| Pub. 51, Circular A, Agricultural Employer's Tax Guide |
2004 Tax Year |
Introductory Material
This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
What's New
Additional federal holiday. January 20, 2005, is Inauguration Day and has been designated as a federal holiday for tax purposes. Tax returns due on that
day may be filed on
the next business day. Also, January 20, 2005, is not a banking day under federal tax deposit rules.
Social Security and Medicare taxes for 2005. The social security wage base for 2005 is $90,000. There is no wage base limit for Medicare tax. The tax rate remains 6.2%
for social security and
1.45% for Medicare tax.
Increase to FUTA tax deposit threshold. The Treasury Department recently amended Regulations section 31.6302(c)-3 to increase the accumulated FUTA tax deposit threshold
from $100 to $500.
The $500 threshold applies to FUTA tax deposits required for taxes reported on Forms 940, 940-EZ, and 940-PR, Employer's Annual
Federal Unemployment
(FUTA) Tax Return for tax periods beginning after December 31, 2004. For more information about this and other important tax
changes, see Publication
553, Highlights of 2004 Tax Changes.
Household employees. Household employees, such as a maid, babysitter, gardener, or cook, who perform domestic service on a farm operated for profit
are not agricultural
employees. However, they may still be employees for social security, Medicare, and federal unemployment taxes. See the Instructions
for Schedule H
(Form 1040).
New Form W-4 in Spanish. If your Spanish-speaking employees prefer, they may claim withholding allowances using Form W-4(SP), Certificado de Exención
de la
Retención del(la) Empleado(a), in place of Form W-4, Employee's Withholding Allowance Certificate. Instructions, in Spanish,
for completing
Form W-4 or Form W-4(SP) are available in Publication 579SP, Cómo Preparar la Declaración de Impuesto Federal. See Quick and Easy
Access to Tax Help and Forms on page 56 for information on obtaining Form W-4(SP), Publication 579SP, and other tax forms and publications.
Reminders
Electronic payment. Now, more than ever before, businesses can enjoy the benefits of paying their taxes electronically. Whether you rely on a
tax professional or
handle your own taxes, IRS offers you convenient programs to make it easier.
Spend less time and worry on taxes and more time running your business. Use Electronic Federal Tax Payment System (EFTPS)
to your benefit.
For EFTPS, visit
www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.
Use the electronic options available from IRS and make filing and paying taxes easier.
Change of address. If you changed your business mailing address or business location, notify the IRS by filing Form 8822, Change of Address.
For information on how to
change your address for deposit coupons, see Making deposits with FTD coupons in section 7.
Web-based application for an EIN. You can apply for an employer identification number (EIN) online by visiting the IRS website at
www.irs.gov/smallbiz.
When you hire a new employee. Ask each new employee to complete the 2005 Form W-4, Employee's Withholding Allowance Certificate. Also, ask the employee
to show you his or her
social security card so that you can record the employee's name and social security number accurately. If the employee has
lost the card or recently
changed names, have the employee apply for a duplicate or corrected card. If the employee does not have a card, have the employee
apply for one on
Form SS-5, Application for a Social Security Card. See section 1.
Eligibility for employment. You must verify that each new employee is legally eligible to work in the United States. This includes completing the U.S.
Citizenship and
Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You can get the form from USCIS offices or by calling
1-800-870-3676. Contact the USCIS at 1-800-375-5283, or visit the USCIS website at
www.uscis.gov for further information.
New hire reporting. You are required to report any new employee to a designated state new hire registry. Many states accept a copy of Form W-4
with employer
information added. Call the Office of Child Support Enforcement at 202-401-9267 or visit its website at
www.acf.hhs.gov/programs/cse/newhire/ for more information.
When a crew leader furnishes workers to you. Record the crew leader's name, address, and EIN. See sections 2, 10, and 11.
Information returns. You generally must furnish Form W-2, Wage and Tax Statement, to each employee by January 31. You also may have to file information
returns to
report certain types of payments made during the year. For example, you must file Form 1099-MISC, Miscellaneous Income, to
report payments of $600 or
more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business.
For general
information about Forms 1099 and for information about required electronic or magnetic media filing, see the 2005 General
Instructions for Forms 1099,
1098, 5498, and W-2G. Also see the separate instructions for each information return that you file (for example, 2005 Instructions
for Form
1099-MISC). Do not use Form 1099 to report wages or other compensation you paid to employees; report these on Form W-2. See
the separate Instructions
for Forms W-2 and W-3 for details.
Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns and payments. The list includes only
the following.
-
DHL Express (DHL): DHL Same Day Service; DHL Next Day 10:30 am; DHL Next Day 12:00 pm; DHL Next Day 3:00 pm; and DHL 2nd Day
Service.
-
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.
Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an
IRS P.O. box address.
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:
-
A “fresh look” at a new or ongoing problem,
-
Timely acknowledgment,
-
The name and phone number of the individual assigned to your case,
-
Updates on progress,
-
Timeframes for action,
-
Speedy resolution, and
-
Courteous service.
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 online at
www.irs.gov/advocate or 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. If you prefer, you may call, write, or fax the Taxpayer
Advocate office in your
area. See Publication 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.
Information reporting call site. The IRS operates a centralized call site to answer questions about reporting on Forms W-2, W-3, 1099, and other information
returns. If you have
questions related to reporting on information returns, you may call 1-866-455-7438 (toll free) or 304-263-8700 (not toll free).
The call site can also
be reached by email at
[email protected].
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of
missing children
selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children
home by looking at the
photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Calendar
The following are important dates and responsibilities. See section 7 for information about depositing taxes reported on Forms
941, 943, and 945.
Also see Publication 509, Tax Calendars for 2005.
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 by
the due date. See Private delivery services on page 2.
By January 31.
-
File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the Internal Revenue Service. See section
8. If you
deposited all Form 943 taxes when due, you have 10 additional days to file.
-
Furnish each employee with a completed Form W-2, Wage and Tax Statement.
-
Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example,
Form 1099-MISC,
Miscellaneous Income).
-
File Form 940 or Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return. See section 10. But if you deposited
all the FUTA
tax when due, you have 10 additional days to file.
-
File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld during 2004.
By February 15.
Ask for a new Form W-4 from each employee who claimed exemption from income tax withholding last year.
On February 16.
Begin withholding income tax for any employee who previously claimed exemption from income tax withholding but has not given
you a new Form W-4 for
the current year. If the employee does not give you a new Form W-4, withhold as if he or she is single, with zero withholding
allowances. The Form W-4
previously given to you claiming exemption is now expired. See section 5.
By February 28.
File Forms 1099 and 1096.
File Copy A of all Forms 1099 with Form 1096, Annual Summary and Transmittal of U.S.
Information Returns, with the IRS. For electronically filed returns, see By March 31 below.
File Forms W-2 and W-3. File Copy A of all Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, or your magnetic media wage
report to the Social Security Administration (SSA). For electronically filed returns, see By March 31 below.
By March 31.
File electronic Forms W-2 and 1099. File electronic (not magnetic media or paper) Forms W-2 with the SSA and Forms 1099 with the IRS.
See Social Security's Employer Reporting Instructions and Information web page at
www.socialsecurity.gov/employer for more information about filing Forms W-2 and W-2c electronically.
By April 30, July 31, October 31, and January 31.
Deposit FUTA taxes. Deposit FUTA tax due if it is more than $500.
Before December 1.
Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year.
On December 31.
Form W-5, Earned Income Credit Advance Payment Certificate, expires. Employees who want to receive advance payments of the
earned income credit for
the next year must give you a new Form W-5.
Introduction
This publication is for employers of agricultural workers (farmworkers). It contains information that you may need to comply
with the laws for
agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax.
If you have nonfarm employees, see Publication 15 (Circular E), Employer's Tax Guide. If you have employees in the U.S. Virgin
Islands, Guam,
American Samoa, or the Commonwealth of the Northern Mariana Islands, see Publication 80 (Circular SS). Publication 15-A, Employer's
Supplemental Tax
Guide, contains more employment-related information, including information about sick pay and pension income. Publication
15-B, Employer's Tax Guide
to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation.
Ordering publications and forms.
See Form 7018-A, Employer's Order Blank for 2005 Forms, and Quick and Easy Access to Tax Help and Forms at the end of this publication.
Telephone help.
You can call the IRS with your employment tax questions at 1-800-829-4933.
Help for people with disabilities.
Telephone help is available using TTY/TDD equipment. You can call 1-800-829-4059 with any question or to order forms
and publications. See your tax
package for the hours of operation.
Comments and Suggestions.
We welcome your comments about this publication and your suggestions for future editions. You can email us while visiting
our website at
www.irs.gov. You can also write to us at the following address:
Internal Revenue Service
TE-GE Forms and Publications Branch
SE:W:CAR:MP:T:T
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in
your correspondence.
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