Form 944: Employer’s Annual Federal Tax Return

Form 944 is used by certain small employers to report federal income, Social Security, and Medicare taxes annually.

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Introduction

Form 944, Employer’s Annual Federal Tax Return, is a federal employment tax form used by certain employers to report employment taxes on an annual basis. The form generally reports wages, federal income tax withheld, and applicable Social Security and Medicare taxes.

This guide provides general information about Form 944, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form 944 and its general purpose.

What Is Form 944?

Form 944 is an employer tax form used by certain employers to report federal employment taxes annually. It is generally intended for eligible smaller employers that are permitted to file employment tax information once a year instead of using a quarterly employment tax return.

Form 944 commonly reports:

Employee wages
Federal income tax withheld from employee pay
Social Security taxes
Medicare taxes
Certain adjustments to employment taxes
Tax deposits and payments
The amount of tax owed or any overpayment

The information reported on Form 944 should generally be based on the employer’s payroll and employment tax records.

Who Uses Form 944?

Form 944 is generally used by certain small employers that meet the applicable requirements for annual employment tax filing. An employer may use Form 944 when the employer has been designated or otherwise qualifies to report applicable employment taxes annually.

Not every employer is eligible to use Form 944. Filing requirements can depend on the employer’s circumstances and applicable federal employment tax requirements. Employers should determine which employment tax form applies to their situation before filing.

What Information Is Needed?

The information needed to complete Form 944 generally comes from an employer’s payroll and employment tax records. Having accurate wage and tax information available can make the process of completing the form easier and can help reduce reporting errors.

Common information includes:

Employer name
Employer identification number
Business address
Number of employees
Total wages paid
Federal income tax withheld
Social Security wages
Medicare wages
Social Security and Medicare taxes
Adjustments, when applicable
Employment tax deposits
Tax payments
Authorized signature information

The specific information required may depend on the employer’s circumstances and the employment activity reported for the applicable year.

How to Fill Out/Complete Form 944

Form 944 contains sections used to report employee information, wages, federal income tax withholding, employment taxes, adjustments, deposits, payments, and the amount due or overpaid. The information should generally be gathered from the employer’s payroll and employment tax records for the applicable reporting period.

The basic process is to gather the required payroll information, enter the applicable amounts, calculate the employment taxes, account for applicable payments or deposits, and review the completed form before submitting it. Employers should keep supporting records for the information reported on the return.

Section 1

Enter the employer’s identifying information and applicable reporting information. This generally includes the employer’s name, employer identification number, business address, and reporting period.

The information should be reviewed carefully to make sure it is accurate and consistent with the employer’s federal tax and payroll records.

Section 2

Report the applicable number of employees and wage information for the reporting period. Payroll records are generally used to determine the employee count and wage amounts that are reported.

Employers should review their payroll records before entering these amounts to help ensure that the information reported on Form 944 is complete and accurate.

Section 3

Report the amount of federal income tax withheld from employee wages. The amount should generally be based on the employer’s payroll records for the applicable reporting period.

Employers should compare the amount being reported with their payroll records to help identify potential differences before completing the return.

Section 4

Report the applicable Social Security and Medicare wages and taxes. These amounts are generally determined using payroll records and applicable employment tax calculations.

The amounts should be reviewed carefully because Social Security and Medicare reporting can affect the overall employment tax calculation shown on Form 944.

Section 5

Certain payroll or employment tax adjustments may apply to an employer’s Form 944. Only adjustments that apply to the employer’s circumstances should be included on the return.

Employers should maintain records supporting any adjustments reported on Form 944. If an adjustment does not apply, it generally should not be included simply to complete a section.

Section 6

Report applicable employment tax deposits and payments for the reporting period. The amounts reported should generally agree with the employer’s payroll, deposit, and payment records.

Reviewing deposits and payments before filing can help prevent differences between the amounts reported on Form 944 and the employer’s records.

Section 7

The completed calculations determine whether the employer has a balance due or an overpayment. The applicable amounts should be reviewed to make sure the calculations are complete and accurate.

Employers should compare the final figures with their payroll and payment records before submitting the return. Any applicable amount due should be handled according to the employer’s filing and payment requirements.

Section 8

Review the completed Form 944 and make sure all applicable information has been entered. Check the employer information, reporting period, employee information, wages, taxes, adjustments, deposits, payments, and final calculations.

The appropriate person should sign the return when a signature is required. Employers should also keep a copy of the completed return and supporting payroll records for their records.

Final Review

Review Form 944 after completing all applicable sections. Check the employer information, reporting period, employee information, wages, federal income tax withheld, Social Security and Medicare taxes, adjustments, deposits, payments, and final amount.

A final review can help identify calculation or reporting errors before the return is submitted. Employers should retain Form 944 and supporting payroll records with their employment tax records.

Common Mistakes

Common Form 944 mistakes may include entering incorrect employer information, using the wrong reporting period, reporting an incorrect number of employees, or entering wage amounts that do not agree with payroll records. Mathematical errors and incorrect employment tax calculations can also create problems.

Other mistakes may include incorrectly reporting adjustments, failing to account for applicable deposits or payments, leaving required information incomplete, or submitting a return without reviewing it. Comparing Form 944 with payroll and payment records before filing can help identify potential errors.

Related IRS Forms

Employers may encounter other federal employment tax forms depending on their circumstances. Different forms are used for different types of employment taxes, wage reporting, and other federal payroll reporting requirements.

Common related forms include:

Form 941 for reporting quarterly employment taxes
Form 940 for reporting federal unemployment taxes
Form W-2 for reporting employee wages and certain tax information
Form W-3 for transmitting wage and tax statements
Form 943 for reporting employment taxes related to agricultural employees
Form 945 for reporting certain federal income tax withheld from nonpayroll payments

The appropriate form depends on the employer’s specific filing requirements and circumstances.

Where to File or Submit

Form 944 may be submitted according to the filing method and requirements applicable to the employer. The appropriate submission method can depend on the employer’s circumstances and the requirements that apply to the return.

Employers should review the applicable filing requirements before submitting Form 944. A copy of the filed return and supporting records should generally be retained for the employer’s records.

Current IRS Form & Instructions

Employers should use the applicable version of Form 944 and its instructions when preparing a return. Forms and requirements can change, so the version used should correspond with the reporting period being filed.

Before submitting Form 944, review the form and instructions carefully and confirm that the information agrees with the employer’s payroll and employment tax records. This can help identify errors before the return is submitted.

Important Information / Disclaimer

This Form 944 guide is provided for general informational purposes only and is intended to provide a basic overview of Form 944 and common information associated with federal employment tax reporting. This information is not tax, legal, accounting, or financial advice, and employment tax requirements can vary depending on an employer’s circumstances.

Employers are responsible for determining their applicable filing, payment, recordkeeping, and reporting requirements, and information on this page may not cover every situation, exception, or special rule that may apply. When appropriate, employers should consider seeking assistance from a qualified tax professional or other qualified advisor regarding their specific tax situation or Form 944 filing requirements.