Navigating tax requirements can be complex, especially for those in the agricultural sector. This guide provides essential reminders and updates to help ensure accurate and timely filing, focusing on key areas for agricultural employers and businesses. Understanding these points can prevent common errors and facilitate smoother tax processing.
Key Updates and Reminders
Principal Agricultural Activity Codes
Accurate reporting of your principal agricultural activity is crucial. This information is used by the IRS for taxpayer education programs and by the U.S. Census Bureau for its economic census. Ensure you select the correct code from the list provided on page 2 of Schedule F (Form 1040) and enter it on line B.
Employer Identification Numbers (EINs)
Publication 1635, Understanding Your Employer Identification Number, offers comprehensive guidance on EINs, including application procedures and how to complete Form SS-4.
Address Changes
To notify the IRS of a change in your home address, use Form 8822, Change of Address. For business address changes, use Form 8822-B, Change of Address or Responsible Party – Business. Remember to include any suite, room, or unit numbers.
Publication 51 Discontinuation
Publication 51, Agricultural Employer’s Tax Guide, has been discontinued for tax years beginning after December 31, 2023. Relevant information for agricultural employers is now integrated into Pub. 15, Employer’s Tax Guide. A new Spanish-language version, Pub. 15 (sp), is also available.
Business Meals Deduction
The temporary 100% deduction for business meals provided by a restaurant has expired. Effective January 1, 2023, the deduction for business meals has reverted to the 50% allowable limit.
COVID-19 Related Credits for Sick and Family Leave Wages
The credit for qualified sick and family leave wages, originally enacted under the Families First Coronavirus Response Act (FFCRA) and extended by subsequent legislation, is generally limited to leave taken after March 31, 2020, and before October 1, 2021. These credits may no longer be claimed directly on Form 943. If you are eligible to claim this credit in 2025 for wages paid for an earlier applicable leave period, you must file Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund, after filing your initial Form 943. Filing Form 943-X before Form 943 may lead to processing errors or delays.
Qualified Small Business Payroll Tax Credit for Increasing Research Activities
For tax years beginning after December 31, 2022, the Inflation Reduction Act of 2022 increased the election amount for qualified small businesses to claim up to $500,000 of their research activities credit as a payroll tax credit. This election must be made by the due date of the originally filed income tax return, including extensions, using Form 6765, Credit for Increasing Research Activities. The payroll tax credit is applied first against the employer’s share of Social Security tax (up to $250,000 per quarter) and then against the employer’s share of Medicare tax. Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities, is used to determine the quarterly credit amount, which is then reported on Form 943, line 12. For more details, consult the Instructions for Form 8974 and visit IRS.gov/ResearchPayrollTC.
Certification Program for Professional Employer Organizations (PEOs)
The Stephen Beck, Jr., ABLE Act of 2014 established a voluntary certification program for PEOs. Certified Professional Employer Organizations (CPEOs) must meet specific requirements to maintain their status. Certification can impact employment tax liabilities for both the CPEO and its clients. CPEOs are generally treated as the employer for employment tax purposes for services performed by an individual covered under a CPEO contract. To become a CPEO, applications are submitted through the IRS Online Registration System. Visit IRS.gov/CPEO for more information. CPEOs are typically required to file Form 943 and Schedule R (Form 943) electronically, as detailed in Revenue Procedure 2023-18.
Work Opportunity Tax Credit for Qualified Tax-Exempt Organizations
Eligible tax-exempt organizations hiring qualified veterans may claim the Work Opportunity Tax Credit (WOTC) against their payroll tax liability using Form 5884-C. Further information is available at IRS.gov/WOTC.
Correcting Previously Filed Forms
If you discover an error on a previously filed Form 943, use Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund, to make corrections. This form is filed separately from Form 943. Refer to the Instructions for Form 943-X or IRS.gov/CorrectingEmploymentTaxes for guidance.
Electronic Funds Transfer (EFT) for Federal Tax Deposits
All federal tax deposits must be made via electronic funds transfer (EFT) using systems such as the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay, or your IRS business tax account. Third-party providers can also facilitate these payments.
Exception: If your tax liability is less than $2,500 (Form 943, line 13), you may pay by check or money order with a timely filed return.
EFTPS is a free service. For more information on EFTPS, visit EFTPS.gov or call 800-555-4477. For individuals using Telecommunications Relay Services (TRS), dial 711 and provide the operator with the EFTPS number. Additional EFTPS information can be found in Pub. 966. IRS Direct Pay information is available at IRS.gov/BusinessAccount.
Note: Employers may have both farm and nonfarm employees (e.g., retail farm market workers). Employment tax rules for these different employee types may vary, as discussed in Pub. 15.
Electronic Filing and Payment Benefits
Utilizing electronic filing (e-file) and electronic federal tax payments (EFTPS) offers convenience and security, allowing businesses to streamline their tax obligations and focus on operations.
Special Rules for Qualified Disaster Losses
Special tax relief provisions are available for losses incurred in federally declared disaster areas. Consult Publication 547, Casualties, Disasters, and Thefts, and IRS.gov/DisasterTaxRelief for detailed information.
Additional Employment Tax Information for Farmers
Publication 15 provides comprehensive guidance on employment taxes for agricultural employers for tax years 2024 and 2025. For the latest updates and general tax information relevant to agricultural employers, visit IRS.gov/Pub15, IRS.gov/AgricultureTaxCenter, and IRS.gov/EmploymentTaxes. Information on employer responsibilities under the Affordable Care Act can be found at IRS.gov/ACA.
Photographs of Missing Children
The IRS partners with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children may be included in IRS publications. If you recognize a child, please call 1-800-THE-LOST (1-800-843-5678).
