When you sign up for FarmRaise Payroll, one of the first things we help you figure out is which federal payroll tax form applies to your operation: Form 941, Form 943, or both.
Knowing which form to file ensures that we report and pay your federal employment taxes correctly—and on time. Here's what you need to know:
What’s the Difference Between IRS Form 941 and Form 943?
Form 941 and Form 943 are both IRS forms used to report federal payroll taxes. The key difference lies in who you employ and what type of work they do.
Form 943 — For Agricultural Employers
You’ll likely file Form 943 if you:
Pay wages to farmworkers (such as hands, harvesters, or equipment operators on your farm, ranch, or orchard)
Paid $2,500 or more in wages to farm employees during the year
Had a cash wage of $150 or more to any single farmworker during the year
This form covers federal income tax withheld, Social Security, and Medicare taxes for agricultural employees.
Form 941 — For Non-Agricultural Employees
You’ll file Form 941 if you:
Pay wages to non-farm employees, like:
Bookkeepers or office staff working off the farm
Employees of a separate business not related to farming
Need to report quarterly payroll taxes for these workers
Form 941 is filed four times a year (quarterly), while Form 943 is filed once a year (annually).
Do You Need to File Both?
You might need to file both forms if you:
Employ agricultural workers and
Also, employ non-agricultural workers
For example:
You hire farmhands to work your fields (Form 943), and your spouse does bookkeeping and payroll in town as a W-2 employee (Form 941).
We’ll work with you to make sure both sets of wages are reported to the IRS properly.
How FarmRaise Payroll Handles This for You
When you onboard with FarmRaise Payroll, we’ll:
Ask about the types of workers you hire
Determine if you need Form 941, 943, or both
Make sure all the correct forms are filed on your behalf
Help you stay compliant and avoid penalties
What You Can Do to Help
To get you set up correctly, be ready to:
Tell us what kind of work each employee does
Share how much each worker is paid
Let us know if any of your team works off the farm or ranch
Still Not Sure?
No problem—we’ll walk you through it during setup. And if your situation changes (like you add a new type of employee), just let us know. We'll update your forms accordingly.
Have questions? Contact the FarmRaise Payroll Team, and we’ll help you figure it out.