Instructions for Filling Out Form 944

This document offers comprehensive instructions for completing Form 944, the Employer's ANNUAL Federal Tax Return, for the year 2023. Designed for the smallest employers, it covers reporting wages, tips, federal income tax withheld, and social security and Medicare taxes. The guide includes a step-by-step walkthrough, exceptions, and worksheets for calculating credits.

In this article, we'll provide information on Form 944 and a step-by-step guide on how to fill it out.

What is Form 944?

Form 944 is the Employer's ANNUAL Federal Tax Return designed for the smallest employers, specifically those with an annual liability of $1,000 or less for social security, Medicare, and withheld federal income taxes. The purpose of this form is to simplify the tax reporting and payment process for eligible small employers by allowing them to report and pay these taxes annually, rather than quarterly through Form 941.

Who Must File Form 944?

Employers need to file Form 944 if they have been notified by the IRS to do so. This form is intended for the smallest employers, specifically those with an annual liability of $1,000 or less for social security, Medicare, and withheld federal income taxes. By filing Form 944, eligible small employers can report and pay these taxes annually instead of quarterly.

Form 944 Tax Filing Deadlines and Due Dates

• Form 944 must be filed by January 31, 2024.
• If deposits were made on time and in full payment of the taxes due for the year, the form may be filed by February 12, 2024.

Form 944 Late Payment Penalty

If you fail to pay your taxes on time for Form 944, penalties and interest may be charged at a rate set by law. The specific penalty amount or percentage for late payment is not explicitly stated in the instructions for Form 944. For more detailed information on penalties, including the failure-to-deposit penalty, it is recommended to refer to sections 11 and 12 of Publication 15 (Circular E), Employer's Tax Guide.

Step-by-Step Instructions for Form 944

Step by step instructions for filling out Form 944:

1. Identify if you need to file Form 944 based on your annual liability for social security, Medicare, and withheld federal income taxes being $1,000 or less.
2. Gather necessary information including your Employer Identification Number (EIN), total wages paid, tips reported, federal income tax withheld, and details of any eligible credits.
3. Complete the form by following the specific instructions provided for each line, including reporting your total taxes before adjustments, making any necessary adjustments, calculating your total taxes after adjustments and credits, and determining your deposit schedule and tax liability for the year.
4. Calculate any applicable credits using Worksheet 1 or Worksheet 2, as appropriate, to determine the nonrefundable and refundable portions of credits for qualified sick and family leave wages.
5. Sign and date the form. If a paid preparer completed the form, they must also sign and provide their information.
6. File the form by the due date, which is January 31, 2024, for the 2023 tax year. If you made deposits on time in full payment of the taxes due for the year, you may file the return by February 12, 2024.

How to Submit Form 944

To submit Form 944, first determine your eligibility based on your annual liability for social security, Medicare, and withheld federal income taxes being $1,000 or less. Gather necessary payroll records, complete the form according to the specific instructions, and calculate any applicable credits. Optionally, authorize a third-party designee to discuss the return with the IRS. Ensure an authorized individual signs the form, and then file it with the IRS by the due date, either electronically or by mail. If you owe taxes, follow the instructions for making a payment.

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