Payroll Forms Employers Must Know (Plain-English Guide)

Running payroll isn’t just cutting checks—it’s also about accurate reporting, timely filings, and clean employee records. From the day you hire your first worker or contractor, you’re responsible for a set of payroll and tax forms used by the IRS, the Social Security Administration (SSA), the Department of Labor (DOL), and state agencies. This guide explains the core forms employers deal with, what each form does, who must file it, and when it’s due. You’ll also find practical notes on certified payroll, direct deposit authorizations, and popular payroll change form templates.

Form I-9 — Employment Eligibility Verification

What it is: Required by USCIS (not the IRS) to verify identity and work authorization for each new hire in the U.S.

Due: Employee completes Section 1 on or before Day 1. Employer completes Section 2 within 3 business days of the start date.

What you do: Examine original documents from Lists A/B/C; record details; keep the I-9 on file (do not submit unless requested during an audit). Reverify in Section 3 if authorization expires.

Keep timeframes: Retain I-9s for 3 years after hire or 1 year after termination, whichever is later.
Remote hires: Use an authorized representative to physically inspect originals (where permitted).

Form W-4 — Employee’s Withholding Certificate

What it is: Employees complete W-4 so you can withhold the correct federal income tax from their pay.

Due: On or before the employee’s first payroll; update when life circumstances change.

Tips: Keep the latest W-4 on file; some states have their own withholding certificates.

Form W-2 — Wage and Tax Statement

What it is: Annual statement of wages and tax withholdings for each employee.

Due: Furnish to employees and file with the SSA by January 31.

What it reports: Wages, tips, federal income tax, Social Security/Medicare (FICA), and state/local where applicable.

Who needs it: Any employee paid wages subject to withholding or FICA; generally any employee earning ≥ $600.
Common error: Mismatched EIN/employee data—verify before filing.

Form W-3 — Transmittal of Wage and Tax Statements

What it is: The cover sheet that summarizes all W-2s you file.

Due: January 31 to the SSA (included automatically if you e-file via BSO).

Note: Employees do not receive a W-3.

Form 940 — Employer’s Annual FUTA Tax Return

What it is: Annual return for the Federal Unemployment Tax Act (FUTA).

Due: January 31 (Feb 10 if all FUTA deposits were made on time).

Who files: Most employers who paid $1,500+ in wages in any quarter or had at least one employee in 20+ different weeks during the year.

Coordination: State unemployment (SUTA) generally provides credits against FUTA.

Form 941 — Employer’s Quarterly Federal Tax Return

What it is: Quarterly report for federal income tax withheld and both employer/employee portions of FICA (Social Security & Medicare).

Due: Apr 30, Jul 31, Oct 31, Jan 31 (for Q1–Q4 respectively).

Who files: Most employers; exceptions exist for annual filers (Form 944) and agricultural (Form 943).

Form 944 — Employer’s Annual Federal Tax Return (Small Employers)

What it is: Annual version of the 941 for eligible small employers.

Due: January 31 (annual).

Eligibility: Only if you’ve been notified/authorized by the IRS to file yearly (generally if annual liability is ≤ $1,000). If not authorized, keep filing 941 quarterly.

Form 943 — Employer’s Annual Tax Return for Agricultural Employees

What it is: Annual return for employers paying wages to farmworkers subject to Social Security, Medicare, and withholding.

Due: Typically January 31 (check current instructions).

Form WH-347 — Certified Payroll (Davis-Bacon Act)

What it is: A U.S. Department of Labor (Wage and Hour Division) weekly certified payroll report for federal construction contracts subject to prevailing wage rules (Davis-Bacon).

What it includes: Employee names, classifications, hours, pay rates, gross pay, deductions, and net pay; plus a signed statement of compliance.

When it applies: Federally funded/assisted projects requiring prevailing wages.
Related terms: Prevailing wage, certified payroll template, payroll report of labor.

Form W-9 — Request for Taxpayer Identification Number (Contractors/Vendors)

What it is: You request a contractor’s legal name, address, and TIN (SSN/EIN) using W-9. Keep it on file; do not send to the IRS.

When used: Onboarding independent contractors or vendors so you can issue Forms 1099 at year-end.

Form 1099 Series — Information Returns (Common: 1099-NEC, 1099-MISC, 1099-INT, 1099-DIV, 1099-K)

What it is: Reports non-employee compensation and other payments (interest, dividends, processor payments, rents, etc.).

1099-NEC: Pay ≥ $600 to a contractor for services → furnish to recipient and file with IRS (generally by Jan 31).
1099-MISC: Rents, royalties, prizes/awards, other income not on 1099-NEC.
1099-K: Payment card and third-party network transactions (thresholds vary by year—check current rules).

Form 1095 — Health Coverage Reporting (ACA)

What it is: Forms 1095-B/1095-C report health coverage offered/held. Applicable large employers (ALEs) file 1095-C; insurers or small employers offering self-insured plans may file 1095-B.

Due: Furnish to employees and file with the IRS by the stated deadlines (electronic filing deadlines may differ from paper).

Employer Admin Forms & Templates (Practical Toolkit)

Direct Deposit Authorization

Have employees authorize ACH deposits to their bank. Keep routing/account info secure. Update upon payroll change notice (bank switch, split deposits).

Payroll Change Form Template

Use a simple internal form to capture changes in pay rate, hours, job title, department, supervisor, or deductions/benefits. Route via HR for approvals to preserve an audit trail.

Payroll Deduction Authorization

Document pre-tax and post-tax deductions (benefits, garnishments, uniform/equipment where allowed). Always retain signed authorizations.

New Hire & Payroll Setup Checklist

Collect I-9 and supporting documents.
Collect W-4 (and state equivalents).
Report new hires to your State Directory of New Hires.
Enter employee in payroll system; set direct deposit, benefits, and withholding.
Assign pay schedule (weekly/biweekly/semimonthly/monthly).
Confirm overtime rules and job classification (FLSA exempt/non-exempt).

Certified Payroll & Prevailing Wage

On federally funded construction, ensure proper classification, prevailing wage rates, fringe benefits, and WH-347 weekly reports. Keep backup (timecards, pay stubs, fringe calculations) ready for audits by the DOL’s Wage and Hour Division.

At-a-Glance: Who Files & When (Employer View)

I-9: Every new hire (employer retains). Day 1 / within 3 business days.
W-4: Every employee at hire; update as needed.
W-2/W-3 (SSA): Due Jan 31 (furnish W-2 to employees; file W-2/W-3 with SSA).
940 (FUTA): Due Jan 31 (Feb 10 if deposits on time).
941 (Quarterly): Due Apr 30, Jul 31, Oct 31, Jan 31.
944 (Annual small employer): Due Jan 31 (only if IRS authorized).
943 (Agricultural): Annual (typically Jan 31).
WH-347 (Certified payroll): Weekly, when applicable on federal jobs.
W-9 (Contractors): At onboarding; retain for 1099 prep.
1099 Series: Furnish/file by form-specific deadlines (many due Jan 31 to recipient; e-file IRS deadlines vary).
1095 (ACA): Furnish/file per ACA deadlines (check current year rules).

Tip: Align your payroll calendar with these deadlines. Reconcile quarterly (941) totals to year-end (W-2/W-3) to avoid SSA/IRS mismatch notices.

Common Pitfalls (and How to Avoid Them)

Mixing employees and contractors: Misclassification can trigger back taxes and penalties. Employees get W-2; contractors receive 1099-NEC.
Late filings: Missing Jan 31 (W-2/W-3, some 1099s) or quarter-ends (941) can lead to penalties—use reminders.
Data mismatches: EIN/name mismatches or W-2/W-3 totals not aligning with 941s. Reconcile quarterly and at year-end.
I-9 errors: Missing signatures, wrong documents, late Section 2. Train your team and audit periodically.
Certified payroll gaps: Incomplete WH-347 details or missing fringe documentation on prevailing wage projects.

Mini Comparisons (Quick Reference)

W-2 vs W-4

W-4: Employee tells employer how much tax to withhold.
W-2: Employer reports annual wages and withholdings to employee and SSA.

940 vs 941 vs 944

940: Annual FUTA (federal unemployment) tax return.
941: Quarterly employment tax return (withholding + FICA).
944: Annual employment tax return for IRS-authorized small employers.

I-9 vs W-2

I-9: Employment eligibility verification (kept on file).
W-2: Wage/tax statement filed with SSA and furnished to employee.

W-4 vs 1099

W-4: For employees—sets withholding.
1099: For non-employees—reports payments; no payroll withholding.

FAQs Payroll Forms Employers

1. What is the difference between a 940 and a 941 form?

Form 940 reports annual federal unemployment taxes (FUTA), while Form 941 reports quarterly federal income tax, Social Security, and Medicare withholdings.

2. What’s the difference between a W-2 form and a W-4 form?

A W-2 is issued by employers to employees, showing annual wages and taxes withheld. A W-4 is filled out by employees to guide how much tax should be withheld.

3. What are W-4 and I-9 forms?

W-4 determines tax withholding, while I-9 verifies an employee’s identity and eligibility to work in the U.S.

4. What is the difference between 941 and 944 employers?

Form 941 is filed quarterly, while Form 944 is an annual filing option for smaller employers with lower tax liability.

5. Why do I need to file 943 instead of 941?

Form 943 is required for agricultural employers who pay wages subject to federal employment taxes.

6. Are FUTA and 940 the same?

Yes. Form 940 is the official form used to report FUTA taxes.

7. What is an I-9 form vs W-2?

I-9 verifies employment eligibility; W-2 reports employee wages and withholdings for tax purposes.

8. What is a W-3 form used for?

It summarizes and transmits all employee W-2 forms to the Social Security Administration.