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How to prepare AF Form 594

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FAQ - AF Form 594

What is the purpose of AF Form 594?
AF Form 594 is a tax return required of employers to report employee income from the following taxable benefits and allowances (DBA, BE, and DSB). It is used to verify that all amounts of employee wages reported are correct. It can be used: For more information on DBA forms, see Tax Benefits for Business Owners and Managers. To determine whether your employees are eligible for tax-free wages. To report employee compensation received from your business. To report employee wages you receive from a foreign employer during a tax year if you are considered by the IRS to be an EIN holder. To report employee compensation that exceeds an employee's EIN. To report tax-free wages paid under a foreign contract, if you are not considered to be a U.S. resident (under an “international tax treaty”) by the foreign employer. Do I need to file an American Taxpayer Identification Number? No. You do not need to produce an AFT, other than what is required to file an income tax return. However, for employers that offer more than one employer identification number, you should obtain and use one employer identification number to record payroll. For more information, see FAQs: How Does a Non U.S. Employee Report a Wages Earned in the United States ? And Employers with More Than One Employer Identification Number. What if I am required to withhold tax on a pay payment to one person and I paid it to my employees? Employees who participate in a wage sharing or cash, deferred arrangement should be able to use Form W-9 to report the payment for the employer that pays them. What if I was required to withhold tax on a pay payment to one person and I reimbursed my employee? To report the reimbursement, you should use Form W-2G, Employee Retirement Income Security Act.
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