Form 944 (2014): Employer’s Annual Federal Return
Checklist
Federal Form 944 for the 2014 tax year allows eligible employers with an annual federal employment tax liability of $1,000 or less to file one annual employment tax return instead of quarterly Form 941 filings. This option simplifies tax reporting for small employers while remaining fully compliant with the Internal Revenue Service-administered tax laws.
Before You Begin
Confirm your eligibility to file Federal Form 944 for 2014. Your total annual FICA tax and federal income tax withholding liability must not exceed $1,000, and the Internal Revenue Service must have notified you in writing that you are authorized to file this employment tax return. Verify your
Employer Identification Number is active and correctly listed on all tax forms, and gather payroll records, tax deposit confirmations, and employee documentation for the full 2014 calendar year.
Step-by-Step Filing Instructions
Step 1: Report Wages, Tips, and Other Compensation
Enter total wages, tips, and other compensation paid during 2014 on line 1. This includes all taxable wages subject to federal income tax withholding, FICA taxes, and Medicare tax, based on employee Forms W-4 and applicable tax law requirements.
Step 2: Calculate Federal Income Tax Withheld
Report the total federal income tax withheld from employee paychecks for the year on line 2.
Withholding must reflect the proper application of IRS withholding tables and any backup withholding requirements under Section 3406, if applicable.
Step 3: Report Social Security Wages and FICA Tax
Enter Social Security wages on line 4a and calculate the related FICA tax at the combined 12.4 percent employer and employee rate. For 2014, the Social Security wage base limit is $117,000 per employee, and wages above this amount are not subject to Social Security tax.
Step 4: Report Medicare Wages and Taxes
Enter all Medicare wages paid during the year on line 4c. Medicare tax is calculated at a combined rate of 2.9 percent, with no wage limit. This procedure includes tips and certain taxable fringe benefits reported during 2014.
Step 5: Calculate Additional Medicare Tax Withholding
Report wages exceeding $200,000 per employee on line 4d for Additional Medicare Tax purposes. Employers must withhold an additional 0.9 percent on wages over this threshold, though no employer-matching FICA tax applies to this amount.
Step 6: Complete Monthly Tax Liability Reporting
Report your monthly employment tax liability for each month of 2014 in Part 2, line 13. The total of all monthly liabilities must equal the total taxes reported on line 7, ensuring consistency during IRS assessment review.
Step 7: Reconcile Deposits Using EFTPS
Reconcile all federal tax deposits made through the Electronic Federal Tax Payment System with your reported monthly liabilities. Deposits must comply with IRS deposit-schedule rules, and discrepancies may trigger penalties or extended assessment periods.
- Total tax liability under $2,500 for the year: You may submit full payment with your
- Tax liability of $2,500 or more for the year, but less than $2,500 per quarter:
- Tax liability of $2,500 or more in any quarter: You must follow monthly or semiweekly
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 8: Complete Signature and Certification
Sign and date the return in Part 5 under penalty of perjury. The signer must be an authorized individual, such as an owner, an officer, or a duly appointed agent, and unsigned returns are considered invalid under the Beard formulation of valid tax returns.
Key Deposit Requirements
Form 944 instead of making periodic deposits.
Deposits are due by the end of the month following each quarter. deposit schedules, depending on your lookback period. Accumulating $100,000 or more on any day requires a next-day deposit.
Payment and Adjustment Considerations
Payments submitted with Form 944 should not be combined with payments submitted with other tax forms, such as Form 940 or Form 945-A. Employers needing to correct errors after filing must use Form 944-X, while corrections related to quarterly filings require Form 941-X.
Recordkeeping and IRS Review Periods
Retain all payroll records, Forms W-2, and deposit confirmations for at least four years after the assessment date. Generally, the IRS assessment statute of limitations lasts for three years from the filing date, but certain circumstances may extend the assessment period.
Third-Party Authorization Options
If someone else prepares or submits your return, you may designate a third-party designee or file a Reporting Agent Authorization or Power of Attorney. Preparers must include a valid
Preparer Tax Identification Number, and IRS Field Attorneys may review filings during compliance examinations.
Supporting IRS Publications
Consult IRS guidance relevant to Form 944 compliance, including Pub. 15 (Employer’s Tax
Guide), Pub. 1179 for employment eligibility verification, Pub. 1141 for backup withholding, and
Pub. 4436 for electronic filing updates. Rev. Proc. 2005-39 provides additional clarification on employment tax procedures.
Filing Deadlines and Submission
File your 2014 Form 944 by February 2, 2015, or by February 10, 2015, if all required deposits were made on time. Filing addresses vary based on payment method and location, so always confirm the correct address in the official 2014 instructions before submission.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
