Federal Employer's Tax Guide

Employer's Tax Guide
2024 Publication 15
Department of the Treasury
Internal Revenue Service

Contents
What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Publication 15

Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Cat. No. 10000W

Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

(Circular E),
Employer's
Tax Guide

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

For use in

2024

1. Employer Identification Number (EIN) . . . . . . . 12
2. Who Are Employees? . . . . . . . . . . . . . . . . . . . . 12
3. Family Employees . . . . . . . . . . . . . . . . . . . . . . 15
4. Employee's Social Security Number (SSN) . . . 15
5. Wages and Other Compensation . . . . . . . . . . . 17
6. Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
7. Supplemental Wages . . . . . . . . . . . . . . . . . . . . 22
8. Payroll Period . . . . . . . . . . . . . . . . . . . . . . . . . . 23
9. Withholding From Employees' Wages . . . . . . . 24
10. Required Notice to Employees About the
Earned Income Credit (EIC) . . . . . . . . . . . . . . 29
11. Depositing Taxes . . . . . . . . . . . . . . . . . . . . . . 30
12. Filing Form 941, Form 943, Form 944, or
Form 945 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
13. Reporting Adjustments to Forms 941, Form
943, or Form 944 . . . . . . . . . . . . . . . . . . . . . . 39
14. Federal Unemployment (FUTA) Tax . . . . . . . . 42
15. Special Rules for Various Types of Services
and Payments . . . . . . . . . . . . . . . . . . . . . . . . . 44
16. Third-Party Payer Arrangements . . . . . . . . . . 51
17. Federal Agency Certifying Requirements of
Federal Income Taxes Withheld From U.S.
Government Employees Working in, or
Federal Pension Recipients Residing in,
American Samoa, the CNMI, and Guam . . . . . 52
How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 54
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Future Developments
For the latest information about developments related to
Pub. 15, such as legislation enacted after it was
published, go to IRS.gov/Pub15.

Get forms and other information faster and easier at:
• IRS.gov (English)
• IRS.gov/Spanish (Español)
• IRS.gov/Chinese (中文)
Dec 19, 2023

• IRS.gov/Korean (한국어)
• IRS.gov/Russian (Pусский)
• IRS.gov/Vietnamese (Tiếng Việt)

What's New
Pub. 15 is now for all employers. Pub. 15 can now be
used by all employers, including agricultural employers
and employers in the U.S. territories. Pub. 51, Agricultural

Employer's Tax Guide; Pub. 80, Federal Tax Guide for Employers in the U.S. Virgin islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; and Pub. 179, Guía Contributiva Federal para
Patronos Puertorriqueños, have been discontinued. If you
prefer Pub. 15 in Spanish, there is a new Pub. 15 (sp)
available for 2024.
Unless otherwise noted, references throughout this
publication to Form W-2 include Forms W-2AS, W-2CM,
W-2GU, W-2VI, and Form 499R-2/W-2PR; references to
Form W-2c include Form 499R-2c/W-2cPR; references to
Form W-3 include Form W-3SS and Form W-3PR; and
references to Form W-3c include Form W-3C (PR).
Social security and Medicare tax for 2024. The rate of
social security tax on taxable wages is 6.2% each for the
employer and employee. The social security wage base
limit is $168,600.
The Medicare tax rate is 1.45% each for the employee
and employer, unchanged from 2023. There is no wage
base limit for Medicare tax.
Social security and Medicare taxes apply to the wages
of household workers you pay $2,700 or more in cash wages in 2024. Social security and Medicare taxes apply to
election workers who are paid $2,300 or more in cash or
an equivalent form of compensation in 2024.
The COVID-19 related credit for qualified sick and
family leave wages is limited to leave taken after
March 31, 2020, and before October 1, 2021, and may
no longer be claimed on Form 941. Generally, the
credit for qualified sick and family leave wages, as enacted under the Families First Coronavirus Response Act
(FFCRA) and amended and extended by the COVID-related Tax Relief Act of 2020, for leave taken after March 31,
2020, and before April 1, 2021, and the credit for qualified
sick and family leave wages under sections 3131, 3132,
and 3133 of the Internal Revenue Code, as enacted under
the American Rescue Plan Act of 2021 (the ARP), for
leave taken after March 31, 2021, and before October 1,
2021, have expired. However, employers that pay qualified
sick and family leave wages in 2024 for leave taken after
March 31, 2020, and before October 1, 2021, are eligible
to claim a credit for qualified sick and family leave wages
in 2024. Effective for tax periods beginning after December 31, 2023, the lines used to claim the credit for qualified
sick and family leave wages have been removed from
Form 941, Employer’s QUARTERLY Federal Tax Return,
because it would be extremely rare for an employer to pay
wages in 2024 for qualified sick and family leave taken after March 31, 2020, and before October 1, 2021. Instead,
if you’re eligible to claim the credit for qualified sick and
family leave wages because you paid the wages in 2024
for an earlier applicable leave period, file Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or
Claim for Refund, after filing Form 941, to claim the credit
for qualified sick and family leave wages paid in 2024. Filing a Form 941-X before filing a Form 941 for the quarter
may result in errors or delays in processing your Form
941-X.
New Forms 941 (sp), 943 (sp), and 944 (sp). If you
prefer your form and instructions in Spanish, you can file
2

new Form 941 (sp), new Form 943 (sp), and Form 944
(sp).

Reminders
Qualified small business payroll tax credit for increasing research activities. For tax years beginning
before January 1, 2023, a qualified small business may
elect to claim up to $250,000 of its credit for increasing research activities as a payroll tax credit. The Inflation Reduction Act of 2022 (the IRA) increases the election
amount to $500,000 for tax years beginning after December 31, 2022. The payroll tax credit election must be made
on or before the due date of the originally filed income tax
return (including extensions). The portion of the credit
used against payroll taxes is allowed in the first calendar
quarter beginning after the date that the qualified small
business filed its income tax return. The election and determination of the credit amount that will be used against
the employer’s payroll taxes are made on Form 6765,
Credit for Increasing Research Activities. The amount
from Form 6765, line 44, must then be reported on Form
8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.
Starting in the first quarter of 2023, the payroll tax credit
is first used to reduce the employer share of social security tax up to $250,000 per quarter and any remaining
credit reduces the employer share of Medicare tax for the
quarter. Any remaining credit, after reducing the employer
share of social security tax and the employer share of
Medicare tax, is then carried forward to the next quarter.
Form 8974 is used to determine the amount of the credit
that can be used in the current quarter. The amount from
Form 8974, line 12 or, if applicable, line 17, is reported on
Form 941, Form 943, or Form 944. For more information
about
the
payroll
tax
credit,
see
IRS.gov/
ResearchPayrollTC. Also see the line 16 instructions in the
Instructions for Form 941 (line 17 instructions in the Instructions for Form 943 or line 13 instructions in the Instructions for Form 944) for information on reducing your
record of tax liability for this credit.
Disaster tax relief. Disaster tax relief is available for
those impacted by disasters. For more information about
disaster relief, go to IRS.gov/DisasterTaxRelief.
Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of
the Taxpayer Certainty and Disaster Tax Relief Act of 2020
allows for a payroll tax credit for certain tax-exempt organizations affected by certain qualified disasters not related
to COVID-19. This credit is claimed on Form 5884-D (not
on Form 941, Form 943, or Form 944). Form 5884-D is
filed after the Form 941 for the quarter, Form 943 for the
year, or Form 944 for the year for which the credit is being
claimed has been filed. For more information about this
credit, go to IRS.gov/Form5884D.
2024 withholding tables. The Percentage Method and
Wage Bracket Method withholding tables, the employer instructions on how to figure employee withholding, and the
amount to add to a nonresident alien employee's wages
Publication 15 (2024)

for figuring income tax withholding are included in Pub.
15-T, Federal Income Tax Withholding Methods, available
at IRS.gov/Pub15T.
Moving expense reimbursement. P.L. 115-97 suspends the exclusion for qualified moving expense reimbursements from your employee's income for tax years
beginning after 2017 and before 2026. However, the exclusion is still available in the case of a member of the U.S.
Armed Forces on active duty who moves because of a
permanent change of station due to a military order. The
exclusion applies only to reimbursement of moving expenses that the member could deduct if they had paid or incurred them without reimbursement. See Moving Expenses in Pub. 3, Armed Forces' Tax Guide, for the definition
of what constitutes a permanent change of station and to
learn which moving expenses are deductible.
Withholding on supplemental wages. P.L. 115-97 lowered the withholding rates on supplemental wages for tax
years beginning after 2017 and before 2026. See section
7 for the withholding rates.
Backup withholding. P.L. 115-97 lowered the backup
withholding rate to 24% for tax years beginning after 2017
and before 2026. For more information on backup withholding, see Backup withholding, later.
Certification program for professional employer organizations (PEOs). The Stephen Beck, Jr., Achieving a
Better Life Experience Act of 2014 required the IRS to establish a voluntary certification program for PEOs. PEOs
handle various payroll administration and tax reporting responsibilities for their business clients and are typically
paid a fee based on payroll costs. To become and remain
certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705
and related published guidance. Certification as a CPEO
may affect the employment tax liabilities of both the CPEO
and its customers. A CPEO is generally treated for employment tax purposes as the employer of any individual
who performs services for a customer of the CPEO and is
covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but
only for wages and other compensation paid to the individual by the CPEO. To become a CPEO, the organization
must apply through the IRS Online Registration System.
For more information or to apply to become a CPEO, go to
IRS.gov/CPEO. Also see Revenue Procedure 2023-18,
2023-13
I.R.B.
605,
available
at
IRS.gov/irb/
2023-13_IRB#REV-PROC-2023-18.
Outsourcing payroll duties. Generally, as an employer,
you’re responsible to ensure that tax returns are filed and
deposits and payments are made, even if you contract
with a third party to perform these acts. You remain responsible if the third party fails to perform any required action. Before you choose to outsource any of your payroll
and related tax duties (that is, withholding, reporting, and
paying over social security, Medicare, FUTA, and income
taxes) to a third-party payer, such as a payroll service provider
or
reporting
agent,
go
to
IRS.gov/
OutsourcingPayrollDuties for helpful information on this
topic. If a CPEO pays wages and other compensation to
Publication 15 (2024)

an individual performing services for you, and the services
are covered by a CPEO contract, then the CPEO is generally treated as the employer, but only for wages and other
compensation paid to the individual by the CPEO. However, with respect to certain employees covered by a
CPEO contract, you may also be treated as an employer
of the employees and, consequently, may also be liable for
federal employment taxes imposed on wages and other
compensation paid by the CPEO to such employees. For
more information on the different types of third-party payer
arrangements, see section 16.
Aggregate Form 941 or Form 943 filers. Approved
section 3504 agents and CPEOs must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form
941 Filers, or Schedule R (Form 943), Allocation Schedule
for Aggregate Form 943 Filers, as applicable, when filing
an aggregate Form 941 or Form 943. An aggregate quarterly Form 941 or annual Form 943 is filed by an agent approved by the IRS under section 3504 of the Internal Revenue Code. To request approval to act as an agent for an
employer, the agent files Form 2678 with the IRS unless
you're a state or local government agency acting as an
agent under the special procedures provided in Revenue
Procedure 2013-39, 2013-52 I.R.B. 830, available at
IRS.gov/irb/2013-52_IRB#RP-2013-39. An aggregate
quarterly Form 941 or annual Form 943 is also filed by
CPEOs approved by the IRS under section 7705. To become a CPEO, the organization must apply through the
IRS Online Registration System at IRS.gov/CPEO. CPEOs
file Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement, to notify the IRS that
they’ve started or ended a service contract with a client or
customer. CPEOs must generally file Form 941 or Form
943 and the applicable Schedule R electronically. For
more information about a CPEO's requirement to file electronically, see Revenue Procedure 2023-18.
Other third-party payers that file an aggregate quarterly
Form 941 or annual Form 943, such as non-certified
PEOs, must complete and file the applicable Schedule R if
they have clients that are claiming any employment tax
credit (for example, the qualified small business payroll tax
credit for increasing research activities).
Aggregate Form 940 filers. Approved section 3504
agents and CPEOs must complete Schedule R (Form
940), Allocation Schedule for Aggregate Form 940 Filers,
when filing an aggregate Form 940, Employer's Annual
Federal Unemployment (FUTA) Tax Return. Aggregate
Forms 940 can be filed by agents acting on behalf of
home care service recipients who receive home care
services through a program administered by a federal,
state, or local government. To request approval to act as
an agent on behalf of home care service recipients, the
agent files Form 2678 with the IRS unless you're a state or
local government agency acting as an agent under the
special procedures provided in Revenue Procedure
2013-39. Aggregate Forms 940 are also filed by CPEOs
approved by the IRS under section 7705. CPEOs file Form
8973 to notify the IRS that they’ve started or ended a service contract with a client or customer. CPEOs must generally file Form 940 and Schedule R (Form 940)
3

electronically. For more information about a CPEO's requirement to file electronically, see Revenue Procedure
2023-18.
Work opportunity tax credit for qualified tax-exempt
organizations hiring qualified veterans. Qualified
tax-exempt organizations that hire eligible unemployed
veterans may be able to claim the work opportunity tax
credit against their payroll tax liability using Form 5884-C.
For more information, go to IRS.gov/WOTC.
Medicaid waiver payments. Notice 2014-7 provides
that certain Medicaid waiver payments are excludable
from income for federal income tax purposes. See Notice
2014-7, 2014-4 I.R.B. 445, available at IRS.gov/irb/
2014-04_IRB#NOT-2014-7. For more information, including questions and answers related to Notice 2014-7, go to
IRS.gov/MedicaidWaiverPayments.
No federal income tax withholding on disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States. Disability payments for injuries incurred as a direct result of a
terrorist attack directed against the United States (or its allies) aren't included in income. Because federal income
tax withholding is only required when a payment is includible in income, no federal income tax should be withheld
from these payments. See Pub. 907, Tax Highlights for
Persons With Disabilities; and Pub. 3920, Tax Relief for
Victims of Terrorist Attacks.
Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC). A
shareholder of an ANC may request voluntary income tax
withholding on dividends and other distributions paid by
an ANC. A shareholder may request voluntary withholding
by giving the ANC a completed Form W-4V. For more information, see Notice 2013-77, 2013-50 I.R.B. 632, available at IRS.gov/irb/2013-50_IRB#NOT-2013-77.
Definition of marriage. A marriage of two individuals is
recognized for federal tax purposes if the marriage is recognized by the state or territory of the United States in
which the marriage is entered into, regardless of legal residence. Two individuals who enter into a relationship that is
denominated as marriage under the laws of a foreign jurisdiction are recognized as married for federal tax purposes
if the relationship would be recognized as marriage under
the laws of at least one state or territory of the United
States, regardless of legal residence. Individuals who
have entered into a registered domestic partnership, civil
union, or other similar relationship that isn't denominated
as a marriage under the law of the state or territory of the
United States where such relationship was entered into
aren't lawfully married for federal tax purposes, regardless
of legal residence.
Differential wage payments. Qualified differential wage
payments made by employers to individuals serving in the
U.S. Armed Forces are subject to income tax withholding
but not social security, Medicare, or FUTA tax. See section
5 for more information.
Severance payments. Severance payments are wages
subject to social security and Medicare taxes, income tax
withholding, and FUTA tax.
4

You must receive written notice from the IRS to file
Form 944. If you’ve been filing quarterly Forms 941 and
believe your employment taxes for the calendar year will
be $1,000 or less, and you would like to file an annual
Form 944 instead of quarterly Forms 941, you must contact the IRS during the first calendar quarter of the tax
year to request to file Form 944. You must receive written
notice from the IRS to file Form 944 instead of quarterly
Forms 941 before you may file this form. For more information on requesting to file Form 944, including the methods and deadlines for making a request, see the Instructions for Form 944.
Employers can request to file quarterly Forms 941 instead of an annual Form 944. If you received notice
from the IRS to file Form 944 but would like to file quarterly
Forms 941 instead, you must contact the IRS during the
first calendar quarter of the tax year to request to file quarterly Forms 941. You must receive written notice from the
IRS to file quarterly Forms 941 instead of Form 944 before
you may file these forms. For more information on requesting to file quarterly Forms 941, including the methods and
deadlines for making a request, see the Instructions for
Form 944.
Correcting Form 941, Form 943, or Form 944. If you
discover an error on a previously filed Form 941, make the
correction using Form 941-X. If you discover an error on a
previously filed Form 943, make the correction using Form
943-X. If you discover an error on a previously filed Form
944, make the correction using Form 944-X. Forms 941-X,
943-X, and 944-X are filed separately from Forms 941,
943, and 944. Forms 941-X, 943-X, and 944-X are used
by employers to claim refunds or abatements of employment taxes, rather than Form 843. See section 13 for more
information.
Zero wage return. If you haven't filed a “final” Form 940
and "final" Form 941, Form 943, or Form 944, or aren't a
“seasonal” employer (Form 941 only), you must continue
to file a Form 940 and Forms 941, Form 943, or Form 944,
even for periods during which you paid no wages. The IRS
encourages you to file your “zero wage” Form 940 and
Form 941, Form 943, or Form 944 electronically. Go to
IRS.gov/EmploymentEfile for more information on electronic filing.
Federal tax deposits must be made by electronic
funds transfer (EFT). You must use EFT to make all federal tax deposits. Generally, an EFT is made using the
Electronic Federal Tax Payment System (EFTPS). If you
don't 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. Also, you may arrange for your financial institution to
initiate a same-day wire payment on your behalf. EFTPS is
a free service provided by the Department of the Treasury.
Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee.
For more information on making federal tax deposits,
see How To Deposit in section 11. To get more information
about EFTPS or to enroll in EFTPS, go to EFTPS.gov or
call 800-555-4477, 800-244-4829 (Spanish), or
303-967-5916 (toll call). To contact EFTPS using
Publication 15 (2024)

Telecommunications Relay Services (TRS) for people who
are deaf, hard of hearing, or have a speech disability, dial
711 and then provide the TRS assistant the 800-555-4477
number or 800-733-4829. Additional information about
EFTPS is also available in Pub. 966.
Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). Employers must withhold and pay social security and Medicare taxes on wages and other compensation paid to
residents of the Philippines who don't hold an H-2 status
for services performed as employees in the CNMI unless
those workers are eligible for exemption from social security and Medicare taxes under an exception listed in section 15. For more information, see Announcement
2012-43, 2012-51 I.R.B. 723, available at IRS.gov/irb/
2012-51_IRB#ANN-2012-43.
Federal employers in the CNMI. The U.S. Treasury Department and the CNMI Division of Revenue and Taxation
entered into an agreement under 5 U.S.C. section 5517 in
December 2006. Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal
income taxes) and deposit the CNMI taxes with the CNMI
Treasury for employees who are subject to CNMI taxes
and whose regular place of federal employment is in the
CNMI. For more information, including details on completing Form W-2, go to IRS.gov/5517Agreements. Federal
employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. For
questions, contact the CNMI Division of Revenue and Taxation.
Pub. 5146 explains employment tax examinations
and appeal rights. Pub. 5146 provides employers with
information on how the IRS selects employment tax returns to be examined, what happens during an exam, and
what options an employer has in responding to the results
of an exam, including how to appeal the results. Pub. 5146
also includes information on worker classification issues
and tip exams.

Electronic Filing and Payment
Businesses can enjoy the benefits of filing and paying
their federal taxes electronically. Whether you rely on a tax
professional or handle your own taxes, the IRS offers you
convenient and secure programs to make filing and
payment easier.
Spend less time worrying about taxes and more time
running your business. Use e-file and EFTPS to your
benefit.

• For e-file, go to IRS.gov/EmploymentEfile for

additional information. A fee may be charged to file
electronically.

• For EFTPS, go to EFTPS.gov or call EFTPS Customer
Service at 800-555-4477, 800-244-4829 (Spanish), or
303-967-5916 (toll call). To contact EFTPS using TRS
for people who are deaf, hard of hearing, or have a
speech disability, dial 711 and then provide the TRS
assistant the 800-555-4477 number or 800-733-4829.

Publication 15 (2024)

• For electronic filing of Forms W-2, Wage and Tax

Statement, including Forms W-2AS, W-2CM, W-2GU,
and W-2VI, and Forms 499R-2/W-2PR, go to
SSA.gov/employer. You may be required to file Forms
W-2 electronically. For details, see the General
Instructions for Forms W-2 and W-3. If you experience
problems filing electronically, contact the Social
Security Administration (SSA) at 800-772-6270. To
speak with the SSA's Regional Employer Services
Liaison Officer, go to the SSA's Regional Employer
Services Liaison Officers website at SSA.gov/
employer/wage_reporting_specialists.htm. The
Regional Employer Services Liaison Officers are
available to provide assistance with all questions
about the SSA's payroll reporting processes and
applications. Employers in the CNMI should contact
their local tax department for instructions on
completing Form W-2CM. You can get Form W-2CM
and its instructions by going to Finance.gov.mp/
forms.php, or by calling 670-664-1000.

If you’re filing your tax return or paying your federal taxes electronically, a valid employer identifiCAUTION cation number (EIN) is required at the time the return is filed or the payment is made. If a valid EIN isn't
provided, the return or payment won't be processed. This
may result in penalties. See section 1 for information
about applying for an EIN.

!

Electronic funds withdrawal (EFW). If you file your employment tax return electronically, you can e-file and use
EFW to pay the balance due in a single step using tax
preparation software or through a tax professional. However, don't use EFW to make federal tax deposits. For
more information on paying your taxes using EFW, go to
IRS.gov/EFW.
Credit or debit card payments. You can pay the balance due shown on your employment tax return by credit
or debit card. Your payment will be processed by a payment processor who will charge a processing fee. Don't
use a credit or debit card to make federal tax deposits. For
more information on paying your taxes with a credit or
debit card, go to IRS.gov/PayByCard.
Online payment agreement. You may be eligible to apply for an installment agreement online if you can’t pay the
full amount of tax you owe when you file your employment
tax return. For more information, see the instructions for
your employment tax return or go to IRS.gov/OPA.

Forms in Spanish
Many forms and instructions discussed in this publication
have Spanish-language versions available for employers
and employees. Some examples include Form 941 (sp),
Form 944 (sp), Form SS-4 (sp), Form W-4 (sp), and Form
W-9 (sp). Although this publication doesn't reference
Spanish-language forms and instructions in each instance
that one is available, you can see Pub. 15 (sp) and go to
IRS.gov to determine if a Spanish-language version is
available.
5

Hiring New Employees
Eligibility for employment. You must verify that each
new employee is legally eligible to work in the United
States, including American Samoa, Guam, the CNMI, the
U.S Virgin Islands (USVI), and Puerto Rico. This includes
completing the U.S. Citizenship and Immigration Services
(USCIS) Form I-9, Employment Eligibility Verification. You
can get Form I-9 at USCIS.gov/Forms. For more information, go to the USCIS website at USCIS.gov/I-9-Central, or
call 800-375-5283 or 800-767-1833 (TTY).
You may use the Social Security Number Verification
Service (SSNVS) at SSA.gov/employer/ssnv.htm to verify
that an employee name matches an SSN. A person may
have a valid SSN but not be authorized to work in the United States. You may use E-Verify at E-Verify.gov to confirm
the employment eligibility of newly hired employees.
New hire reporting. All 50 states, and most of the territories, have a new hire registry. You’re required to report any
new employee to a designated state new hire registry. A
new employee is an employee who hasn't previously been
employed by you or was previously employed by you but
has been separated from such prior employment for at
least 60 consecutive days.
Many states accept a copy of Form W-4 with employer
information added. Go to the Office of Child Support Enforcement website at acf.hhs.gov/programs/css/employers
for more information. Employers in American Samoa,
Guam, the CNMI, the USVI, and Puerto Rico should contact their local government for information on their new
hire registry.
W-4 request. Ask each new employee to complete the
2024 Form W-4. See section 9.
Name and social security number (SSN). Record
each new employee's name and SSN from their social security card if it is available. If an employee can't provide
their social security card, you should verify their SSN and
their eligibility for employment as discussed under Verification of SSNs. Any employee without a social security
card should apply for one. See section 4.

Information Returns
You must file Forms W-2 to report wages paid to
employees. You may also be required to file information
returns to report certain types of payments made during
the year. For example, you must file Form 1099-NEC,
Nonemployee Compensation, to report payments of $600
or more to persons not treated as employees (for
example, independent contractors) for services performed
for your trade or business. For details about filing Forms
1099 and for information about required electronic filing,
see the General Instructions for Certain Information
Returns for general information, and the separate, specific
instructions for each information return you file (for
example, the Instructions for Forms 1099-MISC and
1099-NEC). Generally, don't use Forms 1099 to report
wages and other compensation you paid to employees;
6

report these on Form W-2. See the General Instructions
for Forms W-2 and W-3 for details about filing Form W-2
and for information about required electronic filing.
Technical Services Operation (TSO). The IRS operates the TSO to answer questions about reporting on
Forms W-2, W-3, and 1099, and other information returns.
If you have questions related to reporting on information
returns, call 866-455-7438 (toll free) or 304-263-8700 (toll
call). The center can also be reached by email at
[email protected]. Don't include taxpayer identification numbers (TINs) or attachments in email because email isn't
secure.

Federal Income Tax
Withholding
References to federal income tax withholding
don't apply to employers in American Samoa,
CAUTION Guam, the CNMI, the USVI, and Puerto Rico, unless you have employees who are subject to U.S. income
tax withholding. Contact your local tax department for information about income tax withholding.

!

Withhold federal income tax from each wage payment
or supplemental unemployment compensation plan
benefit payment according to the employee's Form W-4
and the correct withholding table in Pub. 15-T. Farm
operators and crew leaders must withhold federal income
tax from the wages of farmworkers if the wages are
subject to social security and Medicare taxes. If you're
paying supplemental wages to an employee, see section
7. If you have nonresident alien employees, see
Withholding federal income taxes on the wages of
nonresident alien employees in section 9.
See section 8 of Pub. 15-A, Employer’s Supplemental
Tax Guide, for information about withholding on pensions
(including distributions from tax-favored retirement plans),
annuities, and individual retirement arrangements (IRAs).

Nonpayroll Income Tax
Withholding
Nonpayroll federal income tax withholding (reported on
Forms 1099 and Form W-2G, Certain Gambling Winnings)
must be reported on Form 945, Annual Return of Withheld
Federal Income Tax. Separate deposits are required for
payroll (Form 941, Form 943, or Form 944) and nonpayroll
(Form 945) withholding. Nonpayroll items include the
following.

• Pensions (including distributions from tax-favored

retirement plans, for example, section 401(k), section
403(b), and governmental section 457(b) plans),
annuities, and IRA distributions.

• Military retirement.
• Gambling winnings.
Publication 15 (2024)

Employer Responsibilities
The following list provides a brief summary of your basic responsibilities. Because the individual circumstances for each employer
can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. Each item in this list has a
page reference to a more detailed discussion in this publication.
New Employees:
Page
Verify work eligibility of new employees . . . . . . .
6
Record employees' names and SSNs from
social security cards . . . . . . . . . . . . . . . . . . . .
6
Ask employees for Form W-4 . . . . . . . . . . . . . .
6
Each Payday:
Withhold federal income tax based on each
employee's Form W-4 . . . . . . . . . . . . . . . . . . .
24
Withhold employee's share of social security
and Medicare taxes . . . . . . . . . . . . . . . . . . . .
27
Deposit:
• Withheld income tax,
• Withheld and employer social security taxes,
and
• Withheld and employer Medicare taxes . . . . . .
30
Note. Due date of deposit generally depends
on your deposit schedule (monthly or
semiweekly).
Quarterly (By April 30, July 31, October 31,
and January 31):
Deposit FUTA tax if undeposited amount
is over $500 . . . . . . . . . . . . . . . . . . . . . . . . . .
43
File Form 941 (pay tax with return if not
required to deposit) . . . . . . . . . . . . . . . . . . . . .
36

• Indian gaming profits.
• Certain government payments on which the recipient
elected voluntary income tax withholding.

• Dividends and other distributions by an ANC on which

the recipient elected voluntary income tax withholding.

• Payments subject to backup withholding.
For details on depositing and reporting nonpayroll
income tax withholding, see the Instructions for Form 945.
Distributions from nonqualified pension plans and
deferred compensation plans. Because distributions to
participants from some nonqualified pension plans and
deferred compensation plans (including section 457(b)
plans of tax-exempt organizations) are treated as wages
and are reported on Form W-2, income tax withheld must
be reported on Form 941, Form 943, or Form 944, not on
Form 945. However, distributions from such plans to a
beneficiary or estate of a deceased employee aren't wages and are reported on Forms 1099-R, Distributions
From Pensions, Annuities, Retirement or Profit-Sharing
Plans, IRAs, Insurance Contracts, etc.; income tax withheld must be reported on Form 945.
Backup withholding. You must generally withhold 24%
of certain taxable payments if the payee fails to furnish you
with their correct TIN. This withholding is referred to as
“backup withholding.”
Payments subject to backup withholding include interest, dividends, patronage dividends, rents, royalties,
Publication 15 (2024)

Annually (see Calendar for due dates):
Page
File Form 944 if required (pay tax with return if
not required to deposit) . . . . . . . . . . . . . . . . . . . . .
36
Remind employees to submit a new Form W-4
if they need to change their withholding . . . . . . . . . .
24
Ask for a new Form W-4 from employees
claiming exemption from income tax
withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Reconcile Forms 941 (Form 943 or Form 944) with
Forms W-2 and W-3 . . . . . . . . . . . . . . . . . . . . . . .
38
Furnish each employee a Form W-2 . . . . . . . . . . . .
10
File Copy A of Forms W-2 and the transmittal
Form W-3 with the SSA . . . . . . . . . . . . . . . . . . . . .
10
Furnish each payee a Form 1099 (for example,
Form 1099-NEC) . . . . . . . . . . . . . . . . . . . . . . . . .
File Forms 1099 and the transmittal Form
1096 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
File Form 940 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
File Form 945 for any nonpayroll income tax
withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10
10
10
10

commissions, nonemployee compensation, payments
made in settlement of payment card or third-party network
transactions, and certain other payments you make in the
course of your trade or business. In addition, transactions
by brokers and barter exchanges and certain payments
made by fishing boat operators are subject to backup
withholding.
Backup withholding doesn't apply to wages, pensions, annuities, IRAs (including simplified emCAUTION ployee pension (SEP) and SIMPLE retirement
plans), section 404(k) distributions from an employee
stock ownership plan (ESOP), medical savings accounts
(MSAs), health savings accounts (HSAs), long-term-care
benefits, or real estate transactions.

!

You can use Form W-9 to request payees to furnish a
TIN. Form W-9 must be used when payees must certify
that the number furnished is correct, or when payees must
certify that they’re not subject to backup withholding or are
exempt from backup withholding. The Instructions for the
Requester of Form W-9 include a list of types of payees
who are exempt from backup withholding. For more information, see Pub. 1281, Backup Withholding for Missing
and Incorrect Name/TIN(s).

7

Recordkeeping
Keep all records of employment taxes for at least 4 years.
These should be available for IRS review. Your records
should include the following information.

using the Without a payment address provided in the
instructions for your employment tax return, to notify the
IRS of any business name change. See Pub. 1635 to see
if you need to apply for a new EIN.

• Your EIN.
• Amounts and dates of all wage, annuity, and pension

Change of Business Address
or Responsible Party

•
•
•
•

Notify the IRS immediately if you change your business
address or responsible party. Complete and mail Form
8822-B to notify the IRS of a business address or
responsible party change. For a definition of “responsible
party,” see the Instructions for Form SS-4.

payments.

Amounts of tips reported to you by your employees.
Records of allocated tips.
The fair market value (FMV) of in-kind wages paid.
Names, addresses, SSNs, and occupations of
employees and recipients.

• Any employee copies of Forms W-2 and W-2c

Filing Addresses

• Dates of employment for each employee.
• Periods for which employees and recipients were paid

Generally, your filing address for Form 940, 941, 943, 944,
945, or CT-1 depends on the location of your residence or
principal place of business and whether or not you’re
including a payment with your return. There are separate
filing addresses for these returns if you’re a tax-exempt
organization or government entity. See the separate
instructions for Form 940, 941, 943, 944, 945, or CT-1 for
the filing addresses.

returned to you as undeliverable.

while absent due to sickness or injury and the amount
and weekly rate of payments you or third-party payers
made to them.

• Copies of employees' and recipients' income tax

withholding certificates (Forms W-4, W-4P, W-4R,
W-4S, and W-4V).

• Dates and amounts of tax deposits you made and
acknowledgment numbers for deposits made by
EFTPS.

• Copies of returns filed and confirmation numbers.
• Records of fringe benefits and expense
reimbursements provided to your employees,
including substantiation.

• Documentation to substantiate any credits claimed.

Records related to qualified sick leave wages and
qualified family leave wages for leave taken after
March 31, 2021, and before October 1, 2021, and
records related to qualified wages for the employee
retention credit paid after June 30, 2021, should be
kept for at least 6 years. For more information on
substantiation requirements, go to IRS.gov/PLC and
IRS.gov/ERC.

• Documentation to substantiate the amount of any

employer or employee share of social security tax that
you deferred and paid for 2020.

If a crew leader furnished you with farmworkers, you
must keep a record of the name, permanent mailing
address, and EIN of the crew leader. If the crew leader
has no permanent mailing address, record their present
address.

Change of Business Name

Private Delivery Services
(PDSs)
You can use certain PDSs designated by the IRS to meet
the “timely mailing as timely filing” rule for tax returns. Go
to IRS.gov/PDS for the current list of PDSs.
The PDS can tell you how to get written proof of the
mailing date.
For the IRS mailing address to use if you're using a
PDS, go to IRS.gov/PDSstreetAddresses. Select the
mailing address listed on the webpage that is in the same
state as the address to which you would mail returns filed
without a payment, as shown in the instructions for your
employment tax return.

!

CAUTION

PDSs can't 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.

Dishonored Payments
Any form of payment that is dishonored and returned from
a financial institution is subject to a penalty. The penalty is
$25 or 2% of the payment, whichever is more. However,
the penalty on dishonored payments of $24.99 or less is
an amount equal to the payment. For example, a
dishonored payment of $18 is charged a penalty of $18.

Notify the IRS immediately if you change your business
name. Write to the IRS office where you file your returns,
8

Publication 15 (2024)

E-News for Payroll
Professionals

Employers in Puerto Rico must visit Hacienda.gobierno.pr
for additional information.

Photographs of Missing
Children

The IRS has a subscription-based email service for payroll
professionals. Subscribers will receive periodic updates
from the IRS. The updates may include information
regarding recent legislative changes affecting federal
payroll reporting, IRS news releases and special
announcements pertaining to the payroll industry, new
employment tax procedures, and other information
specifically affecting federal payroll tax returns. To
subscribe,
go
to
IRS.gov/Newsroom/E-NewsSubscriptions.

The IRS is a proud partner with the National Center for
Missing & Exploited Children® (NCMEC). Photographs of
missing children selected by the Center may appear in
this publication on pages that would otherwise be blank.
You can help bring these children home by looking at the
photographs
and
calling
1-800-THE-LOST
(1-800-843-5678) if you recognize a child.

Telephone Help

Calendar

Tax questions. You can call the IRS Business and Specialty Tax Line with your employment tax questions at
800-829-4933.
Help for people with disabilities. You may call
800-829-4059 (TDD/TTY for persons who are deaf, hard
of hearing, or have a speech disability) with any employment tax questions. You may also use this number for assistance with unresolved tax problems.
Additional
information. Go
to
IRS.gov/
EmploymentTaxes for additional employment tax information. For general tax information relevant to agricultural
employers, go to IRS.gov/AgricultureTaxCenter. For information about employer responsibilities under the Affordable Care Act, go to IRS.gov/ACA. For information about
COVID-19 tax relief, go to IRS.gov/Coronavirus.

The following is a list of important dates and
responsibilities. The dates listed here haven’t been
adjusted for Saturdays, Sundays, and legal holidays (see
the TIP next). Pub. 509, Tax Calendars (for use in 2024),
adjusts the dates for Saturdays, Sundays, and legal
holidays. See section 11 for information about depositing
taxes reported on Forms 941, 943, 944, and 945. See
section 14 for information about depositing FUTA tax. Due
dates for forms required for health coverage reporting
aren't listed here. For these dates, see Pub. 509.

Ordering Employer Tax Forms,
Instructions, and Publications
You can view, download, or print most of the forms,
instructions, and publications you may need at IRS.gov/
Forms. Otherwise, you can go to IRS.gov/OrderForms to
place an order and have them mailed to you. The IRS will
process your order as soon as possible. Don't resubmit
requests you've already sent us. You can get forms,
instructions, and publications faster online.
Instead of ordering paper Forms W-2 and W-3,
consider filing them electronically using the SSA's free
e-file service. Go to the SSA's Employer W-2 Filing
Instructions & Information webpage at SSA.gov/employer
to register for Business Services Online (BSO). You’ll be
able to create Forms W-2 online and submit them to the
SSA by typing your wage information into easy-to-use
fill-in fields. In addition, you can print out completed
copies of Forms W-2 to file with state or local
governments, distribute to your employees, and keep for
your records. Form W-3 will be created for you based on
your Forms W-2.
The SSA's BSO is an independent program from the
Government of Puerto Rico electronic filing system.
Publication 15 (2024)

If any date shown next for filing a return, furnishing

TIP a form, or depositing taxes falls on a Saturday,

Sunday, or legal holiday, the due date is the next
business day. The term "legal holiday" means any legal
holiday in the District of Columbia. A statewide legal holiday delays a filing due date only if the IRS office where
you’re required to file is located in that state. However, a
statewide legal holiday doesn't delay the due date of federal tax deposits. See Deposits Due on Business Days
Only in section 11. For any filing due date, you’ll meet the
“file” or “furnish” requirement if the envelope containing
the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated PDS on or before the due date. See Private Delivery
Services (PDSs) under Reminders, earlier, for more information.
Fiscal year taxpayers. The due dates listed next apply
whether you use a calendar or a fiscal year.

By January 31
File Form 941 or Form 944.
File Form 941 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 (Form 941, line 12) is less
than $2,500. File Form 944 for the previous calendar
year instead of Form 941 if the IRS has notified you in
writing to file Form 944. Pay any undeposited income,
social security, and Medicare taxes with your Form 944.
9

You may pay these taxes with Form 944 if your total tax
liability for the year (Form 944, line 9) is less than
$2,500. For additional rules on when you can pay your
taxes with your return, see Payment with return in section 11. If you timely deposited all taxes when due, you
may file by February 10.
File Form 943.
Agricultural employers file Form 943
for the previous calendar year and deposit any undeposited income, social security, and Medicare taxes. You
may pay these taxes with Form 943 if your total tax liability for the year (Form 943, line 13) is less than $2,500. If
you timely deposited all taxes when due, you may file by
February 10.
File Form 945.
File Form 945 to report any nonpayroll
federal income tax withheld. If you deposited all taxes
when due, you may file by February 10. See Nonpayroll
Income Tax Withholding under Reminders, earlier, for
more information.
File Form 940.
File Form 940 to report any FUTA tax.
However, if you deposited all of the FUTA tax when due,
you may file by February 10. See section 14 for more information on FUTA tax.
Furnish Forms 1099 and W-2.
Furnish each employee a completed 2023 Form W-2. Furnish a 2023
Form 1099-NEC to payees for nonemployee compensation. Most Forms 1099 must be furnished to payees by
January 31, but some can be furnished by February 15.
For more information, see the Guide to Information Returns chart in the General Instructions for Certain Information Returns.
File Form W-2.
File with the SSA Copy A of all 2023
paper and electronic Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements. Forms W-2AS,
W-2CM, W-2GU, and W-2VI are filed with Form W-3SS.
Forms 499R-2/W-2PR are filed with Form W-3PR. For
more information on reporting Form W-2 information to
the SSA electronically, go to the SSA’s Employer W-2
Filing Instructions & Information webpage at SSA.gov/
employer. If filing electronically, via the SSA's Form W-2
Online service, the SSA will generate Form W-3 data
from the electronic submission of Form(s) W-2.
Send Copy 1 of Forms W-2AS, W-2CM, W-2GU, and
W-2VI, and Form W-3SS to your local tax department at
the address shown on Form W-3SS. For more information
on Copy 1, contact your local tax department. Employers
in the CNMI should contact their local tax department for
instructions on how to file Copy 1. For additional information on how to file Forms 499R-2/W-2PR with the Puerto
Rico Department of Treasury, go to Hacienda.gobierno.pr
or call 787-622-0123.
File Form 1099-NEC reporting nonemployee compensation.
File with the IRS Copy A of all 2023 paper
and electronic Forms 1099-NEC. Paper forms must be
filed with Form 1096, Annual Summary and Transmittal
of U.S. Information Returns. For information on filing information returns electronically with the IRS, see Pub.

10

1220, Specifications for Electronic Filing of Forms 1097,
1098, 1099, 3921, 3922, 5498, and W-2G.

By February 15
Request a new Form W-4 from exempt employees.
Ask for a new Form W-4 from each employee who
claimed exemption from income tax withholding last
year.

On February 16
Forms W-4 claiming exemption from withholding expire.
Any Form W-4 claiming exemption from withholding for the previous year has now expired. Begin
withholding for any employee who previously claimed
exemption from withholding but hasn't given you a new
Form W-4 for the current year. If the employee doesn't
give you a new Form W-4, withhold tax as if they had
checked the box for Single or Married filing separately in
Step 1(c) and made no entries in Step 2, Step 3, or Step
4 of the 2024 Form W-4. See section 9 for more information. If the employee gives you a new Form W-4 claiming
exemption from withholding after February 15, you may
apply the exemption to future wages, but don't refund
taxes withheld while the exempt status wasn't in place.

By February 28
File paper 2023 Forms 1099 and 1096.
File Copy A
of all paper 2023 Forms 1099, except Forms 1099-NEC,
with Form 1096 with the IRS. For electronically filed returns, see By March 31, later.

By February 29
File paper Form 8027.
File paper Form 8027, Employer's Annual Information Return of Tip Income and
Allocated Tips, with the IRS. See section 6. For electronically filed returns, see By March 31 next.

By March 31
File electronic 2023 Forms 1099 and 8027.
File
electronic 2023 Forms 1099, except Forms 1099-NEC,
with the IRS. Also file electronic Form 8027 with the IRS.
For information on filing information returns electronically with the IRS, see Pub. 1220 and Pub. 1239, Specifications for Electronic Filing of Form 8027, Employer's
Annual Information Return of Tip Income and Allocated
Tips.

By April 30, July 31, October 31, and
January 31
Deposit FUTA taxes.
Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. If $500 or less, carry it over to the next
quarter. See section 14 for more information.

Publication 15 (2024)

File Form 941.
File Form 941 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 (Form 941, line 12) is less than
$2,500. If you timely deposited all taxes when due, you
may file by May 10, August 10, November 10, or February 10, respectively. Don't file Form 941 for these quarters if you have been notified to file Form 944 and you
didn't request and receive written notice from the IRS to
file quarterly Forms 941.

Before December 1
New Forms W-4.
Remind employees to submit a new
Form W-4 if their filing status, other income, deductions,
or credits have changed or will change for the next year.
Also remind employees to submit a new Form W-4 if
they made a mid-year change to their Form W-4 based
on their use of the IRS Tax Withholding Estimator available at IRS.gov/W4App. Employees that made a
mid-year change may be underwithheld or overwithheld
once their Form W-4 is applied to the next full calendar
year.

Introduction
This publication explains your tax responsibilities as an
employer, including agricultural employers and employers
whose principal place of business is in American Samoa,
Guam, the CNMI, the USVI, or Puerto Rico. It explains the
requirements for withholding, depositing, reporting, paying, and correcting employment taxes. It explains the
forms you must give to your employees, those your employees must give to you, and those you must send to the
IRS and the SSA. References to “income tax” in this guide
apply only to federal income tax. Contact your state or local tax department to determine their rules. Whenever the
term "United States" is used in this publication, it includes
American Samoa, Guam, the CNMI, the USVI, and Puerto
Rico, unless otherwise noted.
When you pay your employees, you don't pay them all
the money they earned. As their employer, you have the
added responsibility of withholding taxes from their paychecks. The federal income tax and employees' share of
social security and Medicare taxes that you withhold from
your employees' paychecks are part of their wages that
you pay to the U.S. Treasury instead of to your employees.
Your employees trust that you pay the withheld taxes to
the U.S. Treasury by making federal tax deposits. This is
the reason that these withheld taxes are called trust fund
taxes. If federal income, social security, or Medicare taxes
that must be withheld aren't withheld or aren't deposited or
paid to the U.S. Treasury, the trust fund recovery penalty
may apply. See section 11 for more information.
This publication also provides employers, including employers in the USVI and Puerto Rico, with a summary of
their responsibilities in connection with the tax under the
Federal Unemployment Tax Act, known as FUTA tax. See
section 14 for more information.
Publication 15 (2024)

Additional employment tax information is available in
Pubs. 15-A, 15-B, and 15-T. Pub. 15-A includes specialized information supplementing the basic employment tax
information provided in this publication. 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. Pub. 15-T includes
the federal income tax withholding tables and instructions
on how to use the tables.
Most employers must withhold (except FUTA), deposit,
report, and pay the following employment taxes.

•
•
•
•

Income tax.
Social security tax.
Medicare tax.
FUTA tax.

There are exceptions to these requirements. See section 15 for guidance. Railroad retirement taxes are explained in the Instructions for Form CT-1.
Comments and suggestions. We welcome your comments about this publication and suggestions for future
editions.
You can send us comments through IRS.gov/
FormComments.
Or, you can write to:
Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
Although we can’t respond individually to each comment received, we do appreciate your feedback and will
consider your comments and suggestions as we revise
our tax forms, instructions, and publications. Don’t send
tax questions, tax returns, or payments to the above address.
Getting answers to your tax questions. If you have
a tax question not answered by this publication, check
IRS.gov and How To Get Tax Help at the end of this publication.
Getting tax forms, instructions, and publications.
Go to IRS.gov/Forms to download current and prior-year
forms, instructions, and publications.
Ordering tax forms, instructions, and publications.
Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order
prior-year forms and instructions. The IRS will process
your order for forms and publications as soon as possible.
Don’t resubmit requests you’ve already sent us. You can
get forms and publications faster online.
Federal government employers. The information in this
publication, including the rules for making federal tax deposits, applies to federal agencies.
State and local government employers. Payments to
employees for services in the employ of state and local
11

government employers are generally subject to federal income tax withholding but not FUTA tax. Most elected and
appointed public officials of state or local governments are
employees under common-law rules. See chapter 3 of
Pub. 963, Federal-State Reference Guide. In addition, wages, with certain exceptions, are subject to social security
and Medicare taxes. See section 15 for more information
on the exceptions.
If an election worker is employed in another capacity
with the same government entity, see Revenue Ruling
2000-6 on page 512 of Internal Revenue Bulletin 2000-6
at IRS.gov/pub/irs-irbs/irb00-06.pdf.
You can get information on reporting and social security
coverage from your local IRS office. If you have any questions about coverage under a section 218 (Social Security
Act) agreement, contact the appropriate state official. To
find your State Social Security Administrator, go to the National Conference of State Social Security Administrators
website at NCSSSA.org.
Indian tribal governments. See Pub. 4268 for employment tax information for Indian tribal governments.
Disregarded entities and qualified subchapter S subsidiaries (QSubs). Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Eligible single-member entities
must report and pay employment taxes on wages paid to
their employees using the entities' own names and EINs.
See
Regulations
sections
1.1361-4(a)(7)
and
301.7701-2(c)(2)(iv).

Useful Items

You may want to see:
Publication
15-A Employer's Supplemental Tax Guide
15-A

15-B Employer's Tax Guide to Fringe Benefits

If you don’t have an EIN, you may apply for one online
by going to IRS.gov/EIN. You may also apply for an EIN by
faxing or mailing Form SS-4 to the IRS. If the principal
business was created or organized outside of the United
States or U.S. territories, you may also apply for an EIN by
calling 267-941-1099 (toll call). Don't use an SSN in place
of an EIN.
You should have only one EIN. If you have more than
one and aren't sure which one to use, call 800-829-4933
or 800-829-4059 (TDD/TTY for persons who are deaf,
hard of hearing, or have a speech disability). Give the
numbers you have, the name and address to which each
was assigned, and the address of your main place of business. The IRS will tell you which number to use. For more
information, see Pub. 1635.
If you took over another employer's business (see Successor employer in section 9), don't use that employer's
EIN. If you’ve applied for an EIN but don't have your EIN
by the time a return is due, file a paper return and enter
“Applied For” and the date you applied for it in the space
shown for the number.
Always be sure the EIN on the form you file exactly matches the EIN the IRS assigned to your
CAUTION business. Don't use your SSN or individual taxpayer identification number (ITIN) on forms that ask for an
EIN. If you used an EIN (including a prior owner's EIN) on
Form 941, Form 943, or Form 944, that is different from
the EIN reported on Form W-3, see Box h—Other EIN
used this year in the General Instructions for Forms W-2
and W-3. On Form W-3PR for Puerto Rico, “Other EIN
used this year” is reported in box f. The name and EIN on
Form 945 must match the name and EIN on your information returns where federal income tax withholding is reported (for example, backup withholding reported on Form
1099-NEC). Filing a Form 945 with an incorrect EIN or using another business's EIN may result in penalties and delays in processing your return.

!

15-B

15-T Federal Income Tax Withholding Methods
15-T

225 Farmer's Tax Guide
225

535 Business Expenses

Agricultural employers that have crew leaders. An
agricultural employer must record the crew leader's name,
address, and EIN. See sections 2 and 14.

535

583 Starting a Business and Keeping Records
583

1635 Employer Identification Number:
Understanding Your EIN
1635

1. Employer Identification
Number (EIN)
If you’re required to report employment taxes or give tax
statements to employees or annuitants, you need an 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 who
have no employees. Use your EIN on all of the items you
send to the IRS and the SSA. For more information, see
Pub. 1635.
12

2. Who Are Employees?
Generally, employees are defined either under common
law or under statutes for certain situations. See Pub. 15-A
for details on statutory employees and nonemployees.
Employee status under common law. 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. This is so even when you give the employee
freedom of action. What matters is that you have the right
to control the details of how the services are performed.
See Pub. 15-A for more information on how to determine
whether an individual providing services is an independent contractor or an employee.
Generally, people in business for themselves aren't employees. For example, doctors, lawyers, veterinarians, and
Publication 15 (2024)

others in an independent trade in which they offer their
services to the public are usually not employees. If the
business is incorporated, corporate officers who work in
the business are employees of the corporation.
If an employer-employee relationship exists, it doesn't
matter what it is called. The employee may be called an
agent or independent contractor. It also doesn't matter
how payments are measured or paid, what they’re called,
or if the employee works full or part time.
Statutory employees. If someone who works for you
isn't an employee under the common-law rules discussed
earlier, don't withhold federal income tax from their pay,
unless backup withholding applies. Although the following
persons may not be common-law employees, they’re considered employees by statute for social security and Medicare tax purposes if the conditions under Tests, later, are
met.
a. An agent or commission driver who delivers meat, vegetable, fruit, or bakery products; beverages (other than
milk); laundry; or dry cleaning for someone else.
b. A full-time life insurance salesperson who sells primarily for one company.
c. A homeworker who works at home or off premises by
the guidelines of the person for whom the work is done,
with materials or goods furnished by and returned to that
person or to someone that person designates.
d. A traveling or city salesperson (other than an agent or
commission driver) who works full time (except for sideline
sales activities) for one firm or person getting orders from
customers. The orders must be for merchandise for resale
or supplies for use in the customer's business. The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing
with food or lodging.
Tests. Withhold social security and Medicare taxes
from statutory employees' wages if all three of the following tests apply.
1. The service contract states or implies that almost all
of the services are to be performed personally by
them.
2. They have little or no investment in the equipment and
property used to perform the services (other than an
investment in transportation facilities).
3. The services are performed on a continuing basis for
the same payer.
Persons in a or d, earlier, are also employees for FUTA
tax purposes if tests 1 through 3 are met.
Pub. 15-A gives examples of the employer-employee
relationship.
Statutory nonemployees. Direct sellers, qualified real
estate agents, and certain companion sitters are, by law,
considered nonemployees. They’re generally treated as
self-employed for all federal tax purposes, including inPublication 15 (2024)

come and employment taxes. See Pub. 15-A for more information.
Farmworkers. In general, you're 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, if the major part of
such service is performed on a farm;

• Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane
(also known as hurricane labor), if the major part of
such service is performed on a farm;

• Handle, process, or package any agricultural or horti-

cultural commodity in its unmanufactured state 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 relate