Computerized Farm Record Keeping with Quicken® 2002

Bulletin 897-02

Payroll

Bookkeeping Tasks For Payroll (Agricultural Employers)

1. Calculate employee earnings and amounts of federal and Ohio income taxes, FICA and Medicare taxes to withhold. The employer pays the same amounts of FICA and Medicare taxes as is withheld from the employees.
2. Employers must periodically make deposits of federal income taxes and FICA and Medicare taxes owed. For farmers, the deposits may be required annually, monthly or semi-weekly depending on the amount of taxes owed during the look back period. Consult the current year’s IRS Circular A or Circular E for details.
3. Employers must make quarterly deposits of Ohio income and any local income taxes withheld. Withholding of Ohio income taxes is optional for agricultural employees.
4. At the end of the year, employers must give each employee a Form W-2 showing gross wages received, FICA taxes, Medicare taxes and income taxes withheld. Form W-3, Transmittal of Income Tax Statements, must be filed with the Social Security Administration.
5. At the end of the year, the employer must file Form 943, Employer’s Annual Return for Agricultural Employees, with the IRS.