Form 944 (2024) – Employer’s Annual Federal Tax Return
Tax Form 944 is filed only by business owners who have received written notification from the Internal Revenue Service to file annually instead of quarterly. For 2024, employers must verify their tax deposit schedule classification (monthly versus semiweekly) using the $100,000 next-day deposit rule and distinguish between total tax liability thresholds ($2,500) for Part 2 completion and payment timing under the Accuracy of Deposits Rule.
Filing Steps
1. Verify IRS Authorization Letter
Confirm you received written notification from the Internal Revenue Service requiring IRS 944 filing. Without this notification, you must file quarterly Form 941 instead. This 2024 filing is valid only under that directive. If you are unsure of your current filing requirement, contact the IRS at 800-829-4933 or 267-941-1000 if calling from outside the United States. Business owners who previously filed Form 941-SS should note that this form was discontinued after 2023.
2. Complete Entity Information Section
Enter your legal business name (not your trade name), employer identification number (EIN), and complete address. Whether you operate as a limited liability company, corporation, or other business entity, accurate entity information is essential. For 2024, employers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico are required to enter their address information. They may skip lines 1 and 2 only if no employees are subject to U.S. income tax withholding. All other employers must complete these lines normally.
3. Report Part 1 Wages and Withholdings
Line 1: Enter total employee wages, tips, and other compensation paid during 2024. This should include amounts that would also be included in box 1 of your employees’ Forms W-2.
Line 2: Enter federal income tax withheld from those wages. Do not include FICA taxes here, as social security and Medicare taxes are reported separately. Tax professionals assisting with tax preparation should ensure these amounts reconcile with payroll records.
4. Calculate Taxable Social Security and Medicare Wages
Complete line 4 calculations carefully. Multiply taxable social security wages (line 4a) and tips (line 4b) by 0.124, which represents the combined employer and employee social security tax rate of 12.4 percent under the Internal Revenue Code. Multiply taxable Medicare wages and tips (line 4c) by 0.029, which represents the combined employer and employee Medicare tax rate of 2.9 percent. Multiply wages and tips subject to Additional Medicare Tax withholding (line 4d) by 0.009. Add all four products to arrive at the total social security and Medicare taxes on line 4e. The social security wage base limit for 2024 is $168,600. There is no wage base limit for the Medicare tax.
5. Sum Total Taxes Before Adjustments
Line 5 equals line 2 plus line 4e. Enter 2024 current-year adjustments on line 6 only if documented in the separate instructions, which may include adjustments for fractions of cents, sick pay, tips, and group-term life insurance. Combine for line 7 total taxes after adjustments. Note that the Employee Retention Credit is no longer available for 2024; however, adjustments from prior year claims may still be reflected.
6. Claim Qualified Small Business Payroll Tax Credit
Claim the qualified small business payroll tax credit for increasing research activities on line 8 only if you attach completed Form 8974 for 2024. For tax years beginning after December 31, 2022, the credit amount has increased to $500,000. The payroll tax credit election must be made on or before the due date of the originally filed income tax return, including extensions. Business owners should consult with tax professionals during tax preparation to ensure proper documentation. Subtract line 8 from line 7 to arrive at line 9, which represents total taxes after adjustments and nonrefundable credits.
7. Determine Part 2 Completion Requirement
If line 9 is less than $2,500, check the first box on line 13, skip the monthly liability boxes, and proceed to Part 3.
If line 9 is $2,500 or more, check the second box on line 13 and enter your tax liability for each month (lines 13a through 13l) if you are a monthly schedule depositor under your tax deposit schedule. However, if you are a semiweekly schedule depositor or became one because you accumulated $100,000 or more of tax liability on any single day during a deposit period in 2024, you must complete Form 945-A, Annual Record of Federal Tax Liability, instead of the monthly boxes. When filing Form 945-A, do not complete lines 13a through 13m on Form 944.
8. Calculate Balance Due or Overpayment
Complete lines 10 through 12.
Line 10: Enter total deposits made for 2024, including any overpayments applied from prior years and overpayments applied from Form 944-X, 941-X, or 941-X (PR).
If line 9 exceeds line 10, enter the balance due on line 11 and make payment by the due date. Payment options include electronic funds transfer, credit card, or check with Form 944-V.
If line 10 exceeds line 9, enter the overpayment on line 12a and indicate on line 12b whether you want to apply the overpayment to your next return or request a refund. If requesting a refund by direct deposit, complete lines 12c through 12e with your bank routing number, account type, and account number.
9. Complete Part 3 Final Wage Payment Date
Enter the final date you paid employee wages in 2024 on line 14 only if your business has closed or you stopped paying wages to employees. If this question does not apply to your business, leave line 14 blank. If you check this box, also attach a statement showing the name of the person responsible for keeping the payroll records and the address where those records will be kept. Business owners should retain these records in accordance with the Internal Revenue Service's requirements.
10. Authorize Third-Party Designee in Part 4
Select “Yes” or “No” to indicate whether you want to allow an employee, paid preparer, or other representative to discuss this return with the IRS. If you select “Yes,” provide the designee’s name, phone number, and select a 5-digit personal identification number (PIN) for 2024 that the designee will use when talking to the Internal Revenue Service. Many business owners authorize their tax professionals as third-party designees.
11. Sign Both Pages Under Penalties of Perjury
You must complete both pages of IRS 944 and sign on page 2. Print your name, title, and best daytime phone number in the spaces provided. Failure to sign may delay processing of your return. If you use tax professionals for tax preparation to complete Form 944, the preparer must also sign, enter their preparer tax identification number (PTIN), and provide firm details, including firm name, employer identification number, address, and phone number.
12. Submit Form 944-V Payment Voucher If Applicable
Complete and detach Form 944-V only if you are making a payment with Form 944 by check or money order under one of three 2024 scenarios.
First, if your net taxes are less than $2,500 and you are paying in full with a timely filed return.
Second, if your net taxes are $2,500 or more but you already deposited the taxes owed for the first, second, and third quarters of 2024, your net taxes for the fourth quarter are less than $2,500, and you are paying the fourth quarter tax in full with a timely filed return.
Third, if you are a monthly schedule depositor paying under the Accuracy of Deposits Rule, in which case the amount may be $2,500 or more.
Business owners can also pay by credit card or electronic funds transfer without using Form 944-V. Mail Form 944-V separately (not stapled) with your check made payable to “United States Treasury,” labeled with your EIN, “Form 944,” and “2024” to the appropriate mailing addresses. If you pay amounts that should have been deposited, you may be subject to penalties.
2024 Year-Specific IRS Updates
$100,000 Next-Day Deposit Rule for Semiweekly Depositors
Employers who accumulated $100,000 or more of employment tax liability on any single day during a deposit period in 2024 must use Form 945-A for monthly liability detail instead of completing the Part 2 monthly boxes on Tax Form 944, even if otherwise eligible to file Form 944. This rule applies regardless of whether you were previously classified as a monthly schedule depositor under your tax deposit schedule. The $100,000 tax liability threshold requiring a next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits.
$2,500 Part 2 Completion Threshold
Line 9 determines whether monthly liability boxes (lines 13a through 13l) must be completed. The threshold remains unchanged at $2,500 for 2024 but is critical for distinguishing monthly from semiweekly depositors and determining whether deposits or payments with the return are required. This threshold applies regardless of your business structure, whether you operate as a limited liability company or other entity type.
Accuracy of Deposits Rule for Monthly Schedule Depositors
Monthly schedule depositors may make a payment with IRS 944 in accordance with the Accuracy of Deposits Rule for 2024. Under this rule, the payment amount may be $2,500 or more—reference section 11 of Publication 15, Employer’s Tax Guide, for specific timing and calculation requirements. Tax professionals should review this rule carefully during tax preparation to avoid penalties.
Form 944-V Payment Voucher Requirements for 2024
Use Form 944-V for all payments made with Form 944 under the specified scenarios. Business owners who prefer not to use credit cards or electronic payment methods must use this voucher. Failure to use the payment voucher or depositing amounts that should have been deposited may result in a penalty risk. Always detach and mail Form 944-V separately (not stapled) with your check and Form 944 to the appropriate mailing addresses based on your location and whether you are including a payment.
Territorial Exception for American Samoa, Guam, Northern Mariana Islands, U.S. Virgin Islands, and Puerto Rico
For 2024, employers in these U.S. territories may skip lines 1 and 2 only if no employees are subject to U.S. income tax withholding. All other employers in these territories must complete lines 1 and 2 normally. References to federal income tax withholding do not apply to employers in these territories unless they have employees who are subject to U.S. income tax withholding. Business owners in these territories should note that Form 941-SS was discontinued after 2023.
Additional Reporting Considerations
Business owners should be aware that Tax Form 944 is separate from Form 940, which reports federal unemployment tax. Additionally, gross receipts calculations for determining small business status under various tax provisions do not directly affect Form 944 filing eligibility, which is based solely on annual employment tax liability. The Internal Revenue Service determines eligibility based on the $1,000 yearly tax liability threshold, and business owners receive written notification when they qualify for annual filing.
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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.
