employee of $150 or more in a year (count all cash wages paid on a time, piecework, or other basis) for farmwork. Military income tax The $150 test applies separately to each farmworker that you employ. Military income tax If you employ a family of workers, each member is treated separately. Military income tax Do not count wages paid by other employers. Military income tax The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Military income tax Exceptions. Military income tax   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Military income tax   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. Military income tax 7. Military income tax How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Military income tax 2% (amount withheld) each for the employer and employee (12. Military income tax 4% total). Military income tax The social security wage base limit is $117,000. Military income tax The tax rate for Medicare is 1. Military income tax 45% (amount withheld) each for the employee and employer (2. Military income tax 9% total). Military income tax There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Military income tax Multiply each wage payment by these percentages to figure the tax to withhold from employees. Military income tax Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Military income tax See section 5 for information on tips. Military income tax Additional Medicare Tax withholding. Military income tax   In addition to withholding Medicare tax at 1. Military income tax 45%, you must withhold a 0. Military income tax 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Military income tax You are 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. Military income tax Additional Medicare Tax is only imposed on the employee. Military income tax There is no employer share of Additional Medicare Tax. Military income 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. Military income tax   For more information on what wages are subject to Medicare tax, see the chart Special Rules for Various Types of Employment and Payments in section 12. Military income tax For more information on Additional Medicare Tax, visit IRS. Military income tax gov and enter “Additional Medicare Tax” in the search box. Military income tax Deducting the tax. Military income tax   Deduct the employee tax from each wage payment. Military income tax If you are not sure that the wages that you pay to a farmworker during the year will be taxable, you may either deduct the tax when you make the payments or wait until the $2,500 test or the $150 test explained in section 6 has been met. Military income tax Employee's portion of taxes paid by employer. Military income tax   If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for social security and Medicare taxes. Military income tax This increase in the employee's wage payment for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. Military income tax This again increases the amount of the additional taxes that you must pay. Military income tax Household and agricultural employers. Military income tax   This discussion does not apply to household and agricultural employers. Military income tax If you pay a household or agricultural employee's social security and Medicare taxes, these payments must be included in the employee's wages. Military income tax However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Military income tax See Publication 15-A for details. Military income tax Sick pay payments. Military income tax   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Military income tax For details on third-party payers of sick pay, see Publication 15-A. Military income tax 8. Military income tax Depositing Taxes You must deposit social security and Medicare taxes if your tax liability (Form 941-SS, line 10; Form 944, line 7; or Form 943, line 11) is $2,500 or more for the tax return period. Military income tax You must make the deposit by electronic funds transfer. Military income tax For more information about electronic funds transfers, see How To Deposit , later in this section. Military income tax Payment with Return $2,500 rule. Military income tax   Instead of making deposits during the current quarter, you can pay your total Form 941-SS tax liability when you timely file Form 941-SS if: Your total Form 941-SS tax liability for either the current quarter or the preceding quarter is less than $2,500 and You do not incur a $100,000 next-day deposit obligation during the current quarter. Military income tax   If you are not sure your total liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure to deposit penalties. Military income tax Employers who have been notified to file Form 944 can pay their tax liability due for the fourth quarter with Form 944, if their fourth quarter tax liability is less than $2,500. Military income tax Employers must have deposited any tax liability due for the first, second, and third quarters, according to the deposit rules, in order to avoid failure-to-deposit penalties for deposits due during those quarters. Military income tax Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Military income tax Semiweekly schedule depositors must timely deposit the amount. Military income tax See Accuracy of Deposits Rule and How To Deposit, later in this section. Military income tax When To Deposit Under the rules discussed below, the only difference between farm and nonfarm workers' employment tax deposit rules is the lookback period. Military income tax Therefore, farm and nonfarm workers are discussed together except where noted. Military income tax Depending on your total taxes reported during a lookback period (discussed later), you are either a monthly schedule depositor or a semiweekly schedule depositor. Military income tax The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often you pay your employees or how often you are required to make deposits. Military income tax The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Military income tax You will need to determine your deposit schedule for a calendar year based on the total employment taxes reported on Forms 941-SS, line 10; Form 944, line 7; or Form 943, line 9, for your lookback period (defined below). Military income tax If you filed both Forms 941-SS and 941 during the lookback period, combine the tax liabilities for these returns for purposes of determining your deposit schedule. Military income tax Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Military income tax Lookback period for employers of nonfarm workers. Military income tax   The lookback period for Form 941-SS (or Form 941) consists of four quarters beginning July 1 of the second preceding year and ending June 30 of the prior year. Military income tax These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Military income tax For 2014, the lookback period is July 1, 2012, through June 30, 2013. Military income tax    Table 1. Military income tax Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Military income tax 1, 2012 Jan. Military income tax 1, 2013 Apr. Military income tax 1, 2013 through through through through Sep. Military income tax 30, 2012 Dec. Military income tax 31, 2012 Mar. Military income tax 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Military income tax For example, the lookback period for calendar year 2014 is calendar year 2012. Military income tax In addition, for employers who filed Form 944 for 2012 or for 2013 and will file Form 941-SS (or Form 941) for 2014, the lookback period for 2014 is the second calendar year preceding the current calendar year, that is, 2012. Military income tax Lookback period for employers of farmworkers. Military income tax   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Military income tax The lookback period for calendar year 2014 is calendar year 2012. Military income tax Adjustments to lookback period taxes. Military income tax   To determine your taxes for the lookback period, use only the tax that you reported on the original returns (Forms 941-SS, 943, or 944). Military income tax Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Military income tax Example. Military income tax   An employer originally reported total taxes of $45,000 for the lookback period. Military income tax The employer discovered during January 2014 that the tax reported during the lookback period was understated by $10,000 and corrected this error by filing Form 941-X. Military income tax The employer is a monthly schedule depositor for 2014 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less. Military income tax Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Military income tax For monthly schedule depositors, the deposit period is a calendar month. Military income tax The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Military income tax Monthly Deposit Schedule If your total tax reported for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Military income tax You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Military income tax New employers. Military income tax   Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Military income tax Therefore, you are a monthly schedule depositor for the first calendar year of your business (but see the $100,000 Next-Day Deposit Rule , later in this section). Military income tax Semiweekly Deposit Schedule If your total tax reported for the lookback period is more than $50,000, you are a semiweekly schedule depositor for the current year. Military income tax If you are a semiweekly schedule depositor, you must deposit on Wednesday and/or Friday, depending on what day of the week that you make wage payments, as follows. Military income tax Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Military income tax Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Military income tax Semiweekly depositors are generally not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule , discussed later in this section, applies. Military income tax For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 on the following Wednesday. Military income tax If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Military income tax Semiweekly deposit period spanning two quarters. Military income tax   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. Military income tax Example. Military income tax   If you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. Military income tax Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Military income tax Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Military income tax   Rose Co. Military income tax reported Form 941-SS taxes as follows: 2013 Lookback Period 3rd Quarter 2011 $12,000 4th Quarter 2011 12,000 1st Quarter 2012 12,000 2nd Quarter 2012 12,000   $48,000 2014 Lookback Period 3rd Quarter 2012 $12,000 4th Quarter 2012 12,000 1st Quarter 2013 12,000 2nd Quarter 2013 15,000   $51,000 Rose Co. Military income tax is a monthly schedule depositor for 2013 because its taxes for the four quarters in its lookback period ($48,000 for the 3rd quarter of 2011 through the 2nd quarter of 2012) were not more than $50,000. Military income tax However, for 2014, Rose Co. Military income tax is a semiweekly schedule depositor because the total taxes for the four quarters in its lookback period ($51,000 for the 3rd quarter of 2012 through the 2nd quarter of 2013) exceeded $50,000. Military income tax Employers of farmworkers. Military income tax   Red Co. Military income tax reported taxes on its 2012 Form 943, line 9, of $48,000. Military income tax On its 2013 Form 943, line 11, it reported taxes of $60,000. Military income tax   Red Co. Military income tax is a monthly schedule depositor for 2014 because its taxes for its lookback period ($48,000 for calendar year 2012) were not more than $50,000. Military income tax However, for 2015, Red Co. Military income tax is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Military income tax New agricultural employers. Military income tax   New agricultural employers filing Form 943 are monthly schedule depositors for the first and second calendar years of their business because their taxes for the lookback period (2 years) are considered to be zero. Military income tax However, see the $100,000 Next-Day Deposit Rule , later in this section. Military income tax Deposits on Business Days Only If a deposit due date falls on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Military income tax A business day is any day other than a Saturday, Sunday, or legal holiday. Military income tax For example, if a deposit is required to be made on Friday, but Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). Military income tax Semiweekly schedule depositors have at least 3 business days to make a deposit. Military income tax If any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the required deposit. Military income tax For example, if a semiweekly schedule depositor accumulated taxes for payments made on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). Military income tax Legal holiday. Military income tax   The term “legal holiday” means any legal holiday in the District of Columbia. Military income tax Legal holidays for 2014 are listed below. Military income tax January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Military income tax February 17—Washington's Birthday April 16—District of Columbia Emancipation Day May 26—Memorial Day July 4—Independence Day September 1—Labor Day October 13—Columbus Day November 11—Veterans Day November 27—Thanksgiving Day December 25—Christmas Day Application of Monthly and Semiweekly Schedules The following examples illustrate the procedure for determining the deposit date under the two different deposit schedules. Military income tax Monthly schedule example. Military income tax   Spruce Co. Military income tax is a monthly schedule depositor with seasonal employees. Military income tax It paid wages each Friday during August but did not pay any wages during September. Military income tax Under the monthly deposit schedule, Spruce Co. Military income tax must deposit the combined tax liabilities for the four August paydays by September 15. Military income tax Spruce Co. Military income tax does not have a deposit requirement for September (due by October 15) because no wages were paid and, therefore, it did not have a tax liability for September. Military income tax Semiweekly schedule example. Military income tax   Green, Inc. Military income tax is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Military income tax Although Green, Inc. Military income tax , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Military income tax The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Military income tax ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Military income tax Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Military income tax $100,000 Next-Day Deposit Rule If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Military income tax For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Military income tax For example, if a semiweekly schedule depositor has accumulated taxes of $95,000 on Tuesday and $10,000 on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. Military income tax Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Military income tax However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. Military income tax For example, Fir Co. Military income tax is a semiweekly schedule depositor. Military income tax On Monday, Fir Co. Military income tax accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Military income tax On Tuesday, Fir Co. Military income tax accumulates additional taxes of $30,000. Military income tax Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Military income tax does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Military income tax If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day during a month, you become a semiweekly schedule depositor on the next day and remain so for the remainder of the calendar year and for the following calendar year. Military income tax Example. Military income tax   Elm, Inc. Military income tax started its business on May 1, 2014. Military income tax On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Military income tax On Friday, May 9, Elm, Inc. Military income tax paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Military income tax Elm, Inc. Military income tax must deposit $100,000 by Monday, May 12, the next business day. Military income tax Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. Military income tax However, because Elm, Inc. Military income tax accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Military income tax It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Military income tax Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Military income tax However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Military income tax Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited, and The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Military income tax Makeup date for deposit shortfall: Monthly schedule depositor. Military income tax Deposit or pay the shortfall by the due date of your Form 941-SS, 944, or 943 for the period in which the shortfall occurred. Military income tax You may pay the shortfall with your return even if the amount is $2,500 or more. Military income tax Semiweekly schedule depositor. Military income tax Deposit by the earlier of: The first Wednesday or Friday (whichever comes first) that comes on or after the 15th of the month following the month in which the shortfall occurred, or The return due date for the period in which the shortfall occurred. Military income tax For example, if a semiweekly schedule depositor filing Form 941-SS has a deposit shortfall during July 2014, the shortfall makeup date is August 15, 2014 (Friday). Military income tax However, if the shortfall occurred on the required April 2 (Wednesday), deposit date for a March 28 (Friday) pay date, the return due date for the March 28 pay date (April 30) would come before the May 16 (Friday) shortfall makeup date. Military income tax In this case, the shortfall must be deposited by April 30, 2014. Military income tax Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941-SS or 944 taxes). Military income tax Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Military income tax If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Military income tax How To Deposit You must deposit employment taxes by electronic funds transfer. Military income tax See Payment with Return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Military income tax Electronic deposit requirement. Military income tax   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Military income tax Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Military income tax If you do not 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. Military income tax   EFTPS is a free service provided by the Department of the Treasury. Military income tax To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Military income tax S. Military income tax Virgin Islands only) or 303-967-5916 (toll call). Military income tax You can also visit the EFTPS website at www. Military income tax eftps. Military income tax gov. Military income tax Additional information about EFTPS is also available in Publication 966. Military income tax When you receive your EIN. Military income tax   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Military income tax You will receive information about Express Enrollment in your Employer Identification Number (EIN) Package and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Military income tax Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Military income tax If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. Military income tax Deposit record. Military income tax   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Military income tax The number can be used as a receipt or to trace the payment. Military income tax Depositing on time. Military income tax   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Military income tax m. Military income tax Eastern time the day before the date the deposit is due. Military income tax If you use a third party to make deposits on your behalf, they may have different cutoff times. Military income tax Same-day payment option. Military income tax   If you fail to initiate a deposit transaction on EFTPS by 8 p. Military income tax m. Military income tax Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). Military income tax To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Military income tax Please check with your financial institution regarding availability, deadlines, and costs. Military income tax Your financial institution may charge you a fee for payments made this way. Military income tax To learn more about the information you will need to provide your financial institution to make a same-day wire payment, please visit www. Military income tax eftps. Military income tax gov to download the Same-Day Payment Worksheet. Military income tax How to claim credit for overpayments. Military income tax   If you deposited more than the right amount of taxes for a tax period, you can choose on Form 941-SS, 941, 944, or 943 for that tax period to have the overpayment refunded or applied as a credit to your next return. Military income tax Do not ask EFTPS to request a refund from the IRS for you. Military income tax Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits of less than the required amount. Military income tax The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. Military income tax The IRS may also waive penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. Military income tax For amounts not properly or timely deposited, the penalty rates are as follows. Military income tax 2% - Deposits made 1 to 5 days late. Military income tax 5% - Deposits made 6 to 15 days late. Military income tax 10% - Deposits made 16 or more days late. Military income tax Also applies to amounts paid within 10 days of the date of the first notice that the IRS sent asking for the tax due. Military income tax 10% - Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return (but see Payment with Return , earlier in this section, for exceptions). Military income tax 15% - Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. Military income tax Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Military income tax Special rule for former Form 944 filers. Military income tax    If you filed Form 944 for the prior year and must file Forms 941-SS for the current year because your employment tax liability for the prior year exceeded the Form 944 eligibility requirement ($1,000 or less), the failure-to-deposit penalty will not apply to a late deposit of employment taxes for the first month of the current year if the taxes are deposited in full by March 15 of the current year. Military income tax Order in which deposits are applied. Military income tax   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Military income tax However, if you receive a failure-to-deposit penalty notice, you may designate how your payment is to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. Military income tax Follow the instructions on the penalty notice that you received. Military income tax For more information on designating deposits, see Revenue Procedure 2001-58. Military income tax You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Military income tax irs. Military income tax gov/pub/irs-irbs/irb01-50. Military income tax pdf. Military income tax Example. Military income tax Cedar, Inc. Military income tax is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Military income tax It does not make the deposit on July 15. Military income tax On August 15, Cedar, Inc. Military income tax deposits $2,000. Military income tax Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. Military income tax Accordingly, $500 of the July 15 liability remains undeposited. Military income tax The penalty on this underdeposit will apply as explained earlier. Military income tax Trust fund recovery penalty. Military income tax   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Military income tax The penalty is the full amount of the unpaid trust fund tax. Military income tax This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Military income tax   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. Military income tax   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship, or any other person or entity that is responsible for collecting, accounting for, and paying over trust fund taxes. Military income tax A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Military income tax    Willfully means voluntarily, consciously, and intentionally. Military income tax A responsible person acts willfully if the person knows the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. Military income tax “Averaged” failure-to-deposit penalty. Military income tax   The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941-SS, line 14, when your tax liability shown on Form 941-SS, line 10, was $2,500 or more. Military income tax IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 941-SS, line 10, was $2,500 or more and you did any of the following. Military income tax Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Military income tax Failed to attach a properly completed Schedule B (Form 941). Military income tax Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Military income tax   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Military income tax Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Military income tax   You can avoid the penalty by reviewing your return before filing it. Military income tax Follow these steps before filing your Form 941-SS. Military income tax If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 941-SS, line 14. Military income tax If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates you paid your employees. Military income tax Verify that your total liability shown on Form 941-SS, line 14, or the bottom of Schedule B (Form 941) equals your tax liability shown on Form 941-SS,  line 10. Military income tax Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Military income tax For prior period errors, do not adjust your tax liabilities reported on your current Form 941-SS, line 14, or on Schedule B (Form 941). Military income tax Instead, file an adjusted return (Form 941-X (if you are adjusting a previously filed Form 941-SS) or Form 944-X (if you are adjusting a previously filed Form 944-SS or 944)) if you are also adjusting your tax liability. Military income tax If you are only adjusting your deposits in response to a failure-to-deposit penalty notice, see the Instructions for Schedule B (Form 941) (if you previously filed Form 941-SS) or the Instructions for Form 944-X (if you previously filed Form 944-SS or 944). Military income tax If you filed Form 944 for 2013 and line 7 was $2,500 or more, you were required to complete Form 944, lines 13a–13m, or attach Form 945-A, Annual Record of Federal Tax Liability. Military income tax If you failed to complete lines 13a–13m, or failed to attach Form 945-A, whichever was required, IRS may assess an “averaged” failure-to-deposit (FTD) penalty. Military income tax 9. Military income tax Employer's Returns General instructions. Military income tax   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Military income tax (U. Military income tax S. Military income tax Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Military income tax ) Employers with employees subject to U. Military income tax S. Military income tax income tax withholding. Military income tax   If you have both employees who are subject to U. Military income tax S. Military income tax income tax withholding and employees who are not subject to U. Military income tax S. Military income tax income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Military income tax Nonfarm employers. Military income tax   File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Military income tax Due dates for each quarter of the calendar year are as follows. Military income tax Quarter Due Jan. Military income tax , Feb. Military income tax , Mar. Military income tax Apr. Military income tax 30 Apr. Military income tax , May, June July 31 July, Aug. Military income tax , Sept. Military income tax Oct. Military income tax 31 Oct. Military income tax , Nov. Military income tax , Dec. Military income tax Jan. Military income tax 31   However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates to file the return. Military income tax If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. Military income tax   If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 15 of your final Form 941-SS and show the date final wages were paid. Military income tax Form 944. Military income tax   If IRS notified you to file Form 944, file your 2013 Form 944 by January 31, 2014, or by February 10, 2014 (if you deposited all taxes when due). Military income tax Household employers reporting social security and Medicare taxes. Military income tax   If you are a sole proprietor and file Forms 941-SS (or Form 944) for business employees, you may include taxes for household employees on your Forms 941-SS (or Form 944). Military income tax Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Military income tax See Publication 926, Household Employer's Tax Guide, for more information. Military income tax Employers of farmworkers. Military income tax   Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6. Military income tax   File a Form 943 each year for all taxable wages paid for farmwork. Military income tax You may report household workers in a private home on a farm operated for profit on Form 943. Military income tax Do not report wages for farmworkers on Form 941-SS or 944. Military income tax   Send Form 943 to the IRS by January 31 of the following year. Military income tax Send it with payment of any taxes due that you are not required to deposit. Military income tax If you deposited all taxes when due, you have 10 additional days to file. Military income tax Penalties. Military income tax   For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. Military income tax The maximum penalty is generally 25% of the tax due. Military income tax Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0. Military income tax 5% per month of the amount of tax. Military income tax For individual filers only, the failure-to-pay penalty is reduced from 0. Military income tax 5% per month to 0. Military income tax 25% per month if an installment agreement is in effect. Military income tax You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Military income tax The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Military income tax If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Military income tax The penalties will not be charged if you have a reasonable cause for failing to file or pay. Military income tax If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Military income tax Reporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, 944, or 943. Military income tax See the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943 for information on how to report these adjustments. Military income tax Prior Period Adjustments Forms for prior period adjustments. Military income tax   Use Form 941-X or Form 944-X to make a correction after you discover an error on a previously filed Form 941 or Form 944. Military income tax There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Military income tax Form 941-X and Form 944-X also replace Form 843, Claim for Refund and Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Military income tax Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Military income tax See Revenue Ruling 2009-39, 2009-52 I. Military income tax R. Military income tax B. Military income tax 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Military income tax You can find Revenue Ruling 2009-39, at www. Military income tax irs. Military income tax gov/irb/2009-52_IRB/ar14. Military income tax html. Military income tax Background. Military income tax   Treasury Decision 9405 changed the process for making interest-free adjustments to employment taxes reported on Forms 941-SS, 943, 944-SS, and 944, and for filing a claim for refund of employment taxes. Military income tax Treasury Decision 9405, 2008-32 I. Military income tax R. Military income tax B. Military income tax 293, is available at www. Military income tax irs. Military income tax gov/irb/2008-32_IRB/ar13. Military income tax html. Military income tax You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941-SS, 943, or 944 period during which you file Forms 941-X, 943-X, or 944-X, respectively. Military income tax You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Military income tax We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code. Military income tax Correcting employment taxes. Military income tax   When you discover an error on a previously filed Form 941-SS, 943, 944-SS, or 944, you must: Correct that error using Form 941-X, Form 943-X, or Form 944-X, File a separate Form 941-X, Form 943-X, or Form 944-X for
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of the Attorney General

Website: Office of the Attorney General

Address: Office of the Attorney General
Bureau of Consumer Protection
Strawberry Square, 15th Floor
Harrisburg, PA 17120

Phone Number: 717-787-3391

Toll-free: 1-800-441-2555 (PA) 1-888-520-6680 (Home Improvement)

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Regional Consumer Protection Offices

Erie Regional Office - Office of the Attorney General

Website: Erie Regional Office - Office of the Attorney General

Address: Erie Regional Office - Office of the Attorney General
Bureau of Consumer Protection
1001 State St., 10th Floor
Erie, PA 16501

Phone Number: 814-871-4371

Philadelphia Regional Office - Office of the Attorney General

Website: Philadelphia Regional Office - Office of the Attorney General

Address: Philadelphia Regional Office - Office of the Attorney General
Bureau of Consumer Protection
21 S. 12th St., 2nd Floor
Philadelphia, PA 19107

Phone Number: 215-560-2414

Pittsburgh Regional Office - Bureau of Consumer Protection

Website: Pittsburgh Regional Office - Bureau of Consumer Protection

Address: Pittsburgh Regional Office - Bureau of Consumer Protection
Bureau of Consumer Protection
Manor Complex, 6th Floor
564 Forbes Ave.
Pittsburgh, PA 15219

Phone Number: 412-565-5135

Scranton Regional Office of the Attorney General

Website: Scranton Regional Office of the Attorney General

Address: Scranton Regional Office of the Attorney General
Bureau of Consumer Protection
100 Samter Building
101 Penn Ave.
Scranton, PA 18503

Phone Number: 570-963-4913

State College Regional Office of the Attorney General

Website: State College Regional Office of the Attorney General

Address: State College Regional Office of the Attorney General
Bureau of Consumer Protection
444 E. College Ave., Suite 440
State College, PA 16801

Phone Number: 814-863-3900

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County Consumer Protection Offices

Bucks County Department of Consumer Protection

Website: Bucks County Department of Consumer Protection

Address: Bucks County Department of Consumer Protection
50 N. Main St.
Doylestown, PA 18901

Phone Number: 215-348-7442

Delaware County Consumer Affairs

Website: Delaware County Consumer Affairs

Address: Delaware County Consumer Affairs
201 W. Front St.
Government Center Building
Media, PA 19063

Phone Number: 610-891-4865

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking

Website: Department of Banking

Address: Department of Banking
Consumer Services
17 N. Second St., Suite 1300
Harrisburg, PA 17101-2290

Phone Number: 717-787-1854

Toll-free: 1-800-722-2657

TTY: 1-800-679-5070

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Department

Website: Insurance Department

Address: Insurance Department
Consumer Services
1209 Strawberry Square
Harrisburg, PA 17120

Phone Number: 717-787-2317

Toll-free: 1-877-881-6388 (PA)

TTY: 717-783-3898

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Securities Commission

Website: Securities Commission

Address: Securities Commission
17 N. 2nd St., Suite 1300
Harrisburg, PA 17101

Phone Number: 717-787-1854

Toll-free: 1-800-722-2657 (PA)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Pennsylvania Office of Consumer Advocate

Website: Pennsylvania Office of Consumer Advocate

Address: Pennsylvania Office of Consumer Advocate
Office of the Attorney General
555 Walnut St.
5th Floor, Forum Place
Harrisburg, PA 17101-1923

Phone Number: 717-783-5048

Toll-free: 1-800-684-6560 (PA)

Public Utility Commission

Website: Public Utility Commission

Address: Public Utility Commission
Bureau of Consumer Services
PO Box 3265
Harrisburg, PA 17105-3265

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The Military Income Tax

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