What is Form 944?
Form 944, is the annual tax form for employers to report the tax withheld from the employees from the wages paid. This form is used only when the total tax withheld from the employees is less than $1000.
Important dates in filing form 944
Employers need to file the payroll tax form 944 with the IRS if the tax liability for the tax year is below $1000 before the deadline.
Deadline for the Tax Year 2024 : January 31, 2025
Note: If you paid the full taxes for the year on time, you can file the return by February 10, 2025.
What are the details required?
Details required to file Form 944:
- Business name, Trade name, EIN, address of the business
- Wages, tips, and other compensation
- Total tax withheld
Other compensation includes Medicare wages, tips, and Social Security wages paid to the employees. Taxes include taxes withheld from wages, tips, Medicare, and Social Security wages.
Filing Method:
- E-Filing: The IRS encourages employers to file form 944, Employer’s Annual Federal Tax Return using the Electronic filing method for easy filing and faster processing.
- Paper filing: Employers can use the paper filing method to file the tax return. Enter the mentioned details in the form and send it to the IRS-mentioned address based on the location.
TaxZerone suggests businesses file returns using the E-Filing method for a quick and easy process.
Penalties for late deposit and late filing
- Failure-to-File: If you fail to file Form 944, the penalty will be 5 to 25% of the tax due
- Failure to Pay: If you fail to pay the tax amount within the deadline, the penalty can be up to 25% tax due
Note: The Tax due and penalty will accumulate interest until it is paid in full to the IRS
Avoid IRS penalties, File your form 944 today with TaxZerone