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State Tax Forms And Instructions

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State Tax Forms And Instructions

State tax forms and instructions Publication 51 - Main Content Table of Contents 1. State tax forms and instructions Taxpayer Identification NumbersWhen you receive your EIN. State tax forms and instructions Registering for SSNVS. State tax forms and instructions 2. State tax forms and instructions Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. State tax forms and instructions Wages and Other Compensation 4. State tax forms and instructions Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. State tax forms and instructions Federal Income Tax WithholdingImplementation of lock-in letter. State tax forms and instructions Seasonal employees and employees not currently performing services. State tax forms and instructions Termination and re-hire of employees. State tax forms and instructions How To Figure Federal Income Tax Withholding 6. State tax forms and instructions Required Notice to Employees About Earned Income Credit (EIC) 7. State tax forms and instructions Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. State tax forms and instructions Form 943 9. State tax forms and instructions Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. State tax forms and instructions Federal Unemployment (FUTA) Tax 11. State tax forms and instructions Reconciling Wage Reporting Forms 13. State tax forms and instructions Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. State tax forms and instructions Taxpayer Identification Numbers If you are required to withhold any federal income, social security, or Medicare taxes, you will need an employer identification number (EIN) for yourself. State tax forms and instructions Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. State tax forms and instructions Employer identification number (EIN). State tax forms and instructions   An employer identification number (EIN) is a nine-digit number that the IRS issues. State tax forms and instructions The digits are arranged as follows: 00-0000000. State tax forms and instructions It is used to identify the tax accounts of employers and certain others who have no employees. State tax forms and instructions Use your EIN on all of the items that you send to the IRS and SSA. State tax forms and instructions   If you do not have an EIN, you may apply for one online. State tax forms and instructions Visit IRS. State tax forms and instructions gov and click on the Apply for an EIN Online link under Tools. State tax forms and instructions You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. State tax forms and instructions Do not use a SSN in place of an EIN. State tax forms and instructions   If you do not have an EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. State tax forms and instructions If you took over another employer's business, do not use that employer's EIN. State tax forms and instructions   You should have only one EIN. State tax forms and instructions If you have more than one, and are not sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). State tax forms and instructions Provide the EINs that you have, the name and address to which each number was assigned, and the address of your principal place of business. State tax forms and instructions The IRS will tell you which EIN to use. State tax forms and instructions   For more information, see Publication 1635 or Publication 583. State tax forms and instructions When you receive your EIN. State tax forms and instructions   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS). State tax forms and instructions You will receive information in your Employer Identification Number (EIN) Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. State tax forms and instructions Call the toll-free number located in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. State tax forms and instructions If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. State tax forms and instructions Social security number (SSN). State tax forms and instructions   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. State tax forms and instructions You must obtain each employee's name and SSN as shown on the employee's social security card because you must enter them on Form W-2. State tax forms and instructions Do not accept a social security card that says “Not valid for employment. State tax forms and instructions ” A social security number issued with this legend does not permit employment. State tax forms and instructions You may, but are not required to, photocopy the social security card if the employee provides it. State tax forms and instructions If you do not show the employee's correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. State tax forms and instructions See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. State tax forms and instructions Applying for a social security card. State tax forms and instructions   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation to SSA. State tax forms and instructions You can get Form SS-5 at SSA offices, by calling 1-800-772-1213 or 1-800-325-0778 (TTY), or from the SSA website at www. State tax forms and instructions socialsecurity. State tax forms and instructions gov/online/ss-5. State tax forms and instructions html. State tax forms and instructions The employee must complete and sign Form SS-5; it cannot be filed by the employer. State tax forms and instructions You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. State tax forms and instructions Applying for a social security number. State tax forms and instructions   If you file Form W-2 on paper and your employee has applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. State tax forms and instructions If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. State tax forms and instructions When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. State tax forms and instructions Furnish Copies B, C, and 2 of Form W-2c to the employee. State tax forms and instructions Up to 25 Forms W-2c per Form W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no limit on the number of sessions. State tax forms and instructions For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. State tax forms and instructions socialsecurity. State tax forms and instructions gov/employer. State tax forms and instructions Advise your employee to correct the SSN on his or her original Form W-2. State tax forms and instructions Correctly record the employee's name and SSN. State tax forms and instructions   Record the name and number of each employee as they are shown on the employee's social security card. State tax forms and instructions If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. State tax forms and instructions Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. State tax forms and instructions   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2. State tax forms and instructions It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. State tax forms and instructions IRS individual taxpayer identification numbers (ITINs) for aliens. State tax forms and instructions   Do not accept an ITIN in place of an SSN for employee identification or for work. State tax forms and instructions An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. State tax forms and instructions S. State tax forms and instructions employment. State tax forms and instructions The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). State tax forms and instructions However, it begins with the number “9” and has either a “7” or “8” as the fourth digit (for example, 9NN-7N-NNNN or 9NN-8N-NNNN). State tax forms and instructions    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. State tax forms and instructions If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier in this section. State tax forms and instructions Do not use an ITIN in place of an SSN on Form W-2. State tax forms and instructions Verification of social security numbers. State tax forms and instructions   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive results the next business day. State tax forms and instructions Visit www. State tax forms and instructions socialsecurity. State tax forms and instructions gov/employer/ssnv. State tax forms and instructions htm for more information. State tax forms and instructions Registering for SSNVS. State tax forms and instructions   You must register online and receive authorization from your employer to use SSNVS. State tax forms and instructions To register, visit SSA's website at www. State tax forms and instructions socialsecurity. State tax forms and instructions gov/employer and click on the Business Services Online link. State tax forms and instructions Follow the registration instructions to obtain a user identification (ID) and password. State tax forms and instructions You will need to provide the following information about yourself and your company. State tax forms and instructions Name. State tax forms and instructions SSN. State tax forms and instructions Date of birth. State tax forms and instructions Type of employer. State tax forms and instructions EIN. State tax forms and instructions Company name, address, and telephone number. State tax forms and instructions Email address. State tax forms and instructions When you have completed the online registration process, SSA will mail a one-time activation code to your employer. State tax forms and instructions You must enter the activation code online to use SSNVS. State tax forms and instructions 2. State tax forms and instructions Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. State tax forms and instructions See Publication 15-A for details on statutory employees and nonemployees. State tax forms and instructions Employee status under common law. State tax forms and instructions   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. State tax forms and instructions This is so even when you give the employee freedom of action. State tax forms and instructions What matters is that you have the right to control the details of how the services are performed. State tax forms and instructions See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. State tax forms and instructions If an employer-employee relationship exists, it does not matter what it is called. State tax forms and instructions The employee may be called an agent or independent contractor. State tax forms and instructions It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. State tax forms and instructions You are responsible for withholding and paying employment taxes for your employees. State tax forms and instructions You are also required to file employment tax returns. State tax forms and instructions These requirements do not apply to amounts that you pay to independent contractors. State tax forms and instructions The rules discussed in this publication apply only to workers who are your employees. State tax forms and instructions In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. State tax forms and instructions For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. State tax forms and instructions Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. State tax forms and instructions The table in section 12, How Do Employment Taxes Apply to Farmwork , distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations. State tax forms and instructions Crew Leaders If you are a crew leader, you are an employer of farmworkers. State tax forms and instructions A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. State tax forms and instructions If there is no written agreement between you and the farm operator stating that you are his or her employee and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. State tax forms and instructions For FUTA tax rules, see section 10. State tax forms and instructions Business Owned and Operated by Spouses If you and your spouse jointly own and operate a farm or nonfarm business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. State tax forms and instructions See Publication 541, Partnerships, for more details. State tax forms and instructions The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. State tax forms and instructions Exception—Qualified joint venture. State tax forms and instructions   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. State tax forms and instructions A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). State tax forms and instructions   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. State tax forms and instructions Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. State tax forms and instructions   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. State tax forms and instructions If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. State tax forms and instructions Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. State tax forms and instructions However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. State tax forms and instructions    Note. State tax forms and instructions If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. State tax forms and instructions   For more information on qualified joint ventures, visit IRS. State tax forms and instructions gov and enter “qualified joint venture” in the search box. State tax forms and instructions Exception—Community income. State tax forms and instructions   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. State tax forms and instructions S. State tax forms and instructions possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. State tax forms and instructions You may still make an election to be taxed as a qualified joint venture instead of a partnership. State tax forms and instructions See Exception—Qualified joint venture , earlier in this section. State tax forms and instructions 3. State tax forms and instructions Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. State tax forms and instructions You may also be required to withhold, deposit, and report Additional Medicare Tax. State tax forms and instructions See section 4 for more information. State tax forms and instructions If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. State tax forms and instructions You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. State tax forms and instructions FUTA tax is discussed in section 10. State tax forms and instructions Cash wages include checks, money orders, etc. State tax forms and instructions Do not count as cash wages the value of food, lodging, and other noncash items. State tax forms and instructions For more information on what payments are considered taxable wages, see Publication 15 (Circular E). State tax forms and instructions Commodity wages. State tax forms and instructions   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. State tax forms and instructions However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. State tax forms and instructions These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. State tax forms and instructions Other compensation. State tax forms and instructions   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. State tax forms and instructions Family members. State tax forms and instructions   Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. State tax forms and instructions However, certain exemptions may apply for your child, spouse, or parent. State tax forms and instructions See the table, How Do Employment Taxes Apply to Farmwork , in section 12. State tax forms and instructions Household employees. State tax forms and instructions   The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,900 in 2014. State tax forms and instructions   Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. State tax forms and instructions Nor do the taxes apply to housework done by your parent unless: You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter, and You are a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. State tax forms and instructions   For more information, see Publication 926, Household Employer's Tax Guide. State tax forms and instructions    Wages for household work may not be a deductible farm expense. State tax forms and instructions See Publication 225, Farmer's Tax Guide. State tax forms and instructions Share farmers. State tax forms and instructions   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. State tax forms and instructions Compensation paid to H-2A visa holders. State tax forms and instructions   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but do not report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes. State tax forms and instructions On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. State tax forms and instructions   An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. State tax forms and instructions In that case, the worker must give the employer a completed Form W-4. State tax forms and instructions Federal income tax withheld should be reported in box 2 of Form W-2. State tax forms and instructions These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. State tax forms and instructions For rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. State tax forms and instructions 4. State tax forms and instructions Social Security and Medicare Taxes Generally, you must withhold social security and Medicare taxes on all cash wage payments that you make to your employees. State tax forms and instructions You may also be required to withhold Additional Medicare Tax. State tax forms and instructions For more information, see Additional Medicare Tax withholding , later. State tax forms and instructions The $150 Test or the $2,500 Test All cash wages that you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of the two tests below is met. State tax forms and instructions You pay cash wages to an employee of $150 or more in a year for farmwork (count all cash wages paid on a time, piecework, or other basis). State tax forms and instructions The $150 test applies separately to each farmworker that you employ. State tax forms and instructions If you employ a family of workers, each member is treated separately. State tax forms and instructions Do not count wages paid by other employers. State tax forms and instructions The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. State tax forms and instructions Exceptions. State tax forms and instructions   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. State tax forms and instructions   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. State tax forms and instructions Social Security and Medicare Tax Withholding The social security tax rate is 6. State tax forms and instructions 2%, for both the employee and employer, on the first $117,000 paid to each employee. State tax forms and instructions You must withhold at this rate from each employee and pay a matching amount. State tax forms and instructions The Medicare tax rate is 1. State tax forms and instructions 45% each for the employee and employer on all wages. State tax forms and instructions You must withhold at this rate from each employee and pay a matching amount. State tax forms and instructions There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. State tax forms and instructions Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. State tax forms and instructions For details, see Publication 15-A. State tax forms and instructions Additional Medicare Tax withholding. State tax forms and instructions   In addition to withholding Medicare tax at 1. State tax forms and instructions 45%, you must withhold a 0. State tax forms and instructions 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State tax forms and instructions 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. State tax forms and instructions Additional Medicare Tax is only imposed on the employee. State tax forms and instructions There is no employer share of Additional Medicare Tax. State tax forms and instructions 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. State tax forms and instructions   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 of Publication 15 (Circular E). State tax forms and instructions For more information on Additional Medicare Tax, visit IRS. State tax forms and instructions gov and enter “Additional Medicare Tax” in the search box. State tax forms and instructions Employee share paid by employer. State tax forms and instructions   If you would rather pay a household or agricultural employee's share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. State tax forms and instructions If you do not withhold the taxes, however, you must still pay them. State tax forms and instructions Any employee social security and Medicare taxes that you pay is additional income to the employee. State tax forms and instructions Include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages and do not include it in boxes 3 and 5. State tax forms and instructions Also, do not count the additional income as wages for FUTA tax purposes. State tax forms and instructions Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. State tax forms and instructions See section 7 of Publication 15-A. State tax forms and instructions Withholding social security and Medicare taxes on nonresident alien employees. State tax forms and instructions   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. State tax forms and instructions S. State tax forms and instructions citizen or resident alien. State tax forms and instructions However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. State tax forms and instructions Also see Compensation paid to H-2A visa holders in section 3. State tax forms and instructions Religious exemption. State tax forms and instructions    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. State tax forms and instructions This exemption is available only if both the employee and the employer are members of the sect. State tax forms and instructions   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. State tax forms and instructions 5. State tax forms and instructions Federal Income Tax Withholding Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. State tax forms and instructions The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. State tax forms and instructions You may use one of several methods to determine the amount of federal income tax withholding. State tax forms and instructions They are discussed in section 13. State tax forms and instructions Form W-4. State tax forms and instructions   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. State tax forms and instructions Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. State tax forms and instructions Advise your employees to use the IRS Withholding Calculator on the IRS website at www. State tax forms and instructions irs. State tax forms and instructions gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. State tax forms and instructions   Ask each new employee to give you a signed Form W-4 when starting work. State tax forms and instructions Make the form effective with the first wage payment. State tax forms and instructions If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances. State tax forms and instructions Forms in Spanish. State tax forms and instructions   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. State tax forms and instructions For more information, see Publicación 17(SP). State tax forms and instructions Effective date of Form W-4. State tax forms and instructions   A Form W-4 remains in effect until the employee gives you a new one. State tax forms and instructions When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. State tax forms and instructions Do not adjust withholding retroactively. State tax forms and instructions If an employee gives you a replacement Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. State tax forms and instructions For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. State tax forms and instructions A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. State tax forms and instructions Completing Form W-4. State tax forms and instructions   The amount of federal income tax withholding is based on marital status and withholding allowances. State tax forms and instructions Your employees may not base their withholding amounts on a fixed dollar amount or percentage. State tax forms and instructions However, the employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. State tax forms and instructions   Employees may claim fewer withholding allowances than they are entitled to claim. State tax forms and instructions They may do this to ensure that they have enough withholding or to offset other sources of taxable income that are not subject to withholding. State tax forms and instructions   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. State tax forms and instructions Along with Form W-4, you may wish to order Publication 505 for use by your employees. State tax forms and instructions    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. State tax forms and instructions If an employee wants additional withholding, he or she should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. State tax forms and instructions Exemption from federal income tax withholding. State tax forms and instructions   Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. State tax forms and instructions See the Form W-4 instructions for more information. State tax forms and instructions However, the wages are still subject to social security and Medicare taxes. State tax forms and instructions   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. State tax forms and instructions To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. State tax forms and instructions If the employee does not give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that did not claim an exemption from withholding or, if one does not exist, withhold as if he or she is single with zero withholding allowances. State tax forms and instructions If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. State tax forms and instructions Withholding income taxes on the wages of nonresident alien employees. State tax forms and instructions   In general, you must withhold federal income taxes on the wages of nonresident alien employees. State tax forms and instructions However, see Publication 515 for exceptions to this general rule. State tax forms and instructions Also see Compensation paid to H-2A visa workers in section 3. State tax forms and instructions Withholding adjustment for nonresident alien employees. State tax forms and instructions   A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2014. State tax forms and instructions This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. State tax forms and instructions See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). State tax forms and instructions Nonresident alien employee's Form W-4. State tax forms and instructions   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding; Request withholding as if they are single, regardless of their actual marital status; Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or Korea, he or she may claim more than one allowance); and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. State tax forms and instructions   If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. State tax forms and instructions    A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. State tax forms and instructions Form 8233. State tax forms and instructions   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. State tax forms and instructions See Publication 515 for details. State tax forms and instructions IRS review of requested Forms W-4. State tax forms and instructions   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. State tax forms and instructions You may also be directed to send certain Forms W-4 to the IRS. State tax forms and instructions You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. State tax forms and instructions Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. State tax forms and instructions The IRS may also require you to submit copies of Form W-4 to the IRS as directed by a revenue procedure or notice published in the Internal Revenue Bulletin. State tax forms and instructions When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. State tax forms and instructions   After submitting a copy of the requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). State tax forms and instructions However, if the IRS later notifies you in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding allowances specified by the IRS in the written notice, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”). State tax forms and instructions Initial lock-in letter. State tax forms and instructions   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. State tax forms and instructions In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. State tax forms and instructions You will also receive a copy for the employee that identifies the maximum number of withholding allowances permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances. State tax forms and instructions If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. State tax forms and instructions You may follow any reasonable business practice to furnish the employee copy to the employee. State tax forms and instructions Implementation of lock-in letter. State tax forms and instructions   When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. State tax forms and instructions You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. State tax forms and instructions The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS. State tax forms and instructions Seasonal employees and employees not currently performing services. State tax forms and instructions   If you receive a notice for an employee who is not currently performing services for you, you are still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply. State tax forms and instructions You are paying wages for the employee's prior services and the wages are subject to income tax withholding on or after the date specified in the notice. State tax forms and instructions You reasonably expect the employee to resume services within 12 months of the date of the notice. State tax forms and instructions The employee is on a bona fide leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence. State tax forms and instructions Termination and re-hire of employees. State tax forms and instructions   If you are required to furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, you must continue to withhold based on the notice if you continue to pay any wages subject to income tax withholding. State tax forms and instructions You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship. State tax forms and instructions Modification notice. State tax forms and instructions   After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. State tax forms and instructions The modification notice may change the marital status and/or the number of withholding allowances permitted. State tax forms and instructions You must withhold federal income tax based on the effective date specified in the modification notice. State tax forms and instructions New Form W-4 after IRS notice. State tax forms and instructions   After the IRS issues a notice or modification notice, if the employee provides you with a new Form W-4 claiming complete exemption from withholding or claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. State tax forms and instructions You are required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. State tax forms and instructions If the employee wants to put a new Form W-4 into effect that results in less withholding than required, the employee must contact the IRS. State tax forms and instructions   If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that does not claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. State tax forms and instructions Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. State tax forms and instructions Substitute Forms W-4. State tax forms and instructions   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. State tax forms and instructions Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. State tax forms and instructions gov to obtain copies of Form W-4. State tax forms and instructions   You may use a substitute version of Form W-4 to meet your business needs. State tax forms and instructions However, your substitute Form W-4 must contain language that is identical to the official Form W-4 and your form must meet all current IRS rules for substitute forms. State tax forms and instructions At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4. State tax forms and instructions   You cannot accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. State tax forms and instructions However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. State tax forms and instructions Invalid Forms W-4. State tax forms and instructions   Any unauthorized change or addition to Form W-4 makes it invalid. State tax forms and instructions This includes taking out any language by which the employee certifies that the form is correct. State tax forms and instructions A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. State tax forms and instructions An employee who submits a false Form W-4 may be subject to a $500 penalty. State tax forms and instructions You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6. State tax forms and instructions   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. State tax forms and instructions Tell the employee that it is invalid and ask for another one. State tax forms and instructions If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. State tax forms and instructions However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. State tax forms and instructions   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. State tax forms and instructions R. State tax forms and instructions B. State tax forms and instructions 455, available at www. State tax forms and instructions irs. State tax forms and instructions gov/irb/2007-35_IRB/ar10. State tax forms and instructions html. State tax forms and instructions Amounts exempt from levy on wages, salary, and other income. State tax forms and instructions   If you receive a Notice of Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), or 668-W(ICS), you must withhold amounts as described in the instructions for these forms. State tax forms and instructions Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), and 668-W(ICS), shows the exempt amount. State tax forms and instructions If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Publication 1494 to compute the exempt amount. State tax forms and instructions How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. State tax forms and instructions Wage bracket tables. State tax forms and instructions See section 13 for directions on how to use the tables. State tax forms and instructions Percentage method. State tax forms and instructions See section 13 for directions on how to use the percentage method. State tax forms and instructions Alternative formula tables for percentage method withholding. State tax forms and instructions See Publication 15-A. State tax forms and instructions Wage bracket percentage method withholding tables. State tax forms and instructions See Publication 15-A. State tax forms and instructions Other alternative methods. State tax forms and instructions See Publication 15-A. State tax forms and instructions Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Publication 15-A useful. State tax forms and instructions If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. State tax forms and instructions Supplemental wages. State tax forms and instructions   Supplemental wages are wage payments to an employee that are not regular wages. State tax forms and instructions They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. State tax forms and instructions Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. State tax forms and instructions   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period. State tax forms and instructions   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold federal income tax from your employee's regular wages. State tax forms and instructions If you withheld federal income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. State tax forms and instructions Withhold a flat 25% (no other percentage allowed). State tax forms and instructions If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. State tax forms and instructions If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. State tax forms and instructions Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. State tax forms and instructions Subtract the tax withheld from the regular wages. State tax forms and instructions Withhold the remaining tax from the supplemental wages. State tax forms and instructions If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages. State tax forms and instructions If you did not withhold federal income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. State tax forms and instructions This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. State tax forms and instructions    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. State tax forms and instructions See section 7 in Publication 15 (Circular E) for details. State tax forms and instructions   Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes. State tax forms and instructions 6. State tax forms and instructions Required Notice to Employees About Earned Income Credit (EIC) You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. State tax forms and instructions Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that they may be eligible to claim the credit for 2013. State tax forms and instructions This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. State tax forms and instructions You will meet the notification requirement if you issue to the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. State tax forms and instructions You may also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording. State tax forms and instructions If a substitute Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. State tax forms and instructions If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. State tax forms and instructions If Form W-2 is not required, you must notify the employee by February 7, 2014. State tax forms and instructions 7. State tax forms and instructions Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. State tax forms and instructions You must use electronic funds transfer to make all federal tax deposits. State tax forms and instructions See How To Deposit , later in this section. State tax forms and instructions The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. State tax forms and instructions For more information, see COBRA premium assistance credit under Introduction. State tax forms and instructions Payment with return. State tax forms and instructions   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. State tax forms and instructions You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. State tax forms and instructions However, if you are unsure that you will report less than $2,500, deposit under the rules explained in this section so that you will not be subject to failure-to-deposit penalties. State tax forms and instructions You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. State tax forms and instructions This payment may be $2,500 or more. State tax forms and instructions Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. State tax forms and instructions Semiweekly schedule depositors must timely deposit the amount. State tax forms and instructions See Accuracy of Deposits Rule and How To Deposit, later in this section. State tax forms and instructions When To Deposit If you employ both farm and nonfarm workers, do not combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. State tax forms and instructions See Employers of Both Farm and Nonfarm Workers, later in this section. State tax forms and instructions The rules for determining when to deposit Form 943 taxes are discussed below. State tax forms and instructions See section 10 for the separate rules that apply to FUTA tax. State tax forms and instructions Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. State tax forms and instructions The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or how often you are required to make deposits. State tax forms and instructions The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). State tax forms and instructions The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 9, for the lookback period, discussed next. State tax forms and instructions If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. State tax forms and instructions If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. State tax forms and instructions Lookback period. State tax forms and instructions   The lookback period is the second calendar year preceding the current calendar year. State tax forms and instructions For example, the lookback period for 2014 is 2012. State tax forms and instructions Example of deposit schedule based on lookback period. State tax forms and instructions Rose Co. State tax forms and instructions reported taxes on Form 943 as follows. State tax forms and instructions 2012 — $48,000 2013 — $60,000 Rose Co. State tax forms and instructions is a monthly schedule depositor for 2014 because its taxes for the lookback period ($48,000 for calendar year 2012) were not more than $50,000. State tax forms and instructions However, for 2015, Rose Co. State tax forms and instructions is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. State tax forms and instructions Adjustments to lookback period taxes. State tax forms and instructions   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). State tax forms and instructions Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. State tax forms and instructions Example of adjustments. State tax forms and instructions An employer originally reported total tax of $45,000 for the lookback period in 2012. State tax forms and instructions The employer discovered during March 2014 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. State tax forms and instructions The total tax reported in the lookback period is still $45,000. State tax forms and instructions The $10,000 adjustment is also not treated as part of the 2014 taxes. State tax forms and instructions Deposit period. State tax forms and instructions   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. State tax forms and instructions For monthly schedule depositors, the deposit period is a calendar month. State tax forms and instructions The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. State tax forms and instructions Monthly Deposit Schedule If the tax liability reported on Form 943, line 9, for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. State tax forms and instructions You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. State tax forms and instructions Monthly schedule example. State tax forms and instructions   Red Co. State tax forms and instructions is a seasonal employer and a monthly schedule depositor. State tax forms and instructions It pays wages each Friday. State tax forms and instructions It paid wages during August 2014, but did not pay any wages during September. State tax forms and instructions Red Co. State tax forms and instructions must deposit the combined tax liabilities for the August paydays by September 15. State tax forms and instructions Red Co. State tax forms and instructions does not have a deposit requirement for September (that is, due by October 15, 2014) because no wages were paid in September; therefore, it did not have a tax liability for September. State tax forms and instructions New employers. State tax forms and instructions   For agricultural employers, your tax liability for any year in the lookback period before the date you started or acquired your business is considered to be zero. State tax forms and instructions Therefore, you are a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section). State tax forms and instructions Semiweekly Deposit Schedule You are a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 9, during your lookback period was more than $50,000. State tax forms and instructions Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. State tax forms and instructions Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. State tax forms and instructions Semiweekly depositors are not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule (discussed later in this section) applies. State tax forms and instructions For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 by the following Wednesday. State tax forms and instructions If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. State tax forms and instructions Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. State tax forms and instructions Semiweekly Deposit Schedule IF the payday falls on a. State tax forms and instructions . State tax forms and instructions . State tax forms and instructions THEN deposit taxes by the following. State tax forms and instructions . State tax forms and instructions . State tax forms and instructions Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. State tax forms and instructions   Green, Inc. State tax forms and instructions , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. State tax forms and instructions Green, Inc. State tax forms and instructions , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. State tax forms and instructions Green, Inc. State tax forms and instructions 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). State tax forms and instructions Semiweekly deposit period spanning two quarters. State tax forms and instructions   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. State tax forms and instructions For example, if you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. State tax forms and instructions Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). State tax forms and instructions Deposits on Business Days Only If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. State tax forms and instructions A business day is any day other than a Saturday, Sunday, or legal holiday. State tax forms and instructions For example, if a deposit is required to be made on Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). State tax forms and instructions Semiweekly schedule depositors   will always have 3 business days to make a deposit. State tax forms and instructions That is, if any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the deposit. State tax forms and instructions For example, if a semiweekly schedule depositor accumulated taxes on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). State tax forms and instructions Legal holiday. State tax forms and instructions   The term “legal holiday” means any legal holiday in the District of Columbia. State tax forms and instructions Legal holidays for 2014 are listed below. State tax forms and instructions January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. State tax forms and instructions February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans' Day November 27— Thanksgiving Day December 25— Christmas Day $100,000 Next-Day Deposit Rule If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. State tax forms and instructions For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. State tax forms and instructions For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. State tax forms and instructions Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. State tax forms and instructions However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. State tax forms and instructions For example, Fir Co. State tax forms and instructions is a semiweekly schedule depositor. State tax forms and instructions On Monday, Fir Co. State tax forms and instructions accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. State tax forms and instructions On Tuesday, Fir Co. State tax forms and instructions accumulates additional taxes of $30,000. State tax forms and instructions Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. State tax forms and instructions does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). State tax forms and instructions If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. State tax forms and instructions Example of the $100,000 next-day deposit rule. State tax forms and instructions   Elm, Inc. State tax forms and instructions , started its business on May 1, 2014. State tax forms and instructions Because Elm, Inc. State tax forms and instructions , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. State tax forms and instructions , is a monthly schedule depositor. State tax forms and instructions On May 8, Elm, Inc. State tax forms and instructions , paid wages for the first time and accumulated taxes of $50,000. State tax forms and instructions On May 9 (Friday), Elm, Inc. State tax forms and instructions , paid wages and accumulated taxes of $60,000, for a total of $110,000. State tax forms and instructions Because Elm, Inc. State tax forms and instructions , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. State tax forms and instructions Elm, Inc. State tax forms and instructions , became a semiweekly schedule depositor on May 10. State tax forms and instructions It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. State tax forms and instructions Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. State tax forms and instructions However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. State tax forms and instructions Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. State tax forms and instructions The deposit shortfall is paid or deposited by the shortfall makeup date as described below. State tax forms and instructions Makeup Date for Deposit Shortfall:    Monthly Schedule Depositor—Deposit the shortfall or pay it with your return by the due date of your Form 943. State tax forms and instructions You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. State tax forms and instructions Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. State tax forms and instructions For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). State tax forms and instructions How To Deposit You must deposit employment taxes by electronic funds transfer. State tax forms and instructions See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. State tax forms and instructions Electronic deposit requirement. State tax forms and instructions   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). State tax forms and instructions Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). State tax forms and instructions 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. State tax forms and instructions   EFTPS is a free service provided by the Department of Treasury. State tax forms and instructions To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD). State tax forms and instructions You can also visit the EFTPS website at www. State tax forms and instructions eftps. State tax forms and instructions gov. State tax forms and instructions Additional information about EFTPS is also available in Publication 966. State tax forms and instructions New employers that have a federal tax obligation will be pre-enrolled in EFTPS. State tax forms and instructions Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. State tax forms and instructions See When you receive your EIN in section 1 for more information. State tax forms and instructions Deposit record. State tax forms and instructions   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. State tax forms and instructions The number can be used as a receipt or to trace the payment. State tax forms and instructions Depositing on time. State tax forms and instructions   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. State tax forms and instructions m. State tax forms and instructions Eastern time the day before the date a deposit is due. State tax forms and instructions If you use a third party to make a deposit on your behalf, they may have different cutoff times. State tax forms and instructions Same-day payment option. State tax forms and instructions   If you fail to initiate a deposit transaction on EFTPS by 8 p. State tax forms and instructions m. State tax forms and instructions Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). State tax forms and instructions To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. State tax forms and instructions Please check with your financial institution regarding availability, deadlines, and costs. State tax forms and instructions Your financial institution may charge you a fee for payments made this way. State tax forms and instructions To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. State tax forms and instructions eftps. State tax forms and instructions gov to download the Same-Day Payment Worksheet. State tax forms and instructions Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. State tax forms and instructions The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. State tax forms and instructions IRS may also waive deposit penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. State tax forms and instructions For amounts not properly deposited or not deposited on time, the penalty rates are shown next. State tax forms and instructions Penalty Charged for. State tax forms and instructions . State tax forms and instructions . State tax forms and instructions 2% Deposits made 1 to 5 days late. State tax forms and instructions 5% Deposits made 6 to 15 days late. State tax forms and instructions 10% Deposits made 16 or more days late. State tax forms and instructions Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. State tax forms and instructions 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. State tax forms and instructions See Payment with return , earlier in this section, for exceptions. State tax forms and instructions 15% Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. State tax forms and instructions Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. State tax forms and instructions Order in which deposits are applied. State tax forms and instructions   Deposits generally are applied to the most recent tax liability within the year. State tax forms and instructions If you receive a failure-to-deposit penalty notice, you may designate how your deposits are to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. State tax forms and instructions Follow the instructions on the penalty notice that you received. State tax forms and instructions For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. State tax forms and instructions You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. State tax forms and instructions irs. State tax forms and instructions gov/pub/irs-irbs/irb01-50. State tax forms and instructions pdf. State tax forms and instructions Example. State tax forms and instructions Cedar, Inc. State tax forms and instructions , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. State tax forms and instructions It does not make the deposit on July 15. State tax forms and instructions On August 15, Cedar, Inc. State tax forms and instructions , deposits $2,000. State tax forms and instructions Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. State tax forms and instructions Accordingly, $500 of the July 15 liability remains undeposited. State tax forms and instructions The penalty on this underdeposit will apply as explained above. State tax forms and instructions Trust fund recovery penalty. State tax forms and instructions   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. State tax forms and instructions The penalty is the full amount of the unpaid trust fund tax. State tax forms and instructions This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. State tax forms and instructions   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. State tax forms and instructions   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship. State tax forms and instructions A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. State tax forms and instructions    Willfully means voluntarily, consciously, and intentionally. State tax forms and instructions A responsible person acts willfully if the person knows that the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. State tax forms and instructions “Average” failure-to-deposit penalty. State tax forms and instructions   IRS may assess an “averaged” failure-to-deposit penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. State tax forms and instructions IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following. State tax forms and instructions Completed Form 943, line 17, instead of Form 943-A. State tax forms and instructions Failed to attach a properly completed Form 943-A. State tax forms and instructions Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. State tax forms and instructions   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. State tax forms and instructions Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. State tax forms and instructions   You can avoid the penalty by reviewing your return before filing it. State tax forms and instructions Follow these steps before filing your Form 943. State tax forms and instructions If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. State tax forms and instructions If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees. State tax forms and instructions Verify that your total liability shown on Form 943, line 17, or Form 943-A, line M, equals your tax liability shown on Form 943, line 11. State tax forms and instructions Do not show negative amounts on Form 943, line 17, or Form 943-A. State tax forms and instructions For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A. State tax forms and instructions Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941 and 944 taxes). State tax forms and instructions Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. State tax forms and instructions If a deposit is due, deposi

.gov Reform Effort: Improving Federal Websites

On This Page

Digital Government Strategy

The White House released its Digital Government Strategy, entitled Digital Government: Building a 21st Century Platform to Better Serve the American People, on May 23, 2012. You can also download the Digital Government Strategy as a PDF.

The strategy is a plan for delivering better online service to the American people, with three main objectives:

  • Enable citizens and an increasingly mobile workforce to access high-quality digital government information and services anywhere, anytime, on any device.
  • Ensure that as the government adjusts to this new digital world, we seize the opportunity to procure and manage devices, applications, and data in smart, secure and affordable ways.
  • Unlock the power of government data to spur innovation across our Nation and improve the quality of services for the American people.

The Digital Government Strategy was created from a broad range of input across government: the Mobility Strategy and Web Reform Task Forces, the Office of Management and Budget, the General Services Administration, Federal CIOs, new media directors, and web managers. The Strategy also draws on research from the State of the Federal Web Report (PDF) and public input from the National Dialogue for Improving Federal Websites and the National Dialogue on the Federal Mobility Strategy.

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What is the .gov reform effort?

The .gov reform effort began in 2011 as part of President Obama's Campaign to Cut Waste, identifying unnecessary websites that can be consolidated into other websites to reduce costs and improve the quality of service to the American public.

The reform effort led to the development of a federal web strategy, which was merged with the federal mobility strategy to create the Digital Government Strategy. This broader initiative focuses not only on website consolidation, but also on innovating with less and delivering better quality content and information to the public across multiple platforms and devices.

What is the federal government doing to improve federal websites?

In the June 13, 2011, OMB Memorandum M-11-24, Implementing Executive Order 13571 on Streamlining Service Delivery and Improving Customer Service (PDF), agencies are directed to improve online services and eliminate wasteful spending. They must work to manage web resources more efficiently and assure that valuable content is readily accessible and available online. To date, the reform effort has:

  • Instituted a freeze on the approval of new .gov domain names and developed stronger criteria for getting a new domain.
  • Set up the .gov Reform Task Force to recommend updates to federal web guidelines and policies.
  • Posted and updated a list of all registered .gov domain names on Data.gov.
  • Asked agencies to identify sites that can be eliminated, consolidated, and/or streamlined.
  • Conducted an inventory of federal domains and sites, a survey of federal web governance policies and a national dialogue on improving federal web sites, and used the data to create the State of the Federal Web report.
  • Required agencies to develop Web Improvement Plans (included in the State of the Federal Web Report).
  • Worked with others across government to develop the Digital Government Strategy.

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Who's responsible for managing this effort?

The Office of Management and Budget (OMB), the General Services Administration (GSA), the Office of Science and Technology Policy (OSTP), the Chief Information Officers Council, and the Federal Web Managers Council are working with agencies to manage this effort. The .gov Task Force, whose members are listed below, is leading this effort.

Where can I see a list of federal websites?

The list of federal executive branch .gov domains was published July 12, 2011 on Data.gov. It does not include .gov domains/URLs in the federal legislative or judicial branches or from state, local, or tribal governments. It also does not include sub-domains that are below the root domain, such as ers.usda.gov or niaid.nih.gov.

Since each domain can have an unlimited number of potential websites and URLs under them, the total number of websites in the entire federal government is much larger than the number of domains listed on Data.gov. The inventory will allow us to more closely identify the total number of federal websites over time.

The list of domains will be regularly updated and published on Data.gov. Putting the list on Data.gov will have several benefits:

  • Provide increased access to, and transparency of, government data.
  • Foster accountability in how we manage our federal websites and encourage input from public and private sector experts, customers, developers, and other members of the public.
  • Make it easier for agencies to see the websites they own, that are owned by other agencies, and to increase opportunities for collaboration across government.

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Who is on the .gov Task Force and how were they selected?

The Federal Chief Information Officer selected the members of the .gov Task Force, representing a broad range of agencies and a mix of perspectives and skills.

Task force members:

  • Les Benito, Director, Public Web at Defense Media Activity
  • Gray Brooks, Associate CIO, Federal Communications Commission
  • Sheila Campbell, Director, Center for Excellence in Digital Government, Office of Citizen Services, General Services Administration
  • Sarah Crane, Director, USA.gov, Office of Citizen Services, General Services Administration
  • Cammie Croft, Senior Advisor, Director of New Media and Citizen Engagement, Department of Energy
  • Linda Cureton, Chief Information Officer, NASA
  • Terry Davis, IT Specialist, Department of Defense
  • Nick Fraser, Office of Information and Regulatory Affairs, Office of Management and Budget, Executive Office of the President
  • Miguel Gomez, Director, AIDS.gov, Health and Human Services
  • Jeffrey Levy, Director of Web Communications, Environmental Protection Agency, and Co-Chair, Federal Web Managers Council
  • Dan Munz, IT Specialist, Consumer Financial Protection Bureau
  • Adam Neufeld, Office of Management and Budget, Executive Office of the President
  • Todd Park, U.S. Chief Technology Officer
  • Macon Phillips, Director of Digital Strategy, The White House
  • Stacy Riggs, Office of Government-wide Policy, General Services Administration
  • Rand Ruggieri, EGov Program Manager, Department of Commerce
  • Janet Stevens, Chief Information Officer, Food Safety and Inspection Service, Department of Agriculture
  • Kodiak Starr, Creative Director of New Media, Executive Office of the President
  • Haley Van Dyck, Office of E-Gov and Information Technology, Office of Management and Budget, Executive Office of the President
  • Chris Vein, Deputy U.S. Chief Technology Officer for Government Innovation, Office of Science and Technology Policy, Executive Office of the President
  • Jim Wilson, Senior Editor, NASA.gov

We plan to consult with additional subject matter experts, customers, and others as needed, to provide expertise on such areas as user-centered design, search, information management policy, privacy and security issues, and overall Internet trends such as the growth of mobile and social media.

How was the public involved in improving federal websites?

During this initiative we've invited you to join the conversation about improving federal websites. Releasing the .gov dataset on Data.gov was the first step. We enabled commenting on the dataset, and considered your ideas and comments as we developed the domain inventory.

As we've seen in other efforts, making government data transparent can spark the creativity of many bright minds across the country. We hope the public will continue to explore, discuss, and remix this data, and maybe even use it to map the .gov domain in ways we haven't seen before.

From September 19–30, 2011, we hosted a "national dialogue"–an online conversation that brought together experts, innovators, and ordinary citizens who rely on federal information every day. We discussed how federal agencies can learn from, and contribute to, the best practices of the modern web. It was a discussion filled with ideas and energy.

If you have questions about the .gov Task Force, contact Alycia Piazza at alycia.piazza@gsa.gov.

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Content Lead: Natalie Davidson and Andrea Sigritz
Page Reviewed/Updated: October 22, 2013

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The State Tax Forms And Instructions

State tax forms and instructions 6. State tax forms and instructions   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. State tax forms and instructions Vehicles not considered highway vehicles. State tax forms and instructions Idling reduction device. State tax forms and instructions Separate purchase. State tax forms and instructions Leases. State tax forms and instructions Exported vehicle. State tax forms and instructions Tax on resale of tax-paid trailers and semitrailers. State tax forms and instructions Use treated as sale. State tax forms and instructions Sale. State tax forms and instructions Long-term lease. State tax forms and instructions Short-term lease. State tax forms and instructions Related person. State tax forms and instructions Exclusions from tax base. State tax forms and instructions Sales not at arm's length. State tax forms and instructions Installment sales. State tax forms and instructions Repairs and modifications. State tax forms and instructions Further manufacture. State tax forms and instructions Rail trailers and rail vans. State tax forms and instructions Parts and accessories. State tax forms and instructions Trash containers. State tax forms and instructions House trailers. State tax forms and instructions Camper coaches or bodies for self-propelled mobile homes. State tax forms and instructions Farm feed, seed, and fertilizer equipment. State tax forms and instructions Ambulances and hearses. State tax forms and instructions Truck-tractors. State tax forms and instructions Concrete mixers. State tax forms and instructions Registration requirement. State tax forms and instructions Further manufacture. State tax forms and instructions A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. State tax forms and instructions Truck chassis and bodies. State tax forms and instructions Truck trailer and semitrailer chassis and bodies. State tax forms and instructions Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. State tax forms and instructions A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. State tax forms and instructions A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. State tax forms and instructions A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. State tax forms and instructions A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. State tax forms and instructions The seller is liable for the tax. State tax forms and instructions Chassis or body. State tax forms and instructions   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. State tax forms and instructions Highway vehicle. State tax forms and instructions   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. State tax forms and instructions Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. State tax forms and instructions A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. State tax forms and instructions A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). State tax forms and instructions A special kind of cargo, goods, supplies, or materials. State tax forms and instructions Some off-highway task unrelated to highway transportation, except as discussed next. State tax forms and instructions Vehicles not considered highway vehicles. State tax forms and instructions   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. State tax forms and instructions Specially designed mobile machinery for nontransportation functions. State tax forms and instructions A self-propelled vehicle is not a highway vehicle if all the following apply. State tax forms and instructions The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. State tax forms and instructions The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. State tax forms and instructions The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. State tax forms and instructions Vehicles specially designed for off-highway transportation. State tax forms and instructions A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. State tax forms and instructions To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. State tax forms and instructions It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. State tax forms and instructions Nontransportation trailers and semitrailers. State tax forms and instructions A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. State tax forms and instructions For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. State tax forms and instructions Gross vehicle weight. State tax forms and instructions   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. State tax forms and instructions It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. State tax forms and instructions Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. State tax forms and instructions   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. State tax forms and instructions Platform truck bodies 21 feet or less in length. State tax forms and instructions Dry freight and refrigerated truck van bodies 24 feet or less in length. State tax forms and instructions Dump truck bodies with load capacities of 8 cubic yards or less. State tax forms and instructions Refuse packer truck bodies with load capacities of 20 cubic yards or less. State tax forms and instructions For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. State tax forms and instructions R. State tax forms and instructions B. State tax forms and instructions 2005-14 at www. State tax forms and instructions irs. State tax forms and instructions gov/pub/irs-irbs/irb05-14. State tax forms and instructions pdf. State tax forms and instructions   The gross vehicle weight means the maximum total weight of a loaded vehicle. State tax forms and instructions Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. State tax forms and instructions The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. State tax forms and instructions The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. State tax forms and instructions See Regulations section 145. State tax forms and instructions 4051-1(e)(3) for more information. State tax forms and instructions Parts or accessories. State tax forms and instructions   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. State tax forms and instructions For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. State tax forms and instructions The tax applies in this case whether or not the retailer bills the parts or accessories separately. State tax forms and instructions   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. State tax forms and instructions The tax applies unless there is evidence to the contrary. State tax forms and instructions For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. State tax forms and instructions The tax does not apply to parts and accessories that are spares or replacements. State tax forms and instructions   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. State tax forms and instructions Idling reduction device. State tax forms and instructions   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. State tax forms and instructions The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. State tax forms and instructions The EPA discusses idling reduction technologies on its website at www. State tax forms and instructions epa. State tax forms and instructions gov/smartway/technology/idling. State tax forms and instructions htm. State tax forms and instructions Separate purchase. State tax forms and instructions   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. State tax forms and instructions The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. State tax forms and instructions The installation occurs within 6 months after the vehicle is first placed in service. State tax forms and instructions   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. State tax forms and instructions   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. State tax forms and instructions This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. State tax forms and instructions   The tax does not apply if the installed part or accessory is a replacement part or accessory. State tax forms and instructions The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. State tax forms and instructions However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. State tax forms and instructions Example. State tax forms and instructions You bought a taxable vehicle and placed it in service on April 8. State tax forms and instructions On May 3, you bought and installed parts and accessories at a cost of $850. State tax forms and instructions On July 15, you bought and installed parts and accessories for $300. State tax forms and instructions Tax of $138 (12% of $1,150) applies on July 15. State tax forms and instructions Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. State tax forms and instructions First retail sale defined. State tax forms and instructions   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. State tax forms and instructions There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). State tax forms and instructions The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). State tax forms and instructions The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. State tax forms and instructions There is no registration requirement. State tax forms and instructions Leases. State tax forms and instructions   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. State tax forms and instructions The tax is imposed on the lessor at the time of the lease. State tax forms and instructions   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. State tax forms and instructions The tax is imposed on the lessor at the time of the lease. State tax forms and instructions Exported vehicle. State tax forms and instructions   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. State tax forms and instructions Tax on resale of tax-paid trailers and semitrailers. State tax forms and instructions   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. State tax forms and instructions The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. State tax forms and instructions The credit cannot exceed the tax on the resale. State tax forms and instructions See Regulations section 145. State tax forms and instructions 4052-1(a)(4) for information on the conditions to allowance for the credit. State tax forms and instructions Use treated as sale. State tax forms and instructions   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. State tax forms and instructions Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. State tax forms and instructions The tax attaches when the use begins. State tax forms and instructions   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. State tax forms and instructions   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. State tax forms and instructions   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. State tax forms and instructions Presumptive retail sales price. State tax forms and instructions   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. State tax forms and instructions If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. State tax forms and instructions Table 6-1 outlines the appropriate tax base calculation for various transactions. State tax forms and instructions   The presumed markup percentage to be used for trucks and truck-tractors is 4%. State tax forms and instructions But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. State tax forms and instructions Sale. State tax forms and instructions   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. State tax forms and instructions Long-term lease. State tax forms and instructions   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. State tax forms and instructions Short-term lease. State tax forms and instructions   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. State tax forms and instructions   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. State tax forms and instructions   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. State tax forms and instructions Related person. State tax forms and instructions   A related person is any member of the same controlled group as the manufacturer, producer, or importer. State tax forms and instructions Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. State tax forms and instructions Table 6-1. State tax forms and instructions Tax Base IF the transaction is a. State tax forms and instructions . State tax forms and instructions . State tax forms and instructions THEN figuring the base by using the. State tax forms and instructions . State tax forms and instructions . State tax forms and instructions Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. State tax forms and instructions   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. State tax forms and instructions   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. State tax forms and instructions However, you do add a markup if all the following apply. State tax forms and instructions You do not perform any significant activities relating to the processing of the sale of a taxable article. State tax forms and instructions The main reason for processing the sale through you is to avoid or evade the presumed markup. State tax forms and instructions You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. State tax forms and instructions In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. State tax forms and instructions Determination of tax base. State tax forms and instructions   These rules apply to both normal retail sales price and presumptive retail sales price computations. State tax forms and instructions To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. State tax forms and instructions However, see Presumptive retail sales price, earlier. State tax forms and instructions Exclusions from tax base. State tax forms and instructions   Exclude from the tax base the retail excise tax imposed on the sale. State tax forms and instructions Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. State tax forms and instructions Also exclude the value of any used component of the article furnished by the first user of the article. State tax forms and instructions   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. State tax forms and instructions These expenses are those incurred in delivery from the retail dealer to the customer. State tax forms and instructions In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. State tax forms and instructions   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. State tax forms and instructions For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. State tax forms and instructions Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. State tax forms and instructions Sales not at arm's length. State tax forms and instructions   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. State tax forms and instructions   A sale is not at arm's length if either of the following apply. State tax forms and instructions One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. State tax forms and instructions The sale is made under special arrangements between a seller and a purchaser. State tax forms and instructions Installment sales. State tax forms and instructions   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. State tax forms and instructions The tax is figured on the entire sales price. State tax forms and instructions No part of the tax is deferred because the sales price is paid in installments. State tax forms and instructions Repairs and modifications. State tax forms and instructions   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. State tax forms and instructions This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. State tax forms and instructions However, this exception generally does not apply to an article that was not subject to the tax when it was new. State tax forms and instructions Further manufacture. State tax forms and instructions   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. State tax forms and instructions Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. State tax forms and instructions Combining an article with an item in this list does not give rise to taxability. State tax forms and instructions However, see Parts or accessories discussed earlier. State tax forms and instructions Articles exempt from tax. State tax forms and instructions   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. State tax forms and instructions Rail trailers and rail vans. State tax forms and instructions   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). State tax forms and instructions Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. State tax forms and instructions Parts and accessories. State tax forms and instructions   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. State tax forms and instructions Trash containers. State tax forms and instructions   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. State tax forms and instructions It is designed to be used as a trash container. State tax forms and instructions It is not designed to carry freight other than trash. State tax forms and instructions It is not designed to be permanently mounted on or affixed to a truck chassis or body. State tax forms and instructions House trailers. State tax forms and instructions   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. State tax forms and instructions Camper coaches or bodies for self-propelled mobile homes. State tax forms and instructions   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. State tax forms and instructions Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. State tax forms and instructions Farm feed, seed, and fertilizer equipment. State tax forms and instructions   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. State tax forms and instructions This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. State tax forms and instructions Ambulances and hearses. State tax forms and instructions   This is any ambulance, hearse, or combination ambulance-hearse. State tax forms and instructions Truck-tractors. State tax forms and instructions   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. State tax forms and instructions Concrete mixers. State tax forms and instructions   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. State tax forms and instructions This exemption does not apply to the chassis on which the article is mounted. State tax forms and instructions Sales exempt from tax. State tax forms and instructions   The following sales are ordinarily exempt from tax. State tax forms and instructions Sales to a state or local government for its exclusive use. State tax forms and instructions Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. State tax forms and instructions Sales to a nonprofit educational organization for its exclusive use. State tax forms and instructions Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. State tax forms and instructions Sales for use by the purchaser for further manufacture of other taxable articles (see below). State tax forms and instructions Sales for export or for resale by the purchaser to a second purchaser for export. State tax forms and instructions Sales to the United Nations for official use. State tax forms and instructions Registration requirement. State tax forms and instructions   In general, the seller and buyer must be registered for a sale to be tax free. State tax forms and instructions See the Form 637 instructions for more information. State tax forms and instructions Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. State tax forms and instructions Further manufacture. State tax forms and instructions   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. State tax forms and instructions Credits or refunds. State tax forms and instructions   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. State tax forms and instructions The person using the article as a component part is eligible for the credit or refund. State tax forms and instructions   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. State tax forms and instructions A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. State tax forms and instructions   See also Conditions to allowance in chapter 5. State tax forms and instructions Tire credit. State tax forms and instructions   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. State tax forms and instructions The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). State tax forms and instructions This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. State tax forms and instructions Prev  Up  Next   Home   More Online Publications