Alternative signature method.  Effective with returns filed after June 30, 2005, corporate officers or duly authorized agents may sign employment tax returns by rubber stamp, mechanical device, or computer software program. For details and required documentation, see Rev. Proc. 2005-39. You can find Rev. Proc. 2005-39 on page 82 of Internal Revenue Bulletin 2005-28 at www.irs.gov/pub/irs-irbs/irb05-28.pdf.

Annual employment tax filing for small employers. Soon, certain small employers may be qualified to file Form 944-SS, Employer's Annual Federal Tax Return, rather than Form 941-SS, Employer's Quarterly Federal Tax Return, to report their employment taxes. The IRS will publish more information about this new form and who will qualify for this form as it becomes available.

Credit card payments.  Effective January 2006, you may pay any balance due on Forms 941-SS and 940 using a major credit card. For information on paying your taxes with a credit card, visit the IRS website at www.irs.gov and type “e-pay” in the search box.

Social security and Medicare taxes for 2006. Do not withhold social security tax after an employee reaches $94,200 in social security wages. (There is no limit on the amount of wages subject to Medicare tax.) Social security and Medicare taxes apply to the wages of household workers you pay $1,500 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,300 or more.

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

Correcting Form 941-SS.  If you discover an error on a previously filed Form 941-SS, make the correction using Form 941-SS for the quarter in which you discovered the error and attach Form 941c, Supporting Statement To Correct Information. For example, in March 2006, you discover that you under reported $10,000 in social security and Medicare wages on your fourth quarter 2005 Form 941-SS. Correct the error by showing $1,530 (15.3% x $10,000) on line 7e of your 2006 first quarter Form 941-SS and attaching a completed Form 941c. For more information see Adjustments in section 9.

Electronic filing and payment. Now, more than ever before, businesses can enjoy the benefits of filing and paying their taxes electronically. Whether you rely on a tax professional or handle your own taxes, IRS offers you convenient programs to make filing and paying easier. Spend less time and worry on taxes and more time running your business. Use e-file and Electronic Federal Tax Payment System (EFTPS) to your benefit.

For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, and W-2c, visit www.socialsecurity.gov/employer.

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.

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.

Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns or payments. The list includes only the following:

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.

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 5.

Reporting discrepancies between Forms 941-SS and Forms W-2. . Use Schedule D (Form 941) to explain certain wage, tax, and payment discrepancies between Forms 941-SS and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. For more information, get the Instructions for Schedule D (Form 941).

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.

Contacting your Taxpayer Advocate. 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. To contact your Taxpayer Advocate:

For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish).

Tax Help. Employers in the U.S. Virgin Islands can call 1-800-829-4933 (TTY/TDD users call 1-800-829-4059) for federal employment tax information, including instructions for completing Form 941-SS. All employers can get in-depth information about payroll tax topics by visiting the IRS website at www.irs.gov and typing “Employment Tax” in the search box. For a complete listing of free IRS tax services, get Publication 910, IRS Guide To Free Tax Services. See How To Get Forms and Publications on page 4 for ordering information.

The following are important dates and responsibilities. Also see Publication 509, Tax Calendars for 2006.

By January 31. 

By February 28.  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 (not magnetic media or paper) Forms W-2VI, W-2GU, W-2AS, or W-2CM with the SSA. You cannot file electronically using W-2 Online; however, you can transmit an electronic file over the Internet. 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 $500. If $500 or less, carry it over to the next quarter. See section 11.

Note.    If any date shown above 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 on page 2.