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Form 944 - Preparing and Filing - Employer's Annual Federal Tax Return

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Definition:

IRS Form 944 - Employer's Annual Federal Tax Return was initiated by the IRS several years ago to give smaller employers a break in filing and paying federal employment taxes (federal income tax withheld from employees, and social security and Medicare payments owed by employers and employees).

What is Filed on Form 944?
Form 944 is used to file:

  • Wages paid to employees
  • Tips employees have received
  • Federal income tax you withheld from employees
  • Employer and employee portions of social security and Medicare taxes
  • Current year adjustments to social security and Medicare taxes for sick pay, tips, and group-term life insurance
  • Prior year adjustments to payroll taxes
  • Advance earned income tax credit (EIC) payments.

Who May File Form 944?
The IRS notifies smaller employers that they are eligible to file Form 944 instead of Form 941. Eligible employers are those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less for the entire year. NOTE: If the IRS notifies you that your business must file Form 944, you may NOT file Form 941. Small employers may also file a request with the IRS that they be allowed to file Form 944 instead of Form 941.

When is Form 944 Due?
Form 944 is due at the end of January (February 2 in 2009) for the previous year.

The IRS Instructions for the 944

provide additional information on how to complete Form 944.

 

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