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Publication 51
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Change To NoteSocial Security and Medicare tax for 2003. The social security wage base for 2003 is $87,000. There is no wage base limit for Medicare tax. The tax rate remains 6.2% for social security and 1.45% for Medicare tax. Important RemindersElectronic deposits. You may deposit your taxes electronically using the Electronic Federal Tax Payment System (EFTPS). Although use of EFTPS is required for certain employers (see section 7 for details), all employers may use this electronic payment system. Using EFTPS, you can transmit your payment information by telephone or your personal computer. To get more information or to enroll in EFTPS, call 1-800-555-4477 or 1-800-945-8400 or visit the EFTPS Web Site at www.eftps.gov. Change of address. If you changed your business mailing address or business location, notify the IRS by filing Form 8822, Change of Address. For information on how to change your address for deposit coupons, see Making deposits with FTD coupons (see section 7). When you hire a new employee. Ask each new employee to complete the 2003 Form W-4, Employee's Withholding Allowance Certificate. Also, ask the employee to show you his or her social security card so you can record the employee's name and social security number accurately. If the employee has lost the card or recently changed names, have the employee apply for a new card. If the employee does not have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card (see section 1). Eligibility for employment. You must verify that each new employee is legally eligible to work in the United States. This includes completing the Immigration and Naturalization Service (INS) Form I-9, Employment Eligibility Verification. You can get the form from INS offices or by calling 1-800-870-3676. Contact the INS at 1-800-375-5283, or visit the INS Web Site at www.ins.gov for further information. New hire reporting. You are required to report any new employee to a designated state new hire registry. Many states accept a copy of Form W-4 with employer information added. Call the Office of Child Support Enforcement at 202-401-9267 or visit its web site atwww.acf.dhhs.gov/programs/cse/newhire for more information. When a crew leader furnishes workers to you. Record the crew leader's name, address, and employer identification number (see sections 2 and 11). Information returns. You must furnish Form W-2, Wage and Tax Statement, to each employee by January 31 for the previous year. You also may have to file information returns to report certain types of payments made during the year. For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (e.g., independent contractors) for services performed for your trade or business. For general information about Forms 1099 and for information about required electronic or magnetic media filing, see the 2003 General Instructions for Forms 1099, 1098, 5498, and W-2G. Also see the separate instructions for each information return you file (e.g., 2003 Instructions for Form 1099-MISC). Do not use Form 1099 to report wages or other compensation you paid to employees; report these on Form W-2. See the separate Instructions for Forms W-2 and W-3 for details. Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns or payments. If you mail by the due date using any of these services, you are considered to have filed on time. The most recent list of designated private delivery services was published in September 2002. The list includes only the following:
The private delivery service can tell you how to get written proof of the mailing date. Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address. Unresolved tax issues. If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Your assigned personal advocate will listen to your point of view and will work with you to address your concerns. You can expect the advocate to provide:
When contacting the Taxpayer Advocate, you should provide the following information:
You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers. Information reporting call site. The IRS operates a centralized call site to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free) or 304-263-8700 (not toll free). The call site can also be reached by e-mail at mccirp@irs.gov. CalendarThe following are important dates and responsibilities. Also see Pub. 509, Tax Calendars for 2003. Note: If any date shown below falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. For any due date, you will meet the file or furnish requirement if the form is properly addressed and mailed First-Class or sent by an IRS designated delivery service on or before the due date. (See Private delivery services on page 2.) By January 31
By February 15 Ask for a new Form W-4 from each employee who claimed exemption from withholding last year. On February 16 Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. If the employee does not give you a new Form W-4, withhold tax as if he or she is single, with zero withholding allowances. The Form W-4 previously given to you claiming exemption is now expired. (See section 5.) By February 28 File Forms 1099 and 1096. File Copy A of all Forms 1099 with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the Internal Revenue Service Center for your area. For electronically filed returns, see By March 31 below. Send Copy A of all Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, or your magnetic media wage report to the Social Security Administration (SSA). For electronically filed returns, see By March 31 below. By March 31 File electronic Forms W-2 and 1099. File electronic (not magnetic media or paper) Forms W-2 with the SSA and Forms 1099 with the Internal Revenue Service. See the SSA Web Site at www.ssa.gov/employer for more information. By April 30, July 31, October 31, and January 31 Deposit FUTA taxes. Deposit Federal unemployment (FUTA) tax due if it is more than $100. Before December 1 Remind employees to submit a new Form W-4 if their withholding allowances will change for the next year. On December 31 Form W-5, Earned Income Credit Advance Payment Certificate, expires. Employees who want to receive advance payments of the earned income credit for the next year must give you a new Form W-5. IntroductionThis guide is for employers of agricultural workers (farmworkers). It contains information you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, Federal unemployment (FUTA) tax, and withheld income tax. If you have nonfarm employees, see Circular E, Employer's Tax Guide (Pub. 15). If you have employees in the U.S. Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Circular SS (Pub. 80). Pub. 15-A, Employer's Supplemental Tax Guide, contains other employment-related information, including information about sick pay and pension income. Pub. 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. Ordering publications and forms. See Form 7018-A, Employer's Order Blank for 2003 Forms, and Quick and Easy Access to Tax Help and Forms at the end of this publication. Telephone help. You can call the IRS with your tax questions. Check your telephone book for the local number or call 1-800-829-4933. Help for people with disabilities. Telephone help is available using TTY/TDD equipment. You can call 1-800-829-4059 with your tax question or to order forms and publications. See your tax package for the hours of operation. Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions. You can e-mail us while visiting our web site at www.irs.gov. You can write to us at the following address:
We respond to many letters by telephone. It would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Useful ItemsYou may want to see: Publication
1. Taxpayer Identification NumbersIf you are required to withhold any income, social security, or Medicare taxes, you will need an employer identification number for yourself, and you will need the social security number of each employee. Employer identification number (EIN). The EIN is a nine-digit number the IRS issues. The digits are arranged as follows: 00-0000000. It is used to identify the tax accounts of employers and certain others that have no employees. Use your EIN on all the items you send to the IRS and SSA for your business. If you have not asked for an EIN, request one on Form SS-4, Application for Employer Identification Number. Form SS-4 contains information on how to apply for an EIN by mail or by telephone. If you do not have an EIN by the time a return is due, write Applied For and the date you applied in the space shown for the number. If you took over another employer's business, do not use that employer's EIN. Make your check for any amount due on a return payable to the United States Treasury and show on it your name (as shown on Form SS-4), address, kind of tax, period covered, and date you applied for an EIN. You should have only one EIN. If you have more than one, notify the Internal Revenue Service Center where you file your return. List the EINs you have, the name and address to which each number was assigned, and the address of your principal place of business. The IRS will tell you which EIN to use. For more information, see Pub. 1635, Understanding Your EIN, or Pub. 583, Starting a Business and Keeping Records. Social security number. An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. You must obtain each employee's name and SSN because you must enter them on Form W-2. You may, but are not required to, photocopy the social security card if the employee provides it. If you do not provide the correct name and SSN, you may owe a penalty. Any employee without a social security card can get one by completing Form SS-5. You can get this form at SSA offices, by calling 1-800-772-1213, or from the SSA Web Site at www.ssa.gov/online/ss-5.html. 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. When the employee receives the SSN, file Form W-2c, Corrected Wage and Tax Statement, to show the employee's SSN. Note: Record the name and number of each employee exactly as they are shown on the employee's social security card. 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 new card from the SSA. Continue to report the employee's wages under the old name until he or she shows you an updated social security card with the new name. If your employee is given a new social security card following an adjustment to his or her resident status that shows a different name or SSN, file a Form W-2c for the most current year only. IRS individual taxpayer identification numbers (ITINs) for aliens. Do not accept an ITIN in place of an SSN for employee identification or for work. An ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes. An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Verification of social security numbers. The SSA offers employers and authorized reporting agents two methods for verifying employee SSNs. Both methods match employee names and SSNs.
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