Form 943 Preparation

Overview

Use ProPay to prepare Form 943 (Employer's Annual Federal Tax Return for Agricultural Employees). Form 943 is required for employers who pay wages to farmworkers. ProPay calculates the annual tax liability and generates the form for printing or e-filing.

Who Must File Form 943

You must file Form 943 if the employer paid wages to one or more farmworkers subject to Social Security, Medicare, or federal income tax withholding. Form 943 is an annual return — you file once per year, not quarterly.

> Important: Agricultural employers file Form 943 instead of Form 941. Do not file both for the same employees. If the employer has both agricultural and non-agricultural employees, file Form 943 for farmworkers and Form 941 for all other employees.

Setting Up a Client for Form 943

Before you can prepare Form 943, the client must be designated as a 943 filer:

Go to Client Functions > Setup > Edit/Change Client.
Locate the 943 filing designation setting. [NEEDS-REVIEW — verify exact field name and screen location for the DEP_943 flag]
Enable the 943 filer flag for this client.
Click Save.

> Note: When the 943 flag is enabled, ProPay calculates tax liabilities on an annual basis instead of quarterly.

Printing Form 943

From the ProPay Main Menu, click Client Functions > Tax Returns.
Select Form 943 from the list of available returns.
Select the client(s) to include.
ProPay calculates annual totals for wages, tips, Social Security and Medicare taxes, adjustments, and tax deposits.
Review the calculated amounts on screen.
Click Print Return to generate the completed Form 943.

E-Filing Form 943

From the ProPay Main Menu, click Client Functions > Electronic Functions > Magnetic Media.
Select the client(s) with the 943 filer flag enabled.
Click Create Magnetic Return. ProPay generates a file formatted for IRS electronic submission.
Verify that all client data passes validation. ProPay checks each client before submission.
Transmit the file to the IRS.

> Tip: See E-filing 941 and 940 Returns for detailed instructions on IRS e-filing setup, including ETIN, EFIN, and PIN requirements. The e-filing setup process is the same for all federal forms.

Form 943 vs. Form 941

Feature	Form 943	Form 941
Filing frequency	Annual	Quarterly
Who files	Agricultural employers	Most employers
Applies to	Farmworkers only	Non-agricultural employees
Calculation period	Full calendar year	Each quarter
Due date	January 31 (for prior year)	Last day of month following quarter end

Tips and Warnings

> Important: Form 943 uses the same calculation engine as Form 941. The only difference is the reporting period. Form 943 reports annual totals, while Form 941 reports quarterly totals.

> Tip: If a client is incorrectly flagged as a 943 filer, their tax forms will calculate annual totals instead of quarterly. Verify the 943 flag before preparing returns.