IRS Form 944 is an annual tax return used by small employers to report federal income tax, Social Security, and Medicare taxes for their employees. The IRS allows certain small employers to file Form 944 instead of filing Form 941 quarterly, which reduces the frequency of reporting and simplifies the process.
Employers who owe less than $1,000 in annual employment taxes can typically file Form 944. The form reports:
- Wages paid to employees.
- Federal income taxes withheld.
- Employer and employee contributions to Social Security and Medicare taxes.
The IRS determines whether an employer is eligible to file Form 944 based on their annual payroll tax liability, and employers must receive IRS approval before filing this form. The due date for Form 944 is January 31 of the following year, and all taxes owed must be paid by that date to avoid penalties and interest.
Form 944 is a helpful option for small businesses that do not meet the threshold for quarterly filing, allowing them to consolidate their tax reporting into a single annual submission.