What Is a Form 944?

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.

Summary

Form 944 is an annual IRS payroll tax return for small employers with an annual employment tax liability of $1,000 or less. It allows reporting and payment of Social Security, Medicare, and withheld federal income taxes once per year instead of quarterly, with a due date of January 31 of the following year. Employers exceeding the $1,000 threshold must switch to quarterly Form 941 reporting.

Key Facts

Form 944 is an annual payroll tax return filed with the IRS.

Employers with an annual employment tax liability of $1,000 or less qualify for Form 944.

The IRS typically notifies eligible businesses for Form 944 by mail.

Form 944 is due by January 31 of the year following the calendar year being reported.

Filing Form 944 annually reduces paperwork and administrative burden for very small employers.

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

Form 944 allows small employers to report and pay Social Security, Medicare and withheld federal income taxes once per year instead of quarterly.

Frequently Asked Questions

What is Form 944?

Who is eligible to file Form 944?

When is Form 944 due?

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.

What are the advantages of filing Form 944?