The Internal Revenue Service (IRS) is the United States government agency that collects taxes on behalf of the federal government. The IRS is charged with collecting federal income taxes, federal payroll taxes, tariffs, excise taxes, estate taxes, customs duties, and other duties and fees imposed by the federal government.
IRS Form 944 is the Employer’s Annual Federal Tax Return, and it is commonly referred to as an Employer Quarterly Federal Tax Return or as an E-file form.
Although it is not uncommon for employers to withhold taxes from their employees, most workers don’t receive a Form 944 from their employer. Don’t worry though, if you don’t receive one, it doesn’t mean you are in the dark about your tax situation. Employers are required to report their employees’ Social Security and Medicare tax withholding to the IRS on Form 944.
What Is Form 944?
As the name suggests, Form 944 is a form that an employer must fill out if they have a tax liability of $1,000 or less. It allows the employer to file a single form instead of filing a quarterly Form 941, a form that is a requirement to be filed for a company that has a gross income of $1,000 or more.
The IRS requires employers to file Form 944 annual tax return if their net pay for the most recent year falls below the annual threshold. The amount of net pay that people have to report on Form 944 is the total of all the wages, salaries, tips, commissions, etc. that the employer paid employees during the previous calendar year. The form is also required if the employer’s net pay was below the annual threshold but the employer did not receive any taxable payments from employees in the prior year.
The IRS Form 944 is used to report the wages, compensation, or self-employment income of an employee, including any amounts paid to the employee’s spouse.
Many companies have a tax obligation to file a Form 944. Employers have a legal obligation to file a Form 944 if their employees earn more than a certain threshold, and all employees must pay a portion of the taxes. If your employer does not file a Form 944, you may be entitled to statutory interest on any taxes that you should have paid on your behalf.
Who Uses Form 944?
Form 944 is a tax form that is filed by employers with fewer than 500 employees, as well as those that use a payroll service or file as a corporation. The form is used to report certain payroll taxes including Social Security and Medicare taxes, self-employment taxes, and the employer’s portion of the Federal Unemployment Tax Act.
Final Words
It is clear that IRS Form 944 is an important form. It is used to report information about employees to the Internal Revenue Service. If you are an employer, then you will want to be sure that you are taking care of your obligations properly.
To know more about IRS Form 944, join the Compliance Prime webinar.
