Form 944 (2016) Filing Checklist & Tax Rules Guide Checklist

Form 944 (2016) Year-Specific Checklist

Form 944 is the annual employment tax return for employers notified by the IRS to file annually instead of quarterly. For 2016, monthly liability reporting applies only if line 7 exceeds $2,500; semiweekly depositors or those triggering $100,000 same-day liability must file Form 945-A instead of monthly boxes 13a–13l.

Required Steps

1. Verify the IRS written notification requirement. Only employers who received written IRS authorization may file Form 944 for 2016; all other employers must use Form 941 quarterly returns.
2. Complete the entity information section with legal name (not trade name), EIN, and full address. Include foreign address fields if applicable; U.S. territories (American Samoa, Guam, Northern Mariana Islands, U.S. Virgin Islands, Puerto Rico) skip lines 1–2 wage reporting.
3. Enter line 1 (wages, tips, and other compensation) and line 2 (federal income tax withheld). Ensure both amounts match your payroll records for the full 2016 calendar year.
4. Report taxable social security wages (line 4a) multiplied by 0.124, taxable social security tips (line 4b) multiplied by 0.124, and taxable Medicare wages and tips (line 4c) multiplied by 0.029. For 2016, include line 4d (wages and tips subject to Additional Medicare Tax withholding) multiplied by 0.009.
5. Add all column 2 amounts from lines 4a, 4b, 4c, and 4d to produce line 4e. Combine line 2 (federal withholding) and line 4e (employment tax) to calculate line 5 (total taxes before adjustments).
6. Report any 2016 current-year adjustments on line 6 per instructions; add to line 5 to produce line 7 (total taxes after adjustments). This is the reference point for deposit compliance and payment eligibility.
7. Enter line 8 (total deposits for 2016), including deposits, overpayments applied from prior-year returns, and overpayments applied from Form 944-X, 944-X (SP), 941-X, or 941-X (PR) filed during 2016 or early 2017.
8. Check the box on line 13: if line 7 is less than $2,500, proceed to Part 3. If line 7 is $2,500 or more and you are not a semiweekly depositor and did not incur $100,000 liability on any day, complete monthly liability boxes 13a–13l for January through December 2016; sum must equal line 7.
9. Calculate line 11 (balance due) or line 12 (overpayment) by comparing line 7 to line 8. If overpayment, elect to apply to next return or request a refund; if balance due and less than $2,500, you may submit payment with Form 944 using Form 944-V payment voucher (if paying by check or money order) with check payable to United States Treasury.
10. Complete Part 3, question 14: indicate if the business closed or wage payments ceased during 2016. Leave blank if business remains active.
11. Authorize third-party designee communication in Part 4 if applicable; select 5-digit PIN if yes. This authorizes the IRS to discuss with an employee, paid tax preparer, or other authorized person.
12. Sign Part 5 under penalties of perjury; print name, title, and daytime phone. Paid preparer must sign, date, enter PTIN, and include firm name/EIN and address. Both pages of Form 944 must be completed and signed.

2016 Year-Specific Regulatory Updates

Monthly Liability Reporting Requirements

Monthly liability boxes 13a–13l apply only if line 7 is $2,500 or more AND you are not a semiweekly depositor, AND you did not accumulate $100,000 or more liability on any single day; otherwise, use Form 945-A for detailed monthly/weekly reporting.

Additional Medicare Tax Withholding

Additional Medicare Tax withholding (line 4d, 0.009 rate) is imposed only on the employee, not the employer. Employers must withhold the 0.9% Additional Medicare Tax from wages paid to an employee in excess of $200,000 in a calendar year. There is no employer share or employer match for the Additional Medicare Tax. Line 4d reflects the employee’s Additional Medicare Tax that you withheld from their wages.

Employees may owe additional liability for Additional Medicare Tax based on their filing status thresholds ($250,000 for married filing jointly, $125,000 for married filing separately, $200,000 for all others) reported on their individual Form 8959, but line 4d on Form 944 reports only the amount you withheld as the employer based on the $200,000 withholding threshold.

Payment Procedures and Form 944-V

Form 944-V payment voucher should be completed and submitted if you are making a payment by check or money order with Form 944. The voucher helps the IRS credit your payment more promptly and accurately. Checks or money orders must be payable to “United States Treasury” and marked with the EIN, “Form 944,” and the year “2016.”

Do not file Form 944-V if you pay electronically through EFTPS, electronic funds withdrawal, credit card, debit card, or online payment agreement. Do not staple the voucher to the return.

Overpayment Options

Overpayments from your 2016 Form 944 may be applied to your next year’s return or requested as a refund. If you continue to file Form 944 for 2017, the overpayment will be applied to that return. If you switch to quarterly filing, the overpayment may be used for your 2017 Form 941 quarterly returns. Alternatively, request a refund by checking the appropriate box on line 12.

For 2016, overpayments from corrections filed on Form 944-X, 944-X (SP), 941-X, or 941-X (PR) during 2016 or early 2017 may also be applied to offset amounts owed or be carried forward.

U.S. Territory Exemptions

Employers in U.S. territories (American Samoa, Guam, Commonwealth of the Northern Mariana Islands, U.S. Virgin Islands, Puerto Rico) are exempt from lines 1–2 reporting for federal income tax withholding unless they have employees subject to U.S. income tax withholding. These employers proceed directly to the line 3 checkpoint. See Pub. 15, 80, or 179 for territory-specific employment tax rules.

Semiweekly Depositor Requirements

Semiweekly depositors must use Form 945-A (Annual Record of Federal Tax Liability) instead of the monthly boxes on Form 944. Monthly depositors use Form 944 boxes 13a–13l only if the total annual liability (line 7) equals or exceeds $2,500 and no $100,000 same-day threshold is breached.

Tax Rates for 2016

Social security tax rate: 6.2% (0.062) each for employee and employer, or 12.4% (0.124) combined. Social security wage base limit: $118,500.

Medicare tax rate: 1.45% (0.0145) each for employee and employer, or 2.9% (0.029) combined. No wage base limit for Medicare tax.

Additional Medicare Tax: 0.9% (0.009) employee-only withholding on wages exceeding $200,000. No employer share.

Deposit Thresholds

If line 7 is less than $2,500: No deposit required; may pay tax with Form 944.

If line 7 is $2,500 or more but less than $2,500 per quarter: Deposit by the last day of the month after the quarter end; fourth quarter liability under $2,500 may be paid with Form 944.

If quarterly liability is $2,500 or more: Must deposit monthly or semiweekly, depending on deposit schedule; accumulating $100,000 or more on any day triggers the next-business-day deposit requirement.

Need Help With Your Tax Filing?

If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.

We offer:

• Full IRS transcript retrieval (Wage & Income + Account)
• Professional tax form review
• Preparation & filing support
• Tax relief options if you owe the IRS

Call now before filing: (888) 260-9441
Fast transcript pull available

‍

This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.