TaxBandits Knowledge Base

How to choose the payer type on Form W-2?

When filing W-2 returns, the SSA requires you to report the kind of payer and kind of employer you are on the corresponding W-3 form for reconciliation purposes.

To learn how to choose the kind of employer, visit here.

The kind of payer can be selected based on the type of your organization and your filing requirements:

• Regular (Form 941)
• Regular (Form 944)
• Agricultural (Form 943)
• Household
• Military
• Medicare Qualifying Government Employer (MedicareQualGovEm)
• Railroad (Form CT-1)

Descriptions of Payer Types

• Regular (Form 941)
  Choose this if you are required to file Form 941, Employer's QUARTERLY Federal Tax Return, or Form 941-SS. Churches or church organizations should select this box, even if they do not file the forms mentioned.
• Regular (Form 944)
  Choose this if you are required to file Form 944, Employer's ANNUAL Federal Tax Return (or Form 944(SP), the Spanish-language version).
• Agricultural (Form 943)
  Choose this if you are required to file Form 943, Employer's Annual Tax Return for Agricultural Employees, and you file Form W-2 for agricultural employees.
• Household
  Choose this if you are a household employer required to file Form W-2 online for household employees and do not include their taxes on Forms 941, 941-SS, 943, or 944.
• Military
  Choose this if you are a military employer filing Form W-2 for members of the uniformed services.
• Medicare Qualifying Government Employer (MedicareQualGovEm)
  Choose this if you are a U.S., state, or local agency filing Form W-2 for employees subject only to Medicare tax.
• Railroad (Form CT-1)
  Choose this if you are a railroad employer filing Form W-2 for employees covered under the Railroad Retirement Tax Act (RRTA).