New form for reporting wages of nonfarm employees. Beginning with calendar year 2006 (returns filed in 2007), certain small employers of nonfarm employees 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. See the Instructions for Form 944 for more information.

Ordering employer tax products. Form 7018-A is no longer included in this publication. See Ordering publications and forms on page 4 for information about ordering employer tax products.

Redesigned Form 940. For 2006, we completely redesigned Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. You will find that the redesigned form and instructions are easier to read and fill out. Also, IRS now can optically scan the forms and will capture data more accurately and efficiently than before. Form 940-EZ is no longer available. If you previously filed Form 940-EZ, you must now use the redesigned Form 940.

Social Security and Medicare tax for 2007. Do not withhold social security tax after an employee reaches $97,500 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.

Additional employment tax information. Visit the IRS website at www.irs.gov/businesses and select the “Employment Taxes for Businesses” link for a list of employment tax topics. For employment tax information by telephone, call 1-800-829-4933; or call IRS TeleTax at 1-800-829-4477 for recorded information by topic.

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.

Correcting Form 943. If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943 for the year in which you discovered the error and attach Form 941c, Supporting Statement to Correct Information. For example, in March 2007, you discover that you underreported $10,000 in social security and Medicare wages on your 2006 Form 943. Correct the error by showing $1,530 (15.3% × $10,000) on line 8 of your 2007
Form 943 and attaching a completed Form 941c.

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, the 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.

When you hire a new employee. Ask each new employee to complete the 2007 Form W-4, Employee's Withholding Allowance Certificate, or its Spanish version, Forma W-4(SP). 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.

Forms in Spanish. You can provide Forma W-4(SP), Certificado de Exención de la Retención del(la) Empleado(a), in place of Form W-4, Employee's Withholding Allowance Certificate, to your Spanish-speaking employees. For more information, see Publication 579(SP), Cómo Preparar la Declaración de Impuesto Federal. You may also provide Forma W-5(SP), Certificado del Pago por Adelantado del Crédito por Ingreso del Trabajo, in place of Form W-5, Earned Income Credit Advance Payment Certificate. For nonemployees, new Forma W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. References in this publication to Form W-4, Form W-5, or Form W-9 also apply to their equivalent Spanish translations—Forma W-4(SP), Forma W-5(SP), or
Forma W-9(SP).

Information returns. You may be required 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 details about filing Forms 1099 and for information about required electronic or magnetic media filing, see the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G for general information and the separate, specific instructions for each information return that you file (for example, 2007 Instructions for Form 1099-MISC). Do not use Forms 1099 to report wages or other compensation that you paid to employees; report these on Form W-2. See the separate Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. If you file 250 or more Forms W-2, you must file them electronically. SSA will not accept Forms W-2 and W-3 filed on tape or cartridge.

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). Hearing-impaired individuals may use the TTY/TTD service at 304-267-3367 (not toll free). The call site can also be reached by email at
[email protected].

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.

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

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 and selecting “Employer ID Numbers (EINs).”

When a crew leader furnishes workers to you. Record the crew leader's name, address, and EIN. See sections 2, 10, and 11.

Contacting your Taxpayer Advocate. If you have attempted to deal with an IRS problem unsuccessfully, you should contact your 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).

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.

The following are important dates and responsibilities. See section 7 for information about depositing taxes reported on Forms 941, 943, 944, and 945. Also see Publication 509, Tax Calendars for 2007.

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 earlier.

By January 31 . 

By February 15.  Ask for a new Form W-4 or Forma W-4(SP) from each employee who claimed exemption from federal income tax withholding last year.

On February 16.  Begin withholding federal income tax for any employee who previously claimed exemption from federal 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, with 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 Forms W-2 with the SSA and Forms 1099 with the IRS. See Social Security's Employer Reporting Instructions and Information webpage 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 if undeposited amount is over $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.

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.