Form 944 reports annual federal employment taxes only if the IRS notifies you in writing. For 2019, you must report withheld federal income tax, Social Security tax (12.4% combined rate), Medicare tax (2.9% combined rate), and Additional Medicare Tax (0.9% rate). The form determines total tax liability, credits, deposits, and balance due or overpayment for the calendar year ending December 31, 2019.
Form 944 is designed for the smallest employers whose annual liability for Social Security, Medicare, and withheld federal income taxes is $1,000 or less. This allows eligible businesses to file and pay these taxes only once per year instead of quarterly.
Note that Form 944 is distinct from Form 940, which reports annual Federal Unemployment Tax Act (FUTA) taxes, and from Form I-944, the Declaration of Self-Sufficiency related to public charge determinations in immigration cases.
Completion Steps
Step 1: Verify IRS Notification
Confirm the IRS sent written notice requiring Form 944 filing instead of quarterly Forms 941 for 2019. Only employers meeting this criterion may file Form 944. If you did not receive written notification from the IRS, you must file Form 941 quarterly instead. Filing the wrong form can result in processing delays and penalties.
Step 2: Complete Entity Information
Enter your employer identification number (EIN), legal business name (not trade name), trade name if applicable, and complete address including city, state, and ZIP code. For foreign addresses, substitute country name, province or county, and postal code.
Ensure your EIN exactly matches the number assigned by the IRS. Using an incorrect EIN can result in penalties and processing delays.
Step 3: Report Wages and Compensation on Line 1
Enter total wages, tips, and other compensation subject to federal income tax withholding for 2019. This includes amounts that would also be included in box 1 of your employees’ Forms W-2. Include sick pay paid by a third party if you were given timely notice of the payments and the third party transferred liability for the employer’s taxes to you.
Step 4: Enter Federal Income Tax Withheld on Line 2
Report total federal income tax withheld from employee wages, tips, and other compensation during 2019. This includes federal income tax you withheld or were required to withhold from employees on wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits.
Step 5: Calculate Social Security Tax on Line 4a
Multiply taxable Social Security wages by 0.124 (12.4% combined rate for 2019). Enter the result in Column 2. The Social Security wage base limit for 2019 is $132,900.
Stop paying Social Security tax on and reporting an employee’s wages on line 4a when the employee’s taxable wages (including tips) reach $132,900 for the year. However, continue to withhold income and Medicare taxes for the entire year on wages and tips even after the Social Security wage base has been reached.
Step 6: Calculate Medicare Tax on Line 4c
Multiply taxable Medicare wages and tips by 0.029 (2.9% combined rate for 2019). Enter the result in Column 2. There is no wage base limit for the Medicare tax. All wages subject to Medicare tax must be included, regardless of the amount.
Step 7: Calculate Additional Medicare Tax on Line 4d
Multiply wages and tips subject to Additional Medicare Tax withholding by 0.009 (0.9% rate for 2019). Enter the result in Column 2. The Additional Medicare Tax applies to wages paid in excess of $200,000 per calendar year. This tax is imposed only on the employee with no employer match.
Step 8: Compute Total Taxes After Adjustments on Line 7
Combine Line 5 (total taxes before adjustments) with Line 6 (current year adjustments). This figure determines your deposit obligation threshold for Part 2.
Current year adjustments may include corrections for fractions of cents, sick pay, tips, and group-term life insurance.
Step 9: Apply Qualified Small Business Payroll Tax Credit on Line 8
Attach Form 8974 if claiming the research activities credit for 2019. This credit allows qualified small businesses to elect to claim up to $250,000 of their credit for increasing research activities as a payroll tax credit against the employer’s share of Social Security tax.
Subtract this credit from Line 7 to arrive at Line 9.
Step 10: Report Total Deposits on Line 10
Include all federal employment tax deposits made during 2019, any overpayment applied from prior years, and any overpayments transferred from Forms 944-X, 944-X (SP), 941-X, or 941-X (PR). Ensure all deposits are accurately reported to avoid discrepancies.
Step 11: Determine Part 2 Filing Requirement on Line 9
If Line 9 is less than $2,500, skip the detailed monthly liability boxes and proceed to Part 3.
If Line 9 is $2,500 or more, you must enter your tax liability for each month in the boxes provided (Lines 13a through 13l). However, if you are a semiweekly schedule depositor or became one because you accumulated $100,000 or more of liability on any day during a deposit period in 2019, you must complete Form 945-A instead of the monthly liability boxes and file it with Form 944.
Step 12: Sign and Date Form 944
Both pages must be completed. Provide your legal signature, printed name, title, and best daytime phone number. The person signing must be authorized to sign on behalf of the business.
If using a paid preparer, the preparer must sign, enter their Preparer Tax Identification Number (PTIN), and include firm information.
Year-Specific IRS Updates for 2019
Social Security Wage Base Cap
The 2019 maximum Social Security wages subject to the 12.4% combined tax rate is $132,900. This amount is indexed annually based on changes in the national average wage index.
Each employee’s wages are subject to Social Security tax only up to this limit. Once an employee’s wages reach $132,900, no additional Social Security tax should be withheld or paid for that employee for the remainder of 2019.
Form 944-V Payment Voucher Requirements
Complete Form 944-V only if your net taxes (Line 9) are under $2,500 and you pay in full with your timely filed return, or if you are a monthly schedule depositor making a payment under the Accuracy of Deposits Rule for 2019.
Do not staple the voucher to Form 944.
If you made deposits on time in full payment of the taxes due for the year, you may file the return by February 10, 2020, instead of the standard January 31, 2020, deadline.
Deposit Schedule Thresholds
The $2,500 threshold on Line 9 determines whether you must itemize monthly liabilities in Part 2. Monthly depositors with an annual liability of less than $2,500 may pay with Form 944 directly.
Semiweekly depositors must use Form 945-A regardless of Line 9 amount if they accumulated $100,000 or more on any day during a deposit period.
Fourth Quarter Catch-Up Provision
If your annual net taxes are $2,500 or more but you already deposited first, second, and third quarter 2019 taxes and your fourth quarter liability is under $2,500, you may pay that fourth quarter amount with Form 944-V if filed timely.
This provision helps small employers avoid unnecessary penalties when their fourth quarter liability falls below the deposit threshold.
Amended Return Crosswalk
Overpayments from Forms 944-X, 944-X (SP), 941-X, or 941-X (PR) may be applied to Line 10 for 2019. Confirm the year and form type match the prior period being amended to ensure proper credit application and accurate record-keeping.
Related Federal Tax Forms and Considerations
Relationship to Form 940
While Form 944 reports annual Social Security, Medicare, and withheld federal income taxes, employers must separately file Form 940 to report Federal Unemployment Tax Act (FUTA) taxes.
Form 940 is due by January 31, 2020, for the 2019 tax year. Unlike Form 944, which is filed only by employers specifically notified by the IRS, Form 940 must be filed by all employers who paid wages of $1,500 or more in any calendar quarter or had one or more employees for at least part of a day in 20 or more different weeks during the year.
Distinction from Immigration-Related Forms
Employers should note that Form 944 for employment taxes is completely separate from Form I-944, Declaration of Self-Sufficiency, which was used in immigration proceedings for public charge determinations.
Form I-944 required certain applicants for adjustment of status to provide information about their use of public benefits and their ability to financially support themselves. While Form I-944 has been discontinued, employers hiring foreign workers should be aware of the distinction between employment tax forms and immigration documentation requirements related to public charge considerations and public benefits usage.
Coordination with Employee Tax Reporting
The amounts reported on Form 944 must be reconciled with Form W-2 issued to employees and Form W-3 transmitted to the Social Security Administration.
The IRS matches amounts reported on Form 944 with Form W-2 totals to identify discrepancies in federal income tax withholding, Social Security wages, Social Security tips, and Medicare wages and tips. Ensure consistency across all reporting documents to avoid IRS inquiries and potential penalties.
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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.
