Form 944 Definition

Term Definition
The IRS Form 944 is the Employers Annual Federal Tax Return, designed to allow small business owners to pay federal employment taxes once a year, not quarterly. It applies to employers whose annual liability for Medicare, Social Security, and federal income tax withheld from employees is $1,000 or less. For more information about Form 944, consult the IRS.

Extended Definition
Form 944 is part of an initiative by the IRS to help small employers reduce filing and paperwork when paying federal payroll taxes. With the form, the IRS can reconcile wages and process tax payments. Businesses with an annual employment tax liability of $1,000 or less can use Form 944 as a replacement for the quarterly Form 941. The 944 is filed once a year. Employers will receive notification from the IRS that they should file Form 944, based on their previous tax liability; however, they can choose to continue filing Form 941. The form is to be filed by January 31 each year and mailed or e-filed to the IRS.

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