944 Form 2022 Printable, Fillable PDF – If your small company has workers, one of your business tax responsibilities is to submit the income and payroll taxes that you deduct from their paychecks to the appropriate taxing authorities.
Form 941, commonly known as the Employer’s Quarterly Federal Tax Return, is often used to submit this kind of information to the Internal Revenue Service. When it comes to small businesses with low tax liabilities, you may be able to submit an alternative IRS tax form, known as 944 Form (Income Tax Return).
The following information will teach you all you need to know about 944 Form and who is qualified to use it — as well as how to submit your company return in a step-by-step manner.
What Is IRS Form 944, And How Does It Work?
In the United States, 944 Form is a tax form used by the Internal Revenue Service to record the taxes deducted from your workers’ paychecks. These taxes include the federal income tax, the social security tax, and the Medicare tax. In addition, the IRS 944 Form is used to compute and report your employer’s Social Security and Medicare tax obligations. This form was designed specifically for small firms with fewer workers and, as a result, a lower tax burden.
944 Form is an annual tax return, in contrast to IRS Form 941, which reports much of the same information but must be submitted quarterly, and which reports much of the same information. Businesses with an employment tax obligation of $1,000 or less — or, in other words, businesses that intend to pay $4,000 or less in total employee compensation for the year — are eligible to submit IRS 944 Form with the Internal Revenue Service. Consequently, if you are qualified to submit 944 Form instead of Form 941, you will only have to file an employment federal tax return (and pay any taxes required) once a year (in addition to paying any taxes owed).
Who Is Required To Submit Form 944?
The IRS requires that most firms submit Form 941 on a quarterly basis in order to comply with its reporting and calculation requirements for employment taxes. Having said that, some organizations may be qualified to submit an IRS 944 Form on a yearly basis instead. Generally speaking, if you estimate your employment tax obligation to be $1,000 or less for the year, you will be eligible for this benefit.
However, in order to be allowed to submit 944 Form instead of Form 941 with the IRS, you must first be told in writing by the IRS that you are eligible to do so. The Internal Revenue Service (IRS) may tell you that your company is either qualified for or required to submit 944 Form. In the event that you are required to complete 944 Form, you must file this form; you may not submit Form 941 in its place unless you have asked and obtained permission from the Internal Revenue Service to do so. As an alternative, if you are merely qualified to complete 944 Form and are not compelled to do so, you may still opt to continue to submit Form 941 on a quarterly basis if you so like.
If you have not received an IRS notice that you are qualified to complete 944 Form, but you feel your employment tax debt fulfills the aforementioned standards, you may contact the IRS by phone or letter to request that the status of your employment tax liability be changed. It should be emphasized, however, that this request must be submitted during the first few months of the calendar year in question. If the Internal Revenue Service changes your filing requirements, they will notify you in writing once more.
Another important consideration is that, even if your company meets the lower tax liability requirement, there are two scenarios in which you would still be ineligible to complete IRS 944 Form instead of 941: (1) If your company meets the lower tax liability requirement, and (2) if your company does not meet the lower tax liability requirement. In the first instance, if you only employ home personnel; in the second instance, if you only employ farm workers
If you’re a new employer, you may also apply to be qualified to complete IRS 944 Form if you’re a new employer. When you’re filling out Form SS-4, the application for an employer identification number (EIN), you have the option of indicating that you believe you’ll be able to satisfy the 944 Form filing requirements. When you get your EIN, the Internal Revenue Service (IRS) will notify you of your employment tax filing responsibilities, which are IRS 944 Form or 941.
Where Can I Get Form 944 And How Do I Submit It?
If you’ve gotten news that you need to complete IRS 944 Form, you’ll want to know where to locate it, how to submit it, and when you need to file it, particularly since the latter varies significantly from Form 941 in terms of timing. 944 Form may be found on the IRS website, just as you can obtain other business-related IRS tax forms on the IRS website. When it comes to completing and filing the IRS 944 Form, you have a few options. Of course, you may submit your paperwork in person first. Alternatively, you may print 944 Form and fill it out by hand before mailing it, or you can complete 944 Form on your computer, print it, and send it. It is specified in the IRS 944 Form instructions to which place you may submit this return, since the location varies based on your state and whether or not you are making a payment when you file.
You may also submit 944 Form online, and the Internal Revenue Service (IRS) expressly encourages this practice. Use the IRS E-file system to submit this form electronically. You have two choices for submitting your form using the IRS E-file system. First and foremost, you may submit the forms yourself via the use of software that has been authorized by the IRS. Second, you may enlist the assistance of a tax expert who has been approved by the IRS to file electronically on your behalf. Additionally, if you currently utilize an accounting or payroll service, your provider may be able to assist you with completing the IRS 944 Form and submitting it using their platform.
The deadline for submitting 944 Form is different from the deadline for filing One 941, since IRS 944 Form is an annual form, rather than a quarterly form like Form 941. However, since the deadline to submit 944 Form is January 31 of the year before the tax year in question — in this case, the return covering the tax year 2021 would be due January 31, 2022. The exception is if you have made timely deposits and completed full payment of all taxes owed for the year, in which case you will have a few additional weeks to file. The precise date of this extension may vary from year to year, however it is often around February 11 in most years.
Detailed Instructions For Completing Form 944 Are Provided
Following your fundamental grasp of IRS 944 Form, let’s go a little further and discover precisely how to fill it out. These IRS 944 Form instructions will walk you through the process of filling out the five sections on the two pages of this IRS tax form, step by step, from start to finish.
Step 1: Compile your payroll information and enter your company’s fundamental information
The first thing we’d suggest doing before beginning the 944 Form process is gathering all of the information you’ll need ahead of time and making it readily available throughout the procedure. Because this form is related to payroll taxes, including FICA taxes (Social Security and Medicare taxes) and federal income taxes that you’ve withheld from your employees’ wages, you’ll need access to this information, as well as the total compensation you’ve provided to your employees during the course of the year. Another point to mention is that if you are using accounting or payroll software, these systems are excellent tools for quickly and conveniently accessing these statistics. Your particular system may also be able to create a report that has all of the information you want for 944 Form in one convenient location.
Now that you have the necessary information, it’s time to really get started. It will be easy to spot Section 1 on the first page of 944 Form (as you’ll see in the example below) since it asks for basic, identifying information about your company. Fill in the blanks with your EIN, name, trading name (if you have one), and mailing address.
Step 2: Complete Section 1 Of Form 944
The first two boxes on Part 1 of 944 Form that you’ll fill out will indicate the total salaries you paid to your workers for the year, as well as the total federal income tax deducted from these earnings throughout the year. When you answer yes to the question concerning Social Security or Medicare taxes, the next question will be about whether the earnings you listed in box 1 were subject to those taxes. If the answer is no, you will check box 3 and go to box 5. If the answer is yes, you will check box 3 and proceed to box 5. If the response is yes, however, you will be required to complete line item 4 and its four sub-parts as a result of your answer.
Using taxable Social Security and Medicare earnings as a guideline
You’ll calculate your taxable social security and Medicare earnings by filling out the boxes on Line 4 of the worksheet. Fill out column 1 with the proper social security earnings, social security tips, Medicare wages and tips, and wages and tips subject to extra Medicare withholding in order to do this. Then you’ll multiply each of the boxes in column 1 by the tax rate that has been set, and you’ll enter the total amount in the appropriate box in column 2 to complete the calculation. Earnings and tips are deducted for Social Security and Medicare taxes in proportion to their percentage of total wages and tips. The decimal numbers on 944 Form below represent this proportion.
Then, when you’ve completed these calculations and entered the necessary amounts in columns 1 and 2, you’ll combine the numbers in column 2 together and enter this total into Box 4e of the worksheet.
Following that, you’ll continue to fill in the blanks in Part 1. You will put lines 2 and 4e together in box 5 in order to calculate your total taxes before any modifications. According to the IRS 944 Form guidelines page, box 6 should be used to enter any adjustments you need to make for sick pay or life insurance benefits that are not included in your base salary. You’ll add the totals from boxes 5 and 6 together, and then put in the appropriate amount in box 7 to get your final tax liability after adjustments.
Add the amount of any tax credit that your company is eligible to get for completing or participating in research to Box 8, if applicable. The total tax due after adjustments and credits is reported in box 9, which is calculated by subtracting box 8 (if applicable) from box 7. The ultimate employment tax obligation may be calculated after all of the boxes have been completed, up to and including box 9. This will be accomplished by reporting any contributions you’ve previously made for the year in box 10 and then comparing them to the amount in box 9 of your tax return. If the amount in box 9 exceeds the amount in line 10, you’ll enter the difference in box 11—this will determine your tax burden, which you’ll then be responsible for paying to the IRS.
Line item 12 will show overpayment if line 10 is more than line 9, and you’ll be asked whether you’d want the IRS to reimburse you the difference or apply it to your next tax return.
Step 3: Complete Section 2 of Form 944
Line 12 of IRS 944 Form must be completed before you can go to the second page of IRS 944 Form and begin working on Part 2. This section of the form will require you to provide information about your company’s deposit schedule as well as its tax obligation for the year. First, you’ll be asked to confirm that either line 9 is less than $2,500 or line 9 is more than $2,500, depending on the case. As a reminder, line 9 refers to the total amount of taxes you owe after deductions and credits. If the total is less than $2,500, you will go to Part 3. Otherwise, you will proceed to Part 4. If, on the other hand, the amount on line 9 exceeds $2,500, you will be prompted to input your tax obligation for each month of the calendar year. To calculate your overall responsibility for the year, put the figures in boxes 13a through 13l together. The total liability for the year is recorded in box 13. This amount must be equal to or more than the amount you entered on line 9.
Step 4: Complete Section 3 of Form 944
In Part 3, you’ll be asked whether your company has gone out of business or if you’ve ceased paying employees. If this relates to your company, you’ll select the checkbox and enter the date on which you last paid employee salaries and benefits. Leaving question 14 blank will allow you to go to Part 4 if the question does not relate to your company.
Step 5: Complete Form 944, Section 4
IRS 944 Form will ask you if you authorize the IRS to talk with a third-party designee under Section 4 of the form. A third-party designee is an employee, tax preparer, or other third-party, such as your certified public accountant, who you would authorize to communicate with the Internal Revenue Service on this return on your company’s behalf. By appointing a third-party designee, you can ensure that this individual will be able to respond to any questions the IRS may have while processing your return, as well as provide them with any missing information, call the IRS for information about your return, and respond to certain IRS notices pertaining to this particular return. If you do not want to offer a third-party designee, please tick the “no” option in Part 4 of the application.
Step 6: Complete Form 944, Section 5
It will be necessary for you to sign your name on the final section of 944 Form, Part 5, in order to confirm that you have studied the return and feel that it is accurate and complete to the best of your abilities. The IRS 944 Form will be stamped with your name, title, and phone number printed in the relevant fields, as well as the date. It is possible that you may be using a paid preparer, such as an enrolled agent, who will fill out their information in the box labeled “Paid Preparer Use Only.” It will be filled out by your paid preparer, who will include his or her own name, date of birth, and preparer tax identification number (PTIN)—as well as your company’s name, EIN, address, and phone number.
Step 7: File Form 944 with the Internal Revenue Service and make any required payments to the IRS
944 Form is complete after you or your tax preparer has reviewed it and signed off on it in Section 5, which is the last step. You’ll now need to submit the paperwork to the Internal Revenue Service. You may submit 944 Form either physically or online, but you must do so before the deadline, which is December 31st this year.
Additionally, there are a few occasions on which you should make a payment when you submit 944 Form that are worth mentioning. In most cases, though, you should be paying employment tax payments throughout the year as a matter of course. Your deposit schedule will be determined by the magnitude of your company’s tax obligation, and all deposits must be made electronically via a bank account. Although the Internal Revenue Agency (IRS) advises that you use the Electronic Federal Tax Payment System (EFTPS), you may alternatively arrange for a tax expert, payroll service, or other such third-party to make these electronic payments on your behalf.
Having said that, you should submit a payment using IRS 944 Form when you file if you fall into one of the following categories:
- In box 9, you can see that your net taxes are less than $2,500.
- Your net taxes (in box 9) are $2,500 or more. You’ve already paid the taxes you owe for the first three quarters of the year, and your net taxes for the fourth quarter are less than $2,500, which means you don’t owe any taxes for the fourth quarter.
- Your outstanding balance is no more than $100 or 2% of the total amount of tax payable, whichever is greater.You make monthly schedule deposits into the IRS’s trust account.
If you fall into one of these categories, there are a number of different options for paying your amount, depending on how you filed 944 Form in the first place. In order to file 944 Form by mail, you must complete Form 944-V, the payment voucher, which may be located at the end of the IRS 944 Form PDF on their website at the end of the PDF file. Fill out this payment voucher and attach it to 944 Form, along with a check or money order for the appropriate amount, and submit all three pieces to the appropriate location.
Alternatively, if you file electronically, you will be able to pay your amount online using an electronic money withdrawal using the system you are now utilizing, which may be either your tax-preparation software or the services of a tax expert. You will only be charged a fee if your individual bank imposes a fee for this kind of transaction when you choose this option.
Finally, you have the option to pay your amount with a credit or debit card, which is available for both postal and electronic filing. This option will require you to interact with one of the IRS’s third-party payment processors, who will charge you a processing fee for the services they provide.