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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.
Contents
Future Developments . . . . . . . . . . . . . . . . . . . . .
What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Instructions . . . . . . . . . . . . . . . . . . . . . .
Purpose of Form 944 . . . . . . . . . . . . . . . . . .
Who Must File Form 944? . . . . . . . . . . . . . . .
When Must You File? . . . . . . . . . . . . . . . . . .
How Should You Complete Form 944? . . . . . .
Where Should You File? . . . . . . . . . . . . . . . .
Must You Deposit Your Taxes? . . . . . . . . . . .
What About Penalties and Interest? . . . . . . . .
Specific Instructions . . . . . . . . . . . . . . . . . . . . . .
Part 1: Answer These Questions for This
Year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part 2: Tell Us About Your Deposit Schedule
and Tax Liability for This Year . . . . . . . . . .
Part 3: Tell Us About Your Business . . . . . . . .
Part 4: May We Speak With Your Third-Party
Designee? . . . . . . . . . . . . . . . . . . . . . . . .
Part 5: Sign Here (Approved Roles) . . . . . . . .
How To Get Forms, Instructions, and Publications .
Worksheet 1. Credit for Qualified Sick and Family
Leave Wages for Leave Taken Before April 1,
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Worksheet 2. Employee Retention Credit for
Qualified Wages Paid After December 31,
2020, and Before July 1, 2021 . . . . . . . . . . . .
Worksheet 3. Credit for Qualified Sick and Family
Leave Wages for Leave Taken After March 31,
2021, and Before October 1, 2021 . . . . . . . . .
Worksheet 4. Employee Retention Credit for
Qualified Wages Paid After June 30, 2021, and
Before January 1, 2022 . . . . . . . . . . . . . . . . .
Worksheet 5. COBRA Premium Assistance
Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Future Developments
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For the latest information about developments related to
Form 944 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form944.
What's New
Social security and Medicare tax for 2021. The rate of
social security tax on taxable wages, including qualified
sick leave wages and qualified family leave wages for
leave taken after March 31, 2021, and before October 1,
2021, is 6.2% each for the employer and employee or
12.4% for both. Qualified sick leave wages and qualified
Dec 17, 2021
family leave wages for leave taken before April 1, 2021,
aren't subject to the employer share of social security tax;
therefore, the tax rate on these wages is 6.2%. The social
security wage base limit is $142,800.
The Medicare tax rate is 1.45% (0.0145) each for the
employee and employer, unchanged from 2020. There is
no wage base limit for Medicare tax.
Social security and Medicare taxes apply to the wages
of household workers you pay $2,300 or more in cash
wages in 2021. Social security and Medicare taxes apply
to election workers who are paid $2,000 or more in cash
or an equivalent form of compensation in 2021.
The COVID-19 related credit for qualified sick and
family leave wages has been extended and amended. The Families First Coronavirus Response Act
(FFCRA) was amended by recent legislation. The FFCRA
requirement that employers provide paid sick and family
leave for reasons related to COVID-19 (the employer
mandate) expired on December 31, 2020; however, the
COVID-related Tax Relief Act of 2020 extends the periods
for which employers providing leave that otherwise meets
the requirements of the FFCRA may continue to claim tax
credits for qualified sick and family leave wages paid for
leave taken before April 1, 2021.
The American Rescue Plan Act of 2021 (the ARP) adds
new sections 3131, 3132, and 3133 to the Internal
Revenue Code to provide credits for qualified sick and
family leave wages similar to the credits that were
previously enacted under the FFCRA and amended and
extended by the COVID-related Tax Relief Act of 2020.
The credits under sections 3131 and 3132 are available
for qualified leave wages paid for leave taken after March
31, 2021, and before October 1, 2021. Below are the
major changes made under the ARP.
• The ARP keeps the daily wage thresholds that
previously existed. The aggregate cap on qualified sick
leave wages remains at 80 hours (10 days), but the
limitation on the number of days resets with respect to
leave taken by employees beginning on April 1, 2021. The
aggregate cap on qualified family leave wages increases
to $12,000 from the previous cap of $10,000, and the
aggregate cap resets with respect to leave taken by
employees beginning on April 1, 2021.
• The ARP also created a new category of leave under
the Emergency Paid Sick Leave Act (EPSLA) and the
Expanded Family and Medical Leave Act (Expanded
FMLA) to include the time the employee is seeking or
awaiting the results of a diagnostic test for, or a medical
diagnosis of, COVID-19 (and the employee has been
exposed to COVID-19 or the employee’s employer has
requested such test or diagnosis), or the employee is
obtaining or accompanying an individual who is obtaining
immunizations related to COVID-19 or recovering from or
caring for an individual recovering from an injury,
Cat. No. 39820A
for leave taken after March 31, 2021, and before October
1, 2021. For more information about the credit for qualified
sick and family leave wages, go to IRS.gov/PLC.
disability, illness, or condition related to such
immunization. Additionally, employers may provide
employees with paid family leave if the employee is
unable to work due to any of the conditions for which
eligible employers may provide paid sick leave under the
EPSLA.
• The credits are still increased by the qualified health
plan expenses allocable to the qualified sick and family
leave wages, but the credits are now also increased,
subject to the qualified leave wage limitations, by certain
amounts paid under collective bargaining agreements that
are properly allocable to the qualified leave wages. The
collectively bargained contributions paid by an eligible
employer that are eligible for the credit are collectively
bargained defined benefit pension plan contributions and
collectively bargained apprenticeship program
contributions that are properly allocable to qualified leave
wages.
• Under section 3133, the credits are increased by the
amount of the employer share of social security tax and
Medicare tax on the qualified sick and family leave wages.
• Governmental employers (except for the federal
government and its agencies and instrumentalities unless
described in section 501(c)(1)) may now claim the credits.
• Generally, the same wages can’t be used as both
qualified sick leave wages and qualified family leave
wages. Additionally, you may not benefit from both the
credit for qualified sick and family leave wages and the
employee retention credit with respect to the same wages.
The credit for qualified sick leave wages and qualified
family leave wages doesn't apply to wages taken into
account as payroll costs for a Small Business Interruption
Loan under the Paycheck Protection Program (PPP) that
is forgiven or in connection with shuttered operator grants
and restaurant revitalization grants.
• The credit for qualified sick and family leave wages isn’t
allowed if the employer provides the leave in a manner
that discriminates in favor of highly compensated
employees, full-time employees, or employees on the
basis of employment tenure. See Highly compensated
employee, later, for the definition.
How you report qualified sick and family leave wages
and the credit for qualified sick and family leave wages
has changed. Taxable qualified sick and family leave
wages for leave taken after March 31, 2021, and before
October 1, 2021, are included on line 4a and taxed at
12.4% for social security tax purposes. However, if you’re
reporting any qualified sick and family leave wages for
leave taken before April 1, 2021, these wages are
reported on lines 4a(i) and 4a(ii), respectively, and taxed
at 6.2% for social security tax purposes. For leave taken
before April 1, 2021, the credit for qualified sick and family
leave wages is reported on line 8b (nonrefundable
portion) and, if applicable, line 10d (refundable portion).
For leave taken after March 31, 2021, and before October
1, 2021, the credit for qualified sick and family leave
wages is reported on line 8d (nonrefundable portion) and,
if applicable, line 10f (refundable portion); and the
nonrefundable portion of the credit is against the employer
share of Medicare tax. For more information, see the
instructions for line 8b, line 8d, line 10d, and line 10f, later.
Use Worksheet 1 to figure the credit for leave taken
before April 1, 2021. Use Worksheet 3 to figure the credit
The COVID-19 related employee retention credit has
been extended and amended. The Coronavirus Aid,
Relief, and Economic Security (CARES) Act was
amended by recent legislation. The Taxpayer Certainty
and Disaster Tax Relief Act of 2020 modifies the
calculation of the employee retention credit and extends
the date through which the credit may be claimed to
qualified wages paid before July 1, 2021.
The ARP adds new section 3134 to the Internal
Revenue Code to provide an employee retention credit
similar to the credit that was previously enacted under the
CARES Act and amended and extended by the Taxpayer
Certainty and Disaster Tax Relief Act of 2020. Generally,
the rules for the employee retention credit for qualified
wages paid before July 1, 2021, and qualified wages paid
after June 30, 2021, are substantially similar. However,
the Infrastructure Investment and Jobs Act (Infrastructure
Act) amends section 3134 of the Internal Revenue Code,
as enacted under the ARP, to limit the availability of the
employee retention credit in the fourth quarter of 2021 to
employers that are recovery startup businesses, as
defined in section 3134(c)(5). Thus, for wages paid after
September 30, 2021, and before January 1, 2022, only
the wages paid by recovery startup businesses can be
qualified wages as described in these instructions. See
Recovery startup business, later, for more information
about a recovery startup business.
Qualified wages for the employee retention credit under
section 3134 don't include wages taken into account for
credits under sections 41, 45A, 45P, 45S, 51, 1396, 3131,
and 3132. Additionally, qualified wages for the employee
retention credit can't include amounts used as payroll
costs for a Small Business Interruption Loan under the
PPP that is forgiven or amounts used as payroll costs for
shuttered operator grants and restaurant revitalization
grants.
For wages paid before July 1, 2021, the nonrefundable
portion of the employee retention credit is against the
employer share of social security tax. However, for wages
paid after June 30, 2021, the nonrefundable portion of the
employee retention credit is against the employer share of
Medicare tax. The nonrefundable portion of the credit is
still claimed on line 8c and, if applicable, the refundable
portion of the credit is still claimed on line 10e. For more
information, see the instructions for line 8c and line 10e,
later. Use Worksheet 2 to figure the credit for wages paid
before July 1, 2021. Use Worksheet 4 to figure the credit
for wages paid after June 30, 2021, and before January 1,
2022.
See Notice 2021-23, 2021-16 I.R.B. 1113, available at
IRS.gov/irb/2021-16_IRB#NOT-2021-23, for guidance on
the employee retention credit provided under section
2301 of the CARES Act, as amended by section 207 of
the Taxpayer Certainty and Disaster Tax Relief Act of
2020, for qualified wages paid after December 31, 2020,
and before July 1, 2021. See Notice 2021-49, 2021-34
I.R.B. 316, available at IRS.gov/irb/
2021-34_IRB#NOT-2021-49, for guidance on the
employee retention credit provided under the ARP for
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Instructions for Form 944 (2021)
credit for the fourth quarter of 2021 may have already
submitted Form 7200 to request an advance payment of
the employee retention credit for the fourth quarter of
2021. If the Form 7200 hasn't been processed, the IRS
will use the employer's indication of whether it is a
recovery startup business (Form 7200, Part 1, line H) as
part of the determination regarding whether the Form
7200 claiming the employee retention credit in the fourth
quarter of 2021 should be accepted or rejected. A refund
or credit of any portion of the employee retention credit to
a taxpayer in excess of the amount to which the taxpayer
is entitled is an erroneous refund that the employer must
repay, regardless of whether the refund or credit is
advanced. Accordingly, if an employer requested and
received an advance payment of the employee retention
credit for the fourth calendar quarter of 2021, and the
employer isn't a recovery startup business, the employer
isn't eligible for an employee retention credit and must
repay the amount of the advance. Employers who need to
repay excess advance payments of the employee
retention credit must do so by January 31, 2022, by
including the advance payment on their 2021 Form 944,
Part 1, line 10i, and paying any balance due by January
31, 2022.
wages paid after June 30, 2021, and before January 1,
2022. Notice 2021-49 also discusses miscellaneous
issues that apply to all of 2021. See Notice 2021-65,
2021-51 I.R.B. 880, available at IRS.gov/
2021-51_IRB#NOT-2021-65, for modifications to Notice
2021-49 under the Infrastructure Act. For more
information about the employee retention credit, go to
IRS.gov/ERC.
New credit for COBRA premium assistance payments. Section 9501 of the ARP provides for COBRA
premium assistance in the form of a full reduction in the
premium otherwise payable by certain individuals and
their families who elect COBRA continuation coverage
due to a loss of coverage as the result of a reduction in
hours or an involuntary termination of employment
(assistance eligible individuals). This COBRA premium
assistance is available for periods of coverage beginning
on or after April 1, 2021, through periods of coverage
beginning on or before September 30, 2021. Some
multiemployer plans and insurers don't normally file an
employment tax return but will need to file one if they want
to claim the COBRA premium assistance credit. In those
cases, the insurers may not seek the COBRA premium
assistance credit using a Form 944 and must do so using
Form 941.
Section 9501(b) of the ARP adds new section 6432 to
the Internal Revenue Code that allows a credit (COBRA
premium assistance credit) against the employer share of
Medicare tax in an amount equal to the premiums not paid
by assistance eligible individuals for COBRA continuation
coverage by reason of section 9501(a)(1) of the ARP. The
nonrefundable portion of the credit is reported on line 8e
and, if applicable, the refundable portion of the credit is
reported on line 10g. If you claim this credit, you must also
report the number of individuals provided COBRA
premium assistance on line 8f. Use Worksheet 5 to figure
the credit. For more information, see the instructions for
line 8e, line 8f, and line 10g, later. For more information on
COBRA premium assistance payments and the credit,
see Notice 2021-31, 2021-23 I.R.B. 1173, available at
IRS.gov/irb/2021-23_IRB#NOT-2021-31, and Notice
2021-46, 2021-33 I.R.B. 303, available at IRS.gov/irb/
2021-33_IRB#NOT-2021-46.
Deferral of the employer share of social security tax
expired. The CARES Act allowed employers to defer the
deposit and payment of the employer share of social
security tax. The deferred amount of the employer share
of social security tax was only available for deposits due
on or after March 27, 2020, and before January 1, 2021,
as well as deposits and payments due after January 1,
2021, that are required for wages paid on or after March
27, 2020, and before January 1, 2021. Therefore, the line
previously used for the employer deferral has been
“Reserved for future use.” One-half of the employer share
of social security tax is due by December 31, 2021, and
the remainder is due by December 31, 2022. Because
both December 31, 2021, and December 31, 2022, are
nonbusiness days, payments made on the next business
day will be considered timely. Any payments or deposits
you make before December 31, 2021, are first applied
against your payment due on December 31, 2021, and
then applied against your payment due on December 31,
2022. For more information about the deferral of
employment tax deposits, go to IRS.gov/ETD. See Paying
the deferred amount of the employer share of social
security tax and How to pay the deferred amount of the
employer and employee share of social security tax, later,
for information about paying the deferred amount of the
employer share of social security tax.
Advance payment of COVID-19 credits extended.
Based on the extensions of the credit for qualified sick
and family leave wages and the employee retention credit,
and the new credit for COBRA premium assistance
payments, discussed above, Form 7200, Advance
Payment of Employer Credits Due to COVID-19, may be
filed to request an advance payment. For more
information, including information on which employers are
eligible to request an advance payment, the deadlines for
requesting an advance, and the amount that can be
advanced, see the Instructions for Form 7200.
The Infrastructure Act amends section 3134 of the
Internal Revenue Code, as enacted under the ARP, to
limit the availability of the employee retention credit in the
fourth quarter of 2021 to employers that are recovery
startup businesses, as defined in section 3134(c)(5). See
Recovery startup business, later, for more information
about a recovery startup business. Some employers that
are no longer eligible to claim the employee retention
Instructions for Form 944 (2021)
Deferral of the employee share of social security tax
expired. The Presidential Memorandum on Deferring
Payroll Tax Obligations in Light of the Ongoing COVID-19
Disaster, issued on August 8, 2020, directed the
Secretary of the Treasury to defer the withholding,
deposit, and payment of the employee share of social
security tax on wages paid during the period from
September 1, 2020, through December 31, 2020. The
deferral of the withholding and payment of the employee
share of social security tax was available for employees
whose social security wages paid for a biweekly pay
period were less than $4,000, or the equivalent threshold
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amount for other pay periods. The line previously used for
the employee deferral has been “Reserved for future use.”
The COVID-related Tax Relief Act of 2020 defers the due
date for the withholding and payment of the employee
share of social security tax until the period beginning on
January 1, 2021, and ending on December 31, 2021. For
more information about the deferral of employee social
security tax, see Notice 2020-65, 2020-38 I.R.B. 567,
available at IRS.gov/irb/2020-38_IRB#NOT-2020-65, and
Notice 2021-11, 2021-06 I.R.B. 827, available at
IRS.gov/irb/2021-06_IRB#NOT-2021-11. Also see Paying
the deferred amount of the employee share of social
security tax and How to pay the deferred amount of the
employer and employee share of social security tax, later,
for information about paying the deferred amount of the
employee share of social security tax.
Paying the deferred amount of the employee share of
social security tax. The due date for the withholding
and payment of the employee share of social security tax
is postponed until the period beginning on January 1,
2021, and ending on December 31, 2021. The employer
must withhold and pay the total deferred employee share
of social security tax ratably from wages paid to the
employee between January 1, 2021, and December 31,
2021. If necessary, the employer may make arrangements
to otherwise collect the total deferred taxes from the
employee. The employer is liable to pay the deferred
taxes to the IRS and must do so before January 1, 2022,
to avoid interest, penalties, and additions to tax on those
amounts. Because January 1, 2022, is a nonbusiness
day, payments made on January 3, 2022, will be
considered timely. Payment of the deferral isn't reported
on Form 944. For more information about the deferral of
the employee share of social security tax, see Notice
2020-65 and Notice 2021-11.
New payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d)
of the Taxpayer Certainty and Disaster Tax Relief Act of
2020 allows for a new payroll tax credit for certain
tax-exempt organizations affected by certain qualified
disasters not related to COVID-19. This new credit will be
claimed on new Form 5884-D (not on Form 944). Form
5884-D is filed after the Form 944 for the year for which
the credit is being claimed has been filed. If you will claim
this credit on Form 5884-D for 2021 and you're also
claiming a credit for qualified sick and family leave wages
for leave taken before April 1, 2021, and/or the employee
retention credit for qualified wages paid before July 1,
2021, you must include any credit that will be claimed on
Form 5884-D on Worksheet 1 and/or Worksheet 2,
respectively. For more information about this credit, go to
IRS.gov/Form5884D.
How to pay the deferred amount of the employer and
employee share of social security tax. You may pay
the amount you owe electronically using the Electronic
Federal Tax Payment System (EFTPS), by credit or debit
card, or by a check or money order. The preferred method
of payment is EFTPS. For more information, go to
EFTPS.gov, or call 800-555-4477 or 800-733-4829
(TDD). To pay the deferred amount using EFTPS, select
Form 944, calendar year 2020, and the option to pay the
deferred amount.
To pay by credit or debit card, go to IRS.gov/
PayByCard. If you pay by check or money order, include a
2020 Form 944-V, Payment Voucher. The 2020 Form
944-V is on page 5 of Form 944 and is available at
IRS.gov/Form944 (select the link for “All Form 944
Revisions” under “Other Items You May Find Useful”).
Make the check or money order payable to “United States
Treasury.” Enter your EIN, “Form 944,” and “2020” on your
check or money order.
Payments should be sent to:
Reminders
Paying the deferred amount of the employer share of
social security tax. One-half of the employer share of
social security tax is due by December 31, 2021, and the
remainder is due by December 31, 2022. Because both
December 31, 2021, and December 31, 2022, are
nonbusiness days, payments made on the next business
day will be considered timely. Any payments or deposits
you make before December 31, 2021, are first applied
against your payment due on December 31, 2021, and
then applied against your payment due on December 31,
2022. For example, if your employer share of social
security tax for 2020 was $20,000 and you deposited
$5,000 of the $20,000 during 2020 and deferred $15,000
on Form 944, line 10b, then you must pay $5,000 by
December 31, 2021, and $10,000 by December 31, 2022.
However, if your employer share of social security tax for
2020 was $20,000 and you deposited $15,000 of the
$20,000 during 2020 and deferred $5,000 on Form 944,
line 10b, then you don’t need to pay any deferred amount
by December 31, 2021, because 50% of the amount that
could have been deferred ($10,000) has already been
paid and is first applied against your payment that would
be due on December 31, 2021. Accordingly, you must pay
the $5,000 deferral by December 31, 2022. Payment of
the deferral isn't reported on Form 944. For additional
information, go to IRS.gov/ETD.
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0030
or
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0030
Send your payment to the address above that is in the
same state as the address to which you would mail
returns filed without a payment, as shown under Where
Should You File, later. For more information about the
deferral of social security tax, go to IRS.gov/ETD and see
Notice 2020-65 and Notice 2021-11.
Qualified small business payroll tax credit for increasing research activities. For tax years beginning
after 2015, a qualified small business may elect to claim
up to $250,000 of its credit for increasing research
activities as a payroll tax credit against the employer
share of social security tax. The payroll tax credit election
must be made on or before the due date of the originally
filed income tax return (including extensions). The portion
of the credit used against the employer share of social
security tax is allowed in the first calendar quarter
beginning after the date that the qualified small business
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Instructions for Form 944 (2021)
• 303-967-5916 if you're outside the United States (toll
call)
Additional information about EFTPS is also available in
Pub. 966 or Pub. 966 (SP).
filed its income tax return. The first Form 944 that you
could claim this credit on was Form 944 filed for calendar
year 2017. The election and determination of the credit
amount that will be used against the employer share of
social security tax are made on Form 6765, Credit for
Increasing Research Activities. The amount from Form
6765, line 44, must then be reported on Form 8974,
Qualified Small Business Payroll Tax Credit for Increasing
Research Activities. Form 8974 is used to determine the
amount of the credit that can be used in the current year.
The amount from Form 8974, line 12, is reported on Form
944, line 8a. If you’re claiming the research payroll tax
credit on your Form 944, you must attach Form 8974 to
Form 944. For more information about the payroll tax
credit, see Notice 2017-23, 2017-16 I.R.B. 1100, available
at IRS.gov/irb/2017-16_IRB#NOT-2017-23, and IRS.gov/
ResearchPayrollTC. Also see Adjusting tax liability for
nonrefundable credits claimed on lines 8a, 8b, 8c, 8d, and
8e, later.
!
CAUTION
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 make a same-day wire payment. 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 give
your financial institution to make a same-day wire
payment, go to IRS.gov/SameDayWire.
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, Pub. 80, and
Pub. 179.
Work opportunity tax credit for qualified tax-exempt
organizations hiring qualified veterans. Qualified
tax-exempt organizations that hire eligible unemployed
veterans may be able to claim the work opportunity tax
credit against their payroll tax liability using Form 5884-C.
For more information, go to IRS.gov/WOTC.
Employers can request 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 contact the IRS to request to file quarterly
Forms 941, 941-SS, or 941-PR and opt out of filing Form
944. See What if You Want To File Forms 941, 941-SS, or
941-PR Instead of Form 944, later.
Electronic filing and payment. 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 worrying about taxes and more time
running your business. Use e-file and EFTPS to your
benefit.
• For e-file, go to IRS.gov/EmploymentEfile for more
information. A fee may be charged to file electronically.
• For EFTPS, go to EFTPS.gov or call EFTPS at one of
the numbers provided under Federal tax deposits must be
made by electronic funds transfer (EFT), earlier.
• For electronic filing of Forms W-2, Wage and Tax
Statement, go to SSA.gov/employer. You may be required
to file Forms W-2 electronically. For details, see the
General Instructions for Forms W-2 and W-3.
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 the
Instructions for Form 944-X, section 13 of Pub. 15, or go
to IRS.gov/CorrectingEmploymentTaxes.
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
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 the 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,
go to EFTPS.gov or call one of the following numbers.
• 800-555-4477
• 800-733-4829 (TDD)
• 800-244-4829 (Spanish)
Instructions for Form 944 (2021)
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.
If you’re filing your tax return or paying your
federal taxes electronically, a valid employer
CAUTION identification 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. See Employer identification
number (EIN), later, for information about applying for an
EIN.
!
Electronic funds withdrawal (EFW). If you file Form
944 electronically, you can e-file and use EFW to pay 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, go to IRS.gov/EFW.
-5-
If you want more in-depth information about payroll tax
topics relating to Form 944, see Pub. 15, Pub. 80, or Pub.
179, and go to IRS.gov/EmploymentTaxes.
Credit or debit card payments. You can pay the
balance due shown on Form 944 by credit or debit card.
Your payment will be processed by a payment processor
who will charge a processing fee. 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, go to IRS.gov/PayByCard.
Federal law requires you, as an employer, to withhold
certain 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.
Online payment agreement. You may be eligible to
apply for an installment agreement online if you can’t pay
the full amount of tax you owe when you file your return.
For more information, see What if you can't pay in full,
later.
Paid preparers. If you use a paid preparer to complete
Form 944, the paid preparer must complete and sign the
paid preparer's section of the form.
References to federal income tax withholding
don't apply to employers in American Samoa,
CAUTION Guam, the Commonwealth of the Northern
Mariana Islands, the U.S. Virgin Islands, and Puerto Rico,
unless you have employees who are subject to U.S.
income tax withholding.
!
Outsourcing payroll duties. You’re 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. Before 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, go to IRS.gov/OutsourcingPayrollDuties
for helpful information on this topic. For more information
on the different types of third-party payer arrangements,
see section 16 of Pub. 15.
Federal law also requires you to pay any liability for the
employer share of social security tax and Medicare tax.
This share of social security tax and Medicare tax isn't
withheld from employees.
For more information about annual employment tax
filing and tax deposit rules, see Treasury Decision 9566,
2012-8 I.R.B. 389, at IRS.gov/irb/2012-08_IRB#TD-9566.
Who Must File Form 944?
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.
• 800-829-4933 (Business and Specialty Tax Line) or
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. to 7:00 p.m. local time (Alaska and Hawaii
follow Pacific time; employers in Puerto Rico receive
service from 8:00 a.m. to 8:00 p.m. local time).
• 267-941-1000 if you're outside the United States (toll
call), Monday–Friday from 6:00 a.m. to 11:00 p.m. Eastern
time.
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.
•
•
•
•
Wages you have paid.
Tips your employees reported to you.
Federal income tax you withheld.
Both the employer and the employee 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.
• Qualified small business payroll tax credit for increasing
research activities.
• Credit for qualified sick and family leave wages.
• Employee retention credit.
• COBRA premium assistance credit.
• Total advances received from filing Form(s) 7200.
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children® (NCMEC). 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.
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 2021 calendar year
unless you called the IRS between January 1, 2021, and
April 1, 2021, or sent a written request postmarked
between January 1, 2021, and March 15, 2021, 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 for the
prior year. 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.
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.
-6-
Instructions for Form 944 (2021)
request to file those forms. 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 2022 calendar year, call the IRS at 800-829-4933
(267-941-1000 (toll call) if you're outside the United
States) between January 1, 2022, and April 1, 2022, or
send a written request postmarked between January 1,
2022, and March 15, 2022. Written requests should be
sent to:
If the IRS notified you in writing to file Form 944,
you must file Form 944 (and not Forms 941,
CAUTION 941-SS, or 941-PR) even if your tax liability for
2021 exceeds $1,000. Once your annual tax liability
exceeds $1,000, the IRS will notify you that you're no
longer eligible to file Form 944 in future years and that you
must file Form 941, 941-SS, or 941-PR quarterly.
However, until you receive the notice, continue to file
Form 944 annually. If you’re unsure of your current filing
requirement, call 800-829-4933. If you're outside the
United States, call 267-941-1000 (toll call).
!
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0038
What if You Want To File Form 944 in Future
Years Instead of Forms 941, 941-SS, or 941-PR?
If you haven't received notification to file Form 944 for
2022 but estimate your employment tax liability for
calendar year 2022 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 for
2022. To file Form 944 for calendar year 2022, you must
call the IRS at 800-829-4933 (267-941-1000 (toll call) if
you're outside the United States) between January 1,
2022, and April 1, 2022, or send a written request
postmarked between January 1, 2022, and March 15,
2022. The mailing addresses for written requests are
provided under What if You Want To File Forms 941,
941-SS, or 941-PR Instead of Form 944, later. 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 2022.
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0038
If you would mail your return filed without a payment to
Ogden, as shown under Where Should You File, later,
send your request to the Ogden address shown above. If
you would mail your return filed without a payment to
Kansas City, send your request to the address for
Cincinnati shown above. 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 2022. For
more information about these procedures, see Rev. Proc.
2009-51, 2009-45 I.R.B. 625, available at IRS.gov/irb/
2009-45_IRB#RP-2009-51.
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 What if You Want To File Form 944 in
Future Years Instead of Forms 941, 941-SS, or 941-PR,
earlier.
• 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
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. Based on current tax rates, if you pay
$5,000 or less in wages subject to social security and
Medicare taxes and federal income tax withholding during
the calendar year, you’re generally likely to pay $1,000 or
less in employment taxes. Generally, if you’re 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’re 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 EINs.
What if You Reorganize or Close Your
Business?
If You Sell or Transfer Your Business...
If you sell or transfer your business during the year, 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.
What if You Want To File Forms 941, 941-SS, or
941-PR Instead of Form 944?
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 Pub. 1635 and section 1 of
Pub. 15 for more information.
You must file Form 944 if the IRS has notified you to do
so, unless the IRS notifies you to file quarterly Forms 941,
941-SS, or 941-PR instead, or you contact the IRS to
Instructions for Form 944 (2021)
or
-7-
If you use a tax preparer to complete Form 944, make
sure the preparer uses your correct business name and
EIN.
Attach a statement to your return with all the following
information.
• 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.
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 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 800-829-4933. If you're
outside the United States, call 267-941-1000 (toll call).
If you don't have an EIN, you may apply for one online
by visiting IRS.gov/EIN. You may also apply for an EIN by
faxing or mailing Form SS-4 or SS-4PR to the IRS. If the
principal business was created or organized outside of the
United States or U.S. territories, you 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, file a paper return and write “Applied For” and the
date you applied in the space shown for the number.
If Your Business Has Closed...
If you permanently 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 on line 14 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.
If you’re filing your tax return electronically, a valid
EIN is required at the time the return is filed. If a
CAUTION valid EIN isn't provided, the return won't be
accepted. This may result in penalties.
!
When Must You File?
For 2021, file Form 944 by January 31, 2022. 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,
2022.
Always be sure the EIN on the form you file
TIP exactly matches the EIN the IRS assigned to your
business. Don't use your SSN or ITIN on forms
that ask for an EIN. If you used an EIN (including a prior
owner's EIN) on Form 944 that is different from the EIN
reported on Form W-3, see Box h—Other EIN used this
year in the General Instructions for Forms W-2 and W-3.
Filing a Form 944 with an incorrect EIN or using another
business's EIN may result in penalties and delays in
processing your return.
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 (PDS) on or before the due date. If you
don't follow these guidelines, we will generally consider
Form 944 filed when it is actually received. For more
information about PDSs, see Where Should You File,
later.
If you change your business name, business address, or responsible party. 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 business 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. Don't mail
Form 8822-B with your Form 944. For a definition of
"responsible party," see the Instructions for Form SS-4.
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
pages 2 and 3. 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’re 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.
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’re typing or using a computer to complete Form 944.
Portable Document Format (PDF) forms on IRS.gov have
fillable fields with acceptable font specifications.
-8-
Instructions for Form 944 (2021)
• 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. Don’t round
entries to whole dollars. Always show an amount for
cents, even if it is zero.
• Leave blank any data field with a value of zero (except
line 9).
• Enter negative amounts using a minus sign (if possible).
Otherwise, use parentheses.
• Enter your name and EIN on all pages.
• Enter your name, EIN, “Form 944,” and tax period on all
attachments.
• Staple multiple sheets in the upper left corner when
filing.
IRS mailing address to use if you’re using a PDS, go to
IRS.gov/PDSstreetAddresses. Select the mailing address
listed on the webpage that is in the same state as the
address to which you would mail returns filed without a
payment, as shown next.
Complete all three pages. You must complete all three
pages of Form 944 and sign on page 3. Failure to do so
may delay processing of your return.
Required Notice to Employees About the
Earned Income Credit (EIC)
To notify employees about the EIC, employers in the
United States must give the employees one of the
following items.
• Form W-2 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).
• Your written statement with the same wording as
Notice 797.
For more information, see section 10 of Pub. 15, Pub.
596, and IRS.gov/EIC.
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 don't agree, you may be contacted by the
IRS or the SSA. The following amounts are reconciled.
•
•
•
•
With a payment . . .
Connecticut
Delaware
District of
Columbia
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
Kansas City, MO
64999-0044
Internal Revenue
Service
P.O. Box 806532
Cincinnati, OH
45280-6532
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Hawaii
Idaho
Iowa
Kansas
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Minnesota
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Missouri
Montana
Nebraska
Nevada
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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 932100
Louisville, KY
40293-2100
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 932100
Louisville, KY
40293-2100
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 932100
Louisville, KY
40293-2100
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).
!
Must You Deposit Your Taxes?
Federal income tax withholding, if applicable.
Social security wages.
Social security tips.
Medicare wages and tips.
If your liability for withheld federal income tax and social
security and Medicare taxes (Form 944, line 9) 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’re 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, later. If you don't deposit the taxes
when required, you may be subject to penalties and
interest.
For more information, see section 12 of Pub. 15.
Where Should You File?
You’re encouraged to file Form 944 electronically. Go to
IRS.gov/EmploymentEfile for more information on
electronic filing. If you file a paper return, where you file
depends on whether you include a payment with Form
944. Mail your return to the address listed for your location
in the table that follows.
PDSs can't deliver to P.O. boxes. You must use the
U.S. Postal Service to mail an item to a P.O. box address.
Go to IRS.gov/PDS for the current list of PDSs. For the
Instructions for Form 944 (2021)
Without a
payment . . .
If you’re in . . .
The $2,500 threshold at which federal tax deposits
must be made is different from the amount of annual tax
-9-
requiring a next-day deposit is determined before you
consider any reduction of your liability for nonrefundable
credits. For more information, including an example, see
frequently asked question 17 at IRS.gov/ETD.
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.
Federal Tax Deposit Requirements for Form 944
Filers
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’re 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.
See section 11 of Pub. 15, section 8 of Pub. 80, or
section 11 of Pub. 179 for information about payments
made under the accuracy of deposits rule.
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 from 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. If
you're a monthly schedule depositor and accumulate a
$100,000 tax liability on any day during the deposit period,
you become a semiweekly schedule depositor on the next
day and remain so for at least the rest of the calendar year
and for the following calendar year. If you become a
semiweekly schedule depositor under this rule solely as a
result of the relief provided in Notice 2021-65 regarding
the early termination of the employee retention credit for
the fourth quarter of 2021, you may be converted back to
a monthly schedule depositor by contacting the IRS. You
may continue to deposit in accordance with your status as
a monthly schedule depositor, but you may receive a
system-generated failure-to-deposit (FTD) penalty notice
after you file your Form 944 for 2022. Contact the IRS at
the toll-free number on your FTD penalty notice to request
abatement of the FTD penalty and to be converted back to
a monthly schedule depositor. Aside from this exception,
ordinary rules for determining deposit frequency will
continue to apply. The $100,000 tax liability threshold
Reducing your deposits for COVID-19 credits.
Employers eligible to claim the credit for qualified sick and
family leave wages, the employee retention credit, and/or
the COBRA premium assistance credit can reduce their
deposits by the amount of their anticipated credits. You
may reduce your deposits of federal employment taxes in
anticipation of the COBRA premium assistance credit with
regard to a period of coverage as of the date you are
entitled to the credit. Employers won’t be subject to an
FTD penalty for reducing their deposits if certain
conditions are met. See the instructions for line 8b,
line 8c, line 8d, and line 8e for more information on these
credits. For more information on reducing deposits, see
Notice 2020-22, 2020-17 I.R.B. 664, available at
IRS.gov/irb/2020-17_IRB#NOT-2020-22, and Notice
2021-24, 2021-18 I.R.B. 1122, available at IRS.gov/irb/
2021-18_IRB#NOT-2021-24. See the instructions for
line 13, later, for instructions on how to adjust your tax
liabilities reported on line 13 or Form 945-A for
nonrefundable credits.
Due to the termination of the employee retention credit
for the fourth quarter of 2021 for employers that aren't
recovery startup businesses, the IRS will no longer waive
FTD penalties for employers that reduce deposits in
anticipation of the employee retention credit after
December 20, 2021, unless the employer is a recovery
startup business. Some employers that are no longer
eligible to claim the employee retention credit for the
fourth quarter of 2021 may have already reduced their
employment tax deposits in anticipation of claiming the
employee retention credit for the fourth quarter of 2021.
For deposits due on or before December 20, 2021, with
respect to wages paid on or after October 1, 2021, an
employer that isn't a recovery startup business won't be
subject to an FTD penalty for the fourth quarter of 2021 if
the employer:
• Reduced its deposits in anticipation of the employee
retention credit, consistent with the rules provided by
section 3.b. of Notice 2021-24;
• Deposits the amounts initially retained in anticipation of
the employee retention credit on or before the due date of
the deposit for wages paid on December 31, 2021
(regardless of whether wages are actually paid on that
date); and
• Reports the tax liability associated with the termination
of the employer's employee retention credit on their 2021
Form 944, line 13l, or, if a semiweekly schedule depositor,
on Form 945-A for the applicable day or days in
December. For more information, see the line 13
instructions, later.
Example. Reducing deposits for COBRA premium
assistance. Maple Co. has a semimonthly payroll period.
Sophie Rose elected COBRA premium assistance on
May 17, 2021. Maple Co. became entitled to a COBRA
premium assistance credit as of May 17, 2021, for the
premiums not paid by Sophie (an assistance eligible
individual) for the periods of coverage of April 1, 2021,
through April 30, 2021, and May 1, 2021, through May 31,
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Instructions for Form 944 (2021)
2021. Maple Co. could have reduced its federal
employment tax deposits as of May 17, 2021, in
anticipation of the credit to which Maple Co. became
entitled.
What About Penalties and Interest?
Specific Instructions
Part 1: Answer These Questions for
This Year
Employers in American Samoa, Guam, the
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, unless
you meet the requirements discussed in Notice 2020-22
and Notice 2021-24. See Notice 2021-65 for modifications
to Notice 2021-24 under the Infrastructure Act.
• 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. Go
to SSA.gov/employer for information on how to file Forms
W-2 electronically.
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,
944-X, 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. Don't
include an explanation when you file your return.
If federal income, social security, and Medicare
taxes that must be withheld (that is, trust fund
CAUTION taxes) aren't withheld or aren't deposited or paid
to the United States Treasury, the trust fund recovery
penalty may apply. The penalty is 100% of the unpaid
trust fund tax. 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. The trust fund recovery penalty won't apply to any
amount of trust fund taxes an employer holds back in
anticipation of any credits they are entitled to. It also won't
apply to applicable taxes properly deferred under section
2302 of the CARES Act or applicable taxes deferred
under Notice 2020-65 and Notice 2021-11 if paid by the
due date.
!
Instructions for Form 944 (2021)
TIP Commonwealth of the Northern Mariana Islands,
the U.S. Virgin Islands, and Puerto Rico may skip
lines 1 and 2, unless you have employees who are subject
to U.S. income tax withholding.
For purposes of these instructions, all references
TIP to "sick pay" mean ordinary sick pay, not "qualified
sick leave wages" that are reported on line 4a(i)
for leave taken before April 1, 2021, or reported on line 4a
for leave taken after March 31, 2021, and before October
1, 2021.
1. Wages, Tips, and Other Compensation
Enter amounts on line 1 that would also be included in
box 1 of your employees' Forms W-2. See Box
1—Wages, tips, other compensation in the General
Instructions for Forms W-2 and W-3 for details. Include
sick pay paid by your agent. Also include sick pay paid by
a third party that isn't your agent (for example, an
insurance company) if you were given timely notice of the
payments and the third party transferred liability for the
employer's taxes to you.
If you're a third-party payer of sick pay and not an agent
of the employer, don't include sick pay that you paid to
policyholders' employees here if you gave the
policyholders timely notice of the payments. See section 6
of Pub. 15-A, Employer's Supplemental Tax Guide, for
more information about sick pay reporting and the
procedures for transferring the liability to the employer.
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, including qualified sick leave wages, qualified
family leave wages, and qualified wages (excluding
qualified health plan expenses) for the employee retention
credit; tips; taxable fringe benefits; and supplemental
unemployment compensation benefits. Don't include any
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. For information on the
employment tax treatment of fringe benefits, see Pub.
15-B, Employer's Tax Guide to Fringe Benefits. For
information about supplemental unemployment
compensation benefits, see section 5 of Pub. 15-A.
If you're a third-party payer of sick pay, enter the
federal income tax you withheld (or were required to
withhold) on third-party sick pay here.
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References to federal income tax withholding
don't apply to employers in American Samoa,
CAUTION Guam, the Commonwealth of the Northern
Mariana Islands, the U.S. Virgin Islands, and Puerto Rico,
unless you have employees who are subject to U.S.
income tax withholding.
!
3. If No Wages, Tips, and Other Compensation
Are Subject to Social Security or Medicare
Tax . . .
If no wages, tips, and other compensation on line 1 are
subject to social security or Medicare tax, 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. For information
on the employment tax treatment of fringe benefits, see
Pub. 15-B.
4a–4e. Taxable Social Security and Medicare
Wages and Tips
4a. Taxable social security wages. Enter the total
wages, including qualified sick leave wages and qualified
family leave wages for leave taken after March 31, 2021,
and before October 1, 2021; qualified wages (other than
qualified health plan expenses) for the employee retention
credit; sick pay; and taxable fringe benefits subject to
social security taxes that you paid to your employees
during the year. Don't include the qualified sick leave
wages reported on line 4a(i) or qualified family leave
wages reported on line 4a(ii) for leave taken before April
1, 2021. 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 of Pub. 15-A for more information
about sick pay reporting. See the instructions for line 6 for
an adjustment that you may need to make on Form 944
for sick pay.
Enter the amount before payroll 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 2021, the rate of social security tax on taxable
wages, except for qualified sick leave wages and qualified
family leave wages for leave taken before April 1, 2021, is
6.2% (0.062) each for the employer and employee or
12.4% (0.124) for both. Stop paying social security tax on
and entering an employee's wages on line 4a when the
employee's taxable wages, including qualified sick leave
wages reported on line 4a(i), qualified family leave wages
reported on line 4a(ii), and tips, reach $142,800 for the
year. However, continue to withhold income and Medicare
taxes for the whole year on all wages, including qualified
sick leave wages, qualified family leave wages, and tips,
even when the social security wage base of $142,800 has
been reached.
For purposes of the credit for qualified sick and family
leave wages, qualified sick leave and family leave wages
are wages for social security and Medicare tax purposes,
determined without regard to the exclusions from the
definition of employment under sections 3121(b)(1)–(22),
that an employer pays that otherwise meet the
requirements of the EPSLA or the Expanded FMLA, as
enacted under the FFCRA and amended for purposes of
the ARP. However, don't include any wages otherwise
excluded under section 3121(b) when reporting qualified
sick and family leave wages on lines 4a, 4a(i), 4a(ii), 4c,
and, if applicable, 4d. See the instructions for line 8d for
information about the credit for qualified sick and family
leave wages for leave taken after March 31, 2021, and
before October 1, 2021.
line 4a (column 1)
x 0.124
line 4a (column 2)
EPSLA. Employers with fewer than 500 employees
and, for leave taken after March 31, 2021, and before
October 1, 2021, certain governmental employers without
regard to number of employees (except for the federal
government and its agencies and instrumentalities unless
described in section 501(c)(1)) are entitled to a credit if
they provide paid sick leave to employees that otherwise
meets the requirements of the EPSLA. Under the EPSLA,
as amended for purposes of the ARP, wages are qualified
sick leave wages if paid to employees that are unable to
work or telework before October 1, 2021, because the
employee:
1. Is subject to a federal, state, or local quarantine or
isolation order related to COVID-19;
2. Has been advised by a health care provider to
self-quarantine due to concerns related to COVID-19;
3. Is experiencing symptoms of COVID-19 and
seeking a medical diagnosis; or, for leave taken after
March 31, 2021, and before October 1, 2021, is seeking
or awaiting the results of a diagnostic test for, or a medical
diagnosis of, COVID-19 (and the employee has been
exposed to COVID-19 or the employee's employer has
requested such test or diagnosis), or the employee is
obtaining immunizations related to COVID-19 or
recovering from an injury, disability, illness, or condition
related to such immunization;
4. Is caring for an individual subject to an order
described in (1) or who has been advised as described in
(2);
5. Is caring for a son or daughter because the school
or place of care for that child has been closed, or the
childcare provider for that child is unavailable, due to
COVID-19 precautions; or
6. Is experiencing any other substantially similar
condition specified by the U.S. Department of Health and
Human Services, which for leave taken after March 31,
2021, and before October 1, 2021, includes to
accompany an individual to obtain immunization related to
COVID-19, or to care for an individual who is recovering
from any injury, disability, illness, or condition related to
the immunization.
Son or daughter. A son or daughter must generally
have been under 18 years of age or incapable of self-care
because of a mental or physical disability. A son or
daughter includes a biological child, adopted child,
stepchild, foster child, legal ward, or child for whom the
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Instructions for Form 944 (2021)
employee assumes parental status and carries out the
obligations of a parent.
Limits on qualified sick leave wages. The EPSLA,
as amended for purposes of the ARP, provides different
limitations for different circumstances under which
qualified sick leave wages are paid. For paid sick leave
qualifying under (1), (2), or (3) above, the amount of
qualified sick leave wages is determined at the
employee's regular rate of pay, but the wages may not
exceed $511 for any day (or portion of a day) for which the
individual is paid sick leave. For paid sick leave qualifying
under (4), (5), or (6) above, the amount of qualified sick
leave wages is determined at two-thirds the employee's
regular rate of pay, but the wages may not exceed $200
for any day (or portion of a day) for which the individual is
paid sick leave. The EPSLA also limits each individual to a
maximum of up to 80 hours of paid sick leave in total for
leave taken after March 31, 2020, and before April 1,
2021. The ARP resets this limit at 80 hours of paid sick
leave for leave taken after March 31, 2021, and before
October 1, 2021. Therefore, for leave taken after March
31, 2020, and before April 1, 2021, the maximum amount
of paid sick leave wages can’t exceed $5,110 for an
employee for leave under (1), (2), or (3), and it can’t
exceed $2,000 for an employee for leave under (4), (5), or
(6). These maximum amounts also reset and apply to
leave taken after March 31, 2021, and before October 1,
2021.
For more information about qualified sick and family
leave wages, go to IRS.gov/PLC.
Expanded FMLA. Employers with fewer than 500
employees and, for leave taken after March 31, 2021, and
before October 1, 2021, certain governmental employers
without regard to number of employees (except for the
federal government and its agencies and instrumentalities
unless described in section 501(c)(1)) are entitled to a
credit under the FFCRA, as amended for purposes of the
ARP, if they provide paid family leave to employees that
otherwise meets the requirements of the Expanded
FMLA. For leave taken before April 1, 2021, wages are
qualified family leave wages if paid to an employee who
has been employed for at least 30 calendar days when an
employee is unable to work or telework due to the need to
care for a son or daughter under 18 years of age or
incapable of self-care because of a mental or physical
disability because the school or place of care for that child
has been closed, or the childcare provider for that child is
unavailable, due to a public health emergency. See Son
or daughter, earlier, for more information. For leave taken
after March 31, 2021, and before October 1, 2021, the
leave can be granted for any other reason provided by the
EPSLA, as amended for purposes of the ARP.
For leave taken before April 1, 2021, the first 10 days
for which an employee takes leave may be unpaid. During
this period, employees may use other forms of paid leave,
such as qualified sick leave, accrued sick leave, annual
leave, or other paid time off. After an employee takes
leave for 10 days, the employer provides the employee
paid leave (that is, qualified family leave wages) for up to
10 weeks. For leave taken after March 31, 2021, and
before October 1, 2021, the 10-day rule discussed above
doesn't apply and the paid leave can be provided for up to
12 weeks.
Instructions for Form 944 (2021)
Rate of pay and limit on wages. The rate of pay must
be at least two-thirds of the employee’s regular rate of pay
(as determined under the Fair Labor Standards Act of
1938), multiplied by the number of hours the employee
otherwise would have been scheduled to work. For leave
taken after March 31, 2020, and before April 1, 2021, the
total qualified leave wages can't exceed $200 per day or
$10,000 in the aggregate per employee. For leave taken
after March 31, 2021, and before October 1, 2021, the
limit resets and the total qualified leave wages can't
exceed $200 per day or $12,000 in the aggregate per
employee.
For more information about qualified sick and family
leave wages, go to IRS.gov/PLC.
4a(i). Qualified sick leave wages. Enter the qualified
taxable (subject to social security tax) sick leave wages
you paid to your employees during the year for leave
taken before April 1, 2021. Qualified sick leave wages for
leave taken before April 1, 2021, aren't subject to the
employer share of social security tax; therefore, the tax
rate on these wages is 6.2% (0.062). Stop paying social
security tax on and entering an employee's wages on
line 4a(i) when the employee's taxable wages, including
wages reported on line 4a, qualified sick leave wages
reported on line 4a(i), qualified family leave wages
reported on line 4a(ii), and tips, reach $142,800 for the
year. See the instructions for line 4c for reporting
Medicare tax on qualified sick leave wages, including the
portion above the social security wage base.
For purposes of the credit for qualified sick and family
leave wages, qualified sick leave wages are wages for
social security and Medicare tax purposes, determined
without regard to the exclusions from the definition of
employment under sections 3121(b)(1)–(22), that an
employer pays that otherwise meet the requirements of
the EPSLA, as enacted under the FFCRA and amended
by the COVID-related Tax Relief Act of 2020. However,
don't include any wages otherwise excluded under
section 3121(b) when reporting qualified sick leave wages
on lines 4a(i), 4c, and, if applicable, 4d. See the
instructions for line 8b for information about the credit for
qualified sick and family leave wages for leave taken
before April 1, 2021.
line 4a(i) (column 1)
x 0.062
line 4a(i) (column 2)
4a(ii). Qualified family leave wages. Enter the
qualified taxable (subject to social security tax) family
leave wages you paid to your employees during the year
for leave taken before April 1, 2021. Qualified family leave
wages for leave taken before April 1, 2021, aren't subject
to the employer share of social security tax; therefore, the
tax rate on these wages is 6.2% (0.062). Stop paying
social security tax on and entering an employee's wages
on line 4a(ii) when the employee's taxable wages,
including wages reported on line 4a, qualified sick leave
wages reported on line 4a(i), qualified family leave wages
reported on line 4a(ii), and tips, reach $142,800 for the
year. See the instructions for line 4c for reporting
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Medicare tax on qualified family leave wages, including
the portion above the social security wage base.
For purposes of the credit for qualified sick and family
leave wages, qualified family leave wages are wages for
social security and Medicare tax purposes, determined
without regard to the exclusions from the definition of
employment under sections 3121(b)(1)–(22), that an
employer pays that otherwise meet the requirements of
the Expanded FMLA, as enacted under the FFCRA and
amended by the COVID-related Tax Relief Act of 2020.
However, don't include any wages otherwise excluded
under section 3121(b) when reporting qualified family
leave wages on lines 4a(ii), 4c, and, if applicable, 4d. See
the instructions for line 8b for information about the credit
for qualified sick and family leave wages for leave taken
before April 1, 2021.
qualified health plan expenses) for the employee retention
credit; 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. See the instructions for line 6 for an
adjustment that you may need to make on Form 944 for
sick pay.
The rate of Medicare tax is 1.45% (0.0145) each for the
employer and employee or 2.9% (0.029) 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 4a(ii) (column 1)
x 0.062
line 4a(ii) (column 2)
4d. Taxable wages & tips subject to Additional
Medicare Tax withholding. Enter all wages, including
qualified sick leave wages, qualified family leave wages,
and qualified wages (excluding qualified health plan
expenses) for the employee retention credit; tips; sick
pay; and taxable fringe benefits that are subject to
Additional Medicare Tax withholding. You’re 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, go to
IRS.gov/ADMT. See the instructions for line 6 for an
adjustment that you may need to make on Form 944 for
sick pay.
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%.
4b. Taxable social security tips. Enter all tips your
employees reported to you during the year until the total of
the tips and taxable wages, including wages reported on
line 4a, qualified sick leave wages reported on line 4a(i),
and qualified family leave wages reported on line 4a(ii), for
an employee reach $142,800 for the year. Include all tips
your employees reported to you even if you were unable
to withhold the 6.2% employee share of social security
tax. You will reduce your total taxes by the amount of any
uncollected employee share of social security and
Medicare taxes on tips later on line 6; see Adjustments for
tips and group-term life insurance, later. Don’t include
service charges on line 4b. For details about the
difference between tips and service charges, see Rev.
Rul. 2012-18, 2012-26 I.R.B. 1032, available at
IRS.gov/irb/2012-26_IRB#RR-2012-18.
Your employee must report cash tips to you by the 10th
day of the month after the month the tips are received.
Cash tips include tips paid by cash, check, debit card, and
credit card. 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 4070-PR (available only in Pub.
1244-PR), or submit a written statement or electronic tip
record.
line 4b (column 1)
x 0.124
line 4b (column 2)
For more information on tips, see section 6 of Pub. 15,
section 5 of Pub. 80, or section 6 of Pub. 179.
4c. Taxable Medicare wages and tips. Enter all
wages, including qualified sick leave wages, qualified
family leave wages, and qualified wages (excluding
line 4c (column 1)
x 0.029
line 4c (column 2)
line 4d (column 1)
x 0.009
line 4d (column 2)
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.
6. Current Year's Adjustments
Enter tax amounts that result from current period
adjustments. Use a minus sign (if possible) to show an
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Instructions for Form 944 (2021)
adjustment that decreases the total taxes shown on line 5.
Otherwise, use parentheses.
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.
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' pay due to rounding
social security and Medicare taxes based on statutory
rates. This adjustment may be a positive or a negative
adjustment.
Adjustment for sick pay. If your third-party payer of
sick pay that isn't your agent (for example, an insurance
company) transfers the liability for the employer share of
the social security and Medicare taxes to you, enter a
negative adjustment on line 6 for the employee share of
social security and Medicare taxes that were withheld and
deposited by your third-party sick pay payer on the sick
pay. If you're the third-party sick pay payer and you
transferred the liability for the employer share of the social
security and Medicare taxes to the employer, enter a
negative adjustment on line 6 for any employer share of
these taxes required to be paid by the employer. The sick
pay should be included on line 4a, line 4c, and, if the
withholding threshold is met, line 4d.
No adjustment is reported on line 6 for sick pay that is
paid through a third party as an employer's agent. An
employer's agent bears no insurance risk and is
reimbursed on a cost-plus-fee basis for payment of sick
pay and similar amounts. If an employer uses an agent to
pay sick pay, the employer reports the wages on line 4a,
line 4c, and, if the withholding threshold is met, line 4d,
unless the employer has an agency agreement with the
third-party payer that requires the third-party payer to do
the collecting, reporting, and/or paying or depositing
employment taxes on the sick pay. See section 6 of Pub.
15-A for more information about sick pay reporting.
Adjustments for tips and group-term life insurance.
Enter a negative adjustment for:
• 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.
See the General Instructions for Forms W-2 and W-3
for information on how to report the uncollected employee
share of social security and Medicare taxes on tips and
group-term life insurance on Form W-2.
Prior year's adjustments. 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.
Instructions for Form 944 (2021)
7. Total Taxes After Adjustments
Combine the amounts shown on lines 5 and 6 and enter
the result on line 7.
8a. Qualified Small Business Payroll Tax Credit
for Increasing Research Activities
Enter the total amount of the credit from Form 8974,
line 12.
If you enter an amount on line 8a, you must attach
Form 8974. The December 2017 revision of Form
CAUTION 8974 instructs you to enter the amount from Form
8974, line 12, on Form 944, line 8. For 2021, the amount
from Form 8974, line 12, should be entered on Form 944,
line 8a.
!
Form 944 and these instructions use the terms
TIP “nonrefundable” and “refundable” when
discussing credits. The term “nonrefundable”
means the portion of the credit which is limited by law to
the amount of certain taxes. The term “refundable” means
the portion of the credit which is in excess of those taxes.
8b. Nonrefundable Portion of Credit for
Qualified Sick and Family Leave Wages for
Leave Taken Before April 1, 2021
Certain private employers with fewer than 500 employees
that provide paid sick leave under the EPSLA and/or
provide paid family leave under the Expanded FMLA are
eligible to claim the credit for qualified sick and family
leave wages for leave taken before April 1, 2021. For
purposes of this credit, qualified sick leave wages and
qualified family leave wages are wages for social security
and Medicare tax purposes, determined without regard to
the exclusions from the definition of employment under
sections 3121(b)(1)–(22), that an employer pays that
otherwise meet the requirements of the EPSLA or
Expanded FMLA. Enter the nonrefundable portion of the
credit for qualified sick and family leave wages from
Worksheet 1, Step 2, line 2j. The credit for qualified sick
and family leave wages consists of the qualified sick leave
wages, the qualified family leave wages, the qualified
health plan expenses allocable to those wages, and the
employer share of Medicare tax allocable to those wages.
The nonrefundable portion of the credit is limited to the
employer share of social security tax reported on Form
944, lines 4a and 4b, after that share is first reduced by
any credit claimed on Form 8974 for the qualified small
business payroll tax credit for increasing research
activities, any credit to be claimed on Form 5884-C for the
work opportunity credit for qualified tax-exempt
organizations hiring qualified veterans, and/or any credit
to be claimed on Form 5884-D for the disaster credit for
qualified tax-exempt organizations.
If you're a third-party payer of sick pay that isn't an
agent (for example, an insurance company) and
CAUTION you're claiming the credit for qualified sick and
family leave wages for amounts paid to your own
employees, the amount of the employer share of social
security tax reported on line 4a must be reduced by any
adjustment you make on line 6 for the employer share of
!
-15-
social security tax transferred to your client. See
Worksheet 1 to figure your credit.
Any credit in excess of the remaining amount of the
employer share of social security tax is refundable and
reported on Form 944, line 10d. For more information on
the credit for qualified sick and family leave wages, go to
IRS.gov/PLC.
Qualified health plan expenses allocable to qualified
sick and family leave wages. The credit for qualified
sick leave wages and qualified family leave wages is
increased to cover the qualified health plan expenses that
are properly allocable to the qualified leave wages for
which the credit is allowed. These qualified health plan
expenses are amounts paid or incurred by the employer
to provide and maintain a group health plan but only to the
extent such amounts are excluded from the employees’
income as coverage under an accident or health plan. The
amount of qualified health plan expenses generally
includes both the portion of the cost paid by the employer
and the portion of the cost paid by the employee with pretax salary reduction contributions. However, qualified
health plan expenses don’t include amounts that the
employee paid for with after-tax contributions. For more
information, go to IRS.gov/PLC.
You must include the full amount (both the
TIP nonrefundable and refundable portions) of the
credit for qualified sick and family leave wages in
your gross income for the tax year that includes the last
day of any calendar quarter in which a credit is allowed.
You can't use the same wages for the employee retention
credit and the credits for paid sick and family leave.
8c. Nonrefundable Portion of Employee
Retention Credit
Certain government entities are entitled to the
TIP credit for 2021, including (1) federal
instrumentalities described in section 501(c)(1)
and exempt from tax under section 501(a); and (2) any
government, agency, or instrumentality that is a college or
university or the principal purpose or function of the entity
is providing medical or hospital care.
Instructions for Qualified Wages Paid After
December 31, 2020, and Before July 1, 2021
Enter the nonrefundable portion of the employee retention
credit from Worksheet 2, Step 2, line 2h. The employee
retention credit is 70% of the qualified wages you paid to
your employees after December 31, 2020, and before July
1, 2021. Qualified wages include qualified health plan
expenses for the employee retention credit. The
nonrefundable portion of the credit is limited to the
employer share of social security tax reported on Form
944, lines 4a and 4b, after that share is first reduced by
any credit claimed on Form 8974 for the qualified small
business payroll tax credit for increasing research
activities, any credit to be claimed on Form 5884-C for the
work opportunity credit for qualified tax-exempt
organizations hiring qualified veterans, any credit to be
claimed on Form 5884-D for the disaster credit for
qualified tax-exempt organizations, and/or any credit
claimed for the nonrefundable portion of the credit for
qualified sick and family leave wages for leave taken
before April 1, 2021.
If you're a third-party payer of sick pay that isn't an
agent (for example, an insurance company) and
CAUTION you're claiming the employee retention credit for
amounts paid to your own employees, the amount of the
employer share of social security tax reported on line 4a
must be reduced by any adjustment you make on line 6
for the employer share of social security tax transferred to
your client. See Worksheet 2 to figure your credit.
!
Any credit in excess of the remaining amount of the
employer share of social security tax is refundable and
reported on Form 944, line 10e. For more information on
the employee retention credit for qualified wages paid
after December 31, 2020, and before July 1, 2021, see
Notice 2021-23.
Qualified wages for the employee retention credit
paid after December 31, 2020, and before July 1,
2021. The tax credit is equal to 70% of qualified wages
paid to employees after December 31, 2020, and before
July 1, 2021. Qualified wages, including qualified health
plan expenses, are limited to a maximum of $10,000 for
each employee in each of the first quarter and the second
quarter of 2021 ($20,000 in total). Qualified wages are
wages for social security and Medicare tax purposes (for
government entities, determined without regard to section
3121(b)(5), (6), (7), (10), or (13), except for services
performed by an inmate at a penal institution) paid to
certain employees during any period in a quarter in which
your business operations are fully or partially suspended
due to a governmental order or during a quarter in which
your gross receipts (within the meaning of section 448(c)
or, if you're a tax-exempt organization, section 6033) are
less than 80% of the gross receipts for the same calendar
quarter in calendar year 2019.
The wages and qualified health plan expenses
considered in calculating your credit depend on the size of
your workforce. Eligible employers that had an average
number of 500 or fewer full-time employees during 2019
count wages paid to all their employees and the qualified
health plan expenses paid or incurred for all employees
during any period in the first and second quarters of 2021,
in which business operations are fully or partially
suspended due to a governmental order or during a
quarter in which gross receipts are less than 80% of the
gross receipts for the same calendar quarter in calendar
year 2019. Eligible employers that had an average
number of more than 500 full-time employees in 2019 may
count only wages paid to employees for time that the
employees weren't providing services, and qualified
health plan expenses paid or incurred by the employer
allocable to the time those employees weren't providing
services, due to the suspension or decline in gross
receipts.
Qualified wages don't include wages for which the
employer receives a credit for qualified sick and family
leave, and any wages taken into account in determining
the employee retention credit can't be taken into account
as wages for purposes of the credits under sections 41,
45A, 45P, 45S, 51, and 1396. Employers can receive both
-16-
Instructions for Form 944 (2021)
a Small Business Interruption Loan under the PPP and the
employee retention credit; however, employers can't
receive both loan forgiveness and a credit for the same
wages.
Qualified health plan expenses for the employee
retention credit. Qualified wages for the employee
retention credit include qualified health plan expenses.
Qualified health plan expenses are amounts paid or
incurred by the employer to provide and maintain a group
health plan but only to the extent such amounts are
excluded from the employees' income as coverage under
an accident or health plan. The amount of qualified health
plan expenses taken into account in determining the
amount of qualified wages generally includes both the
portion of the cost paid by the employer and the portion of
the cost paid by the employee with pre-tax salary
reduction contributions. However, the qualified health plan
expenses shouldn't include amounts that the employee
paid for with after-tax contributions. Generally, qualified
health plan expenses are those which are allocable to an
employee (and to a period) in which your business
operations are fully or partially suspended due to a
governmental order or experience a decline in gross
receipts. The allocation will be treated as proper if made
on the basis of being pro rata among periods of coverage.
If you complete Worksheet 2 because you paid
TIP qualified wages for the employee retention credit
after December 31, 2020, and before July 1,
2021, and you also complete Worksheet 4 because you
paid qualified wages for the employee retention credit
after June 30, 2021, and before January 1, 2022, you
must add the amounts from Worksheet 2, Step 2, line 2h,
and Worksheet 4, Step 2, line 2h, together and report the
total on Form 944, line 8c.
Instructions for Qualified Wages Paid After June
30, 2021, and Before January 1, 2022
The Infrastructure Act amends section 3134 of the
Internal Revenue Code, as enacted under the
CAUTION ARP, to limit the availability of the employee
retention credit in the fourth quarter of 2021 to employers
that are recovery startup businesses, as defined in section
3134(c)(5). Thus, for wages paid after September 30,
2021, and before January 1, 2022, only the wages paid by
recovery startup businesses can be qualified wages as
described in these instructions. See Recovery startup
business, later, for more information about a recovery
startup business.
!
Enter the nonrefundable portion of the employee retention
credit from Worksheet 4, Step 2, line 2h. The employee
retention credit is 70% of the qualified wages you paid to
your employees after June 30, 2021, and before January
1, 2022. Qualified wages include qualified health plan
expenses for the employee retention credit. The
nonrefundable portion of the credit is limited to the
employer share of Medicare tax reported on Form 944,
line 4c, after that share is first reduced by any credit
claimed for the nonrefundable portion of the credit for
qualified sick and family leave wages for leave taken after
March 31, 2021.
Instructions for Form 944 (2021)
If you're a third-party payer of sick pay that isn't an
agent (for example, an insurance company) and
CAUTION you're claiming the employee retention credit for
amounts paid to your own employees, the amount of the
employer share of Medicare tax reported on line 4c must
be reduced by any adjustment you make on line 6 for the
employer share of Medicare tax transferred to your client.
See Worksheet 4 to figure your credit.
!
Any credit in excess of the remaining amount of the
employer share of Medicare tax is refundable and
reported on Form 944, line 10e. For more information on
the employee retention credit for qualified wages paid
after June 30, 2021, and before January 1, 2022, see
Notice 2021-49.
Qualified wages for the employee retention credit
paid after June 30, 2021, and before January 1, 2022.
The tax credit is equal to 70% of qualified wages paid to
employees after June 30, 2021, and before January 1,
2022. Qualified wages, including qualified health plan
expenses, are limited to a maximum of $10,000 for each
employee in each of the third quarter and the fourth
quarter of 2021 ($20,000 in total). Qualified wages are
wages for social security and Medicare tax purposes (for
government entities, determined without regard to section
3121(b)(5), (6), (7), (10), or (13), except for services
performed by an inmate at a penal institution) paid to
certain employees during any period in the third and fourth
quarters of 2021 in which your business operations are
fully or partially suspended due to a governmental order or
during a quarter in which your gross receipts (within the
meaning of section 448(c) or, if you're a tax-exempt
organization, section 6033) are less than 80% of the gross
receipts for the same calendar quarter in calendar year
2019; or wages paid by a recovery startup business. See
Recovery startup business, later, for more information
about a recovery startup business. A recovery startup
business must enter the total of any amounts included in
lines 8c and 10e on lines 25 and 26, as applicable, for
wages paid after June 30, 2021, and before January 1,
2022. The recovery startup business is limited to a
$50,000 employee retention credit in each of the third
quarter and fourth quarter of 2021 ($100,000 in total for
the year). For more information, see the instructions for
line 25 and line 26, later.
Unless you’re a severely financially distressed
employer, the wages and qualified health plan expenses
considered in calculating your credit depend on the size of
your workforce. Eligible employers that had an average
number of 500 or fewer full-time employees during 2019
count wages paid to all their employees and the qualified
health plan expenses paid or incurred for all employees
during any period in the third and fourth quarters of 2021,
in which business operations are fully or partially
suspended due to a governmental order or during a
quarter in which gross receipts are less than 80% of the
gross receipts in the same calendar quarter in calendar
year 2019. Eligible employers that had an average
number of more than 500 full-time employees in 2019 may
count only wages paid to employees for time that the
employees weren't providing services, and qualified
health plan expenses paid or incurred by the employer
-17-
allocable to the time those employees weren't providing
services, due to the suspension or decline in gross
receipts.
Qualified wages under section 3134 for the employee
retention credit don't include wages taken into account for
credits under sections 41, 45A, 45P, 45S, 51, 1396, 3131
(qualified sick leave wages for leave taken after March 31,
2021, and before October 1, 2021), and 3132 (qualified
family leave wages for leave taken after March 31, 2021,
and before October 1, 2021). Qualified wages also don't
include wages that were used as payroll costs in
connection with a Shuttered Venue Operator Grant under
section 324 of the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act; or a restaurant
revitalization grant under section 5003 of the ARP.
Employers can receive both a Small Business Interruption
Loan under the PPP and the employee retention credit;
however, employers can't receive both loan forgiveness
and a credit for the same wages.
Severely financially distressed employer. Severely
financially distressed employers are eligible employers
during the third quarter of 2021 whose gross receipts are
less than 10% of the gross receipts for the same calendar
quarter in calendar year 2019.
Recovery startup business. A recovery startup
business is an employer that:
• Began carrying on a trade or business after February
15, 2020;
• Had average annual gross receipts of $1 million or less
for the 3 tax years ending with the tax year before the
calendar quarter in which the employee retention credit is
claimed; and
• Only for credit claimed in the third quarter of 2021, isn't
otherwise eligible for the employee retention credit
because business operations weren’t fully or partially
suspended due to a governmental order or because gross
receipts (within the meaning of section 448(c) or, if you're
a tax-exempt organization, section 6033) weren’t less
than 80% of the gross receipts for the same calendar
quarter in calendar year 2019.
8d. Nonrefundable Portion of Credit for
Qualified Sick and Family Leave Wages for
Leave Taken After March 31, 2021, and Before
October 1, 2021
Employers with fewer than 500 employees and certain
governmental employers without regard to number of
employees (except for the federal government and its
agencies and instrumentalities unless described in
section 501(c)(1)) are entitled to a credit if they provide
paid sick leave to employees that otherwise meets the
requirements of the EPSLA, as amended for purposes of
the ARP, and/or provide paid family leave to employees
that otherwise meets the requirements under the
Expanded FMLA, as amended for purposes of the ARP,
for qualified sick and family leave wages for leave taken
after March 31, 2021, and before October 1, 2021. For
purposes of this credit, qualified sick leave wages and
qualified family leave wages are wages for social security
and Medicare tax purposes, determined without regard to
the exclusions from the definition of employment under
sections 3121(b)(1)–(22), that an employer pays that
otherwise meet the requirements of the EPSLA or
Expanded FMLA, as enacted under the FFCRA and
amended for purposes of the ARP. Enter the
nonrefundable portion of the credit for qualified sick and
family leave wages from Worksheet 3, Step 2, line 2r.
The credit for qualified sick and family leave wages
consists of the:
• Qualified sick leave wages and/or qualified family leave
wages;
• Qualified health plan expenses allocable to qualified
sick and family leave wages;
• Collectively bargained defined benefit pension plan
contributions, subject to the qualified leave wage
limitations, allocable to the qualified sick and family leave
wages;
• Collectively bargained apprenticeship program
contributions, subject to the qualified leave wage
limitations, allocable to the qualified sick and family leave
wages; and
• Employer share of social security and Medicare tax
allocable to the qualified sick and family leave wages.
The nonrefundable portion of the credit is limited to the
employer share of Medicare tax reported on Form 944,
line 4c. You can’t claim the credit if you provide the leave
in a manner that discriminates in favor of highly
compensated employees, full-time employees, or
employees on the basis of employment tenure when
making qualified sick and/or family leave available to
employees. See Highly compensated employee, later, for
the definition.
For qualified sick and family leave wages paid before
July 1, 2021, for leave taken after March 31, 2021, and
before July 1, 2021, the credit for qualified sick and family
leave wages is reduced by the amount of the credit
allowed under section 2301 of the CARES Act (for the
employee retention credit) or under section 41 (for the
credit for increasing research activities) with respect to
wages taken into account for determining both the credit
under section 2301 of the CARES Act or section 41 and
the credit for qualified sick and family leave wages; and
any wages taken into account in determining the credit for
qualified sick and family leave wages can't be taken into
account as wages for purposes of the credits under
sections 45A, 45P, 45S, and 51. For leave taken after
June 30, 2021, the credit for qualified sick and family
leave wages is reduced by the amount of the credit
allowed under section 41 (for the credit for increasing
research activities) with respect to wages taken into
account for determining the credit for qualified sick and
family leave wages; and any wages taken into account in
determining the credit for qualified sick and family leave
wages can't be taken into account as wages for purposes
of the credits under sections 45A, 45P, 45S, 51, and
3134. For leave taken after March 31, 2021, and before
October 1, 2021, qualified wages also don't include
wages that were used as payroll costs in connection with
a Shuttered Venue Operator Grant under section 324 of
the Economic Aid to Hard-Hit Small Businesses,
Nonprofits, and Venues Act; or a restaurant revitalization
grant under section 5003 of the ARP. Employers can
receive both a Small Business Interruption Loan under the
PPP and the credit for qualified sick and family leave
-18-
Instructions for Form 944 (2021)
wages; however, employers can't receive both loan
forgiveness and a credit for the same wages. The same
wages can’t be treated as both qualified sick leave wages
and qualified family leave wages.
If you're a third-party payer of sick pay that isn't an
agent (for example, an insurance company) and
CAUTION you're claiming the credit for qualified sick and
family leave wages for amounts paid to your own
employees, the amount of the employer share of
Medicare tax reported on line 4c must be reduced by any
adjustment you make on line 6 for the employer share of
Medicare tax transferred to your client. See Worksheet 3
to figure your credit.
!
Any credit in excess of the remaining amount of the
employer share of Medicare tax is refundable and
reported on Form 944, line 10f. For more information on
the credit for qualified sick and family leave wages, go to
IRS.gov/PLC.
Qualified health plan expenses allocable to qualified
sick and family leave wages. The credit for qualified
sick leave wages and qualified family leave wages is
increased to cover the qualified health plan expenses that
are properly allocable to the qualified leave wages for
which the credit is allowed. These qualified health plan
expenses are amounts paid or incurred by the employer
to provide and maintain a group health plan but only to the
extent such amounts are excluded from the employees'
income as coverage under an accident or health plan. The
amount of qualified health plan expenses generally
includes both the portion of the cost paid by the employer
and the portion of the cost paid by the employee with
pre-tax salary reduction contributions. However, qualified
health plan expenses don't include amounts that the
employee paid for with after-tax contributions. For more
information, go to IRS.gov/PLC.
Collectively bargained defined benefit pension plan
contributions. For purposes of qualified sick and family
leave wages, collectively bargained defined benefit
pension plan contributions are contributions during the
quarter for which you're claiming the credit that are:
• Paid or incurred by an employer on behalf of its
employees to a defined benefit plan, as defined in section
414(j), which meets the requirements of section 401(a);
• Made based on a pension contribution rate; and
• Required to be made under the terms of a collective
bargaining agreement in effect during the quarter for
which you're claiming the credit.
Pension contribution rate. The pension contribution
rate is the contribution rate that the employer is obligated
to pay under the terms of a collective bargaining
agreement to a defined benefit plan, as the rate is applied
to contribution base units, as defined by section 4001(a)
(11) of the Employee Retirement Income Security Act of
1974 (ERISA).
Allocation rules. The amount of collectively bargained
defined benefit pension plan contributions allocated to
qualified sick leave wages and/or qualified family leave
wages during the quarter for which you're claiming the
credit is the pension contribution rate (expressed as an
hourly rate) multiplied by the number of hours qualified
sick leave wages and/or qualified family leave wages
Instructions for Form 944 (2021)
were provided to employees covered under the collective
bargaining agreement during the quarter for which you're
claiming the credit.
Collectively bargained apprenticeship program contributions. For purposes of qualified sick and family
leave wages, collectively bargained apprenticeship
program contributions are contributions during the quarter
for which you're claiming the credit that are:
• Paid or incurred by an employer on behalf of its
employees to a registered apprenticeship program, which
is an apprenticeship registered under the National
Apprenticeship Act of August 16, 1937, and meets the
standards of Federal Regulations under subpart A of Part
29 and Part 30 of title 29;
• Made based on an apprenticeship program contribution
rate; and
• Required to be made under the terms of a collective
bargaining agreement in effect during the quarter for
which you're claiming the credit.
Apprenticeship program contribution rate. The
apprenticeship program contribution rate is the
contribution rate that the employer is obligated to pay
under the terms of a collective bargaining agreement for
benefits under a registered apprenticeship program, as
the rate is applied to contribution base units, as defined by
section 4001(a)(11) of ERISA.
Allocation rules. The amount of collectively bargained
apprenticeship program contributions allocated to
qualified sick leave wages and/or qualified family leave
wages during the quarter for which you're claiming the
credit is the apprenticeship program contribution rate
(expressed as an hourly rate) multiplied by the number of
hours qualified sick leave wages and/or qualified family
leave wages were provided to employees covered under
the collective bargaining agreement during the quarter for
which you're claiming the credit.
Highly compensated employee. A highly compensated
employee is an employee who meets either of the
following tests.
1. The employee was a 5% owner at any time during
the year or the preceding year.
2. The employee received more than $130,000 in pay
for the preceding year.
You can choose to ignore test (2) if the employee
wasn’t also in the top 20% of employees when ranked by
pay for the preceding year.
8e. Nonrefundable Portion of COBRA Premium
Assistance Credit
Enter the COBRA premium assistance that you provided
for periods of coverage beginning on or after April 1, 2021,
through periods of coverage beginning on or before
September 30, 2021. You can claim the credit for a period
of coverage once the individual elects COBRA
continuation coverage, and for any period of coverage
beginning after the election, as of the beginning of such
period of coverage for which the individual doesn't pay the
premiums for the coverage. Don't include any amount that
was included as qualified wages for the employee
retention credit or included as qualified health plan
expenses allocable to qualified sick and family leave
-19-
wages. Enter the nonrefundable portion of the COBRA
premium assistance credit from Worksheet 5, Step 2,
line 2g. See COBRA background next for more
information about COBRA.
COBRA background. The Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA) provides
certain former employees, retirees, spouses, former
spouses, and dependent children the right to temporary
continuation of health coverage at group rates. COBRA
generally covers multiemployer health plans and health
plans maintained by private-sector employers (other than
churches) with 20 or more full- and part-time employees.
Parallel requirements apply to these plans under ERISA.
Under the Public Health Service Act, COBRA
requirements also apply to health plans covering state or
local government employees. Similar requirements apply
under some state laws.
8f. Number of Individuals Provided COBRA
Premium Assistance
Enter the number of individuals provided COBRA
premium assistance for periods of coverage beginning on
or after April 1, 2021, through periods of coverage
beginning on or before September 30, 2021. Count each
assistance eligible individual that received assistance as
one individual, whether or not the COBRA coverage was
for insurance that covered more than one assistance
eligible individual. For example, if the coverage was for a
former employee, spouse, and two children, you would
include one individual on line 8f. Further, each individual is
reported only once per year. For example, an assistance
eligible individual that received assistance monthly is only
reported as one individual.
If you’re a semiweekly schedule depositor, you
must complete Form 945-A. If you fail to complete
CAUTION and submit Form 945-A, the IRS may assess
deposit penalties based on available information.
!
10a. Total Deposits for This Year
Enter your deposits for this year, including any
overpayment that you applied from filing Form 944-X,
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. Don't
include any amount you didn't deposit because you
reduced your deposits in anticipation of the credit for
qualified sick and family leave wages, the employee
retention credit, and/or the COBRA premium assistance
credit, as discussed in Notice 2020-22 and Notice
2021-24.
10d. Refundable Portion of Credit for Qualified
Sick and Family Leave Wages for Leave Taken
Before April 1, 2021
Add lines 8a, 8b, 8c, 8d, and 8e. Enter the total on line 8g.
Certain private employers with fewer than 500 employees
that provided paid sick leave under the EPSLA and/or
provided paid family leave under the Expanded FMLA are
eligible to claim the credit for qualified sick and family
leave wages. Enter the refundable portion of the credit for
qualified sick and family leave wages from Worksheet 1,
Step 2, line 2k. The credit for qualified sick and family
leave wages consists of the qualified sick leave wages,
the qualified family leave wages, the qualified health plan
expenses allocable to those wages, and the employer
share of Medicare tax allocable to those wages. The
refundable portion of the credit is allowed after the
employer share of social security tax is reduced to zero by
nonrefundable credits that are applied against the
employer share of social security tax.
9. Total Taxes After Adjustments and
Nonrefundable Credits
10e. Refundable Portion of Employee Retention
Credit
8g. Total Nonrefundable Credits
Subtract line 8g from line 7 and enter the result on line 9.
The amount entered on line 9 can't be less than zero.
• If line 9 is less than $2,500, you may pay the amount
with Form 944 or you may deposit the amount.
• If line 9 is $2,500 or more, you must generally deposit
your tax liabilities by EFT. However, if you deposited all
taxes accumulated in the first 3 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. Also see section 11 of Pub. 15, section 8 of
Pub. 80, or section 11 of Pub. 179 for information about
payments made under the accuracy of deposits rule. The
amount shown on line 9 must equal the amount shown on
line 13m or the “Total tax liability for the year” shown on
line M of Form 945-A, Annual Record of Federal Tax
Liability. For more information, see the line 13 instructions,
later.
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. See Notice 2020-22 and Notice 2021-24 for
information on reducing deposits for certain credits.
If you complete Worksheet 2 because you paid
TIP qualified wages for the employee retention credit
after December 31, 2020, and before July 1,
2021, and you also complete Worksheet 4 because you
paid qualified wages for the employee retention credit
after June 30, 2021, and before January 1, 2022, you
must add the amounts from Worksheet 2, Step 2, line 2i,
and Worksheet 4, Step 2, line 2i, together and report the
total on Form 944, line 10e.
Credit for qualified wages paid after December 31,
2020, and before July 1, 2021. Enter the refundable
portion of the employee retention credit from Worksheet 2,
Step 2, line 2i. The employee retention credit is 70% of the
qualified wages for the employee retention credit paid
after December 31, 2020, and before July 1, 2021. The
refundable portion of the credit is allowed after the
employer share of social security tax is reduced to zero by
nonrefundable credits that are applied against the
employer share of social security tax
!
CAUTION
-20-
The Infrastructure Act amends section 3134 of the
Internal Revenue Code, as enacted under the
ARP, to limit the availability of the employee
Instructions for Form 944 (2021)
retention credit in the fourth quarter of 2021 to employers
that are recovery startup businesses, as defined in section
3134(c)(5). Thus, for wages paid after September 30,
2021, and before January 1, 2022, only the wages paid by
recovery startup businesses can be qualified wages as
described in these instructions. See Recovery startup
business, earlier, for more information about a recovery
startup business.
Credit for qualified wages paid after June 30, 2021,
and before January 1, 2022. Enter the refundable
portion of the employee retention credit from Worksheet 4,
Step 2, line 2i. The employee retention credit is 70% of the
qualified wages for the employee retention credit paid
after June 30, 2021, and before January 1, 2022. The
refundable portion of the credit is allowed after the
employer share of Medicare tax is reduced to zero by
nonrefundable credits that are applied against the
employer share of Medicare tax.
10f. Refundable Portion of Credit for Qualified
Sick and Family Leave Wages for Leave Taken
After March 31, 2021, and Before October 1,
2021
Employers with fewer than 500 employees and certain
governmental employers without regard to number of
employees (except for the federal government and its
agencies and instrumentalities unless described in
section 501(c)(1)) are entitled to a credit if they provide
paid sick leave to employees that otherwise meets the
requirements of the EPSLA, as amended for purposes of
the ARP, and/or provide paid family leave to employees
that otherwise meets the requirements under the
Expanded FMLA, as amended for purposes of the ARP,
for leave taken after March 31, 2021, and before October
1, 2021. Enter the refundable portion of the credit for
qualified sick and family leave wages from Worksheet 3,
Step 2, line 2s. The refundable portion of the credit is
allowed after the employer share of Medicare tax is
reduced to zero by nonrefundable credits that are applied
against the employer share of Medicare tax.
10g. Refundable Portion of COBRA Premium
Assistance Credit
Enter the refundable portion of the COBRA premium
assistance credit from Worksheet 5, Step 2, line 2h. The
refundable portion of the credit is allowed after the
employer share of Medicare tax is reduced to zero by
nonrefundable credits that are applied against the
employer share of Medicare tax.
10h. Total Deposits and Refundable Credits
Add lines 10a, 10d, 10e, 10f, and 10g. Enter the total on
line 10h.
10i. Total Advances Received From Filing
Form(s) 7200 for the Year
Enter the total advances received from filing Form(s) 7200
for the year. If you filed Form 7200 but you haven’t
received the advance before filing Form 944, don’t include
that amount. Employers were eligible to file Form 7200 if
they paid qualified sick leave wages, qualified family leave
Instructions for Form 944 (2021)
wages, or qualified wages for the employee retention
credit, and/or provided COBRA premium assistance and
the amount of employment tax deposits they retained
wasn’t sufficient to cover their anticipated credits. Include
on line 10i any advance payment of the employee
retention credit that you received for the fourth quarter of
2021 even if you're no longer eligible for the employee
retention credit because you're not a recovery startup
business. See Advance payment of COVID-19 credits
extended, earlier, for more information.
Form 7200 may be filed up to the earlier of
TIP January 31, 2022, or the filing of Form 944 for the
year. However, if you file Form 7200 after the end
of the year, it's possible that it may not be processed prior
to the processing of the filed Form 944. Advance payment
requests on Form 7200 won't be paid after your Form 944
is processed. When the IRS processes Form 944, we will
correct the amount reported on line 10i to match the
amount of advance payments issued or contact you to
reconcile the difference before we finish processing Form
944.
10j. Total Deposits and Refundable Credits Less
Advances
Subtract line 10i from line 10h. Enter the result on line 10j.
11. Balance Due
If line 9 is more than line 10j, enter the difference on
line 11. Otherwise, see Overpayment, later. 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 and nonrefundable credits
(line 9) are less than $2,500. However, see If line 9 is
$2,500 or more under the instructions for line 9, Total
Taxes After Adjustments and Nonrefundable Credits,
earlier, for exceptions.
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 (see the Federal
Tax Deposit Requirements for Form 944 Filers chart,
earlier) or you're a monthly schedule depositor making a
payment under the accuracy of deposits rule, 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, go to 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
“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
If you're required to make deposits and instead
pay the taxes with Form 944, you may be subject
to a penalty.
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
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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/OPA.
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.
12. Overpayment
If line 10j is more than line 9, 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, we will generally apply the
overpayment to your next return. Regardless of any boxes
you check or don’t check on line 12, 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.
Part 2: Tell Us About Your Deposit
Schedule and Tax Liability for This
Year
13. Tax Liability
If line 9 is less than $2,500, check the first box on line 13
and go to line 14.
If line 9 is $2,500 or more, check the second box on
line 13. If you’re a monthly schedule depositor, enter your
tax liability for each month and figure the total liability for
the year. The amounts entered on line 13 are a summary
of your monthly tax liabilities, not a summary of deposits
you made. The IRS gets deposit data from EFTs. Enter
your tax liabilities in the month that corresponds to the
dates you paid wages to your employees, not the date
payroll liabilities were accrued or deposits were made. 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” FTD 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 after accounting
for your adjustments reported on line 6, 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.
The amount shown on line 13m must equal the
amount shown on line 9. If it doesn't, your tax
CAUTION deposits and payments may not be counted as
timely. Don't reduce your total liability reported on line 13
by the refundable portion of the credit for qualified sick
and family leave wages, the refundable portion of the
employee retention credit, or the refundable portion of the
COBRA premium assistance credit. Don't change your
current year tax liability reported on line 13 by adjustments
reported on any Forms 944-X.
!
If you’re a semiweekly schedule depositor or if you
became one because you accumulated $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
$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.
Adjusting tax liability for nonrefundable credits
claimed on lines 8a, 8b, 8c, 8d, and 8e. Monthly
schedule depositors and semiweekly schedule depositors
must account for nonrefundable credits claimed on lines
8a, 8b, 8c, 8d, and 8e when reporting their tax liabilities on
line 13 or Form 945-A. The total tax liability for the year
must equal the amount reported on line 9. Failure to
account for the nonrefundable credits on line 13 or Form
945-A may cause line 13 or Form 945-A to report more
than the total tax liability reported on line 9. Don't reduce
your monthly tax liability reported on lines 13a through 13l
or your daily tax liability reported on Form 945-A below
zero.
Qualified small business payroll tax credit for
increasing research activities (line 8a). The qualified
small business payroll tax credit for increasing research
activities is limited to the employer share of social security
tax on wages paid during the quarter that begins after the
income tax return electing the credit has been filed. In
completing line 13 or Form 945-A, you take into account
the payroll tax credit against your liability for the employer
share of social security tax starting with the first payroll
payment of the quarter that includes payments of wages
to your employees subject to social security tax. The
credit may be taken to the extent of the employer share of
social security tax on wages associated with the first
payroll payment, and then to the extent of the employer
share of social security tax associated with succeeding
payroll payments in the quarter until the credit is used.
Consistent with the entries on line 13 or Form 945-A, the
payroll tax credit should be taken into account in making
deposits of employment tax. If any payroll tax credit is
remaining at the end of the quarter that hasn’t been used
completely because it exceeds the employer share of
social security tax for the quarter, the excess credit may
be carried forward to the succeeding quarter and allowed
as a payroll tax credit for the succeeding quarter. The
payroll tax credit may not be taken as a credit against
income tax withholding, Medicare tax, or the employee
share of social security tax.
Also, the remaining payroll tax credit may not be
carried back and taken as a credit against wages paid
from preceding quarters that are reported on the same
Form 944 or on Forms 944 for preceding years. If an
amount of payroll tax credit is unused at the end of the
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Instructions for Form 944 (2021)
calendar year because it is in excess of the employer
share of social security tax on wages paid during the
applicable quarters in the calendar year, the remaining
payroll tax credit may be carried forward to the first
quarter of the succeeding calendar year as a payroll tax
credit against the employer share of social security tax on
wages paid in that quarter.
Example. Rose Co. is an employer with a calendar tax
year that filed its timely income tax return on April 15,
2021. Rose Co. elected to take the qualified small
business payroll tax credit for increasing research
activities on Form 6765. The third quarter of 2021 is the
first quarter that begins after Rose Co. filed the income tax
return making the payroll tax credit election. Therefore,
the payroll tax credit applies against Rose Co.'s share of
social security tax on wages paid to employees in the third
quarter of 2021. Rose Co. is a semiweekly schedule
depositor. Rose Co. completes Form 945-A by reducing
the amount of liability entered for the first payroll payment
in the third quarter of 2021 that includes wages subject to
social security tax by the lesser of (1) its share of social
security tax on the wages, or (2) the available payroll tax
credit. If the payroll tax credit elected is more than Rose
Co.'s share of social security tax on the first payroll
payment of the quarter, the excess payroll tax credit
would be carried forward to succeeding payroll payments
in the third quarter until it is used. If the amount of the
payroll tax credit exceeds Rose Co.'s share of social
security tax on wages paid to its employees in the third
quarter, the excess credit would be treated as a payroll
tax credit against its share of social security tax on wages
paid in the fourth quarter. If the amount of the payroll tax
credit remaining exceeded Rose Co.'s share of social
security tax on wages paid in the fourth quarter, it could be
carried forward and treated as a payroll tax credit for the
first quarter of 2022.
Nonrefundable portion of credit for qualified sick
and family leave wages for leave taken before April
1, 2021 (line 8b). The nonrefundable portion of the credit
for qualified sick and family leave wages for leave taken
before April 1, 2021, is limited to the employer share of
social security tax on wages paid during the year that is
remaining after that share is first reduced by any credit
claimed on Form 944, line 8a, for the qualified small
business payroll tax credit for increasing research
activities; any credit to be claimed on Form 5884-C,
line 11, for the work opportunity credit for qualified
tax-exempt organizations hiring qualified veterans; and/or
any credit to be claimed on Form 5884-D for the disaster
credit for qualified tax-exempt organizations. In
completing line 13 or Form 945-A, you take into account
the nonrefundable portion of the credit for qualified sick
and family leave wages against the liability for the first
payroll payment of the year, but not below zero. Then
reduce the liability for each successive payroll payment of
the year until the nonrefundable portion of the credit is
used. Any credit for qualified sick and family leave wages
for leave taken before April 1, 2021, that is remaining at
the end of the year because it exceeds the employer
share of social security tax is claimed on line 10d as a
refundable credit. The refundable portion of the credit
doesn’t reduce the liability reported on line 13 or Form
945-A.
Instructions for Form 944 (2021)
Example. Maple Co. is a monthly schedule depositor
that pays employees every Friday. In 2021, Maple Co.
had pay dates every Friday of 2021 starting January 1,
2021. Maple Co. paid qualified sick and family leave
wages on March 12 and March 19. The nonrefundable
portion of the credit for qualified sick and family leave
wages for the year is $300. On line 13, Maple Co. will use
the $300 to reduce the liability for the January 1 pay date,
but not below zero. If any nonrefundable portion of the
credit remains, Maple Co. applies it to the liability for the
January 8 pay date, then the January 15 pay date, and so
forth until the entire $300 is used.
Nonrefundable portion of employee retention
credit for wages paid after December 31, 2020, and
before July 1, 2021 (line 8c). The nonrefundable
portion of the employee retention credit is limited to the
employer share of social security tax on wages paid
during the year that is remaining after that share is first
reduced by any credit claimed on Form 944, line 8a, for
the qualified small business payroll tax credit for
increasing research activities; any credit to be claimed on
Form 5884-C, line 11, for the work opportunity credit for
qualified tax-exempt organizations hiring qualified
veterans; any credit to be claimed on Form 5884-D for the
disaster credit for qualified tax-exempt organizations;
and/or any credit claimed on Form 944, line 8b, for the
nonrefundable portion of the credit for qualified sick and
family leave wages for leave taken before April 1, 2021. In
completing line 13 or Form 945-A, you take into account
the nonrefundable portion of the employee retention credit
against the liability for the first payroll payment of the year,
but not below zero. Then reduce the liability for each
successive payroll payment of the year until the
nonrefundable portion of the credit is used. Any employee
retention credit that is remaining at the end of the year
because it exceeds the employer share of social security
tax is claimed on line 10e as a refundable credit. The
refundable portion of the credit doesn’t reduce the liability
reported on line 13 or Form 945-A.
Example. Maple Co. is a monthly schedule depositor
that pays employees every Friday. In 2021, Maple Co.
had pay dates every Friday of 2021 starting January 1,
2021. Maple Co. paid qualified wages for the employee
retention credit on May 7 and May 14. The nonrefundable
portion of the employee retention credit for the year is
$300. On line 13, Maple Co. will use the $300 to reduce
the liability for the January 1 pay date, but not below zero.
If any nonrefundable portion of the credit remains, Maple
Co. applies it to the liability for the January 8 pay date,
then the January 15 pay date, and so forth until the entire
$300 is used.
The Infrastructure Act amends section 3134 of the
Internal Revenue Code, as enacted under the
CAUTION ARP, to limit the availability of the employee
retention credit in the fourth quarter of 2021 to employers
that are recovery startup businesses, as defined in section
3134(c)(5). Thus, for wages paid after September 30,
2021, and before January 1, 2022, only the wages paid by
recovery startup businesses can be qualified wages as
described in these instructions. See Recovery startup
business, earlier, for more information about a recovery
startup business.
!
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If you're no longer eligible to claim the employee retention
credit for the fourth quarter of 2021, but you already
reduced your employment tax deposits in anticipation of
claiming the employee retention credit for the fourth
quarter of 2021, you must deposit the amounts initially
retained in anticipation of the employee retention credit on
or before the due date of the deposit for wages paid on
December 31, 2021 (regardless of whether wages are
actually paid on that date), based on how you choose to
report the tax liability resulting from the termination of the
employee retention credit on Form 945-A or, if a monthly
depositor, on Form 944, line 13l. In order to obtain the
relief under Notice 2021-65 and avoid an FTD penalty,
employers must deposit the amounts in accordance with
the due date or dates of the applicable day or days the tax
liabilities resulting from the termination of the employee
retention credit are reported on Form 945-A or Form 944,
line 13l, as applicable. However, this relief doesn't apply
to deposit payments that were untimely due to any
circumstance other than the change in eligibility for the
employee retention credit or to employers who reduced
deposits after December 20, 2021. See Notice 2021-65
for more information.
Nonrefundable portion of employee retention
credit for wages paid after June 30, 2021, and before
January 1, 2022 (line 8c). The nonrefundable portion of
the employee retention credit is limited to the employer
share of Medicare tax on wages paid during the year that
is remaining after that share is first reduced by any credit
claimed on Form 944, line 8d, for the nonrefundable
portion of the credit for qualified sick and family leave
wages for leave taken after March 31, 2021. In completing
line 13 or Form 945-A, you take into account the
nonrefundable portion of the employee retention credit
against the liability for the first payroll payment of the year,
but not below zero. Then reduce the liability for each
successive payroll payment in the year until the
nonrefundable portion of the credit is used. Any employee
retention credit that is remaining at the end of the year
because it exceeds the employer share of Medicare tax is
claimed on line 10e as a refundable credit. The refundable
portion of the credit doesn’t reduce the liability reported on
line 13 or Form 945-A.
Nonrefundable portion of credit for qualified sick
and family leave wages for leave taken after March
31, 2021, and before October 1, 2021 (line 8d). The
nonrefundable portion of the credit for qualified sick and
family leave wages for leave taken after March 31, 2021,
and before October 1, 2021, is limited to the employer
share of Medicare tax on wages paid during the year. In
completing line 13 or Form 945-A, you take into account
the nonrefundable portion of the credit for qualified sick
and family leave wages against the liability for the first
payroll payment of the year, but not below zero. Then
reduce the liability for each successive payroll payment in
the year until the nonrefundable portion of the credit is
used. Any credit for qualified sick and family leave wages
for leave taken after March 31, 2021, and before October
1, 2021, that is remaining at the end of the year because it
exceeds the employer share of Medicare tax is claimed on
line 10f as a refundable credit. The refundable portion of
the credit doesn’t reduce the liability reported on line 13 or
Form 945-A.
Nonrefundable portion of COBRA premium
assistance credit (line 8e). The nonrefundable portion
of the COBRA premium assistance credit is limited to the
employer share of Medicare tax on wages paid during the
year that is remaining after that share is first reduced by
any credit claimed on Form 944, line 8d, for the
nonrefundable portion of the credit for qualified sick and
family leave wages for leave taken after March 31, 2021;
and/or any credit claimed on Form 944, line 8c, for the
nonrefundable portion of the employee retention credit for
wages paid after June 30, 2021, and before January 1,
2022. In completing line 13 or Form 945-A, you take into
account the nonrefundable portion of the COBRA
premium assistance credit against the liability for the first
payroll payment of the year, but not below zero. Then
reduce the liability for each successive payroll payment in
the year until the nonrefundable portion of the credit is
used. Any COBRA premium assistance credit that is
remaining at the end of the year because it exceeds the
employer share of Medicare tax is claimed on line 10g as
a refundable credit. The refundable portion of the credit
doesn’t reduce the liability reported on line 13 or Form
945-A.
You may reduce your deposits by the amount of
TIP the nonrefundable and refundable portions of the
credit for qualified sick and family leave wages,
the nonrefundable and refundable portions of the
employee retention credit, and the nonrefundable and
refundable portions of the COBRA premium assistance
credit, as discussed earlier under Reducing your deposits
for COVID-19 credits.
Part 3: Tell Us About Your Business
In Part 3, answer only those questions that apply to your
business. If the questions don't apply, leave them blank
and go to Part 4.
14. If Your Business Has Closed...
If you permanently 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,
including information about attaching a statement to your
final return, see If Your Business Has Closed..., earlier.
Lines 15 Through 26
The amounts entered on lines 15 through 24 are
amounts that you use on the worksheets at the
CAUTION end of these instructions to figure certain credits.
If you’re claiming these credits, you must enter the
applicable amounts. Lines 25 and 26 apply only if you're
eligible for the employee retention credit in the third or
fourth quarter of 2021 solely because your business is a
recovery startup business.
!
15. Qualified Health Plan Expenses Allocable to
Qualified Sick Leave Wages for Leave Taken
Before April 1, 2021
Enter the qualified health plan expenses allocable to
qualified sick leave wages for leave taken before April 1,
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Instructions for Form 944 (2021)
2021. This amount is also entered on Worksheet 1, Step
2, line 2b.
16. Qualified Health Plan Expenses Allocable to
Qualified Family Leave Wages for Leave Taken
Before April 1, 2021
Enter the qualified health plan expenses allocable to
qualified family leave wages for leave taken before April 1,
2021. This amount is also entered on Worksheet 1, Step
2, line 2f.
!
CAUTION
The total amount reported on lines 17 and 18,
discussed next, can't exceed $10,000 per
employee each quarter.
17. Qualified Wages for the Employee Retention
Credit
Enter the qualified wages for the employee retention
credit (excluding the amount of any qualified health plan
expenses). For qualified wages paid after December 31,
2020, and before July 1, 2021, the applicable qualified
wages from the total entered on line 17 are entered on
Worksheet 2, Step 2, line 2a. For qualified wages paid
after June 30, 2021, and before January 1, 2022, the
applicable qualified wages from the total on line 17 are
entered on Worksheet 4, Step 2, line 2a.
18. Qualified Health Plan Expenses for the
Employee Retention Credit
Enter the qualified health plan expenses for the employee
retention credit. These expenses are generally those
which are allocable to an employee (and to a period) in
which your business operations are fully or partially
suspended due to a governmental order or experience a
decline in gross receipts. The allocation will be treated as
proper if made on the basis of being pro rata among
periods of coverage. For more information, go to IRS.gov/
ERC. For qualified health plan expenses allocable to
qualified wages paid after December 31, 2020, and before
July 1, 2021, the applicable qualified expenses from the
total entered on line 18 are entered on Worksheet 2, Step
2, line 2b. For qualified health plan expenses allocable to
qualified wages paid after June 30, 2021, and before
January 1, 2022, the applicable qualified expenses from
the total entered on line 18 are entered on Worksheet 4,
Step 2, line 2b.
19. Qualified Sick Leave Wages for Leave Taken
After March 31, 2021, and Before October 1,
2021
Enter the qualified sick leave wages you paid to your
employees for leave taken after March 31, 2021, and
before October 1, 2021, including any qualified sick leave
wages that were above the social security wage base and
any qualified sick leave wages excluded from the
definition of employment under sections 3121(b)(1)–(22).
See the instructions for line 8d, earlier, for more
information about qualified sick leave wages for leave
taken after March 31, 2021, and before October 1, 2021.
This amount is also entered on Worksheet 3, Step 2,
line 2a.
Instructions for Form 944 (2021)
20. Qualified Health Plan Expenses Allocable to
Qualified Sick Leave Wages Reported on
Line 19
Enter the qualified health plan expenses allocable to
qualified sick leave wages for leave taken after March 31,
2021, and before October 1, 2021. This amount is also
entered on Worksheet 3, Step 2, line 2b.
21. Amounts Under Certain Collectively
Bargained Agreements Allocable to Qualified
Sick Leave Wages Reported on Line 19
Enter the collectively bargained defined benefit pension
plan contributions and collectively bargained
apprenticeship program contributions allocable to
qualified sick leave wages for leave taken after March 31,
2021, and before October 1, 2021. This amount is also
entered on Worksheet 3, Step 2, line 2c.
22. Qualified Family Leave Wages for Leave
Taken After March 31, 2021, and Before October
1, 2021
Enter the qualified family leave wages you paid to your
employees for leave taken after March 31, 2021, and
before October 1, 2021, including any qualified family
leave wages that were above the social security wage
base and any qualified family leave wages excluded from
the definition of employment under sections 3121(b)(1)–
(22). See the instructions for line 8d, earlier, for more
information about qualified family leave wages for leave
taken after March 31, 2021, and before October 1, 2021.
This amount is also entered on Worksheet 3, Step 2,
line 2g.
23. Qualified Health Plan Expenses Allocable to
Qualified Family Leave Wages Reported on
Line 22
Enter the qualified health plan expenses allocable to
qualified family leave wages for leave taken after March
31, 2021, and before October 1, 2021. This amount is also
entered on Worksheet 3, Step 2, line 2h.
24. Amounts Under Certain Collectively
Bargained Agreements Allocable to Qualified
Family Leave Wages Reported on Line 22
Enter the collectively bargained defined benefit pension
plan contributions and collectively bargained
apprenticeship program contributions allocable to
qualified family leave wages for leave taken after March
31, 2021, and before October 1, 2021. This amount is also
entered on Worksheet 3, Step 2, line 2i.
25. If You’re Eligible for the Employee Retention
Credit in the Third Quarter Solely Because Your
Business Is a Recovery Startup Business . . .
If you're eligible for the employee retention credit in the
third quarter of 2021 solely because your business is a
recovery startup business, enter the total of any amounts
included on lines 8c and 10e that are attributable to
qualified wages paid after June 30, 2021, and before
October 1, 2021.
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26. If You’re Eligible for the Employee Retention
Credit in the Fourth Quarter Solely Because
Your Business Is a Recovery Startup
Business . . .
Under the Infrastructure Act, you must be a recovery
startup business to claim the employee retention credit for
qualified wages paid after September 30, 2021, and
before January 1, 2022 (fourth quarter 2021). If you're
eligible for the employee retention credit in the fourth
quarter of 2021 solely because your business is a
recovery startup business, enter the total of any amounts
included on lines 8c and 10e that are attributable to
qualified wages paid after September 30, 2021, and
before January 1, 2022.
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 five-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.
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.
You’re 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.
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 wants to terminate the
authorization, write to the IRS office for your location using
the Without a payment address under Where Should You
File, earlier.
Part 5: Sign Here (Approved Roles)
Complete all information and sign Form 944. The
following persons are authorized to sign the return for
each type of business entity.
• 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 partner, member, or
officer having knowledge of its affairs.
• 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.
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
IRS.gov/irb/2005-28_IRB#RP-2005-39.
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.
If you’re 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, go to
IRS.gov/PTIN. You can't use your PTIN in place of the EIN
of the tax preparation firm.
Generally, don't complete this section if you’re 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.
How To Get Forms, Instructions, and
Publications
You can view, download, or print most of the
forms, instructions, and publications you may
need at IRS.gov/Forms. Otherwise, you can go to
IRS.gov/OrderForms to place an order and have forms
mailed to you.
-26-
Instructions for Form 944 (2021)
Worksheet 1. Credit for Qualified Sick and Family Leave Wages for
Leave Taken Before April 1, 2021
Keep for Your Records
Determine how you will complete this worksheet.
If you paid qualified sick leave wages and/or qualified family leave wages for leave taken before April 1, 2021, complete Step 1 and Step 2.
Caution: Use Worksheet 3 to figure the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October
1, 2021.
Step 1.
1a
1b
1c
1d
1e
1f
1g
1h
1i
1j
1k
Step 2.
2a
2a(i)
2a(ii)
2a(iii)
2b
2c
2d
2e
2e(i)
2e(ii)
2e(iii)
2f
2g
2h
2i
2j
2k
Determine the employer share of social security tax after it is reduced by any credit claimed on Form 8974 and any
credit to be claimed on Form 5884-C and/or Form 5884-D
Enter the amount of social security tax from Form 944, Part 1, line 4a,
column 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a
Enter the amount of social security tax from Form 944, Part 1, line 4b,
column 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
Multiply line 1c by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d
If you’re a third-party payer of sick pay that isn't an agent and you're claiming credits
for amounts paid to your employees, enter the employer share of social security tax
included on Form 944, Part 1, line 6 (enter as a positive number) . . . . . . . . . . . . . . . . 1e
Employer share of social security tax. Subtract line 1e from line 1d . . . . . . . . . . .
1f
Enter the amount from Form 944, Part 1, line 8a (credit from Form 8974) . . . . . . . . . . 1g
Enter the amount to be claimed on Form 5884-C, line 11, for this year . . . . . . . . . . . . 1h
Enter the amount to be claimed on Form 5884-D, line 12, for this year . . . . . . . . . . . . 1i
Total nonrefundable credits already used against the employer share of social
security tax. Add lines 1g, 1h, and 1i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
Employer share of social security tax remaining. Subtract line 1j
from line 1f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1k
Figure the sick and family leave credit
Qualified sick leave wages reported on Form 944, Part 1, line 4a(i), column 1 . . . . . .
Qualified sick leave wages included on Form 944, Part 1, line 4c, but not included on
Form 944, Part 1, line 4a(i), column 1, because the wages reported on that line were
limited by the social security wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total qualified sick leave wages. Add lines 2a and 2a(i) . . . . . . . . . . . . . . . . . . . . . . .
Qualified sick leave wages excluded from the definition of employment under sections
3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified sick leave wages (Form 944, Part
3, line 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b, and 2c . . . . . . . .
Qualified family leave wages reported on Form 944, Part 1, line 4a(ii),
column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified family leave wages included on Form 944, Part 1, line 4c, but not included on
Form 944, Part 1, line 4a(ii), column 1, because the wages reported on that line were
limited by the social security wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total qualified family leave wages. Add lines 2e and 2e(i) . . . . . . . . . . . . . . . . . . . . .
Qualified family leave wages excluded from the definition of employment under
sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified family leave wages (Form 944,
Part 3, line 16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f, and 2g . . . . . . .
Credit for qualified sick and family leave wages. Add lines 2d and 2h . . . . . . . . .
Nonrefundable portion of credit for qualified sick and family leave wages for
leave taken before April 1, 2021. Enter the smaller of line 1k or line 2i. Enter this
amount on Form 944, Part 1, line 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Refundable portion of credit for qualified sick and family leave wages for leave
taken before April 1, 2021. Subtract line 2j from line 2i and enter this amount on
Form 944, Part 1, line 10d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instructions for Form 944 (2021)
-27-
2a
2a(i)
2a(ii)
2a(iii)
2b
2c
2d
2e
2e(i)
2e(ii)
2e(iii)
2f
2g
2h
2i
2j
2k
Worksheet 2. Employee Retention Credit for Qualified Wages Paid
After December 31, 2020, and Before July 1, 2021
Keep for Your Records
Determine how you will complete this worksheet.
If you paid qualified wages after December 31, 2020, and before July 1, 2021, for purposes of the employee retention credit, complete Step 1 and Step
2. If you're claiming a credit for qualified sick and family leave wages for leave taken before April 1, 2021, complete Worksheet 1 before starting this
worksheet. Caution: Use Worksheet 4 to figure the employee retention credit for qualified wages paid after June 30, 2021, and before January 1, 2022.
Step 1.
1a
1b
1c
1d
1e
1f
1g
1h
1i
1j
1k
1l
Step 2.
2a
2b
2c
2d
2e
2f
2g
2h
2i
Determine the employer share of social security tax after it is reduced by any credit claimed on Form 8974 and any credit
to be claimed on Form 5884-C and/or Form 5884-D
If you completed Worksheet 1 to claim a credit for qualified sick and family leave wages for
leave taken before April 1, 2021, enter the amount from Worksheet 1, Step 1, line 1k, and
go to Step 2. If you're not claiming a credit for qualified sick and family leave wages for
leave taken before April 1, 2021, continue by completing lines1b–1l below and then go to
Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1a
Enter the amount of social security tax from Form 944, Part 1, line 4a, column 2 . . . . . . . 1b
Enter the amount of social security tax from Form 944, Part 1, line 4b, column 2 . . . . . . . 1c
Add lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d
Multiply line 1d by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1e
If you’re a third-party payer of sick pay that isn't an agent and you're claiming credits for
amounts paid to your employees, enter the employer share of social security tax included
on Form 944, Part 1, line 6 (enter as a positive number) . . . . . . . . . . . . . . . . . . . . . . . . . 1f
Employer share of social security tax. Subtract line 1f from line 1e . . . . . . . . . . . . . .
1g
Enter the amount from Form 944, Part 1, line 8a (credit from Form 8974) . . . . . . . . . . . . . 1h
Enter the amount to be claimed on Form 5884-C, line 11, for this year . . . . . . . . . . . . . . . 1i
Enter the amount to be claimed on Form 5884-D, line 12, for this year . . . . . . . . . . . . . . . 1j
Total nonrefundable credits already used against the employer share of social
security tax. Add lines 1h, 1i, and 1j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1k
Employer share of social security tax remaining. Subtract line 1k from line 1g . . . . . .
1l
Figure the employee retention credit for qualified wages paid after December 31, 2020, and before July 1, 2021
Caution: The total amount included on lines 2a and 2b is limited to a maximum of $10,000
per employee in each of the first quarter and the second quarter of 2021 ($20,000 in total
for purposes of this worksheet).
Qualified wages (excluding qualified health plan expenses) for the employee retention
credit for qualified wages paid after December 31, 2020, and before July 1, 2021 (these
qualified wages are included in the total reported on Form 944, Part 3, line 17) . . . . . . . . 2a
Qualified health plan expenses allocable to qualified wages for the employee retention
credit for qualified wages paid after December 31, 2020, and before July 1, 2021 (these
qualified health plan expenses are included in the total reported on Form 944, Part 3,
line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b
Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c
Retention credit. Multiply line 2c by 70% (0.70) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2d
Enter the amount of the employer share of social security tax from Step 1, line 1a, or, if
applicable, Step 1, line 1l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e
Enter the nonrefundable portion of the credit for qualified sick and family leave wages for
leave taken before April 1, 2021, from Worksheet 1, Step 2, line 2j . . . . . . . . . . . . . . . . . 2f
Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g
Nonrefundable portion of employee retention credit. Enter the smaller of line 2d or
line 2g. Enter this amount on Form 944, Part 1, line 8c . . . . . . . . . . . . . . . . . . . . . . . . . .
2h
Refundable portion of employee retention credit. Subtract line 2h from line 2d and
enter this amount on Form 944, Part 1, line 10e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2i
-28-
Instructions for Form 944 (2021)
Worksheet 3. Credit for Qualified Sick and Family Leave Wages for
Leave Taken After March 31, 2021, and Before October 1, 2021
Keep for Your Records
Determine how you will complete this worksheet.
If you paid qualified sick leave wages and/or qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, complete
Step 1 and Step 2. Caution: Use Worksheet 1 to figure the credit for qualified sick and family leave wages for leave taken before April 1, 2021.
Step 1.
1a
1b
1c
1d
Step 2.
2a
2a(i)
2a(ii)
2a(iii)
2a(iv)
2b
2c
2d
2e
2f
2g
2g(i)
2g(ii)
2g(iii)
2g(iv)
2h
2i
2j
2k
2l
2m
2n
2o
2p
2q
2r
2s
Determine the employer share of Medicare tax
Enter the amount of Medicare tax from Form 944, Part 1, line 4c, column 2 . . . . . . . . .
Multiply line 1a by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you're a third-party payer of sick pay that isn't an agent and you're claiming credits for
amounts paid to your employees, enter the employer share of Medicare tax included on
Form 944, Part 1, line 6 (enter as a positive number) . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax. Subtract line 1c from line 1b . . . . . . . . . . . . . . . .
. . 1a
. . 1b
. . 1c
..
Figure the sick and family leave credit
Qualified sick leave wages for leave taken after March 31, 2021, and before October 1,
2021 (Form 944, Part 3, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified sick leave wages included on Form 944, Part 3, line 19, that were not included as
wages reported on Form 944, Part 1, lines 4a and 4c, because the qualified sick leave
wages were excluded from the definition of employment under sections 3121(b)(1)–
(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified sick leave wages included on Form 944, Part 3, line 19, that were not included as
wages reported on Form 944, Part 1, line 4a, because the qualified sick leave wages were
limited by the social security wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2a(iii) from line 2a(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified sick leave wages for leave taken after
March 31, 2021, and before October 1, 2021 (Form 944, Part 3, line 20) . . . . . . . . . . . . .
Amounts under certain collectively bargained agreements allocable to qualified sick leave
wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 944, Part
3, line 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of social security tax on qualified sick leave wages. Multiply line 2a(iv) by
6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by 1.45%
(0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified sick leave wages. Add lines 2a, 2b, 2c, 2d, and 2e . . . . . . . . . . . .
Qualified family leave wages for leave taken after March 31, 2021, and before October 1,
2021 (Form 944, Part 3, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified family leave wages included on Form 944, Part 3, line 22, that were not included
as wages reported on Form 944, Part 1, lines 4a and 4c, because the qualified family leave
wages were excluded from the definition of employment under sections 3121(b)(1)–
(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2g(i) from line 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified family leave wages included on Form 944, Part 3, line 22, that were not included
as wages reported on Form 944, Part 1, line 4a, because the qualified family leave wages
were limited by the social security wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2g(iii) from line 2g(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified health plan expenses allocable to qualified family leave wages for leave taken
after March 31, 2021, and before October 1, 2021 (Form 944, Part 3, line 23) . . . . . . . . .
Amounts under certain collectively bargained agreements allocable to qualified family
leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 944,
Part 3, line 24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of social security tax on qualified family leave wages. Multiply line 2g(iv)
by 6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer share of Medicare tax on qualified family leave wages. Multiply line 2g(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified family leave wages. Add lines 2g, 2h, 2i, 2j, and 2k . . . . . . . . . . . .
Credit for qualified sick and family leave wages. Add lines 2f and 2l . . . . . . . . . . . . .
Enter any employee retention credit claimed under section 2301 of the CARES Act (from
Worksheet 2, line 2d) with respect to qualified wages paid after March 31, 2021, and
before July 1, 2021, that were also taken into account for the credit for qualified sick and
family leave wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter any credit claimed under section 41 for increasing research activities with respect to
any wages taken into account for the credit for qualified sick and family leave
wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 2n and 2o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for qualified sick and family leave wages after adjusting for other credits.
Subtract line 2p from line 2m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nonrefundable portion of credit for qualified sick and family leave wages for leave
taken after March 31, 2021, and before October 1, 2021. Enter the smaller of line 1d or
line 2q. Enter this amount on Form 944, Part 1, line 8d . . . . . . . . . . . . . . . . . . . . . . . . . .
Refundable portion of credit for qualified sick and family leave wages for leave
taken after March 31, 2021, and before October 1, 2021. Subtract line 2r from line 2q
and enter this amount on Form 944, Part 1, line 10f . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instructions for Form 944 (2021)
-29-
1d
2a
2a(i)
2a(ii)
2a(iii)
2a(iv)
2b
2c
2d
2e
2f
2g
2g(i)
2g(ii)
2g(iii)
2g(iv)
2h
2i
2j
2k
2l
2m
2n
2o
2p
2q
2r
2s
Worksheet 4. Employee Retention Credit for Qualified Wages Paid
After June 30, 2021, and Before January 1, 2022
Keep for Your Records
Determine how you will complete this worksheet.
If you paid qualified wages after June 30, 2021, and before January 1, 2022, for purposes of the employee retention credit, complete Step 1 and Step 2.
If you're claiming a credit for qualified sick and family leave wages for leave taken after March 31, 2021, complete Worksheet 3 before starting this
worksheet. Caution: Use Worksheet 2 to figure the employee retention credit for qualified wages paid after December 31, 2020, and before July 1,
2021.
Step 1.
1a
1b
1c
1d
1e
Step 2.
2a
2b
2c
2d
2e
2f
2g
2h
2i
Determine the employer share of Medicare tax
If you completed Worksheet 3 to claim a credit for qualified sick and family leave wages for
leave taken after March 31, 2021, enter the amount from Worksheet 3, Step 1, line 1d, and
go to Step 2. If you're not claiming a credit for qualified sick and family leave wages for
leave taken after March 31, 2021, continue by completing lines 1b–1e below and then go
to Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount of Medicare tax from Form 944, Part 1, line 4c, column 2 . . . . . . . . . . . 1b
Multiply line 1b by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
If you're a third-party payer of sick pay that isn't an agent and you're claiming credits for
amounts paid to your employees, enter the employer share of Medicare tax included on
Form 944, Part 1, line 6 (enter as a positive number) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d
Employer share of Medicare tax. Subtract line 1d from line 1c . . . . . . . . . . . . . . . . . .
1a
1e
Figure the employee retention credit for qualified wages paid after June 30, 2021, and before January 1, 2022
Caution: Under the Infrastructure Act, you must be a recovery startup business to claim
the employee retention credit for qualified wages paid after September 30, 2021, and
before January 1, 2022 (fourth quarter 2021). The total amount included on lines 2a and 2b
is limited to a maximum of $10,000 per employee in each of the third quarter and the fourth
quarter of 2021 ($20,000 in total for purposes of this worksheet).
Qualified wages (excluding qualified health plan expenses) for the employee retention
credit for qualified wages paid after June 30, 2021, and before January 1, 2022 (these
qualified wages are included in the total reported on Form 944, Part 3, line 17) . . . . . . . . 2a
Qualified health plan expenses allocable to qualified wages for the employee retention
credit for qualified wages paid after June 30, 2021, and before January 1, 2022 (these
qualified health plan expenses are included in the total reported on Form 944, Part 3,
line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b
Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c
Retention credit. Multiply line 2c by 70% (0.70). If you qualify for the employee retention
credit solely because your business is a recovery startup business, don't enter more than
$50,000 for each of the third quarter and fourth quarter of 2021 ($100,000 in total for the
year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2d
Enter the amount of the employer share of Medicare tax from Step 1, line 1a, or, if
applicable, Step 1, line 1e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e
Enter the amount of the nonrefundable portion of the credit for qualified sick and family
leave wages for leave taken after March 31, 2021, from Worksheet 3, Step 2,
line 2r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f
Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g
Nonrefundable portion of employee retention credit. Enter the smaller of line 2d or
line 2g. Enter this amount on Form 944, Part 1, line 8c . . . . . . . . . . . . . . . . . . . . . . . . . .
2h
Refundable portion of employee retention credit. Subtract line 2h from line 2d and
enter this amount on Form 944, Part 1, line 10e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2i
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Instructions for Form 944 (2021)
Keep for Your Records
Worksheet 5. COBRA Premium Assistance Credit
Determine how you will complete this worksheet.
If you provided COBRA premium assistance, complete Step 1 and Step 2. If you're claiming the credit for qualified sick and family leave wages for leave
taken after March 31, 2021, complete Worksheet 3 before starting this worksheet. If you're also claiming an employee retention credit for qualified
wages paid after June 30, 2021, and before January 1, 2022, complete Worksheet 4 before starting this worksheet.
Step 1.
1a
1b
1c
1d
1e
Step 2.
2a
2b
2c
2d
2e
2f
2g
2h
Determine the employer share of Medicare tax
If you completed Worksheet 3 or Worksheet 4, enter the amount listed on Worksheet 3,
line 1d, or Worksheet 4, line 1a or 1e (as applicable). If you're not claiming either of these
credits this year, continue by completing lines 1b–1e below and then go to Step 2 . . . . . .
Enter the amount of Medicare tax from Form 944, Part 1, line 4c, column 2 . . . . . . . . . . . 1b
Multiply line 1b by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
If you’re a third-party payer of sick pay that isn't an agent and you're claiming credits for
amounts paid to your employees, enter the employer share of Medicare tax included on
Form 944, Part 1, line 6 (enter as a positive number) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d
Employer share of Medicare tax. Subtract line 1d from line 1c . . . . . . . . . . . . . . . . . .
Figure the COBRA premium assistance credit
Enter the COBRA premium assistance that you provided for periods of coverage beginning
on or after April 1, 2021, through periods of coverage beginning on or before September
30, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount of the employer share of Medicare tax from Step 1, line 1a, or, if
applicable, Step 1, line 1e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount of the nonrefundable portion of the credit for qualified sick and family
leave wages for leave taken after March 31, 2021, from Worksheet 3, Step 2,
line 2r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount of the nonrefundable portion of the employee retention credit from
Worksheet 4, Step 2, line 2h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other nonrefundable credits used against the employer share of Medicare tax. Add
lines 2c and 2d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2e from line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nonrefundable portion of the COBRA premium assistance credit. Enter the smaller
of line 2a or line 2f. Enter this amount on Form 944, Part 1, line 8e . . . . . . . . . . . . . . . . .
Refundable portion of the COBRA premium assistance credit. Subtract line 2g from
line 2a and enter this amount on Form 944, Part 1, line 10g . . . . . . . . . . . . . . . . . . . . . .
Instructions for Form 944 (2021)
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1a
1e
2a
2b
2c
2d
2e
2f
2g
2h
| File Type | application/pdf |
| File Title | 2021 Instructions for Form 944 |
| Subject | Instructions for Form 944, Employer's ANNUAL Federal Tax Return |
| Author | W:CAR:MP:FP |
| File Modified | 2021-12-21 |
| File Created | 2021-12-17 |