File Just One, Consider It Done!

To reduce burden on small employers, the Internal Revenue Service (IRS) has simplified the rules for filing employment tax returns to report social security, Medicare, and withheld federal income taxes.

If you have been filing Forms 941 and believe your yearly employment taxes will be $1,000 or less and would like to file Form 944 instead of Form 941, you can contact the IRS to request to file Form 944, Employers Annual Federal Tax Return, rather than Form 941, Employers Quarterly Federal Tax Return.

If your yearly employment taxes will be over $1,000, you do not have the option to file annually with Form 944, you must file quarterly using form 941.

To file Form 944 for calendar year 2012, you must call the IRS at 1-800-829-4933 by April 1, 2012, or send a written request postmarked by March 15, 2012. The IRS will send you a written notice that your filing requirement has been changed to Form 944. If you do not receive this notice, you must file Form 941 for calendar year 2012. If you are starting a new business, you should contact as soon as possible to determine if you are eligible.

When will I file Form 944?

• This return will be due once a year, by January 31, after the end of the tax year.
• You may file Form 944 electronically. See the list of Authorized e-file Providers.

When will I pay my employment taxes?

• You may pay once a year when you file your return, unless you are required to make Federal Tax Deposits (FTDs). If your liability for social security, Medicare, and withheld federal income taxes is less than $2,500 for the year, you can pay the taxes with your return. However, you may choose to make deposits of these taxes even if your liability is less than $2,500.
• You may choose to make more frequent deposits to reduce the balance due with your annual return.
• If your liability for these taxes is $2,500 or more, you are generally required to deposit the taxes instead of paying them when you file Form 944. See the Federal Tax Deposit Requirements for Form 944 Filers chart located in the Instructions for Form 944. If you do not deposit the taxes when required, you may be subject to penalties and interest. See Publication 15 (Circular E), Employers Tax Guide for FTD deposit requirements.
• The IRS has issued proposed regulations that provide that beginning January 1, 2011, taxpayers must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS). Under these proposed regulations, which are expected to be finalized by December 31, 2011, Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used after December 31, 2010.

What payment methods may I use?

• If you file a paper return, you may pay by check, money order, credit card, or the Electronic Federal Tax Payment System (EFTPS). 
• If you file your return electronically, you may also pay by authorizing an Electronic Funds Withdrawal (EFW) from your checking or savings account.
• To make more frequent deposits, you may use EFTPS.
• Please visit Electronic Payment Options, EFTPS, or refer to Publication 15 (Circular E), Employers Tax Guide, for more information on these options.  

Where can I find more information on the Form 944 program?

Please see the Form 944 Instructions (PDF).

References/Related Topics

• Employment Taxes for Businesses

Rate the Small Business and Self-Employed Web Site