Employer's Annual Employment Tax Return

2015

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.

Medicare Tax, visit IRS.gov and enter “Additional Medicare
Tax” in the search box.

Future Developments

If you change your business name, business address,
or responsible party. For a definition of “responsible party”
and how to notify IRS of a change in the identity of your
responsible party, see the Form 8822-B instructions. Notify
the IRS immediately if you change your business name,
business address, or responsible party. Write to the IRS
office where you file your returns (using the Without a
payment address under Where Should You File, later) to
notify the IRS of any name change. See Pub. 1635 to see if
you need to apply for a new EIN. Complete and mail Form
8822-B to notify the IRS of a business address or responsible
party 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
Social security and Medicare tax for 2015. The social
security tax rate is 6.2% each for the employee and
employer, unchanged from 2014. The social security wage
base limit is $118,500.
The Medicare tax rate is 1.45% each for the employee
and employer, unchanged from 2014. There is no wage base
limit for Medicare tax.
Social security and Medicare taxes apply to the wages of
household workers you pay $1,900 or more in cash or an
equivalent form of compensation in 2015. Social security and
Medicare taxes apply to election workers who are paid
$1,600 or more in cash or an equivalent form of
compensation in 2015.

Reminders
COBRA premium assistance credit. Effective for tax
periods beginning after December 31, 2013, the credit for
COBRA premium assistance payments can't be claimed on
Form 944. Instead, after filing your Form 944, file Form
944-X, Adjusted Employer's ANNUAL Federal Tax Return or
Claim for Refund, to claim the COBRA premium assistance
credit. Filing a Form 944-X before filing a Form 944 for the
year may result in errors or delays in processing your Form
944-X. For more information, visit IRS.gov and enter
“COBRA” in the search box.
If you are entitled to claim the COBRA premium
assistance credit, but aren't otherwise required to file
Form 944, file a Form 944 with -0- entered on line 11
before filing a Form 944-X to claim the credit.

TIP

Additional Medicare Tax withholding. In addition to
withholding Medicare tax at 1.45%, you must withhold a
0.9% Additional Medicare Tax from wages you pay to an
employee in excess of $200,000 in a calendar year. You are
required to begin withholding Additional Medicare Tax in the
pay period in which you pay wages in excess of $200,000 to
an employee and continue to withhold it each pay period until
the end of the calendar year. Additional Medicare Tax is only
imposed on the employee. There is no employer share of
Additional Medicare Tax. All wages that are subject to
Medicare tax are subject to Additional Medicare Tax
withholding if paid in excess of the $200,000 withholding
threshold.
For more information on what wages are subject to
Medicare tax, see the chart, Special Rules for Various Types
of Services and Payments, in section 15 of Pub. 15,
Employer's Tax Guide. For more information on Additional
Oct 15, 2015

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. If you discover
an error on a previously filed Form 944, make the correction
using Form 944-X. Form 944-X is filed separately from Form
944. For more information, see section 13 of Pub. 15. You
may also visit IRS.gov and enter “correcting employment
taxes” in the search box.
Federal tax deposits must be made by electronic funds
transfer (EFT). You must use EFT to make all federal tax
deposits. Generally, an EFT is made using the Electronic
Federal Tax Payment System (EFTPS). If you don't want to
use EFTPS, you can arrange for your tax professional,
financial institution, payroll service, or other trusted third party
to make electronic 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, section 8 of Pub. 80, Federal Tax
Guide for Employers in the U.S. Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana islands, or section 11 of Pub. 179, Guía Contributiva
Federal para Patronos Puertorriqueños. 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 or Pub. 966 (SP).

Cat. No. 39820A

!

CAUTION

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

Outsourcing payroll duties. You are responsible to ensure
that tax returns are filed and deposits and payments are
made, even if you contract with a third party to perform these
acts. You remain responsible if the third party fails to perform
any required action. If you choose to outsource any of your
payroll and related tax duties (that is, withholding, reporting,
and paying over social security, Medicare, FUTA, and
income taxes) to a third-party payer, such as a payroll service
provider or reporting agent, visit IRS.gov and enter
“outsourcing payroll duties” in the search box for helpful
information on this topic.

Same-day wire payment option. If you fail to submit 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 Collection Service
(FTCS). 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 the IRS website at www.irs.gov/payments and
click on Same-day wire.
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that isn't 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.

Where can you get telephone help? For answers to your
questions about completing Form 944 or tax deposit rules,
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 from
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 from 6:00 a.m.–
11:00 p.m. Eastern time.
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.

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 about taxes and more time
running your business. Use e-file and EFTPS to your benefit.
For e-file, visit the IRS website at www.irs.gov/efile for
more information.
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 (EFT), earlier.

General Instructions
Purpose of Form 944

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. They tell you who must file Form 944, how
to complete it line by line, and when and where to file it.

If you are filing your tax return or paying your federal
taxes electronically, a valid employer identification
CAUTION
number (EIN) is required at the time the return is
filed or the payment is made. If a valid EIN isn't provided, the
return or payment won't be processed. This may result in
penalties.

!

If you want more in-depth information about payroll tax
topics relating to Form 944, see Pub. 15, Pub. 80, Pub. 179,
or visit IRS.gov and enter “employment taxes” in the search
box.

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,
don't use EFW to make federal tax deposits. For more
information on paying your taxes using EFW, visit the IRS
website at www.irs.gov/payments. A fee may be charged to
file electronically.

Federal law requires you, as an employer, to withhold
taxes from your employees' pay. Each time you pay wages,
you must withhold–or take out of your employees' pay–
certain amounts for federal income tax, social security tax,
and Medicare tax. You must also withhold Additional
Medicare Tax from wages you pay to an employee in excess
of $200,000 in a calendar year. Under the withholding
system, taxes withheld from your employees are credited to
your employees in payment of their tax liabilities.

Credit or debit card payments. Employers can pay the
balance due shown on Form 944 by credit or debit card.
Don't 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/payments. A
convenience fee will be charged for this service.

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

!

Online payment agreement. You may be eligible to apply
for an installment agreement online if you have a balance
due when you file your return. For more information, see
What if you can't pay in full, later.

Federal law also requires you to pay any liability for the
employer's portion of social security tax and Medicare tax.
This portion of social security tax and Medicare tax isn't
withheld from employees.

Paid preparers must sign Form 944. Paid preparers must
complete and sign the paid preparer's section of Form 944.
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Instructions for Form 944 (2015)

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.

Who Must File Form 944?

TIP

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.

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

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.
Additional Medicare Tax withheld from employees.
Current year's adjustments to social security and Medicare
taxes for fractions of cents, sick pay, tips, and group-term life
insurance.

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 2016
calendar year, call the IRS at 1-800-829-4933 or
267-941-1000 (toll call) between January 1, 2016, and April
1, 2016, or send a written request postmarked between
January 1, 2016, and March 15, 2016. Written requests
should be sent to:

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 2015 calendar year
unless you contacted the IRS between January 1, 2015, and
April 1, 2015, 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 below.

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

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 don't receive this notice, you must
file Form 944 for calendar year 2016. See Rev. Proc.
2009-51, 2009-45 I.R.B. 625, available at www.irs.gov/irb/
2009-45_IRB/ar12.html.

If you haven't received notification to file Form 944
but estimate your employment tax liability for
calendar year 2016 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 2016, you must call the
IRS at 1-800-829-4933 or 267-941-1000 (toll call) by April 1,
2016, or send a written request postmarked by March 15,
2016. 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 don't receive this notice, you
must file Forms 941, 941-SS, or 941-PR for calendar year
2016.

TIP

Who can't file Form 944?

The following employers can't file Form 944.

Employers who aren't notified. If the IRS doesn't notify
you to file Form 944, don't 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 above.
Household employers. If you employ only household
employees, don't file Form 944. For more information, see
Pub. 926 and Schedule H (Form 1040), or Pub. 179 and
Schedule H-PR.
Agricultural employers. If you employ only agricultural
employees, don't file Form 944. For more information, see
Pub. 51 and Form 943, or Pub. 179 and Form 943-PR.

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 of Form SS-4 or SS-4PR 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
during the calendar year, 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. Virgin Islands and
you pay $6,536 or less in wages subject to social security
and Medicare taxes during the calendar year, you are likely
to pay $1,000 or less in employment taxes. New employers
Instructions for Form 944 (2015)

If the IRS notified you to file Form 944 for 2015, file
Form 944 (and not Forms 941, 941-SS, or 941-PR)
even if your tax liability for 2015 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.
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. Attach a statement to
your return with all the following information.
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Your business should have only one EIN. If you have more
than one and aren't 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 don't have an EIN, you may apply for one online.
Visit IRS.gov and enter “EIN” in the search box. You may also
apply for an EIN by faxing or mailing Form SS-4 or SS-4PR to
the IRS. Employers outside of the United States may also
apply for an EIN by calling 267-941-1099 (toll call). If you
have applied for an EIN but don't 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 are filing your tax return electronically, a valid
EIN is required at the time the return is filed. If a valid
CAUTION
EIN isn't provided, the return won't be accepted.
This may result in penalties.

!

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.
Don't 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.

TIP

When Must You File?

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

For 2015, file Form 944 by February 1, 2016. However, if you
made deposits on time in full payment of the taxes due for
the year, you may file the return by February 10, 2016.

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 to see if you need to also apply for a
new EIN.
Address change. Complete and mail Form 8822-B to
notify the IRS of an address change. Don't mail Form 8822-B
with your Form 944.

File Form 944 only once for each calendar year. If you
filed Form 944 electronically, don't 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 don't follow these
guidelines, we will consider Form 944 filed when it is actually
received. See Pub. 15, Pub. 80, or Pub. 179 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.
Portable Document Format (PDF) forms on IRS.gov have
fillable fields with acceptable font specifications.
Don't 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.
Staple multiple sheets in the upper left corner when filing.

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. Don't 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.

Required Notice to Employees About the
Earned Income Credit (EIC)

If you use a tax preparer to complete Form 944, make
sure the preparer uses your correct business name and EIN.

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

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.
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Instructions for Form 944 (2015)

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

Your written statement with the same wording as
Notice 797.

!

For more information, see section 10 of Pub. 15 and Pub.
596.

Reconciling Form 944 and Form W-3, W-3SS, or
W-3PR

Must You Deposit Your Taxes?
If your liability for withheld federal income tax and social
security and Medicare 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 don't 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 don't
deposit the taxes when required, you may be subject to
penalties and interest.

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 don't 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.
For more information, see section 12 of Pub. 15.

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
next), but they will still file Form 944 for the year.

Where Should You File?
Where you file depends on whether you include a payment
with Form 944.
Without a
payment . . .

If you are in . . .

With a payment . . .

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

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

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

No legal residence or principal
place of business in any state

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

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

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

Federal Tax Deposit Requirements for Form 944 Filers

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

If Your Tax Liability is:

Your Deposit Requirement is:

Less than $2,500 for the year

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, section 8 of
Pub. 80, or section 11 of Pub. 179.

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, section 8 of Pub. 80,
or section 11 of Pub. 179.

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.

Instructions for Form 944 (2015)

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File your fully completed Form 944 on time.
Report your tax liability accurately.
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 SSA on time and accurately. Visit
www.socialsecurity.gov/employer for information on how to
file Forms W-2 electronically.

income tax withheld by a third-party payer of sick pay even if
you reported it on Forms W-2. You will reconcile this
difference on Form W-3.

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, section 8 of Pub. 80, or section 11 of Pub. 179 for
details. Use Form 843 to request abatement of assessed
penalties or interest. Don't request abatement of assessed
penalties or interest on Form 944, Form 944-X, 944-X (SP),
941-X, or 941-X (PR).

If no wages, tips, and other compensation on line 1 are
subject to social security or Medicare taxes, check the box
on line 3 and go to line 5. If this question doesn't apply to you,
leave the box blank. For more information about exempt
wages, see section 15 of Pub. 15, section 12 of Pub. 80, or
section 15 of Pub. 179. For religious exemptions, see section
4 of Pub. 15-A, Employer's Supplemental Tax Guide.

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. Don't
include an explanation when you file your return.

4a.–4e. Taxable Social Security and Medicare
Wages and Tips

References to federal income tax withholding don't
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

4a. Taxable social security wages. Enter the total
wages, sick pay, and fringe benefits subject to social security
taxes that you paid to your employees during the year. For
this purpose, sick pay includes payments made by an
insurance company to your employees for which you
received timely notice from the insurance company. See
section 6 in Pub. 15-A for more information about sick pay
reporting.
Enter the amount before deductions. Don't include tips on
this line. For information on types of wages subject to social
security taxes, see section 5 of Pub. 15, section 4 of Pub. 80,
or section 5 of Pub. 179.
For 2015, the rate of social security tax on taxable wages
is 6.2% (.062) for the employer and employee, or 12.4%
(.124) 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 $118,500 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 $118,500 has been
reached.

If amounts that must be withheld aren't withheld or
aren't deposited or paid to the United States
CAUTION
Treasury, the trust fund recovery penalty may
apply. The penalty is the full amount of the unpaid trust fund
tax. This penalty may apply to you if these unpaid taxes can't
be immediately collected from the employer or business.

!

The trust fund recovery penalty may be imposed on all
persons who are determined by the IRS to be responsible for
collecting, accounting for, or paying over these taxes, and
who acted willfully in not doing so. For more information, see
section 11 of Pub. 15, section 8 of Pub. 80, or section 11 of
Pub. 179.

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

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

line 4a (column 1)
x  .124
line 4a (column 2)

1. Wages, Tips, and Other Compensation

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 $118,500 for the
year. Include all tips your employees reported to you even if
you were unable to withhold the 6.2% 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 (for example, credit and
debit card charges) 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 (available only in Pub. 1244), or Form

Enter amounts on line 1 that would also be included in box 1
of your employees' Forms W-2. Include sick pay paid by a
third party if you were given timely notice of the payments
and the third party transferred liability for the employer's
taxes to you. See the General Instructions for Forms W-2 and
W-3 for details.
If you are a third-party payer of sick pay, don't include sick
pay that you paid to policyholders' employees here if you
gave the policyholders timely notice of the payments.

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

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. Don't include any

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Instructions for Form 944 (2015)

In certain cases, you must adjust the amounts you entered
as social security and Medicare taxes in column 2 of lines
4a–4d to figure your correct tax liability for this year's Form
944. See section 13 of Pub. 15, section 9 of Pub. 80, or
section 12 of Pub. 179.

4070-PR (available only in Pub. 1244-PR), or submit a written
statement or electronic tip record.
line 4b (column 1)
x   .124
line 4b (column 2)

If you need to adjust any amount reported on line 6 from a
previously filed Form 944, complete and file Form 944-X.
Form 944-X is an adjusted return or claim for refund and is
filed separately from Form 944. See section 13 of Pub. 15 or
section 9 of Pub. 80.
Adjustment for 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–4d may differ slightly from amounts actually
withheld from employees' paychecks due to rounding social
security and Medicare taxes based on statutory rates.
Adjustment for 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 line 4a, line 4c, and, if the
withholding threshold is met, line 4d. 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:

4c. Taxable Medicare wages and tips. Enter 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%.
line 4c (column 1)
x   .029
line 4c (column 2)

For more information on tips, see section 6 of Pub. 15,
section 5 of Pub. 80, or section 6 of Pub. 179.
4d. Taxable wages & tips subject to Additional
Medicare Tax withholding. Enter all wages, tips, sick pay,
and taxable fringe benefits that are subject to Additional
Medicare Tax withholding. You are required to begin
withholding Additional Medicare Tax in the pay period in
which you pay wages in excess of $200,000 to an employee
and continue to withhold it each pay period until the end of
the calendar year. Additional Medicare Tax is only imposed
on the employee. There is no employer share of Additional
Medicare Tax. All wages that are subject to Medicare tax are
subject to Additional Medicare Tax withholding if paid in
excess of the $200,000 withholding threshold.
For more information on what wages are subject to
Medicare tax, see the chart, Special Rules for Various Types
of Services and Payments, in section 15 of Pub. 15. For more
information on Additional Medicare Tax, visit IRS.gov and
enter “Additional Medicare Tax” in the search box.
Once wages and tips exceed the $200,000 withholding
threshold, include all tips your employees reported during the
year, even if you were unable to withhold the employee tax of
0.9%.

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

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.
If line 7 is $2,500 or more, you generally must deposit
your tax liabilities by EFT. 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 and rules about federal tax deposits,
see Must You Deposit Your Taxes, earlier, and section 11 of
Pub. 15, section 8 of Pub. 80, or section 11 of Pub. 179.

line 4d (column 1)
x   .009
line 4d (column 2)

If you are a semiweekly depositor, you must
complete Form 945-A, Annual Record of Federal
CAUTION
Tax Liability. If you fail to complete and submit Form
945-A, the IRS may assert deposit penalties based on
available information.

!

4e. Total social security and Medicare taxes. Add the
column 2 amounts on lines 4a–4d. Enter the result on line 4e.

5. Total Taxes Before Adjustments

Add the total federal income tax withheld from wages, tips,
and other compensation from line 2 and the total social
security and Medicare taxes before adjustments from line 4e.
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.
Instructions for Form 944 (2015)

9a, 9b, and 10. Reserved

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Part 2:Tell Us About Your Deposit
Schedule and Tax Liability for This
Year

11. Balance Due

If line 7 is more than line 8, enter the difference on line 11.
Otherwise, see Overpayment below. Never make an entry
on both lines 11 and 12.
You don't 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 you were required to make federal tax deposits, pay the
amount shown on line 11 by EFT. If you weren't required to
make federal tax deposits, you may pay the amount shown
on line 11 by EFT, credit card, debit card, check, money
order, or EFW. For more information on electronic payment
options, visit the IRS website at www.irs.gov/payments.
If you pay by EFT, credit card, or debit card, file your
return using the Without a payment address under Where
Should You File, earlier. Don't file Form 944-V, Payment
Voucher.
If you pay by check or money order, make it payable to the
“United States Treasury.” Enter your EIN, Form 944, and the
tax period on your check or money order. Complete Form
944-V and enclose it with Form 944.

!

CAUTION

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 don't enter your tax liability for each month, the
IRS won't know when you should have made deposits and
may assess an “averaged” failure-to-deposit penalty. See
section 11 of Pub. 15, section 8 of Pub. 80, or section 11 of
Pub. 179. If your tax liability for any month is negative (for
example, if you are adjusting an overreported liability in a
prior month), don't 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.
Note. The amount shown on line 13m must equal the
amount shown on line 7.

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

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, section 8 of Pub. 80, or section 11 of
Pub. 179. Don't complete lines 13a–13m if you file Form
945-A.

What if you can't pay in full? If you can't pay the full
amount of tax you owe, you can apply for an installment
agreement online. You can apply for an installment
agreement online if:
You can't pay the full amount shown on line 11,
The total amount you owe is $25,000 or less, and
You can pay the liability in full in 24 months.
To apply using the Online Payment Agreement
Application, go to IRS.gov, click on Tools, then click on
Online Payment Agreement.
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions you
must meet to enter into and maintain an installment
agreement, such as paying the liability within 24 months, and
making all required deposits and timely filing tax returns
during the length of the agreement.
If your installment agreement is accepted, you will be
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of the
return.

Part 3:Tell Us About Your Business
In Part 3, answer question 14 only if it applies to your
business. If it doesn't 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 tell 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. For additional filing
requirements, see If your business has closed..., earlier.

Part 4:May We Speak With Your
Third-party Designee?
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 speak with—not the name of the firm that prepared
your tax return. The designee may choose any five numbers
as his or her PIN.

12. Overpayment

If line 8 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 don't 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.
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.

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.
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 won't send notices to your designee.

Complete Both Pages

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

You aren't authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
-8-

Instructions for Form 944 (2015)

represent you before the IRS. If you want to expand your
designee's authorization, see Pub. 947.
The authorization will automatically expire 1 year after the
due date (without regard to extensions) for filing your 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.

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 isn't 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.

Part 5:Sign Here (Approved Roles)
Complete all information in Part 5 and sign Form 944. The
following persons are authorized to sign the return for each
type of business entity.

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. For more information about
applying for a PTIN online, visit the IRS website at
www.irs.gov/ptin. You can't use your PTIN in place of the EIN
of the tax preparation firm.

• Sole proprietorship— The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation)— The president, vice
president, or other principal officer duly authorized to sign.
• 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.

Generally, don't complete this section if you are filing the
return as a reporting agent and have a valid Form 8655 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.

• 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.
• Trust or estate— The fiduciary.
Form 944 may be signed by a duly authorized agent of the
taxpayer if a valid power of attorney has been filed.

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

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,

Instructions for Form 944 (2015)

Visit www.irs.gov/orderforms.

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