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E file Index A Acquisition indebtedness, Average acquisition indebtedness. E file Annuity obligations, Annuity obligation. E file By gift or bequest of mortgaged property, Exception for property acquired by gift, bequest, or devise. E file Change in property use, Change in use of property. E file Continued debt, Continued debt. E file Debt modifying existing, Modifying existing debt. E file Federal financing, Certain federal financing. E file For performing exempt purpose, Debt incurred in performing exempt purpose. E file Obligation to return collateral, Securities loans. E file Property subject to mortgage or lien, Property acquired subject to mortgage or lien. E file Real property, Real property debts of qualified organizations. E file Advertising income, Exploitation of Exempt Activity—Advertising Sales Agricultural organization dues, Dues of Agricultural Organizations and Business Leagues Assistance (see Tax help) B Business league dues, Dues of Agricultural Organizations and Business Leagues C Churches, Churches. E file Contributions deduction, Charitable contributions deduction. E file Convention or trade show activity, Convention or trade show activity. E file D Debt-financed property, Income From Debt-Financed Property Acquired in liquidation, Basis for debt-financed property acquired in corporate liquidation. E file Dues, agricultural organizations and business leagues, Dues of Agricultural Organizations and Business Leagues E Exchange or rental of member lists, Exchange or rental of member lists. E file Excluded trade or business activities, Excluded Trade or Business Activities Exclusions, Volunteer workforce. E file Sponsorship, Qualified sponsorship activities. E file Exempt function income, Exempt function income. E file Exploitation of exempt activity Advertising income, Exploitation of Exempt Activity—Advertising Sales Exploitation of exempt functions, Exploitation of exempt functions. E file F Form 990-T, Returns and Filing Requirements Free tax services, How to Get Tax Help H Help (see Tax help) I Income from research, Income from research. E file L Limits, Limits. E file M More information (see Tax help) N Net operating loss deduction, Modifications Nonrecognition of gain, Nonrecognition of gain. E file P Publications (see Tax help) R Rents, Rents. E file Return, Returns and Filing Requirements Royalties, Royalties. E file S Specific deduction, Specific deduction. E file T Tax, Organizations Subject to the Tax Alternative minimum, Alternative minimum tax. E file Colleges and universities, Colleges and universities. E file Deposits, Federal Tax Deposits Must be Made by Electronic Funds Transfer Estimated, Payment of Tax Organizations affected, Organizations Subject to the Tax Payment, Public Inspection Requirements of Section 501(c)(3) Organizations. E file Rates, The Tax and Filing Requirements Return, Returns and Filing Requirements Title-holding corporations, Title-holding corporations. E file U. E file S. E file instrumentalities, U. E file S. E file instrumentalities. E file Tax help, How to Get Tax Help Taxpayer Advocate, Contacting your Taxpayer Advocate. E file Title-holding corporations, Title-holding corporations. E file TTY/TDD information, How to Get Tax Help U Unrelated business Hospital laboratory, Nonpatient laboratory testing. E file Unrelated business income, Unrelated Business Taxable Income, Income Advertising income, Exploitation of Exempt Activity—Advertising Sales Certain trusts, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Controlled organizations, Income From Controlled Organizations Debt-financed property, Income From Debt-Financed Property Deductions, Deductions Employees beneficiary associations, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Exclusions, Exclusions Foreign organizations, Special Rules for Foreign Organizations Income from gambling activities, Legal definition. E file Income from lending securities, Income from lending securities. E file Modifications, Modifications Partnership income or loss, Partnership Income or Loss Products of exempt functions, Selling of products of exempt functions. E file S corporation income, S Corporation Income or Loss S corporation income or loss, S Corporation Income or Loss Social clubs, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Veterans organizations, Special Rules for Veterans' Organizations Unrelated debt-financed income, Certain federal financing. E file Average acquisition indebtedness, Average acquisition indebtedness. E file Average adjusted basis, Average adjusted basis. E file Computation, Computation of Debt-Financed Income Debt/basis percentage, Computation of debt/basis percentage. E file Deductions, Deductions for Debt-Financed Property Gains from dispositions, Gain or loss from sale or other disposition of property. E file Indeterminate property price, Indeterminate price. E file Unrelated trade or business, Unrelated Trade or Business Artists facilities, Artists' facilities. E file Book publishing, Book publishing. E file Broadcasting rights, Broadcasting rights. E file Business league's parking and bus services, Business league's parking and bus services. E file Convenience of members, Convenience of members. E file Convention or trade show, Convention or trade show activity. E file Directory of members, Directory of members. E file Distribution of low cost articles, Distribution of low cost articles. E file Dual use facilities, etc. E file , Dual use of assets or facilities. E file Employees association sales, Employee association sales. E file Exclusions, Excluded Trade or Business Activities Exploitation of exempt functions, Exploitation of exempt functions. E file Gambling activities other than bingo, Gambling activities other than bingo. E file Halfway house, Halfway house workshop. E file Health club program, Health club program. E file Hearing aid sales, Sales of hearing aids. E file Hospital facilities, Hospital facilities. E file Hospital services, Hospital services. E file Insurance programs, Insurance programs. E file Magazine publishing, Magazine publishing. E file Member lists rentals, etc. E file , Exchange or rental of member lists. E file Membership list sales, Membership list sales. E file Miniature golf course, Miniature golf course. E file Museum eating facilities, Museum eating facilities. E file Museum greeting card sales, Museum greeting card sales. E file Pet boarding and grooming services, Pet boarding and grooming services. E file Pole rentals, Pole rentals. E file Public entertainment activity, Public entertainment activity. E file Publishing legal notices, Publishing legal notices. E file Regularly conducted, Regularly conducted. E file Sales commissions, Sales commissions. E file Sales of advertising space, Sales of advertising space. E file School facilities, School facilities. E file School handicraft shop, School handicraft shop. E file Selling donated merchandise, Selling donated merchandise. E file Selling endorsements, Selling endorsements. E file Sponsoring entertainment events, Sponsoring entertainment events. E file Substantially related, Not substantially related. E file Trade or business defined, Trade or business. E file Travel tour programs, Travel tour programs. E file Volunteer workforce, Volunteer workforce. E file Yearbook advertising, Yearbook advertising. E file Youth residence, Youth residence. E file Unstated trade or business Bingo games, Bingo games. E file V Volunteer fire company, Excluded Trade or Business Activities W When to file, When to file. E file Prev Up Home More Online Publications
Understanding your CP503 Notice
We have not heard from you and you still have an unpaid balance on one of your tax accounts.
What you need to do
- Read your notice carefully — it explains your due date, amount due, and payment options.
- Make your payment by your due date. Go to the payments page to find out more about your payment options.
You may want to...
Answers to Common Questions
What is the notice telling me?
This notice is another reminder that you still owe a balance on one of your tax accounts. You are getting this notice because we have not received your payment or response to previous notice(s) requesting you pay this balance.
What do I have to do?
Pay the amount due shown on the notice. Mail us your payment in the envelope we sent you. Include the bottom part of the notice to make sure we correctly credit your account.
If you can't pay the whole amount now, call us at the number printed at the top of the notice to see if you qualify for an installment agreement.
How much time do I have?
You should pay the entire balance within 10 days of the date of the notice or additional penalty and interest will be added.
What happens if I don't pay?
We may file a Notice of Federal Tax Lien that gives us legal claim to your property as security or payment for your tax debt. We will also look for other assets you may own.
Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.
What if I don't agree or have already taken corrective action?
If you do not agree with this notice, call us immediately at the number printed at the top of the notice. We will do our best to help you.
Page Last Reviewed or Updated: 05-Mar-2014
The E File
E file Publication 15 - Introductory Material Table of Contents Future Developments What's New Reminders Electronic Filing and Payment Forms in Spanish Hiring New Employees Paying Wages, Pensions, or Annuities Information Returns Nonpayroll Income Tax Withholding Recordkeeping Change of Business Address or Responsible Party Private Delivery Services Telephone Help Ordering Employer Tax Forms and Publications Filing Addresses Dishonored Payments Photographs of Missing Children Calendar Introduction Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to www. E file irs. E file gov/pub15. E file What's New Social security and Medicare tax for 2014. E file The social security tax rate is 6. E file 2% each for the employee and employer, unchanged from 2013. E file The social security wage base limit is $117,000. E file The Medicare tax rate is 1. E file 45% each for the employee and employer, unchanged from 2013. E file There is no wage base limit for Medicare tax. E file Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. E file Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. E file 2014 withholdng tables. E file This publication includes the 2014 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding. E file Withholding allowance. E file The 2014 amount for one withholding allowance on an annual basis is $3,950. E file Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC). E file A shareholder of an ANC may now request voluntary income tax withholding on dividends and other distributions paid by an ANC. E file A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V, Voluntary Withholding Request. E file For more information see Notice 2013-77, 2013-50 I. E file R. E file B. E file 632, available at www. E file irs. E file gov/irb/2013-50_IRB/ar10. E file html. E file Change of responsible party. E file Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party — Business, to report the latest change to its responsible party. E file Form 8822-B must be filed within 60 days of the change. E file If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. E file For a definition of “responsible party,” see the Form 8822-B instructions. E file Same-sex marriage. E file For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. E file For more information, see Revenue Ruling 2013-17, 2013-38 I. E file R. E file B. E file 201, available at www. E file irs. E file gov/irb/2013-38_IRB/ar07. E file html. E file Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. E file Notice 2013-61, 2013-44 I. E file R. E file B. E file 432, is available at www. E file irs. E file gov/irb/2013-44_IRB/ar10. E file html. E file Reminders Additional Medicare Tax withholding. E file In addition to withholding Medicare tax at 1. E file 45%, you must withhold a 0. E file 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. E file You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. E file Additional Medicare Tax is only imposed on the employee. E file There is no employer share of Additional Medicare Tax. E file All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. E file For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments , in section 15. E file For more information on Additional Medicare Tax, visit IRS. E file gov and enter “Additional Medicare Tax” in the search box. E file Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. E file The work opportunity tax credit is available for eligible unemployed veterans who began work on or after November 22, 2011, and before January 1, 2014. E file Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. E file For more information, visit IRS. E file gov and enter “work opportunity tax credit” in the search box. E file Outsourcing payroll duties. E file Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. E file The employer remains responsible if the third party fails to perform any required action. E file If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. E file gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. E file COBRA premium assistance credit. E file The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. E file See COBRA premium assistance credit under Introduction. E file Federal tax deposits must be made by electronic funds transfer. E file You must use electronic funds transfer to make all federal tax deposits. E file Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). E file If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. E file Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. E file EFTPS is a free service provided by the Department of Treasury. E file Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. E file For more information on making federal tax deposits, see How To Deposit in section 11. E file To get more information about EFTPS or to enroll in EFTPS, visit www. E file eftps. E file gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). E file Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. E file You must receive written notice from the IRS to file Form 944. E file If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. E file S. E file Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. E file You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. E file For more information on requesting to file Form 944, visit IRS. E file gov and enter “file employment taxes annually” in the search box. E file Employers can request to file Forms 941 instead of Form 944. E file If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. E file You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. E file For more information on requesting to file Form 944, visit IRS. E file gov and enter “file employment taxes annually” in the search box. E file Aggregate Form 941 filers. E file Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. E file Aggregate Forms 941 may only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. E file To request approval to act as an agent for an employer, the agent files Form 2678, Employer/Payer Appointment of Agent, with the IRS. E file Aggregate Form 940 filers. E file Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. E file Aggregate Forms 940 can be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. E file To request approval to act as an agent on behalf of home care service recipients, the agent files Form 2678 with the IRS. E file Electronic Filing and Payment Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. E file Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. E file Spend less time and worry about taxes and more time running your business. E file Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. E file For e-file, visit www. E file irs. E file gov/efile for additional information. E file For EFTPS, visit www. E file eftps. E file gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). E file For electronic filing of Forms W-2, Wage and Tax Statement, visit www. E file socialsecurity. E file gov/employer. E file If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. E file If a valid EIN is not provided, the return or payment will not be processed. E file This may result in penalties and delays in processing your return or payment. E file Electronic funds withdrawal (EFW). E file If you file Form 940, Form 941, Form 944, or Form 945 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. E file However, do not use EFW to make federal tax deposits. E file For more information on paying your taxes using EFW, visit the IRS website at www. E file irs. E file gov/e-pay. E file A fee may be charged to file electronically. E file Credit or debit card payments. E file For information on paying your taxes with a credit or debit card, visit the IRS website at www. E file irs. E file gov/e-pay. E file However, do not use credit or debit cards to make federal tax deposits. E file Forms in Spanish You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, Employee's Withholding Allowance Certificate, to your Spanish-speaking employees. E file For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). E file For nonemployees, Formulario 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. E file Hiring New Employees Eligibility for employment. E file You must verify that each new employee is legally eligible to work in the United States. E file This includes completing the U. E file S. E file Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. E file You can get the form from USCIS offices or by calling 1-800-870-3676. E file Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. E file uscis. E file gov for more information. E file New hire reporting. E file You are required to report any new employee to a designated state new hire registry. E file A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. E file Many states accept a copy of Form W-4 with employer information added. E file Visit the Office of Child Support Enforcement website at www. E file acf. E file hhs. E file gov/programs/cse/newhire for more information. E file W-4 request. E file Ask each new employee to complete the 2014 Form W-4. E file See section 9. E file Name and social security number. E file Record each new employee's name and number from his or her social security card. E file Any employee without a social security card should apply for one. E file See section 4. E file Paying Wages, Pensions, or Annuities Correcting Form 941 or Form 944. E file If you discover an error on a previously filed Form 941 or Form 944, make the correction using Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund. E file Forms 941-X and 944-X are stand-alone forms, meaning taxpayers can file them when an error is discovered. E file Forms 941-X and 944-X are used by employers to claim refunds or abatements of employment taxes, rather than Form 843, Claim for Refund and Request for Abatement. E file See section 13 for more information. E file Income tax withholding. E file Withhold federal income tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee's Form W-4 and the correct withholding table. E file If you have nonresident alien employees, see Withholding income taxes on the wages of nonresident alien employees in section 9. E file Withhold from periodic pension and annuity payments as if the recipient is married claiming three withholding allowances, unless he or she has provided Form W-4P, Withholding Certificate for Pension or Annuity Payments, either electing no withholding or giving a different number of allowances, marital status, or an additional amount to be withheld. E file Do not withhold on direct rollovers from qualified plans or governmental section 457(b) plans. E file See section 9 and Publication 15-A, Employer's Supplemental Tax Guide. E file Publication 15-A includes information about withholding on pensions and annuities. E file Zero wage return. E file If you have not filed a “final” Form 941 or Form 944, or are not a “seasonal” employer, you must continue to file a Form 941 or Form 944 even for periods during which you paid no wages. E file The IRS encourages you to file your “Zero Wage” Forms 941 or 944 electronically using IRS e-file at www. E file irs. E file gov/efile. E file Employer Responsibilities Employer Responsibilities: The following list provides a brief summary of your basic responsibilities. E file Because the individual circumstances for each employer can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. E file Each item in this list has a page reference to a more detailed discussion in this publication. E file New Employees: Page Annually (By January 31 of the current year, Page □ Verify work eligibility of new employees 3 for the prior year): □ Record employees' names and SSNs from □ File Form 944 if required (pay tax with return if social security cards 4 not required to deposit) 29 □ Ask employees for Form W-4 3 Annually (see Calendar for due dates): Each Payday: □ Remind employees to submit a new Form W-4 □ Withhold federal income tax based on each if they need to change their withholding 20 employee's Form W-4 20 □ Ask for a new Form W-4 from employees □ Withhold employee's share of social security claiming exemption from income tax and Medicare taxes 23 withholding 20 □ Deposit: □ Reconcile Forms 941 (or Form 944) with Forms • Withheld income tax W-2 and W-3 31 • Withheld and employer social security taxes □ Furnish each employee a Form W-2 7 • Withheld and employer Medicare taxes 24 □ File Copy A of Forms W-2 and the transmittal Note:Due date of deposit generally depends Form W-3 with the SSA 8 on your deposit schedule (monthly or semiweekly) □ Furnish each other payee a Form 1099 (for example, Form 1099-MISC, Miscellaneous Income) 7 Quarterly (By April 30, July 31, October 31, and January 31): □ File Forms 1099 and the transmittal Form □ Deposit FUTA tax if undeposited amount 1096 8 is over $500 35 □ File Form 940 7 □ File Form 941 (pay tax with return if not □ File Form 945 for any nonpayroll income tax required to deposit) 29 withholding 8 Information Returns You may be required to file information returns to report certain types of payments made during the year. E file 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. E file For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return you file (for example, Instructions for Form 1099-MISC). E file Generally, do not use Forms 1099 to report wages and other compensation you paid to employees; report these on Form W-2. E file See the General Instructions for Forms W-2 and W-3 for details about filing Form W-2 and for information about required electronic filing. E file If you file 250 or more Forms 1099, you must file them electronically. E file If you file 250 or more Forms W-2, you must file them electronically. E file SSA will not accept Forms W-2 and W-3 filed on magnetic media. E file Information reporting customer service site. E file The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. E file If you have questions related to reporting on information returns, call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). E file The center can also be reached by email at mccirp@irs. E file gov. E file Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. E file Nonpayroll Income Tax Withholding Nonpayroll federal income tax withholding (reported on Forms 1099 and Form W-2G) must be reported on Form 945, Annual Return of Withheld Federal Income Tax. E file Separate deposits are required for payroll (Form 941 or Form 944) and nonpayroll (Form 945) withholding. E file Nonpayroll items include: Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans) and annuities. E file Military retirement. E file Gambling winnings. E file Indian gaming profits. E file Certain government payments, such as unemployment compensation, social security, and Tier 1 railroad retirement benefits, subject to voluntary withholding. E file Payments subject to backup withholding. E file For details on depositing and reporting nonpayroll income tax withholding, see the Instructions for Form 945. E file All income tax withholding reported on Form W-2 must be reported on Form 941, Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, Form 944, or Schedule H (Form 1040), Household Employment Taxes. E file Distributions from nonqualified pension plans and deferred compensation plans. E file Because distributions to participants from some nonqualified pension plans and deferred compensation plans (including section 457(b) plans of tax-exempt organizations) are treated as wages and are reported on Form W-2, income tax withheld must be reported on Form 941 or Form 944, not on Form 945. E file However, distributions from such plans to a beneficiary or estate of a deceased employee are not wages and are reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. E file ; income tax withheld must be reported on Form 945. E file Backup withholding. E file You generally must withhold 28% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN). E file This withholding is referred to as “backup withholding. E file ” Payments subject to backup withholding include interest, dividends, patronage dividends, rents, royalties, commissions, nonemployee compensation, and certain other payments you make in the course of your trade or business. E file In addition, transactions by brokers and barter exchanges and certain payments made by fishing boat operators are subject to backup withholding. E file Backup withholding does not apply to wages, pensions, annuities, IRAs (including simplified employee pension (SEP) and SIMPLE retirement plans), section 404(k) distributions from an employee stock ownership plan (ESOP), medical savings accounts, health savings accounts, long-term-care benefits, or real estate transactions. E file You can use Form W-9 or Formulario W-9(SP) to request payees to furnish a TIN and to certify the number furnished is correct. E file You can also use Form W-9 or Formulario W-9(SP) to get certifications from payees that they are not subject to backup withholding or that they are exempt from backup withholding. E file The Instructions for the Requester of Form W-9 or Formulario W-9(SP) includes a list of types of payees who are exempt from backup withholding. E file For more information, see Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). E file Recordkeeping Keep all records of employment taxes for at least 4 years. E file These should be available for IRS review. E file Your records should include the following information. E file Your EIN. E file Amounts and dates of all wage, annuity, and pension payments. E file Amounts of tips reported to you by your employees. E file Records of allocated tips. E file The fair market value of in-kind wages paid. E file Names, addresses, social security numbers, and occupations of employees and recipients. E file Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. E file Dates of employment for each employee. E file Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third party payors made to them. E file Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4P, W-4(SP), W-4S, and W-4V). E file Copies of employees' Earned Income Credit Advance Payment Certificates (Forms W-5 and W-5(SP)). E file Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. E file Copies of returns filed and confirmation numbers. E file Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. E file Change of Business Address or Responsible Party To notify the IRS of a change in business address or responsible party, file Form 8822-B. E file Do not mail Form 8822-B with your employment tax return. E file Private Delivery Services You can use certain private delivery services designated by the IRS to mail tax returns and payments. E file The list includes only the following: DHL Express (DHL): DHL Same Day Service. E file Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. E file United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. E file M. E file , UPS Worldwide Express Plus, and UPS Worldwide Express. E file For the IRS mailing address to use if you are using a private delivery service, go to IRS. E file gov and enter “private delivery service” in the search box. E file Your private delivery service can tell you how to get written proof of the mailing date. E file Private delivery services cannot deliver items to P. E file O. E file boxes. E file You must use the U. E file S. E file Postal Service to mail any item to an IRS P. E file O. E file box address. E file Telephone Help Tax questions. E file You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. E file Help for people with disabilities. E file You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) with any tax question or to order forms and publications. E file You may also use this number for assistance with unresolved tax problems. E file Recorded tax information (TeleTax). E file The IRS TeleTax service provides recorded tax information on topics that answer many individual and business federal tax questions. E file You can listen to up to three topics on each call you make. E file Touch-Tone service is available 24 hours a day, 7 days a week. E file TeleTax topics are also available on the IRS website at www. E file irs. E file gov/taxtopics. E file Most tax topics listed below are also available in Spanish. E file For a complete list of TeleTax topics in Spanish, visit the IRS website at www. E file irs. E file gov/Spanish/Índice-de-Temas-Tributarios-Año-2013. E file A list of employment tax topics is provided next. E file Select, by number, the topic you want to hear and call 1-800-829-4477. E file For the directory of all topics, select Topic 123. E file Teletax Topics Topic No. E file Subject 751 Social Security and Medicare Withholding Rates 752 Form W-2—Where, When, and How to File 753 Form W-4—Employee's Withholding Allowance Certificate 755 Employer Identification Number (EIN)—How to Apply 756 Employment Taxes for Household Employees 757 Form 941 and Form 944—Deposit Requirements 758 Form 941—Employer's QUARTERLY Federal Tax Return and Form 944—Employer's ANNUAL Federal Tax Return 759 Form 940—Employer's Annual Federal Unemployment (FUTA) Tax Return—Filing and Deposit Requirements 760 Reporting and Deposit Requirements for Agricultural Employers 761 Tips—Withholding and Reporting 762 Independent Contractor vs. E file Employee 763 The “Affordable Care Act” of 2010 Offers Employers New Tax Deductions and Credits Additional employment tax information. E file Visit the IRS website at www. E file irs. E file gov/businesses and click on the Employment Taxes link under Businesses Topics. E file Ordering Employer Tax Forms and Publications You can order employer tax forms and publications and information returns online at www. E file irs. E file gov/businesses. E file To order 2013 and 2014 forms, click on the Online Ordering for Information Returns and Employer Returns link. E file You may also order employer tax forms and publications and information returns by calling 1-800-TAX-FORM (1-800-829-3676). E file Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. E file Visit the SSA's Employer W-2 Filing Instructions & Information website at www. E file socialsecurity. E file gov/employer to register for Business Services Online. E file You will be able to create Forms W-2 online and submit them to the SSA by typing your wage information into easy-to-use fill-in fields. E file In addition, you can print out completed copies of Forms W-2 to file with state or local governments, distribute to your employees, and keep for your records. E file Form W-3 will be created for you based on your Forms W-2. E file Filing Addresses Generally, your filing address for Forms 940, 941, 943, 944, 945, and CT-1 depends on the location of your residence or principal place of business and whether or not you are including a payment with your return. E file There are separate filing addresses for these returns if you are a tax-exempt organization or government entity. E file See the separate instructions for Forms 940, 941, 943, 944, 945, or CT-1 for the filing addresses. E file Dishonored Payments Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. E file The penalty is $25 or 2% of the payment, whichever is more. E file However, the penalty on dishonored payments of $24. E file 99 or less is an amount equal to the payment. E file For example, a dishonored payment of $18 is charged a penalty of $18. E file Photographs of Missing Children The IRS is a proud partner with the National Center for Missing and Exploited Children. E file Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. E file 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. E file Calendar The following is a list of important dates. E file Also see Publication 509, Tax Calendars. E file If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, use the next business day. E file 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. E file However, a statewide legal holiday does not delay the due date of federal tax deposits. E file See Deposits on Business Days Only in section 11. E file For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. E file S. E file Postal Service on or before the due date, or sent by an IRS-designated private delivery service on or before the due date. E file See Private Delivery Services under Reminders for more information. E file Introduction This publication explains your tax responsibilities as an employer. E file It explains the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. E file It explains the forms you must give to your employees, those your employees must give to you, and those you must send to the IRS and SSA. E file This guide also has tax tables you need to figure the taxes to withhold from each employee for 2014. E file References to “income tax” in this guide apply only to “federal” income tax. E file Contact your state or local tax department to determine if their rules are different. E file Additional employment tax information is available in Publication 15-A. E file Publication 15-A includes specialized information supplementing the basic employment tax information provided in this publication. E file 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. E file Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes. E file Income tax. E file Social security tax. E file Medicare tax. E file FUTA tax. E file There are exceptions to these requirements. E file See section 15 for guidance. E file Railroad retirement taxes are explained in the Instructions for Form CT-1. E file Comments and suggestions. E file We welcome your comments about this publication and your suggestions for future editions. E file You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. E file NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. E file Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. E file You can also send us comments from www. E file irs. E file gov/formspubs. E file Click on More Information and then click on Comment on Tax Forms and Publications. E file Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. E file Federal Government employers. E file The information in this publication, including the rules for making federal tax deposits, applies to federal agencies. E file State and local government employers. E file Payments to employees for services in the employ of state and local government employers are generally subject to federal income tax withholding but not FUTA tax. E file Most elected and appointed public officials of state or local governments are employees under common law rules. E file See chapter 3 of Publication 963, Federal-State Reference Guide. E file In addition, wages, with certain exceptions, are subject to social security and Medicare taxes. E file See section 15 for more information on the exceptions. E file If an election worker is employed in another capacity with the same government entity, see Revenue Ruling 2000-6 on page 512 of Internal Revenue Bulletin 2000-6 at www. E file irs. E file gov/pub/irs-irbs/irb00-06. E file pdf. E file You can get information on reporting and social security coverage from your local IRS office. E file If you have any questions about coverage under a section 218 (Social Security Act) agreement, contact the appropriate state official. E file To find your State Social Security Administrator, visit the National Conference of State Social Security Administrators website at www. E file ncsssa. E file org. E file Disregarded entities and qualified subchapter S subsidiaries (QSubs). E file Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. E file Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. E file See Regulations sections 1. E file 1361-4(a)(7) and 301. E file 7701-2(c)(2)(iv). E file COBRA premium assistance credit. E file The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. E file COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. E file Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). E file Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. E file Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. E file For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. E file Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. E file For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. E file An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. E file The assistance for the coverage can last up to 15 months. E file Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. E file For more information see Notice 2009-27, 2009-16 I. E file R. E file B. E file 838, available at www. E file irs. E file gov/irb/2009-16_irb/ar09. E file html. E file Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. E file The 65% of the premium not paid by the assistance eligible individuals is reimbursed to the employer maintaining the group health plan. E file The reimbursement is made through a credit against the employer's employment tax liabilities. E file For information on how to claim the credit, see the Instructions for Form 941 or the Instructions for Form 944. E file The credit is treated as a deposit made on the first day of the return period (quarter or year). E file In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. E file In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. E file Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. E file Information on the receipt of the assistance eligible individuals' 35% share of the premium, including dates and amounts. E file In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. E file In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. E file Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. E file Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. E file A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. E file For more information, visit IRS. E file gov and enter “COBRA” in the search box. E file Prev Up Next Home More Online Publications