Publication 15
(Including 2007 Wage Withholding and Advance Earned Income Credit Payment Tables)
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Annual employment tax filing for small employers.
Certain small employers may have to file Form 944, Employer's ANNUAL Federal Tax Return, rather than Form 941, Employer's QUARTERLY Federal Tax Return, to report their employment taxes. For details, get the Instructions for Form 944.
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Redesigned Form 940 replaces previous Form 940 and Form 940-EZ.
We have replaced both Form 940-EZ and Form 940 with a new simplified Form 940. If you filed Form 940-EZ before, you must now use the redesigned Form 940.
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Ordering employer tax products.
You will no longer receive an order blank (Form 7018-A formerly located at the end of this publication) for employer tax products and information returns. You can order employer tax products and information returns online at www.irs.gov/businesses. To order 2006 and 2007 forms, select "Online Ordering for Information Returns and Employer Returns." You may also order employer tax products and information returns by calling 1-800-829-3676.
Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. Visit SSA's Employer Reporting Instructions and Information website at www.socialsecurity.gov/employer, select "Electronically File Your W-2s," and provide registration information. You will be able to create and file "fill-in" versions of Forms W-2 with SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. Form W-3 will be created for you based on your Forms W-2.
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Social security and Medicare tax for 2007.
Do not withhold social security tax after an employee reaches $97,500 in social security wages. (There is no limit on the amount of wages subject to Medicare tax.) Social security and Medicare taxes apply to the wages of household workers you pay $1,500 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,300 or more.
The following is a list of important dates. Also see Publication 509, Tax Calendars for 2007.
 | If any date shown below falls on a Saturday, Sunday, or federal holiday, use 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 private delivery service on or before the due date. See Private Delivery Services on page 5 for more information on IRS-designated private delivery services. |
Furnish each employee a completed Form W-2, Wage and Tax Statement. Furnish each other payee a completed Form 1099 (for example, Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., and Form 1099-MISC, Miscellaneous Income).
File Form 941, Employer's QUARTERLY Federal Tax Return, for the fourth quarter of the previous calendar year and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500 and the taxes are paid in full with a timely filed return. File Form 944, Employer's ANNUAL Federal Tax Return, for the previous calendar year instead of Form 941 if the IRS has notified you in writing to file Form 944 and pay any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 944 if your total tax liability for the year is less than $2,500 and the taxes are paid in full with a timely filed return. For additional rules on when you can pay your taxes with your return, see Payment with return on page 18. If you deposited all taxes when due, you have 10 additional calendar days from the due date above to file the appropriate return.
File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file. For 2006, you must use the redesigned Form 940 if you previously filed Form 940-EZ.
File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld in 2006. See Nonpayroll Income Tax Withholding on page 4 for more information.
Ask for a new Form W-4, Employee's Withholding Allowance Certificate, from each employee who claimed exemption from income tax withholding last year.
Any Form W-4 previously given to you claiming exemption from withholding has expired. 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. See section 9 for more information. However, if you have an earlier Form W-4 for this employee that is valid, withhold based on the earlier Form W-4.
File Copy A of all Forms 1099 with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the IRS. For electronically filed returns, see By March 31 below.
File Copy A of all Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). For electronically filed returns, see By March 31 below.
File Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, with the Internal Revenue Service. See section 6. For electronically filed returns, see By March 31 below.
File electronic (not magnetic media) Forms 1099 and 8027 with the IRS. File electronic (not magnetic media) Forms W-2 with the Social Security Administration. For information on reporting Form W-2 and Form W-2c information to the SSA electronically, visit the Social Security Administration's Employer Reporting Instructions and Information webpage at www.socialsecurity.gov/employer.
Deposit federal unemployment (FUTA) tax due if it is more than $500.
File Form 941, Employer's QUARTERLY Federal Tax Return, unless the IRS notified you in writing to file Form 944, Employer's ANNUAL Federal Tax Return, by January 31 instead. Deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500 and the taxes are paid in full with a timely filed return. If you deposited all taxes when due, you have 10 additional calendar days from the due dates above to file the return.
Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year.
Form W-5, Earned Income Credit Advance Payment Certificate, expires each year on December 31. Eligible employees who want to receive advance payments of the earned income credit next year must give you a new Form W-5.
Previous Page: Publication 17 - Your Federal Income Tax - How To Get Tax Help
Next Page: Publication 15 - Circular E, Employer's Tax Guide - Reminders
