Form 944, the Employer’s Annual Federal Tax Return, is one of the lesser-known IRS payroll tax forms for small businesses. Like Form 941, it’s used to report your employer and employee Social Security and Medicare taxes, plus employee federal income tax payments. The difference between the two forms is that Form 944 should be filed by businesses that withhold less than $1,000 in a year in federal payroll taxes.
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What you’ll learn
What you’ll learn
Key takeaways
- This IRS form is for very small employers and lets qualifying businesses file payroll taxes once a year instead of quarterly
- Eligibility is set by the IRS and you’ll be notified if you qualify, or you can request approval to file Form 944
- The 2026 Form 944 deadline moves to Monday, February 2 (or February 10 with timely deposits) because January 31 falls on a Saturday
- Keep in mind that payroll software can automatically fill and file Form 944 based on your pay runs
Few businesses meet this threshold, but it does reduce your filings obligations from quarterly to annually if you do. So, if you’re an employer that pays less than roughly $4,000 in wages in a calendar year, you’ll likely need to file Form 944.
Read on for a description of Form 944, a printable PDF, and simple instructions on how to fill it out.
Form 944 – Downloadable PDF
Above is a fillable PDF version of Form 944 that you can print or download.
What is Form 944?
Form 944 lets small business owners who have a few (or no) full-time employees file and pay their employment taxes yearly, instead of every quarter. Even if you have no employees, you will need to file a return for your business.
Filing Form 944 is the alternative to filing a 941 (Employer’s Quarterly Federal Tax Return used for employers with higher estimated tax liability), but it’s important to be certain you are filing the correct form on time to avoid fines and penalties.
If you are a new business owner, the IRS will determine whether you will need to file a 944 or 941 return when you receive your Employer Identification Number (EIN). Need help with this? We also offer additional information and instructions for completing a 941.
Do sole proprietors need to file Form 944?
Most employers, including sole proprietors, partnerships, and S corporations, are required to file Form 944 if they meet the eligibility criteria, even if they don’t owe any taxes for the year. However, sole proprietors without employees (other than themselves) generally don’t need to file it because they aren’t subject to employment taxes. If a sole proprietor has employees, they may need to file Form 944 or Form 941, depending on their annual employment tax liability.
— Peggy James, Certified Public Accountant (CPA)
Who determines when Form 944 should be used?
Form 944, like Form 941, is used to report federal income tax withheld from employees’ wages, along with both the employer and employee portions of Social Security and Medicare taxes, to the IRS. Form 944, which is to be filed on an annual basis, is designed for small businesses that owe $1,000 or less in total payroll taxes, while Form 941, which is to be filed on a quarterly basis, is designed for businesses with larger payroll tax obligations.
“The IRS determines whether a business should file Form 944 or Form 941. The agency reviews a business’s historical filings to assess its typical payroll tax liability and, if applicable, sends written notification instructing the business to file Form 944 (instead of Form 941). A business that believes it qualifies for Form 944 reporting, rather than Form 941 reporting, must obtain IRS approval to adopt the annual filing process.”
— Tom Brock, CPA, CFA
When is Form 944 due, and how does the deposit schedule work?
- Form 944 is due each year by January 31, following the end of the calendar year. As we mentioned above, the deadline moves to February 2 as January 31 falls on a Saturday.
- If you’ve made all required tax deposits on time, you have until February 10 to file.
Unlike Form 941 filers — who deposit employment taxes monthly or semi-weekly — Form 944 filers generally deposit less frequently because their total annual payroll tax liability is $1,000 or less. The IRS assigns each eligible business a specific deposit schedule, which may be annual or quarterly, depending on its liability.
No matter how small your tax liability is, you must still file Form 944 for the year, even if no taxes are owed. If your business closes, you’ll need to file a final return for the year it shuts down.
How do I know if I need to file a 944 or a 941?
Some small businesses are eligible to file Form 944 annually instead of filing Form 941 quarterly. Employers may be able to file Form 944 if they have an annual employment tax liability of $1,000 or less and expect to pay $5,000 or less in total employee wages for the year unless they’re one of the exceptions, which include household and agricultural employers. The IRS typically notifies eligible employers about using Form 944. If you haven’t been notified but believe you qualify, you can contact the IRS to request to file Form 944 instead of Form 941.
— Peggy James, Certified Public Accountant (CPA)
Instructions for completing a 944 form are below. To summarize Peggy’s summary above, we have put together a table to help you determine whether Form 941 or 944 is the best fit for your business.
| Details | Form 941 | Form 944 |
| Who files | Employers w/ more than $1,000 in annual payroll tax liability | Employers w/ $1,000 or less in $1,000 in annual payroll tax liability |
| Filing frequency | Quarterly | Annually |
| Typical annual wages | Over $5,000 in total employee wages | $5,000 or less in total wages |
| Tax payments | Deposited throughout the year | May be paid when filing |
| IRS notification | Default form for most employers | Need IRS approval or notification |
| Ease of filing | More frequent, smaller filings | Simplified once-per-year filing |
Next, let’s familiarize ourselves with the information you’ll need to have ready to fill out the form, as well as the steps to follow so you can complete it without any roadblocks.
What do you need to fill out Form 944?
To complete Form 944 accurately, you’ll need a full year’s worth of payroll and tax records. Be sure to gather:
- Printable Form 944 PDF
- Total wages, tips, and other compensation paid to each employee
- Any tips reported by employees
- Federal income tax withheld from an employee’s wages
- The employer’s and the employee’s portion of Social Security and Medicare taxes withheld from the employee’s wages
- Documentation of any tax deposits made during the year
- Any additional Medicare taxes withheld from an employee’s wages
- Your EIN and other basic business information
Keeping organized, year-round payroll records makes completing Form 944 much easier and helps reduce errors or compliance issues.
Instructions for filling out Form 944
There are currently five parts that need to be completed on a 944. Below are for line-by-line instructions and calculations but before getting into each the first section to complete has basic details such as your company information and address.
Form 944, Part 1
- Wages, Tips, and Other Compensation: Total (or gross) amount of wages, tips, and compensation paid to all of your employees for that year.
- Federal Income Tax Withheld from Wages, Tips, and Other Compensation: Enter the total of all federal income tax withheld from employee wages for the calendar year. You can get this number by adding up all the employee withholding amounts from employee pay stubs that have been issued for the year.
- If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax: If the wages paid are not subject to Social Security or Medicare Tax withholding, check the box here and skip ahead to line 5.
- Taxable Social Security and Medicare Wages and Tips: Lines 4a through 4e are used to report taxable Social Security and Medicare wages and tips. You will also report any Additional Medicare Tax withholding in this space.
- Total Taxes Before Adjustments: Enter the total of all taxes withheld by adding line 2 and line 4e.
- Current Year’s Adjustments: Any adjustments that need to be made are entered here. These adjustments can include fractions of cents as a result of rounding, sick pay adjustments, or adjustments for things like tips and group-term life insurance premiums you withheld on behalf of employees.
- Total Taxes After Adjustments: Add the amounts on lines 5 and 6 to obtain the Total Taxes After Adjustments.
- Qualified Small Business Payroll Tax Credit for Increasing Research Activities: For businesses that qualify, Form 8974 must be filled out and attached to Form 944 to claim the credit. See the IRS for more information on Form 8974 and who is eligible for the credit.
- Total Taxes After Adjustments: Subtract line 8 from line 7 to obtain the total tax due for the year.
- Total Deposits for This Year: This is where the total amount of tax deposits made throughout the year (if any) are entered.
- Balance Due: If line 9 is more than line 10, you’ll enter the Balance Due on this line.
Why direct deposit is an option on Form 944 (part of question 12)
If you’ve overpaid your federal employment taxes, the IRS now allows you to receive that overpayment directly into your checking or savings account. This change gives employers a faster, more secure way to get their money back — and helps reduce processing delays during tax season. You’ll see this in the
Choosing direct deposit means your refund is issued electronically, which is typically quicker than a mailed check and eliminates the risk of lost or delayed mail. It also reduces IRS processing costs, which is why you’ll see specific lines on Form 944 dedicated to this option.
12a. Overpayment. If you’ve paid too much in tax for the year, you will enter the overpayment amount on this line. If line 10 is more than line 9, enter the amount on line 12a. Keep in mind that you want to avoiding make an entry on both lines 11 and 12a.
12b. Application option. Pick the option to have your overpayment applied to your next return or refunded
12c. Enter your routing number. Be sure it’s nine digits. The first two digits must be 01 through 12 or 21 through 32. The IRS recommends checking with your financial institution to ensure they can receive any dollar amount ahead of time.
12d. Type of account. Check the appropriate box – you have two options here: checking or savings. Avoid checking off both boxes!
12e. Account number. You’ll have up to 17 characters (both numbers and letters). You can include hyphens, but omit spaces and special symbols. Enter from left to right, and if there are unused boxes, you leave them blank.
Form 944, Part 2
Part 2 is where you will enter information on your current tax deposit schedule and corresponding tax liability for the year.
Form 944, Part 3
This is filled out only if your business has closed or you no longer pay wages.
Form 944, Part 4
Part 4 is used if you wish to designate an employee or paid preparer or service to talk with the IRS about Form 944.
Form 944, Part 5
Last but not least, sign your name.
Get familiar with form 944
If you’ve done a good job of payroll accounting throughout the year, filling out Form 944 should be fairly simple. Be sure to check that form is completed accurately and that the taxes are deposited on or before the due date. If you are using payroll software or a payroll service provider, your 944 will usually be completed for you.
If you have any questions, visit the IRS website for more detailed background information and Form 944 instructions.
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Erin Ellison is the former Content Marketing Manager for OnPay. She has more than 15 years of writing experience, is a former small business owner, and has managed payroll, scheduling, and HR for more than 75 employees. She lives and works in Atlanta.