Schedule R (Form 943) (12-2017)
Section references are to the Internal Revenue Code unless otherwise
noted.
Future Developments
For the latest information about developments related to Schedule R
and its instructions, such as legislation enacted after they were
published, go to www.irs.gov/Form943.
General Instructions
Purpose of Schedule R
Use Schedule R to allocate information reported on Form 943 to each
client. For purposes of Schedule R, the term “client” means (a) an
“employer or payer” identified on the Form 2678, Employer/Payer
Appointment of Agent; (b) a customer who enters into a contract that
meets the requirements under section 7705(e)(2); or (c) a client who
enters into a service agreement described under Regulations section
31.3504-2(b)(2) with a CPEO. If you have more than 10 clients, complete
as many continuation sheets as necessary. Attach Schedule R, including
any continuation sheets, to your aggregate Form 943.
Who Must File?
Agents approved by the IRS under section 3504 and CPEOs must
complete Schedule R each time they file an aggregate Form 943. To
request approval to act as an agent for an employer under section 3504,
the agent must file Form 2678 with the IRS. Form 2678 must be
previously filed and approved by the IRS before filing Schedule R. To
become a CPEO, the organization must apply through the IRS Online
Registration System. Visit the IRS website at www.irs.gov/CPEO for
more information.
When Must You File?
If you’re an aggregate Form 943 filer, file Schedule R with your
aggregate Form 943 every year. Form 943 and Schedule R can be filed
electronically or by paper submission.
Specific Instructions
Completing Schedule R
Enter Your Business Information
Carefully enter your EIN and the name of your business at the top of the
schedule. Make sure they exactly match the EIN and name shown on
the attached Form 943. Check one of the “Type of filer” boxes to tell us
if you’re a section 3504 agent or a CPEO.
Calendar Year
Enter the calendar year of the Form 943 to which Schedule R is
attached.
Client and Employee Information
On Schedule R, including any continuation sheets, you must report the
following for each client.
Note: When entering amounts over 999.99 on Schedule R, don’t enter
commas.
Column a. The client’s EIN.
Column b (CPEO Use Only). Type of wages and other compensation.
Enter a code to report the type of wages and other compensation paid
to the individual(s) performing services for the client. If you paid more
than one type of wages or other compensation, you must use more than
one line to report for that client and enter the applicable code for each
line. The following four codes are the only entries that can be made in
column b.
• A: Wages and other compensation paid under section 3511(a).
• B: Wages and other compensation paid under section 3511(c).
• C: Wages and other compensation not reported under Code A or
Code B paid as a payor under a service agreement described in
Regulations section 31.3504-2(b)(2).
• D: Wages and other compensation paid as an agent under
Regulations section 31.3504-1.
Column c. Social security tax allocated to the listed client EIN from
Form 943, line 3.
Column d. Medicare tax allocated to the listed client EIN from Form
943, line 5.
Column e. Additional Medicare Tax withholding allocated to the listed
client EIN from Form 943, line 7.
Column f. Federal income tax withheld from wages and other
compensation allocated to the listed client EIN from Form 943, line 8.
Column g. Qualified small business payroll tax credit for increasing
research activities allocated to the listed client EIN from Form 943, line
12. You must attach a separate Form 8974 for each client claiming this
credit.
Column h. Total taxes after adjustments and credits allocated to the
listed client EIN from Form 943, line 13.
Column i. Total deposits from Form 943, line 14, plus any payments
made with the return allocated to the listed client EIN.
You must also report the same information for your agricultural
employees on Schedule R, line 13.
Compare the total of each column on Schedule R, line 14, to the
amounts reported on the aggregate Form 943. For each column total of
Schedule R, the relevant line from Form 943 is noted in the column
heading.
The totals on Schedule R, line 14, must match the totals on Form 943.
If the totals don’t match, there is an error that must be corrected before
submitting Form 943 and Schedule R.
Paperwork Reduction Act Notice. We ask for the information on
Schedule R to carry out the Internal Revenue laws of the United States.
You’re required to give us this information. We need it to ensure that
you’re complying with these laws and to allow us to figure and collect
the right amount of tax.
You’re not required to provide the information requested on a form
that is subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. Books or records relating to a form or its
instructions must be retained as long as their contents may become
material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section
6103.
The time needed to complete and file Schedule R will vary depending
on individual circumstances. The estimated average time is:
Recordkeeping . . . . . . . . . . . . 11 hr, 43 min.
Learning about the law or the form . . . . . . . . 32 min.
Preparing, copying, and assembling the form . . . . . 49 min.
If you have comments concerning the accuracy of these time
estimates or suggestions for making Schedule R simpler, we would be
happy to hear from you. You can send us comments from www.irs.gov/
FormComments. Or you can send your comments to Internal Revenue
Service, Tax Forms and Publications Division, 1111 Constitution Ave.
NW, IR-6526, Washington, DC 20224. Don’t send Schedule R to this
address. Instead, see Where To File in the Instructions for Form 943.
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