This form is designed for certain small employers who are authorized by the IRS to report federal income tax withholding and Social Security and Medicare taxes once a year instead of filing Form 941 quarterly. The key rule is that employers generally must receive IRS authorization to file Form 944; having a small payroll alone does not automatically qualify a business.

From AIM Financial — Business Tax Preparation in Grand Rapids, Kentwood, Wyoming, and West Michigan

Small business owners have many responsibilities, from managing daily operations to maintaining accurate financial records and meeting federal tax deadlines. If your business has employees, you may also need to report payroll taxes to the Internal Revenue Service (IRS). One form designed to simplify this process for certain small employers is IRS Form 944, Employer’s Annual Federal Tax Return.

AIM Financial helps individuals and businesses understand tax preparation requirements and organize the records needed for accurate reporting. This guide explains Form 944 in plain English, including who must file, what information is required, how annual payroll tax reporting works, and which mistakes employers should avoid.

What Is IRS Form 944?

IRS Form 944 allows certain small employers to report federal income tax withheld from employee wages and Social Security and Medicare taxes on one annual return rather than filing Form 941 every quarter.

The form is intended for employers whose annual liability for these employment taxes is generally $1,000 or less. However, you must be authorized by the IRS to file Form 944 instead of quarterly Forms 941. A small payroll or low tax liability does not automatically give a business permission to switch forms. <Cite refs={[“turn665601search0″,”turn665601search1”]}/>

Form 944 combines the reporting of several employment tax obligations into one annual filing. It does not replace the employer’s responsibility to withhold the correct amounts from employees’ paychecks or make required federal tax deposits during the year.

Who Must File Form 944?

Employers should first determine which employment tax return the IRS expects them to file.

You generally file Form 944 if the IRS has notified you in writing that you should use the annual return. If you have been instructed to file Form 941 quarterly, you generally must continue filing quarterly returns unless the IRS changes your filing requirement.

Small businesses that believe their annual employment tax liability will be $1,000 or less may be able to request authorization to file Form 944. The IRS has specific procedures and request windows for changing between Form 941 and Form 944. For the 2026 tax year, the published instructions describe a request period running from January through early April for telephone requests, with an earlier deadline for written requests. <Cite refs={[“turn665601search1”]}/>

Certain employers use different forms. Agricultural employers generally report employment taxes for agricultural workers on Form 943, while some household employers have separate filing options. The correct form depends on the type of employment and the IRS’s instructions.

What Taxes Are Reported on Form 944?

Form 944 generally covers three main areas.

Federal income tax withholding: Employers report federal income tax withheld from employee wages according to the applicable withholding rules and employee Form W-4 information.

Social Security tax: Employees and employers generally each pay 6.2% of applicable wages, subject to the annual Social Security wage limit. For 2026, that limit is $184,500.

Medicare tax: Employees and employers generally each pay 1.45% of applicable wages. Unlike Social Security tax, Medicare tax has no general annual wage limit. Additional Medicare Tax may also apply to certain employee wages, with the employer responsible for withholding it when required but not matching the additional 0.9% tax. <Cite refs={[“turn665601search12″,”turn665601search1”]}/>

These taxes must be calculated accurately throughout the year. Payroll records should support the amounts reported on the annual return.

How to Complete Form 944 in Plain English

Form 944 may look complicated at first, but keeping accurate payroll records makes the process easier.

Step 1: Enter Your Business Information

Enter the employer identification number (EIN), legal business name, business address, and other identifying information requested.

Use the correct EIN and legal name associated with the business. Errors in this information can delay processing.

Step 2: Report Annual Wages and Federal Income Tax Withheld

Report the wages, tips, and other compensation paid during the calendar year. Enter the federal income tax withheld from those payments.

Your payroll reports and employee wage records should support these totals.

Step 3: Calculate Social Security and Medicare Taxes

The form asks for taxable Social Security wages, taxable tips where applicable, and Medicare wages and tips. You then calculate the applicable employee and employer tax amounts.

Some wages may be subject to Medicare tax but not Social Security tax because the employee has exceeded the Social Security wage base. Special adjustments may also apply.

Step 4: Calculate Adjustments and Credits

The form includes lines for applicable tax adjustments and certain credits. For example, eligible small businesses may be able to claim a qualified small business payroll tax credit for increasing research activities if they meet the requirements and provide the required supporting form.

Not every employer qualifies for these adjustments, so use the current year’s instructions.

Step 5: Compare Taxes With Deposits

Add the applicable taxes and adjustments, then compare the total with federal tax deposits made during the year and any other amounts allowed by the form.

If your total tax exceeds your deposits, you may have a balance due. If deposits exceed your total tax, you may have an overpayment that can be handled according to the form’s instructions.

Complete both pages of Form 944 and sign the return. The IRS requires both pages to be completed. <Cite refs={[“turn665601search13″,”turn665601search1”]}/>

When Is Form 944 Due?

Form 944 is filed once a year for the calendar year covered by the return.

The 2025 Form 944 was generally due February 2, 2026. Employers that deposited all taxes due on time and in full generally had until February 10, 2026, to file.

For the 2026 tax year, the return will generally be due January 31, 2027. Because that date falls on a Sunday, the deadline generally moves to the next business day, February 1, 2027. Employers that qualify for the additional filing time after making all required deposits on time and in full generally have until February 10, 2027. Verify the applicable IRS instructions before filing. <Cite refs={[“turn665601search1″,”turn665601search12”]}/>

Do You Still Need to Make Tax Deposits?

Yes, potentially. Filing annually does not necessarily mean you can wait until the annual deadline to pay all employment taxes.

Under the Form 944 deposit rules, employers with less than $2,500 in employment tax liability for the year generally may pay the amount with the return, provided the applicable conditions are met. If liability reaches $2,500 or more, deposits are generally required under the applicable rules. Other timing and deposit requirements may apply. <Cite refs={[“turn665601search1”]}/>

Keep records of payroll calculations, tax deposits, employee wages, and year-end reporting to help reconcile the annual return.

Common Form 944 Mistakes to Avoid

Small employers should watch for these common errors:

• Filing Form 944 without IRS authorization.
• Filing Form 944 when the IRS requires quarterly Form 941 returns.
• Reporting incorrect annual wages or withholding.
• Miscalculating Social Security or Medicare taxes.
• Assuming annual filing eliminates all deposit deadlines.
• Forgetting to sign the return or complete both pages.
• Failing to reconcile the return with employee Forms W-2 and the employer’s Form W-3.
• Overlooking a required return because the business had little or no payroll activity.

If you discover an error after filing, Form 944-X may be used for certain corrections to a previously filed annual return. The correction process depends on the type of error and the circumstances.

How AIM Financial Can Help With Business Tax Preparation

Managing payroll tax responsibilities can be challenging for small business owners who are also responsible for bookkeeping, customer service, staffing, and daily operations. Choosing the correct forms and meeting federal deadlines helps keep your business records organized and reduces the risk of preventable reporting problems.

AIM Financial offers tax preparation support for individuals and businesses in Grand Rapids, Kentwood, Wyoming, and throughout West Michigan. Whether you need help organizing business tax records, understanding payroll reporting requirements, or preparing your federal income tax return, professional assistance can help you approach tax season with greater confidence.

If your business has questions about Form 944, Form 941, payroll tax deposits, or year-end tax reporting, contact AIM Financial to discuss your tax preparation needs.

Contact AIM Financial for business tax preparation assistance and help organizing your federal tax reporting responsibilities. Taking time to review payroll records throughout the year can make annual filing more manageable.

This article is for general educational purposes only and is not individualized tax advice. Filing requirements, deposit obligations, and calculations depend on your circumstances. Consult the current IRS Form 944 instructions or a qualified tax professional for advice specific to your business.