Employer's Annual Employment Tax Return

2012

Instructions for Form 944

Department of the Treasury
Internal Revenue Service

Employer's ANNUAL Federal Tax Return
Section references are to the Internal Revenue Code unless
otherwise noted.

22, 2011, and before January 1, 2013. For more information
about the credit, visit www.irs.gov/form5884c.

Future Developments

Change of address. Use Form 8822-B, Change of
Address—Business, to notify the IRS of an address change.

For the latest information about developments related to
Form 944 and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/form944.

What's New
Forms 944-SS and 944-PR discontinued. Form 944-SS,
Employer's ANNUAL Federal Tax Return—American Samoa,
Guam, the Commonwealth of the Northern Mariana Islands,
and the U.S. Virgin Islands, and Form 944-PR, Planilla para
la Declaración Federal ANUAL del Patrono, will no longer be
issued by the IRS after 2011.
Beginning with tax year 2012, employers who previously
filed Form 944-SS or 944-PR will continue to file annually
using Form 944 (or Form 944 (SP), Declaración Federal
ANUAL de Impuestos del Patrono o Empleador, the Spanish
language equivalent of Form 944). Alternatively, employers in
American Samoa, Guam, the Commonwealth of the Northern
Mariana Islands, and the U.S. Virgin Islands may request to
file Forms 941-SS, Employer's QUARTERLY Federal Tax
Return—American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, and the U.S. Virgin Islands,
instead of Form 944 or Form 944 (SP). Employers in Puerto
Rico may request to file Forms 941-PR, Planilla para la
Declaración Federal TRIMESTRAL del Patrono, instead of
Form 944 or Form 944 (SP).
Social security and Medicare taxes for 2012. The
employee tax rate for social security is 4.2%. The employer
tax rate for social security remains unchanged at 6.2%. The
Medicare tax rate is 1.45% each for the employee and
employer, unchanged from 2011. The social security wage
base limit is $110,100. There is no wage base limit for
Medicare tax.
Social security and Medicare taxes apply to the wages of
household workers you pay $1,800 or more in cash or an
equivalent form of compensation. Social security and
Medicare taxes apply to election workers who are paid
$1,500 or more in cash or an equivalent form of
compensation.
VOW to Hire Heroes Act of 2011. On November 21, 2011,
the President signed into law the VOW to Hire Heroes Act of
2011. This new law provides an expanded work opportunity
tax credit to businesses that hire eligible unemployed
veterans and, for the first time, also makes part of the credit
available to certain tax-exempt organizations. Businesses
claim the credit as part of the general business credit and
tax-exempt organizations claim it against their payroll tax
liability using Form 5884-C, Work Opportunity Credit for
Qualified Tax-Exempt Organizations Hiring Qualified
Veterans. The liability reported on Form 944 is not reduced
by the amount of the credit. The credit is available for eligible
unemployed veterans who begin work on or after November

Oct 22, 2012

Reminders
Employers can choose to file Forms 941, 941-SS, or
941-PR instead of Form 944. Employers required to file
Form 944, who want to file Forms 941, 941-SS, or 941-PR
instead, must notify the IRS they are electing to file quarterly
Forms 941, 941-SS, or 941-PR and opting out of filing Form
944. See What if you want to file Forms 941, 941-SS, or
941-PR instead of Form 944, later.
Correcting a previously filed Form 944 or 944-SS. If you
discover an error on a previously filed Form 944 or 944-SS,
make the correction using Form 944-X, Adjusted Employer's
ANNUAL Federal Tax Return or Claim for Refund. Form
944-X is filed separately from Form 944. For more
information, see section 13 of Pub. 15 (Circular E),
Employer's Tax Guide, or section 9 of Pub. 80 (Circular SS),
Federal Tax Guide for Employers in the U.S. Virgin Islands,
Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands. You may also visit IRS.gov and
enter the keywords Correcting Employment Taxes.
Correcting a previously filed Form 944-PR. If you
discover an error on a previously filed Form 944-PR, make
the correction using Form 944-X (PR), Ajuste a la
Declaración Federal ANNUAL del Patrono o Reclamación de
Reembolso. Form 944-X (PR) is filed separately from Form
944. For more information, see section 12 of Pub. 179
(Circular PR), Guía Contributiva Federal para Paronos
Puertorriqueños. You may also visit IRS.gov and enter the
keywords Correcting Employment Taxes.
Paid preparers must sign Form 944. Paid preparers must
complete and sign the paid preparer's section of Form 944.
COBRA premium assistance credit. The credit for
COBRA premium assistance payments applies to premiums
paid for employees involuntarily terminated between
September 1, 2008, and May 31, 2010, and to premiums
paid for up to 15 months. See the instructions for line 9a,
later.
Federal tax deposits must be made by electronic funds
transfer. You must use electronic funds transfer to make all
federal tax deposits. Generally, electronic funds transfers are
made using the Electronic Federal Tax Payment System
(EFTPS). If you do not want to use EFTPS, you can arrange
for your tax professional, financial institution, payroll service,
or other trusted third party to make deposits on your behalf.
Also, you may arrange for your financial institution to initiate a
same-day wire payment on your behalf. EFTPS is a free
service provided by the Department of Treasury. Services
provided by your tax professional, financial institution, payroll
service, or other third party may have a fee.
For more information on making federal tax deposits, see
section 11 of Pub. 15 (Circular E), section 8 of Pub. 80

Cat. No. 39820A

information on paying your taxes using EFW, visit the IRS
website at www.irs.gov/e-pay. A fee may be charged to file
electronically.

(Circular SS), or section 11 of Pub. 179 (Circular PR). To get
more information about EFTPS or to enroll in EFTPS, visit
www.eftps.gov or call one of the following numbers.
1-800-555-4477
1-800-733-4829 (TDD)
1-800-244-4829 (Spanish)
303-967-5916 (toll call)
Additional information about EFTPS is also available in Pub.
966, Electronic Federal Tax Payment System: A Guide to
Getting Started, or Pub. 966 (SP), Sistema de Pago
Electrónico del Impuesto Federal: La Manera Segura de
Pagar los Impuestos Federales.

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CAUTION

Credit or debit card payments. Employers can pay the
balance due shown on Form 944 by credit or debit card. Do
not use a credit or debit card to make federal tax deposits.
For more information on paying your taxes with a credit or
debit card, visit the IRS website at www.irs.gov/e-pay. A
convenience fee will be charged for this service.
Employer's liability. Employers are responsible to ensure
that tax returns are filed and deposits and payments are
made, even if the employer contracts with a third party. The
employer remains liable if the third party fails to perform a
required action.

For an EFTPS deposit to be on time, you must
initiate the deposit by 8 p.m. Eastern time the day
before the date the deposit is due.

Where can you get telephone help? For answers to your
questions about completing Form 944, tax deposit rules, or
obtaining an employer identification number (EIN) call the
IRS at one of the numbers listed below.
1-800-829-4933 (Business and Specialty Tax Line) or
1-800-829-4059 (TDD/TTY for persons who are deaf, hard of
hearing, or have a speech disability); Monday–Friday 7:00
a.m.–7:00 p.m. local time (Alaska and Hawaii follow Pacific
time; employers in Puerto Rico receive service from 8:00
a.m.–8:00 p.m. local time).
267-941-1000 (toll call); Monday–Friday 6:00 a.m.–11:00
p.m. Eastern time.

Same-day wire payment option. If you fail to initiate a
deposit transaction on EFTPS by 8 p.m. Eastern time the day
before the date a deposit is due, you can still make your
deposit on time by using the Federal Tax Application (FTA).
To use the same-day wire payment method, you will need to
make arrangements with your financial institution ahead of
time. Please check with your financial institution regarding
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To learn
more about the information you will need to provide to your
financial institution to make a same-day wire payment, visit
www.eftps.gov to download the Same-Day Payment
Worksheet.
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that is not a business day, the
deposit is considered timely if it is made by the close of the
next business day. A business day is any day other than a
Saturday, Sunday, or legal holiday. The term legal holiday for
deposit purposes includes only those legal holidays in the
District of Columbia. Legal holidays in the District of
Columbia are provided in Pub. 15 (Circular E).

Photographs of missing children. The IRS is a proud
partner with the National Center for Missing and Exploited
Children. Photographs of missing children selected by the
Center may appear in instructions on pages that would
otherwise be blank. You can help bring these children home
by looking at the photographs and calling 1-800-THE-LOST
(1-800-843-5678) if you recognize a child.

General Instructions

Electronic filing and payment. Now, more than ever
before, businesses can enjoy the benefits of filing tax returns
and paying their federal taxes electronically. Whether you
rely on a tax professional or handle your own taxes, the IRS
offers you convenient programs to make filing and paying
easier. Spend less time and worry on taxes and more time
running your business. Use e-file and Electronic Federal Tax
Payment System (EFTPS) to your benefit.
For e-file, visit www.irs.gov/efile.
For EFTPS, visit www.eftps.gov or call EFTPS at one of
the numbers provided under Federal tax deposits must be
made by electronic funds transfer, earlier.

Federal law requires employers to withhold taxes from
employees' paychecks. Each time wages are paid,
employers must withhold — or take out of employees'
paychecks — certain amounts for federal income tax, social
security tax, and Medicare tax. Under the withholding
system, taxes withheld from employees are credited to
employees in payment of their tax liabilities.
References to federal income tax withholding do not
apply to employers in American Samoa, Guam, the
CAUTION
Commonwealth of the Northern Mariana Islands, the
U.S. Virgin Islands, and Puerto Rico.

!

If you are filing your tax return or paying your federal
taxes electronically, a valid EIN is required at the
CAUTION
time the return is filed. If a valid EIN is not provided,
the return or payment will not be processed. This may result
in penalties.

Federal law also requires employers to pay any liability for
the employer's portion of social security and Medicare taxes.
This portion of social security and Medicare taxes is not
withheld from employees.

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CAUTION

Liability.

What Is the Purpose of Form 944?

If you were a semiweekly schedule depositor at any
time during 2012, you must file a paper Form 944
and Form 945-A, Annual Record of Federal Tax

Form 944 is designed so the smallest employers (those
whose annual liability for social security, Medicare, and
withheld federal income taxes is $1,000 or less) will file and
pay these taxes only once a year instead of every quarter.
These instructions give you some background information
about Form 944, who must file Form 944, how to complete it
line by line, and when and where to file it.

Electronic funds withdrawal (EFW). If you file Form 944
electronically, you can e-file and e-pay (electronic funds
withdrawal) the balance due in a single step using tax
preparation software or through a tax professional. However,
do not use EFW to make federal tax deposits. For more
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Instructions for Form 944 (2012)

Virgin Islands and you pay $6,536 or less in wages subject to
social security and Medicare taxes, you are likely to pay
$1,000 or less in employment taxes. New employers are
advised of their employment tax filing requirement when they
are issued their EIN.

For more information about annual employment tax filing
and tax deposit rules, see Treasury Decision 9566, 2012-8
I.R.B. 389, at www.irs.gov/irb/2012-08_IRB/ar09.html.
If you want more in-depth information about payroll tax
topics, see Pub. 15 (Circular E), Pub. 80 (Circular SS), Pub.
179 (Circular PR), or visit the IRS website at www.irs.gov/
businesses and click on the Employment Taxes link under
Businesses Topics.

TIP

Who Must File Form 944?

What if you want to file Forms 941, 941-SS, or
941-PR instead of Form 944?

In general, if the IRS has notified you to file Form 944, you
must file Form 944 instead of Forms 941, 941-SS, or 941-PR
to report the following amounts.

You must file Form 944 if the IRS has notified you to do so,
unless you contact the IRS to request to file quarterly Forms
941, 941-SS, or 941-PR instead. To request to file quarterly
Forms 941, 941-SS, or 941-PR to report your social security,
Medicare, and withheld federal income taxes for the 2013
calendar year, call the IRS at 1-800-829-4933 or
267-941-1000 (toll call) by April 1, 2013, or send a written
request postmarked by March 15, 2013. Written requests
should be sent to:

Wages you have paid.
Tips your employees have received.
Federal income tax you withheld.
Both the employer's and the employee's share of social
security and Medicare taxes.
Current year's adjustments to social security and Medicare
taxes for fractions of cents, sick pay, tips, and group-term life
insurance.
Credit for COBRA premium assistance payments.

Department of Treasury
Internal Revenue Service
Ogden, UT 84201-0038

If you received notification to file Form 944, you must file
Form 944 to report your social security, Medicare, and
withheld federal income taxes for the 2012 calendar year
unless you contacted the IRS by April 2, 2012, to request to
file Forms 941, 941-SS, or 941-PR quarterly instead and
received written confirmation that your filing requirement was
changed. You must file Form 944 even if you have no taxes
to report (or you have taxes in excess of $1,000 to report)
unless you filed a final return. See If your business has
closed..., later. Also see What if you want to file Forms 941,
941-SS, or 941-PR instead of Form 944, later.

or

Department of Treasury
Internal Revenue Service
Cincinnati, OH 45999-0038

Select one of the addresses above based on the state filing
alignment for returns filed Without a payment under Where
Should You File, later. After you contact the IRS, the IRS will
send you a written notice that your filing requirement has
been changed. If you do not receive this notice, you must file
Form 944 for calendar year 2013. See Rev. Proc. 2009-51,
2009-45 I.R.B. 625, available at
www.irs.gov/irb/2009-45_IRB/ar12.html.

Who cannot file Form 944?

If you have not received notification to file Form 944
TIP but estimate your employment tax liability for
calendar year 2013 will be $1,000 or less and would
like to file Form 944 instead of Forms 941, 941-SS, or
941-PR, you can contact the IRS to request to file Form 944.
To file Form 944 for calendar year 2013, you must call the
IRS at 1-800-829-4933 or 267-941-1000 (toll call) by April 1,
2013, or send a written request postmarked by March 15,
2013. The mailing addresses for written requests are
provided below under What if you want to file Forms 941,
941-SS, or 941-PR instead of Form 944. 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 Forms 941, 941-SS, or 941-PR for calendar
year 2013.

The following employers cannot file Form 944.

Employers who are not notified. If the IRS does not
notify you to file Form 944, do not file Form 944. If you would
like to file Form 944 instead of Forms 941, 941-SS, or
941-PR, see the TIP under Who Must File Form 944, earlier.
Household employers. If you employ only household
employees, do not file Form 944. For more information, see
Pub. 926, Household Employer's Tax Guide, and Schedule H
(Form 1040), Household Employment Taxes, or Pub. 179
(Circular PR) and Schedule H-PR (Form 1040-PR),
Contribuciones sobre el Empleo de Empleados Domésticos.
Agricultural employers. If you employ only agricultural
employees, do not file Form 944. For more information, see
Pub. 51 (Circular A), Agricultural Employer's Tax Guide, and
Form 943, Employer's Annual Federal Tax Return for
Agricultural Employees, or Pub. 179 (Circular PR) and Form
943-PR, Planilla para la Declaración Anual de la
Contribución Federal del Patrono de Empleados Agrícolas.

New employers are also eligible to file Form 944 if they
will meet the eligibility requirements. New employers filing
Form SS-4, Application for Employer Identification Number,
or Form SS-4PR, Solicitud de Número de Identificación
Patronal (EIN), must complete line 13 of Form SS-4 or
SS-4PR indicating the highest number of employees
expected in the next 12 months and must check the box on
line 14 to indicate whether they expect to have $1,000 or less
in employment tax liability for the calendar year and would
like to file Form 944. Generally, if you pay $4,000 or less in
wages subject to social security and Medicare taxes and
federal income tax withholding, you are likely to pay $1,000
or less in employment taxes. Generally, if you are an
employer in Puerto Rico, American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, or the U.S.
Instructions for Form 944 (2012)

If the IRS notified you to file Form 944 for 2012, file
Form 944 (and not Forms 941, 941-SS, or 941-PR)
even if your tax liability for 2012 exceeds $1,000.

What if you reorganize or close your business?
If you sell or transfer your business...
If you sell or transfer your business, you and the new owner
must each file a Form 944, 941, 941-SS, or 941-PR,
whichever is required, for the year in which the transfer
occurred. Report only the wages you paid.
When two businesses merge, the continuing firm must file
a return for the year in which the change took place and the
other firm should file a final return.
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If you use a tax preparer to complete Form 944, make
sure the preparer uses your correct business name and EIN.

Changing from one form of business to another—such as
from a sole proprietorship to a partnership or corporation—is
considered a transfer. If a transfer occurs, you may need a
new EIN. See section 1 of Pub. 15 (Circular E). Attach a
statement to your return with all the following information.

Employer identification number (EIN). To make sure that
businesses comply with federal tax laws, the IRS monitors
tax filings and payments by using a numerical system to
identify taxpayers. A unique nine-digit EIN is assigned to all
corporations, partnerships, and some sole proprietors.
Businesses needing an EIN must apply for a number and use
it throughout the life of the business on all tax returns,
payments, and reports.
Your business should have only one EIN. If you have more
than one and are not sure which one to use, write to the IRS
office where you file your returns (using the Without a
payment address under Where Should You File, later) or call
the IRS at 1-800-829-4933 or 267-941-1000 (toll call).
If you do not have an EIN, you may apply for one online.
Visit IRS.gov and click on the Apply for an EIN Online link
under Tools. You may also apply for an EIN by calling
1-800-829-4933 or 267-941-1000 (toll call), or you can fax or
mail Form SS-4 or SS-4PR to the IRS. If you have applied for
an EIN but do not have your EIN by the time a return is due,
write “Applied For” and the date you applied in the space
shown for the number.

The new owner's name (or the new name of the business).
Whether the business is now a sole proprietorship,
partnership, or corporation.
The kind of change that occurred (a sale or transfer).
The date of the change.
The name of the person keeping the payroll records and
the address where those records will be kept.

If your business has closed...
If you go out of business or stop paying wages to your
employees, you must file a final return. To tell the IRS that
Form 944 for a particular year is your final return, check the
box in Part 3 on page 2 of Form 944 and enter the final date
you paid wages. Also attach a statement to your return
showing the name of the person keeping the payroll records
and the address where those records will be kept.
If you participated in a statutory merger or consolidation,
or qualify for predecessor-successor status due to an
acquisition, you should generally file Schedule D (Form 941),
Report of Discrepancies Caused by Acquisitions, Statutory
Mergers, or Consolidations. See the Instructions for
Schedule D (Form 941) to determine whether you should file
Schedule D (Form 941) and when you should file it.

Always be sure the EIN on the form you file exactly
matches the EIN the IRS assigned to your business.
Do not use your SSN or ITIN on forms that ask for an
EIN. Filing a Form 944 with an incorrect EIN or using another
business's EIN may result in penalties and delays in
processing your return.

TIP

When Must You File?

If you change your name or address... Notify the IRS
immediately if you change your business name or address.

File Form 944 by January 31, after the end of the calendar
year. If you made timely deposits in full payment of your
taxes by January 31, you have 10 more calendar days after
that date to file your Form 944.

Name change. Write to the IRS office where you filed
your return (using the Without a payment address under
Where Should You File, later) to notify the IRS of any name
change. See Pub. 1635, Employer Identification Number:
Understanding Your EIN, to see if you need to also apply for
a new EIN.
Address change. Complete and mail Form 8822-B,
Change of Address—Business, to notify the IRS of an
address change.

File Form 944 only once for each calendar year. If you
filed Form 944 electronically, do not file a paper Form 944.
For more information about filing Form 944 electronically, see
Electronic filing and payment, earlier.
If we receive Form 944 after the due date, we will treat
Form 944 as filed on time if the envelope containing Form
944 is properly addressed, contains sufficient postage, and is
postmarked by the U.S. Postal Service on or before the due
date, or sent by an IRS-designated private delivery service
on or before the due date. If you do not follow these
guidelines, we will consider Form 944 filed when it is actually
received. See Pub. 15 (Circular E), Pub. 80 (Circular SS), or
Pub. 179 (Circular PR) for more information on
IRS-designated private delivery services.

Completing and Filing Form 944

Make entries on Form 944 as follows to enable accurate
processing.

Use 12-point Courier font (if possible) for all entries if you
are using a typewriter or computer to complete Form 944.
Do not enter dollar signs and decimal points. Commas are
optional. Report dollars to the left of the preprinted decimal
point and cents to the right of it.
Leave blank any data field with a value of zero (except
line 7).
Enter negative amounts using a minus sign (if possible).
Otherwise, use parentheses.
Enter your name and EIN on all pages and attachments.

If any due date for filing falls on a Saturday, Sunday, or
legal holiday, you may file your return on the next business
day.

How Should You Complete Form 944?
Enter your EIN, name, and address in the spaces provided.
Also enter your name and EIN at the top of page 2. Do not
use your social security number (SSN) or individual taxpayer
identification number (ITIN). Generally, enter the business
(legal) name that you used when you applied for your EIN.
For example, if you are a sole proprietor, enter “Tyler Smith”
on the Name line and “Tyler's Cycles” on the Trade name
line. Leave the Trade name line blank if it is the same as your
Name line.

Other Forms You Must Use

To notify employees about the earned income credit (EIC),
employers in the United States must give the employees one
of the following:
The IRS Form W-2, Wage and Tax Statement, which has
the required information about the EIC on the back of
Copy B.

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Instructions for Form 944 (2012)

A substitute Form W-2 with the same EIC information on
the back of the employee's copy that is on the back of Copy
B of the IRS Form W-2.
Notice 797, Possible Federal Tax Refund Due to the
Earned Income Credit (EIC).
Your written statement with the same wording as
Notice 797.

Federal Tax Deposit Requirements for Form 944 Filers
If Your Tax Liability is:

For more information, see section 10 of Pub. 15 (Circular
E) and Pub. 596, Earned Income Credit (EIC).

No deposit required. You may pay
the tax with your return. If you are
unsure that your tax liability for the
year will be less than $2,500, deposit
under the rules below.

$2,500 or more for the year, but
less than $2,500 for the quarter

You can deposit by the last day of the
month after the end of a quarter.
However, if your fourth quarter tax
liability is less than $2,500, you may
pay the fourth quarter's tax liability
with Form 944.

$2,500 or more for the quarter

You must deposit monthly or
semiweekly depending on your
deposit schedule. But, if you
accumulate $100,000 or more of
taxes on any day, you must deposit
the tax by the next business day. See
section 11 of Pub. 15 (Circular E),
section 8 of Pub. 80 (Circular SS), or
section 11 of Pub. 179 (Circular PR).

Reconciling Form 944 and Form W-3, W-3SS, or
W-3PR
The IRS matches amounts reported on your Form 944 with
Form W-2, W-2AS, W-2GU, W-2CM, W-2VI, or Form
499R-2/W-2PR amounts totaled on your Form W-3 or
W-3SS, Transmittal of Wage and Tax Statements, or Form
W-3PR. Informe de Comprobantes de Retención. If the
amounts do not agree, the IRS may contact you. The
following amounts are reconciled.
Federal income tax withholding, if applicable.
Social security wages.
Social security tips.
Medicare wages and tips.

Your Deposit Requirement is:

Less than $2,500 for the year

Note. When you make deposits depends on your deposit
schedule, which is either monthly or semiweekly, depending
on the amount of your tax liability during the lookback period.
The lookback period for Form 944 filers is different than the
lookback period for Form 941, 941-SS, and 941-PR filers, so
your deposit schedule may have changed. For more
information, see section 11 of Pub. 15 (Circular E), section 8
of Pub. 80 (Circular SS), or section 11 of Pub. 179
(Circular PR).

For more information, see section 12 of Pub. 15
(Circular E).

Must You Deposit Your Taxes?
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. To avoid a penalty, you should
pay in full and file on time. You do not have to deposit the
taxes. However, you may choose to make deposits of these
taxes even if your liability is less than $2,500. 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 below. If you do not deposit the taxes
when required, you may be subject to penalties and interest.

What About Penalties and Interest?
Avoiding penalties and interest

You can avoid paying penalties and interest if you do all of
the following.
Deposit or pay your taxes when they are due.
File your fully completed Form 944 on time.
Report your tax liability accurately in Part 2 of Form 944.
Submit valid checks for tax payments.
Give accurate Forms W-2, W-2AS, W-2GU, W-2CM,
W-2VI, or Form 499R-2/W-2PR to employees.
File Form W-3, W-3SS, or W-3PR and Copies A of Forms
W-2, W-2AS, W-2GU, W-2CM, W-2VI, or Form 499R-2/
W-2PR with the Social Security Administration (SSA) on time
and accurately.

The $2,500 threshold at which federal tax deposits must
be made is different from the amount of annual tax liability
($1,000 or less) that makes an employer eligible to file Form
944. Form 944 filers whose businesses grow during the year
may be required to make federal tax deposits (see chart
below), but they will still file Form 944 for the year.

Penalties and interest are charged on taxes paid late and
returns filed late at a rate set by law. See sections 11 and 12
of Pub. 15 (Circular E), section 8 of Pub. 80 (Circular SS), or
section 11 of Pub. 179 (Circular PR) for details. Use Form
843, Claim for Refund and Request for Abatement, to
request abatement of assessed penalties or interest. Do not
request abatement of assessed penalties or interest on Form
944, Form 944-X, 944-X (PR), 944-X (SP), 941-X, or
941-X (PR).
If you receive a notice about a penalty after you file your
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Do not
include an explanation when you file your return.

Instructions for Form 944 (2012)

-5-

A trust fund recovery penalty may apply if federal
income, social security, or Medicare taxes that must
CAUTION
be withheld are not withheld or paid. The penalty is
the full amount of the unpaid trust fund tax. This penalty may
apply when these unpaid taxes cannot be collected from the
employer. The trust fund recovery penalty may be imposed
on all people the IRS determines to be responsible for
collecting, accounting for, and paying over these taxes, and
who acted willfully in not doing so. For details, see section 11
of Pub. 15 (Circular E), section 8 of Pub. 80 (Circular SS), or
section 11 of Pub. 179 (Circular PR).

Specific Instructions

!

Part 1: Answer These Questions for
This Year
TIP
and 2.

1. Wages, Tips, and Other Compensation

Where Should You File?

Enter amounts on line 1 that would also be included in box 1
of your employees' Forms W-2. See the General Instructions
for Forms W-2 and W-3 for details.

Where you file depends on whether you include a payment
with your form.
If you are in . . .

Without a
payment . . .

Special filing address for
exempt organizations; federal,
state and local governmental
entities; and Indian tribal
governmental entities;
regardless of location

Department of the
Treasury
Internal Revenue
Service
Ogden, UT
84201-0044

Internal Revenue
Service
P.O. Box 37944
Hartford, CT
06176-7944

Connecticut
Delaware
District of
Columbia
Florida
Georgia
Illinois
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
New Hampshire

New Jersey
New York
North Carolina
Ohio
Pennsylvania
Rhode Island
South Carolina
Tennessee
Vermont
Virginia
West Virginia
Wisconsin

Department of the
Treasury
Internal Revenue
Service
Cincinnati, OH
45999-0044

Internal Revenue
Service
P.O. Box 804522
Cincinnati, OH
45280-4522

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Hawaii
Idaho
Iowa
Kansas
Louisiana
Minnesota
Mississippi

Missouri
Montana
Nebraska
Nevada
New Mexico
North Dakota
Oklahoma
Oregon
South Dakota
Texas
Utah
Washington
Wyoming

Department of the
Treasury
Internal Revenue
Service
Ogden, UT
84201-0044

No legal residence or principal
place of business in any state

Employers in American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, the
U.S. Virgin Islands, and Puerto Rico may skip lines 1

2. Federal Income Tax Withheld From Wages,
Tips, and Other Compensation

With a payment . . .

Enter the federal income tax that you withheld (or were
required to withhold) from your employees on this year's
wages, tips, taxable fringe benefits, and supplemental
unemployment compensation benefits.

References to federal income tax withholding do not
apply to employers in American Samoa, Guam, the
CAUTION
Commonwealth of the Northern Mariana Islands, the
U.S. Virgin Islands, and Puerto Rico.

!

3. If No Wages, Tips, and Other Compensation
are Subject to Social Security or Medicare Tax

Internal Revenue
Service
P.O. Box 409101
Ogden, UT 84409

If no wages, tips, and other compensation are subject to
social security or Medicare taxes, check the box on line 3
and go to line 5. If this question does not apply to you, leave
the box blank. For more information about exempt wages,
see section 15 of Pub. 15 (Circular E), section 12 of Pub. 80
(Circular SS), or section 15 of Pub. 179 (Circular PR). For
religious exemptions, see section 4 of Pub. 15-A, Employer's
Supplemental Tax Guide.

Internal Revenue
Service
P. O Box 37944
Hartford, CT
06176-7944

4. Taxable Social Security and Medicare Wages
and Tips

4a. Taxable social security wages. Report the total
wages, sick pay, and fringe benefits subject to social security
taxes that you paid to your employees during the year.
Enter the amount before deductions. Do not include tips
on this line. For information on types of wages subject to
social security taxes, see section 5 of Pub. 15 (Circular E),
section 4 of Pub. 80 (Circular SS), or section 5 of Pub. 179
(Circular PR).
For 2012, the rate of social security tax on taxable wages
is 6.2% (.062) for the employer and 4.2% (.042) for the
employee, or 10.4% (.104) for both. Stop paying social
security tax on and reporting an employee's wages on line 4a
when the employee's taxable wages (including tips) reach
$110,100 for the year. However, continue to withhold income
and Medicare taxes for the whole year on wages and tips
even when the social security wage base of $110,100 has
been reached.

Internal Revenue
Service
P. O Box 37944
Hartford, CT
06176-7944

Your filing address may have changed from that
used to file your employment tax return in prior
CAUTION
years. Do not send Form 944 or any payments to the
Social Security Administration (SSA). Private delivery
services cannot deliver to P.O. boxes.

!

line 4a (column 1)
x  .104
line 4a (column 2)

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Instructions for Form 944 (2012)

year's Form 944. See section 13 of Pub. 15 (Circular E),
section 9 of Pub. 80 (Circular SS), or section 12 of Pub. 179
(Circular PR).

4b. Taxable social security tips. Enter all tips your
employees reported to you during the year until the total of
the tips and wages for an employee reach $110,100 for the
year. Include all tips your employees reported to you even if
you were unable to withhold the 4.2% employee's share of
social security tax.
Your employee must report cash tips to you by the 10th
day of the month after the month the tips are received. The
report should include charged tips you paid over to the
employee for charge customers, tips the employee received
directly from customers, and tips received from other
employees under any tip-sharing arrangement. Both directly
and indirectly tipped employees must report tips to you. No
report is required for months when tips are less than $20.
Employees may use Form 4070, Employee's Report of Tips
to Employer (available only in Pub. 1244, Employee's Daily
Record of Tips and Report of Tips to Employer), or Form
4070-PR, Informe al Patrono de Propinas Recibidas por
el(la) Empleado(a) (available only in Pub. 1244-PR, Registro
Diario de Propinas Recibidas por el(la) Empleado(a) e
Informe al Patrono), or submit a written statement or
electronic tip record.

If you need to adjust any amount reported on line 6 or 6a
from a previously filed Form 944 or 944-SS, complete and file
Form 944-X. Form 944-X is an adjusted returns and is filed
separately from Form 944. See section 13 of Pub. 15
(Circular E) or section 9 of Pub. 80 (Circular SS).
If you need to adjust any amount reported on line 6 or 6a
from a previously filed Form 944-PR, complete and file Form
944-X (PR). Form 944-X (PR) is an adjusted return and is
filed separately from Form 944. See section 12 of Pub. 179
(Circular PR).
Fractions of cents. Enter adjustments for fractions of
cents (due to rounding) relating to the employee share of
social security and Medicare taxes withheld. The employee
share of amounts shown in column 2 of lines 4a, 4b, and 4c
may differ slightly from amounts actually withheld from
employees' paychecks due to rounding social security and
Medicare taxes based on statutory rates.
Sick pay. Enter the adjustment for the employee share of
social security and Medicare taxes that were withheld and
deposited by your third-party sick pay payer with regard to
sick pay paid by the third party. These wages should be
included on lines 4a and 4c. If you are the third-party sick pay
payer, enter the adjustment for any employer share of these
taxes required to be paid by the employer.
Adjustments for tips and group-term life insurance.
Enter adjustments for both of the following items.

line 4b (column 1)
x   .104
line 4b (column 2)

4c. Taxable Medicare wages and tips. Report all
wages, tips, sick pay, and taxable fringe benefits that are
subject to Medicare tax. Unlike social security wages, there
is no limit on the amount of wages subject to Medicare tax.
The rate of Medicare tax is 1.45% (.0145) each for the
employer and employee, or 2.9% (.029) for both. Include all
tips your employees reported during the year, even if you
were unable to withhold the employee tax of 1.45%.

Any uncollected employee share of social security and
Medicare taxes on tips.
The uncollected employee share of social security and
Medicare taxes on group-term life insurance premiums paid
for former employees.

line 4c (column 1)
x   .029
line 4c (column 2)

7. Total Taxes After Adjustments

Combine the amounts shown on lines 5 and 6 and enter the
result on line 7.
If line 7 is less than $2,500, you may pay the amount
with Form 944 or you may deposit the amount. See section
11 of Pub. 15 (Circular E), section 8 of Pub. 80 (Circular SS),
or section 11 of Pub. 179 (Circular PR) for information about
federal tax deposits.
If line 7 is $2,500 or more, you generally must deposit
your tax liabilities by electronic funds transfer. However, if
you deposited all taxes accumulated in the first three
quarters of the year and your fourth quarter liability is less
than $2,500, you may pay taxes accumulated during the
fourth quarter with Form 944. The amount shown on line 7
must equal the amount shown on line 13m.

For more information on tips, see section 6 of Pub. 15
(Circular E), section 5 of Pub. 80 (Circular SS), or section 6 of
Pub. 179 (Circular PR).
4d. Total social security and Medicare taxes. Add the
social security tax, social security tips tax, and Medicare tax.
line 4a (column 2)
line 4b (column 2)
+ line 4c (column 2)
line 4d

5. Total Taxes Before Adjustments

Add the income tax withheld from wages, tips, and other
compensation from line 2 and the total social security and
Medicare taxes before adjustments from line 4d. Enter the
result on line 5.

8. Total Deposits for This Year

Enter your deposits for this year, including any overpayment
that you applied from filing Form 944-X, 944-X (PR), 944-X
(SP), 941-X, or 941-X (PR) in the current year. Also include in
the amount shown any overpayment from a previous period
that you applied to this return.

6. Current Year's Adjustments

Enter tax amounts that result from current period
adjustments. Use a minus sign (if possible) to show an
adjustment that decreases the total taxes shown on line 5.
Otherwise, use parentheses.

9a. COBRA Premium Assistance Payments

Report 65% of the COBRA premiums for assistance eligible
individuals. Take the COBRA premium assistance credit on
this line only after the assistance eligible individual's 35%
share of the premium has been paid. For COBRA coverage
provided under a self-insured plan, COBRA premium

In certain cases, you must adjust the amounts you
reported as social security and Medicare taxes in column 2 of
lines 4a, 4b, and 4c to figure your correct tax liability for this
Instructions for Form 944 (2012)

-7-

12. Overpayment

assistance is treated as having been made for each
assistance eligible individual who pays 35% of the COBRA
premium. Do not include the assistance eligible individual's
35% of the premium in the amount entered on this line. For
more information on the COBRA premium assistance credit,
visit IRS.gov and enter the keyword COBRA.

If line 10 is more than line 7, enter the amount on line 12.
Never make an entry on both lines 11 and 12.
If you deposited more than the correct amount for the
year, you can choose to have the IRS either refund the
overpayment or apply it to your next return. Check only one
box on line 12. If you do not check either box or if you check
both boxes, generally we will apply the overpayment to your
account. We may apply your overpayment to any past due
tax account that is shown in our records under your EIN.

The amount reported on line 9a is treated as a
deposit of taxes on the first day of the return period
CAUTION
and must not be used to adjust line 13 or
Form 945-A.

!

If line 12 is less than $1, we will send a refund or apply it to
your next return only if you ask us in writing to do so.

9b. Number of Individuals Provided COBRA
Premium Assistance on Line 9a

Complete both pages.

Enter the total number of assistance eligible individuals
provided COBRA premium assistance reported on line 9a.
Count each assistance eligible individual who paid a reduced
COBRA premium in the year as one individual, whether or
not the reduced premium was for insurance that covered
more than one assistance eligible individual. For example, if
the reduced COBRA premium was for coverage for a former
employee, spouse, and two children, you would include one
individual in the number entered on line 9b for the premium
assistance. Further, each individual is reported only once per
year. For example, an assistance eligible individual who
made monthly premium payments during the year would only
be reported as one individual.

You must complete both pages of Form 944 and sign it on
page 2. Failure to do so may delay processing of your return.

Part 2: Tell Us About Your Deposit
Schedule and Tax Liability for This
Year
13. Check One

If line 7 is less than $2,500, check the first box on line 13 and
go to line 14.
If line 7 is $2,500 or more, check the second box on
line 13. If you are a monthly schedule depositor, enter your
tax liability for each month and figure the total liability for the
year. If you do not enter your tax liability for each month, the
IRS will not know when you should have made deposits and
may assess an “averaged” failure-to-deposit penalty. See
section 11 of Pub. 15 (Circular E), section 8 of Pub. 80
(Circular SS), or section 11 of Pub. 179 (Circular PR). If your
tax liability for any month is negative (for example, if you are
adjusting an overreported liability in a prior month), do not
enter a negative amount for the month. Instead, enter zero for
the month and subtract that negative amount from your tax
liability for the next month.

10. Total Deposits and Credits
Add lines 8 and 9a.

11. Balance Due

If line 7 is more than line 10, enter the difference on line 11.
Otherwise, see Overpayment, later.
You do not have to pay if line 11 is less than $1. Generally,
you should have a balance due only if your total taxes after
adjustments (line 7) are less than $2,500. See If line 7 is
$2,500 or more, earlier, for an exception.
If line 11 is:

Note. The amount shown on line 13m must equal the
amount shown on line 7.

Less than $1, you do not have to pay it.
$1 or more, but less than $2,500, you can pay the amount
owed with your return. Make your check or money order
payable to the “United States Treasury” and write your EIN,
“Form 944,” and “2012” on the check or money order.
Complete Form 944-V, Payment Voucher, and enclose it with
your return.
$2,500 or more, you must deposit your tax. See Must You
Deposit Your Taxes, earlier.

If you are a semiweekly schedule depositor or if you
accumulate $100,000 or more in tax liability on any day in a
deposit period, you must complete Form 945-A and file it with
Form 944. See the $100,000 Next Day Deposit Rule in
section 11 of Pub. 15 (Circular E), section 8 of Pub. 80
(Circular SS), or section 11 of Pub. 179 (Circular PR). Do not
complete lines 13a–13m if you file Form 945-A.

Part 3: Tell Us About Your Business

You may pay the amount shown on line 11 using EFTPS,
a credit or debit card, or electronic funds withdrawal (EFW).
Do not use a credit or debit card or EFW to pay taxes that
were required to be deposited. For more information on
electronic payment options, visit the IRS website at
www.irs.gov/e-pay.

In Part 3, answer question 14 only if it applies to your
business. If it does not apply, leave it blank and go to Part 4.

14. If Your Business Has Closed...

If you go out of business or stop paying wages, you must file
a final return. To notify the IRS that a particular Form 944 is
your final return, check the box on line 14 and enter the date
you last paid wages in the space provided.

If you pay by EFTPS or credit or debit card, file your return
using the Without a payment address under Where Should
You File, earlier. Do not file Form 944-V.

!

CAUTION

If you are required to make deposits and, instead,
pay the taxes with Form 944, you may be subject to
a penalty.
-8-

Instructions for Form 944 (2012)

Part 4: May We Speak With Your
Third-party Designee?

• Trust or estate— The fiduciary.
If you have filed a valid power of attorney, your duly
authorized agent may also sign Form 944.

If you want to allow an employee, a paid tax preparer, or
another person to discuss your Form 944 with the IRS, check
the “Yes” box in Part 4. Enter the name, phone number, and
the 5-digit personal identification number (PIN) of the specific
person to contact—not the name of the firm that prepared
your tax return. The designee may choose any numbers as
his or her PIN.
By checking “Yes,” you authorize the IRS to talk to the
person you named (your designee) about any questions we
may have while we process your return. You also authorize
your designee to do all of the following.

Alternative signature method. Corporate officers or duly
authorized agents may sign Form 944 by rubber stamp,
mechanical device, or computer software program. For
details and required documentation, see Rev. Proc. 2005-39,
2005-28 I.R.B. 82, available at
www.irs.gov/irb/2005-28_IRB/ar16.html.

Paid Preparer Use Only

A paid preparer must sign Form 944 and provide the
information in the Paid Preparer Use Only section of Part 5 if
the preparer was paid to prepare Form 944 and is not an
employee of the filing entity. Paid preparers must sign paper
returns with a manual signature. The preparer must give you
a copy of the return in addition to the copy to be filed with the
IRS.

Give us any information that is missing from your return.
Call us for information about processing your return.
Respond to certain IRS notices that you have shared with
your designee about math errors and return preparation. The
IRS will not send notices to your designee.
You are not authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
represent you before the IRS. If you want to expand your
designee's authorization, see Pub. 947, Practice Before the
IRS and Power of Attorney.
The authorization will automatically expire 1 year after the
due date (without regard to extensions) for filing Form 944. If
you or your designee want to terminate the authorization,
write to the IRS office for your locality using the Without a
payment address under Where Should You File, earlier.

If you are a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided. Include
your complete address. If you work for a firm, enter the firm's
name and the EIN of the firm. You can apply for a PTIN
online or by filing Form W-12, IRS Paid Preparer Tax
Identification Number (PTIN) Application and Renewal. For
more information about applying for a PTIN online, visit the
IRS website at www.irs.gov/ptin. You cannot use your PTIN
in place of the EIN of the tax preparation firm.
Generally, do not complete this section if you are filing the
return as a reporting agent and have a valid Form 8655,
Reporting Agent Authorization, on file with the IRS. However,
a reporting agent must complete this section if the reporting
agent offered legal advice, for example, advising the client on
determining whether its workers are employees or
independent contractors for federal tax purposes.

Part 5: Sign Here
Complete all information in Part 5 and sign Form 944 as
follows.
• Sole proprietorship— The individual who owns the
business.

How to Order Forms, Instructions,
and Publications From the IRS

• Corporation (including a limited liability company
(LLC) treated as a corporation)— The president, vice
president, or other principal officer duly authorized to sign.

Call 1-800-TAX-FORM (1-800-829-3676).

• Partnership (including an LLC treated as a partnership) or unincorporated organization— A responsible
and duly authorized member, partner, or officer having
knowledge of its affairs.

Visit www.irs.gov/formspubs.

• Single member LLC treated as a disregarded entity
for federal income tax purposes— The owner of the LLC
or a principal officer duly authorized to sign.

Instructions for Form 944 (2012)

-9-