Form 944 is an annual federal tax return for small businesses to report wages and employment taxes. It’s designed for employers with a small tax liability who file once per year instead of quarterly.
Key Steps to Complete Form 944
- Download Form & Instructions
- Obtain Form 944 and its instructions from IRS.gov.
- Make copies for your records before filling out.
- Business Information
- Enter your EIN, legal business name, trade name (if any), and business address on page 1 and page 2.
- Report Wages & Taxes
- Line 1: Total wages paid during the year (example: $21,656).
- Line 2: Federal income tax withheld (leave blank if none).
- Line 3: Check box if no wages are subject to Social Security or Medicare tax.
- Lines 4a & 4c: Calculate Social Security and Medicare taxes using rates:
- Social Security: wages × 0.124
- Medicare: wages × 0.029
- Example totals: $26.85 (Social Security) and $6.28 (Medicare).
- Line 4e: Add both taxes (example: $33.13).
- Line 5: Total tax before adjustments.
- Line 6: Adjustments (usually blank unless rounding issues).
- Line 7: Total tax after adjustments.
- Line 8: Small business payroll tax credit (if applicable).
- Line 9: Total tax after credit.
- Deposits & Balance Due
- Line 10: Enter deposits made during the year.
- Line 11: Balance due if tax liability exceeds deposits.
- Line 12: Overpayment if deposits exceed liability (choose refund or apply to next return).
- Deposit Schedule
- Determine deposit frequency based on prior year liability:
- ≤ $50,000 → Monthly schedule.
- $50,000 → Semi-weekly schedule.
- Make deposits by the 15th of the following month.
- Determine deposit frequency based on prior year liability:
- Page 2 Details
- Line 13: Check appropriate box based on liability (< $2,500 or ≥ $2,500).
- Part 3: Indicate if business closed or stopped paying wages.
- Part 4: Choose contact person for IRS questions.
- Part 5: Sign and date the form (owner or authorized person).
- Payment Options
- Pay online via EFTPS or mail a check with a voucher if balance due.
- Use certified mail for proof of timely filing.
- Mailing Address & Deadline
- Use IRS instructions to find correct address (with or without payment).
- Form 944 is due by end of January for the prior year.
Additional Notes
- Do not round amounts; include cents.
- Keep copies for your records.
- IRS provides online filing options and approved providers.
- Publication 15 and Publication T offer guidance on withholding and payroll.
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