Part 1 Line 1 to 5 Form 944
Line 1: Wages:
Wages
Tips
Salary
Sick pay
Enter the total wages for all your staff members on Line 1. Do not round. Enter cents even if they are 00.
Line 2: Federal Income tax: enter the total amount withheld from employees’ salaries for the whole year
Line 4a: column 1 is the part of line 1 that is subject to social security. If you have an employee that earned more than $137,700 you need to take the excess out of line 1 as any salary above that amount is not subject to Social security tax
Use column 2 to calculate the social security tax.
0.0124 is for both employee and employer social security tax withheld
Line 4a (i): Sick leave is taxable only to the employee. Your business won’t pay social security tax on it. That is why the rate is 0.062.
Line 4 a (ii) family leave wages: enter the amount in column 1 and calculate the social security tax withheld from the employee wages here. Your business is not subject to that payment. That is why the rate is 0.062
Line 4b: Tips subject to social security tax: enter the total tips in column 1 and both employee and employer share of the social security tax in column 2 both employee and employer pay social security tax on tips. That is why the rate on that line is 0.0124
Line 4c: Income subject to Medicare: Enter the amount from line 1 that is subject to Medicare tax in column 1 and calculate the tax in column 2. Both employee and employer are subject to Medicare tax. The rate for both employee and employers together is 0.029
Line 4d: If at any point you paid more than $200,000 to any of your staff members, you need to withhold an additional 0.09% on the portion over $200,000 from that employee’s salary. Your business is not required to pay any part of that 0.9%.
Line 4e: Add total social security and Medicare tax withheld in column 2 together
Lin 5: Total Line 2 federal income tax and line 4e total social security and Medicare
Form 944 Business Tax Checklist
2020 Federal Tax Forms and Instructions
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