What Is a Form 944?

  • Tax

Overview

Form 944 is an annual payroll tax return filed with the IRS. It allows small employers to report and pay Social Security, Medicare and withheld federal income taxes once per year instead of quarterly.

Employer Eligibility

Employers with an annual employment tax liability of $1,000 or less qualify for Form 944. The IRS typically notifies eligible businesses by mail. If you believe you meet the criteria but have not received a notice, contact the IRS before filing.

Filing Requirements

Form 944 is due by January 31 of the year following the calendar year being reported. If payment is made by electronic funds transfer, the due date may differ. Employers must calculate total wages paid, tips reported, and taxes withheld.

Advantages

Filing annually reduces paperwork and administrative burden for very small employers. It also aligns filing and payment with the calendar year, simplifying record-keeping.

If your business grows and your employment tax liability exceeds $1,000, you must switch to Form 941 and begin quarterly reporting in the next calendar year.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.