Form 944, officially known as the “Employer’s Annual Federal Tax Return,” is a tax form used by small employers in the United States to report their federal income tax withholding, Social Security tax, and Medicare tax. This form is designed for employers with a relatively small payroll tax liability, specifically those whose annual liability for Social Security, Medicare, and withheld federal income taxes is $1,000 or less.
Key Points about Form 944:
- Who Should File: The IRS typically notifies eligible employers if they should file Form 944 instead of the more common Form 941, which is filed quarterly.
- Filing Frequency: Unlike Form 941, which is filed quarterly, Form 944 is filed annually. This reduces the filing burden on small businesses.
- Deadlines: Form 944 is generally due by January 31st of the year following the tax year. If all taxes have been deposited on time, the deadline is extended to February 10th.
- Payments: If the total tax liability is less than $2,500 for the year, the employer can pay the taxes with Form 944. Otherwise, the employer must deposit the taxes on a monthly or semi-weekly schedule.
Employers who meet the eligibility criteria and are informed by the IRS should file this form instead of the quarterly Form 941 to simplify their payroll tax obligations.
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