Publication 80: Circular SS; Publication 80 Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

Changes To Note

Electronic filing option. File Forms 940 and 941-SS electronically and receive proof of filing acknowledgement. Electronic payment options may also be available. Visit the IRS website at www.irs.gov/efile for details.

Proposed changes to FUTA tax deposit rules. As this publication was being prepared for print, the Treasury Department proposed new rules that would provide an additional exception to the Federal Unemployment Tax Act (FUTA) tax deposit requirements for employers. When the rules become final, they will be published in the Internal Revenue Bulletin and will be available on the IRS website at www.irs.gov.

Social security and Medicare taxes for 2004. The social security wage base for 2004 is $87,900. There is no wage base limit for Medicare tax. The tax rate remains 6.2% for social security tax and 1.45% for Medicare tax.

Web-based application for an EIN. You may now apply for an employer identification number (EIN) online by visiting the IRS website at www.irs.gov/smallbiz.

Reminders

Electronic deposits. You may deposit your taxes electronically using the Electronic Federal Tax Payment System (EFTPS). Although use of EFTPS is required for certain employers (see section 8 for details), all employers may use this electronic payment system. Using EFTPS, you can transmit your payment information by telephone or your personal computer. To get more information or to enroll in EFTPS, call 1-800-555-4477 or 1-800-945-8400. You can also visit the EFTPS website at www.eftps.gov.

Change of address. If you changed your business mailing address or business location, notify the IRS by filing Form 8822, Change of Address.

Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns or payments. If you mail by the due date using any of these services, you are considered to have filed on time. The most recent list of designated private delivery services was published in September 2002. The list includes only the following:

Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service.
DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight.
Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and FedEx International First.
United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

Your private delivery service can tell you how to get written proof of the mailing date.

When hiring new employees. Record the number and name from each new employee's social security card. An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card (see section 3).

Unresolved tax issues. If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Your assigned personal advocate will listen to your point of view and will work with you to address your concerns. You can expect the advocate to provide:

When contacting the Taxpayer Advocate, you should provide the following information:

Your name, address, and employer identification number (EIN).
The name and telephone number of an authorized contact person and the hours when he or she can be reached.
The type of tax return and year(s) involved.
A detailed description of the problem.
Previous attempts to solve the problem and the office that had been contacted.
A description of the hardship that you are facing (if applicable).

You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. You may also visit the Taxpayer Advocate website at www.irs.gov/advocate. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.

Recordkeeping. Keep all records of employment taxes for four years. These should be available for IRS review. There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made in accordance with section 8. Farm employers must keep a record of the name, permanent address, and EIN of each crew leader (see Farm Crew Leaders on page 4).

Calendar

The following are important dates and responsibilities. Also see Pub. 509, Tax Calendars for 2004.

Note: If any date shown below falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. For any due date, you will meet the “file” or “furnish” requirement if the form is properly addressed and mailed First-Class or sent by an IRS-designated delivery service on or before the due date (see Private delivery services above).

Furnish wage and tax statements to employees. Give each employee a completed Form W-2VI, W-2GU , W-2AS , or W-2CM (see section 10).
File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the Internal Revenue Service. If you deposited all Form 943 taxes when due, you have 10 additional days to file.
File Form 940 or 940-EZ —U.S. Virgin Islands employers. File Form 940 or 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the U.S. Internal Revenue Service. Pay or deposit (if more than $100) any balance of the tax due. If you deposited the full amount of taxes when due, you have 10 additional days to file.

By February 29. File wage and tax statements with the Social Security Administration (SSA). File Copy A of Forms W-2VI, W-2GU , W-2AS, or W-2CM and Form W-3SS, Transmittal of Wage and Tax Statements, with the SSA. For electronically filed returns, see By March 31 below.

By March 31. File electronic Forms W-2VI, W-2GU, W-2AS, or W-2CM. File electronic (not magnetic media or paper) Forms W-2VI, W-2GU, W-2AS, or W-2CM with the SSA. See Social Security's Employer Reporting Instructions and Information website at www.socialsecurity.gov/employer for more information.

By April 30, July 31, October 31, and January 31. File Form 941-SS, Employer's Quarterly Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands), with the Internal Revenue Service. If you deposited the full amount of taxes when due, you have 10 additional days to file. Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $100. If $100 or less, carry it over to the next quarter (see section 11).

Publication 80Introductory Material

Changes To Note

Reminders

Calendar

Publication 80
Introductory Material