Publication 15-A - Introductory Material
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Annual employment tax filing for small employers. Beginning with calendar year 2006, certain small employers may be qualified to file Form 944, Employer's ANNUAL Federal Tax
Return, rather than
Form 941, Employer's QUARTERLY Federal Tax Return, to report their employment taxes. For more information, see the Instructions
for Form 944.
Nonqualified deferred compensation plans. Notice 2006-100 provides guidance to employers and payers on their reporting and wage withholding requirements for calendar
years 2005 and 2006 for
deferrals of amounts of compensation and amounts includible in gross income under section 409A of the Code. The notice also
provides guidance to
service providers on their income tax reporting and tax payment requirements for amounts includible in gross income under
section 409A for 2005 and
2006. You can find Notice 2005-100 on page 1109 of Internal Revenue Bulletin 2006-51 at
www.irs.gov/pub/irs-irbs/irb06-51.pdf.
Additional employment tax information. Visit the IRS website at
www.irs.gov and type “Employment Tax” in the
search box for a list of employment tax topics.
Furnishing Form W-2 to employees electronically. You may set up a system to furnish Forms W-2 electronically to employees who choose to receive them in that format. Each employee
participating
must consent (or receive confirmation of any consent made using a paper document) electronically, and you must notify the
employees of all hardware
and software requirements to receive the forms. You may not send a Form W-2 electronically to any employee who does not consent
or who has revoked
consent previously provided.
To furnish Forms W-2 electronically, you must meet the following disclosure requirements and provide a clear and conspicuous statement
of each of them to your employees.
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The employee must be informed that he or she may receive a paper Form W-2 if consent is not given to receive it electronically.
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The employee must be informed of the scope and duration of the consent.
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The employee must be informed of any procedure for obtaining a paper copy of any Form W-2 (and whether or not the request
for a paper
statement is treated as a withdrawal of his or her consent) after giving consent.
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The employee must be notified about how to withdraw a consent and the effective date and manner by which the employer will
confirm the
withdrawn consent. The employee must also be notified that the withdrawn consent does not apply to the previously issued Forms
W-2.
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The employee must be informed about any conditions under which electronic Forms W-2 will no longer be furnished (for example,
termination of
employment).
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The employee must be informed of any procedures for updating his or her contact information that enables the employer to provide
electronic
Forms W-2.
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The employer must notify the employee of any changes to the employer's contact information.
You must furnish electronic Forms W-2 by the due date of the paper forms. For more information, see Regulations section 31.6051-1(j).
Electronic filing and payment. Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Whether
you rely on a tax
professional or handle your own taxes, the IRS offers you convenient programs to make it 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.
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For e-file, visit
www.irs.gov for additional information.
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For EFTPS, visit
www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.
Electronic submission of Forms W-4, W-4P, W-4S, W-4V, and W-5. You may set up a system to electronically receive any or all of the following forms (and their Spanish versions, if available)
from an employee or
payee.
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Form W-4, Employee's Withholding Allowance Certificate.
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Form W-4P, Withholding Certificate for Pension or Annuity Payments.
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Form W-4S, Request for Federal Income Tax Withholding From Sick Pay.
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Form W-4V, Voluntary Withholding Request.
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Form W-5, Earned Income Credit Advance Payment Certificate.
If you establish an electronic system to receive any of these forms, you do not need to process that form in a paper version.
For each form that you establish an electronic submission system for, you must meet each of the following five requirements.
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The electronic system must ensure that the information received by the payer is the information sent by the payee. The system
must document
all occasions of user access that result in a submission. In addition, the design and operation of the electronic system,
including access procedures,
must make it reasonably certain that the person accessing the system and submitting the form is the person identified on the
form.
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The electronic system must provide exactly the same information as the paper form.
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The electronic submission must be signed with an electronic signature by the payee whose name is on the form. The electronic
signature must
be the final entry in the submission.
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Upon request, you must furnish a hard copy of any completed electronic form to the IRS and a statement that, to the best of
the payer's
knowledge, the electronic form was submitted by the named payee. The hard copy of the electronic form must provide exactly
the same information as,
but need not be a facsimile of, the paper form. For Forms W-4 and W-5, the signature must be under penalty of perjury, and
must contain the same
language that appears on the paper version of the form. The electronic system must inform the employee that he or she must
make a declaration
contained in the perjury statement and that the declaration is made by signing the Form W-4 or W-5.
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You must also meet all recordkeeping requirements that apply to the paper forms.
For more information, see:
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.
This publication supplements Publication 15 (Circular E), Employer's Tax Guide. It contains specialized and detailed employment
tax information
supplementing the basic information provided in Publication 15 (Circular E). This publication also contains:
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Alternative methods and tables for figuring income tax withholding,
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Combined income tax, employee social security tax, and employee Medicare tax withholding tables, and
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Tables for withholding on distributions of Indian gaming profits to tribal members.
Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment of various
types of noncash
compensation.
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 your tax question or to order
forms and publications. You may
also use this number for problem resolution assistance.
Ordering publications and forms.
See page 60 for information on how to obtain forms and publications.
Useful Items - You may want to see:
Publication
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15
Employer's Tax Guide (Circular E)
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15-B
Employer's Tax Guide to Fringe Benefits
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51
Agricultural Employer's Tax Guide (Circular A)
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505
Tax Withholding and Estimated Tax
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509
Tax Calendars for 2007
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225
Farmer's Tax Guide
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515
Withholding of Tax on Nonresident Aliens and Foreign Entities
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535
Business Expenses
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553
Highlights of 2006 Tax Changes
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583
Starting a Business and Keeping Records
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1635
Understanding Your EIN
Comments and Suggestions.
We welcome your comments about this publication and your suggestions for future editions. You can email us at
*[email protected]. Please put “
Publications Comment” on
the subject line.
You can write to us at the following address:
Internal Revenue Service
Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
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.
