Page 246 - BusinessStructures & Forms

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Must You Deposit Your Taxes? Deposit Rule in section 7 of Pub. 51 for more information.
You may have to deposit the federal income taxes you The $100,000 tax liability threshold requiring a next-day
withheld and both the employer and employee social deposit is determined before you consider any reduction
security taxes and Medicare taxes. of your liability for nonrefundable credits. For more
information, including an example, see frequently asked
• If your total taxes after adjustments and question 17 at IRS.gov/ETD.
nonrefundable credits (line 13) are less than $2,500
for the year, you can pay the tax due with your return If you became a semiweekly schedule depositor for 2022
if you file on time. You don't have to make a deposit. To under the $100,000 Next-Day Deposit Rule solely as a
avoid a penalty, you must pay any amount due in full with result of the relief provided in Notice 2021-65 regarding
a timely filed return or you must deposit any amount you the early termination of the employee retention credit for
owe by the due date of the return. For more information on the fourth quarter of 2021, you may be converted back to
paying with a timely filed return, see the instructions for a monthly schedule depositor by contacting the IRS. You
line 15, later. may continue to deposit in accordance with your status as
• If your total taxes after adjustments and a monthly schedule depositor, but you may receive a
nonrefundable credits (line 13) are $2,500 or more system-generated FTD penalty notice after you file your
for the year. You must make deposits by EFT throughout Form 943 for 2022. Contact the IRS at the toll-free number
the year in accordance with your deposit schedule. There on your FTD penalty notice to request abatement of the
are two deposit schedules—monthly or semiweekly—for FTD penalty and to be converted back to a monthly
determining when you must deposit. Before the beginning schedule depositor.
of each calendar year, you must determine which of the
two deposit schedules you must use. See section 7 of What About Penalties and Interest?
Pub. 51 for information and rules concerning federal tax
deposits and to determine your status as a monthly or Avoiding Penalties and Interest
semiweekly schedule depositor. You can avoid paying penalties and interest if you do all of
Reducing your deposits for COVID-19 credits. the following.
Employers eligible to claim the credit for qualified sick and • Deposit or pay your taxes when they are due, unless
family leave wages paid in 2022 for leave taken after you meet the requirements discussed in Notice 2020-22
March 31, 2020, and before October 1, 2021, and/or the and Notice 2021-24.
COBRA premium assistance credit can reduce their • File your fully completed Form 943 on time.
deposits by the amount of their anticipated credits. You • Report your tax liability accurately.
may reduce your deposits of federal employment taxes in • Submit valid checks for tax payments.
anticipation of the COBRA premium assistance credit with • Furnish accurate Forms W-2 to employees.
regard to a period of coverage as of the date you are • File Form W-3 and Copy A of Forms W-2 with the SSA
entitled to the credit. Employers won’t be subject to an on time and accurately.
FTD penalty for reducing their deposits if certain Penalties and interest are charged on taxes paid late
conditions are met. See the instructions for line 12b, and returns filed late at a rate set by law. See sections 7
line 12d, and line 12e, later, for more information on these and 8 of Pub. 51 for details.
credits. For more information on reducing deposits, see
Notice 2020-22, 2020-17 I.R.B. 664, available at Use Form 843 to request abatement of assessed
IRS.gov/irb/2020-17_IRB#NOT-2020-22; and Notice penalties or interest. Don't request abatement of
2021-24, 2021-18 I.R.B. 1122, available at IRS.gov/irb/ assessed penalties or interest on Form 943 or Form
2021-18_IRB#NOT-2021-24. See the instructions for 943-X.
line 17, later, for instructions on how to adjust your tax If you receive a notice about a penalty after you file
liabilities reported on line 17 or Form 943-A for your return, reply to the notice with an explanation and we
nonrefundable credits. will determine if you meet reasonable-cause criteria. Don't
Example. Reducing deposits for COBRA premium attach an explanation when you file your return.
assistance. Maple Co. has a semimonthly payroll period. If federal income, social security, and Medicare
Sophie Rose elected COBRA premium assistance on taxes that must be withheld (that is, trust fund
January 7, 2022. Maple Co. became entitled to a COBRA ! taxes) aren't withheld or aren't deposited or paid
CAUTION
premium assistance credit as of January 7, 2022, for the to the United States Treasury, the trust fund recovery
premiums not paid by Sophie (an assistance eligible penalty may apply. The penalty is 100% of the unpaid
individual) for the periods of coverage from September 1, trust fund tax. If these unpaid taxes can't be immediately
2021, through September 30, 2021. Maple Co. could collected from the employer or business, the trust fund
reduce its federal employment tax deposits as of January recovery penalty may be imposed on all persons who are
7, 2022, in anticipation of the credit to which Maple Co. determined by the IRS to be responsible for collecting,
has become entitled. accounting for, or paying over these taxes, and who acted
If you're a monthly schedule depositor and willfully in not doing so. For more information, see section
! accumulate a $100,000 tax liability on any day 7 of Pub. 51. The trust fund recovery penalty won't apply
CAUTION during the deposit period, you become a to any amount of trust fund taxes an employer holds back
semiweekly schedule depositor on the next day and in anticipation of any credits they are entitled to. It also
remain so for at least the rest of the calendar year and for won't apply to applicable taxes properly deferred under
the following calendar year. See $100,000 Next-Day section 2302 of the CARES Act or applicable taxes

Instructions for Form 943 (2022) -9-