About Payroll Form 944

6/14/2026

Form 944, Employer's ANNUAL Federal Tax Return, is designed so that small employers (those with an annual liability for social security, Medicare, and withheld federal income taxes of $1,000.00 or less) will file and pay these taxes only once per year instead of quarterly.

In general, if the IRS has notified the employer to file Form 944, then the employer must file Form 944 to report all the following amounts:

• Wages paid
• Tips employees have received
• Federal income tax withheld
• Both the employer's and the employee's portion of social security and Medicare taxes
• Advance earned income tax credit payments

An employer must file a Form 944 for each year even if they have no taxes to report (or they have taxes in excess of $1,000.00 to report) unless the IRS notifies the employer that their filing requirement has been changed to Form 941 (or a final return is filed).

In February, the IRS will mail eligible employers a notice to file Form 944 if their expected annual tax liability for social security, Medicare, and withheld federal income taxes will be $1,000.00 or less.If an employer believes they are eligible to file Form 944 for 2025, but the IRS did not notify them, the employer should call the IRS at 1-800-829-0115 to determine if they can file Form 944. If the employer contacts the IRS and the IRS determines the employer is eligible to file Form 944, the IRS will send the employer a written notice that their filing requirement has been changed. To determine if an employer can file Form 944 to report their 2025 employment tax liability, the employer must contact the IRS by April 1, 2025.

New employers are also eligible to file Form 944 if they will meet the eligibility requirements. New employers filing Form SS-4, Application for Employer Identification Number, must complete Line 13 of Form SS-4 indicating the highest number of employees expected in the next 12 months and must check the "yes" Box or the "no" Box to indicate whether they expect to have $1,000.00 or less in employment tax liability for the calendar year.

Generally, if the employer pays $4,000.00 or less in wages subject to social security and Medicare taxes and federal income tax withholding, they are likely to pay $1,000.00 or less in federal employment taxes. If a new employer indicates on Line 13 of Form SS-4 it expects to have $1,000.00 or less in employment tax liability for the calendar year, the IRS will notify the new employer to file Form 944 to report social security, Medicare, and withheld federal income taxes. The IRS's determination may be made after April 1, 2022, as long as it is made before the employer's first Form 941 would have been due.

What if an employer does not want to file Form 944?

An employer must file Form 944 if they have been notified to do so, unless the employer meets certain exceptions. If the IRS has notified the employer to file Form 944 and an exception listed below applies to the employer, the employer can contact the IRS by telephone at 1-800-829-0115 about which form to file. To determine if an employer can file Form 941 quarterly to report social security, Medicare, and withheld federal income taxes for the current calendar year, the employer must contact the IRS by April 1st, unless they are a new employer. An employer may be eligible to file Form 941 quarterly, instead of Form 944 annually, if either of the following applies:

• The employer agrees to file quarterly Forms 941 electronically
• The employer expects its liability for social security, Medicare, and withheld federal income taxes to be more than $1,000.00

If the employer contacts the IRS and the IRS determines it can file Forms 941 instead of Form 944, the IRS will send the employer a written notice that its filing requirement has been changed.

Who cannot file Form 944?

The following employers cannot file Form 944:

• Employers who are not notified. If the IRS does not notify an employer to file Form 944, do not file Form 944
• Household employers. If only household employees are employed, do not file Form 944
• Agricultural employers. If only agricultural employees are employed, do not file Form 944