Employer's Quarterly Federal Tax Return

2024

Instructions for Form 944
Employer's ANNUAL Federal Tax Return
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
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 2024. The social
security tax rate is 6.2% each for the employee and
employer. The social security wage base limit is $168,600.
The Medicare tax rate is 1.45% each for the employee
and employer, unchanged from 2023. There is no wage
base limit for Medicare tax.
Social security and Medicare taxes apply to the wages
of household workers you pay $2,700 or more in cash
wages in 2024. Social security and Medicare taxes apply
to election workers who are paid $2,300 or more in cash
or an equivalent form of compensation in 2024.
The COVID-19 related credit for qualified sick and
family leave wages is limited to leave taken after
March 31, 2020, and before October 1, 2021, and may
no longer be claimed on Form 944. Generally, the
credit for qualified sick and family leave wages, as
enacted under the Families First Coronavirus Response
Act (FFCRA) and amended and extended by the
COVID-related Tax Relief Act of 2020, for leave taken after
March 31, 2020, and before April 1, 2021, and the credit
for qualified sick and family leave wages under sections
3131, 3132, and 3133 of the Internal Revenue Code, as
enacted under the American Rescue Plan Act of 2021 (the
ARP), for leave taken after March 31, 2021, and before
October 1, 2021, have expired. However, employers that
pay qualified sick and family leave wages in 2024 for leave
taken after March 31, 2020, and before October 1, 2021,
are eligible to claim a credit for qualified sick and family
leave wages in 2024. Effective for tax periods beginning
after December 31, 2023, the lines used to claim the
credit for qualified sick and family leave wages have been
removed from Form 944 because it would be extremely
rare for an employer to pay wages in 2024 for qualified
sick and family leave taken after March 31, 2020, and
before October 1, 2021. Instead, if you're eligible to claim
the credit for qualified sick and family leave wages
because you paid the wages in 2024 for an earlier
applicable leave period, file Form 944-X, Adjusted
Employer's ANNUAL Federal Tax Return or Claim for
Refund, after filing Form 944, to claim the credit for
qualified sick and family leave wages paid in 2024. Filing a
Form 944-X before filing a Form 944 for the year may
result in errors or delays in processing your Form 944-X.
Nov 7, 2024

Reminders
Unless otherwise noted, references throughout

TIP these instructions to Form W-2 include Forms

W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/
W-2PR; references to Form W-2c include Form
499R-2c/W-2cPR; references to Form W-3 include Forms
W-3SS and W-3 (PR); and references to Form W-3c
include Form W-3C (PR).
Qualified small business payroll tax credit for increasing research activities. For tax years beginning
before January 1, 2023, a qualified small business may
elect to claim up to $250,000 of its credit for increasing
research activities as a payroll tax credit. The Inflation
Reduction Act of 2022 (the IRA) increases the election
amount to $500,000 for tax years beginning after
December 31, 2022. 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 payroll taxes is allowed in the first
calendar quarter beginning after the date that the qualified
small business filed its income tax return. The election
and determination of the credit amount that will be used
against the employer’s payroll taxes are made on Form
6765, Credit for Increasing Research Activities. The
amount from Form 6765 must then be reported on Form
8974, Qualified Small Business Payroll Tax Credit for
Increasing Research Activities.
Starting in the first quarter of 2023, the payroll tax credit
is first used to reduce the employer share of social
security tax up to $250,000 per quarter and any remaining
credit reduces the employer share of Medicare tax for the
quarter. Any remaining credit, after reducing the employer
share of social security tax and the employer share of
Medicare tax, is then carried forward to the next quarter.
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 or, if applicable, line 17, is reported on
line 8. For more information about the payroll tax credit,
see the Instructions for Form 8974 and go to IRS.gov/
ResearchPayrollTC. Also see Adjusting tax liability for the
qualified small business payroll tax credit for increasing
research activities (line 8), later.
Forms 941-SS and 941-PR discontinued after 2023.
Form 941-SS, Employer's QUARTERLY Federal Tax
Return—American Samoa, Guam, the Commonwealth of
the Northern Mariana Islands, and the U.S. Virgin Islands;
and Form 941-PR, Planilla para la Declaración Federal
TRIMESTRAL del Patrono, were discontinued after the
fourth quarter of 2023. Instead, employers in the U.S.
territories who weren't notified to file Form 944 file Form
941 or, if you prefer your form and instructions in Spanish,
you can file new Form 941 (sp).

Instructions for Form 944 (2024) Catalog Number 39820A
Department of the Treasury Internal Revenue Service www.irs.gov

Pubs. 51, 80, and 179 discontinued after 2023. Pub.
51, Agricultural Employer's Tax Guide; Pub. 80, Federal
Tax Guide for Employers in the U.S. Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands; and Pub. 179, Guía Contributiva Federal
para Patronos Puertorriqueños, were discontinued for tax
years beginning after December 31, 2023. Instead,
information specific to agricultural employers and
employers in the U.S. territories is included in Pub. 15,
beginning with the Pub. 15 for use in 2024. For tax year
2024, there is a new Pub. 15 (sp) that is a
Spanish-language version of Pub. 15.
Forms in Spanish. Many forms and instructions
discussed in these instructions have Spanish-language
versions available for employers and employees. Some
examples include Form 941 (sp), Form 944 (sp), Form
SS-4 (sp), Form W-4 (sp), and Form W-9 (sp). Although
these instructions don't reference Spanish-language
forms and instructions in each instance that one is
available, you can see Pub. 15 (sp) and go to IRS.gov to
determine if a Spanish-language version is available.
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 payroll tax credit for certain tax-exempt
organizations affected by certain qualified disasters not
related to COVID-19. This credit is claimed on 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. For more information about this credit, go
to IRS.gov/Form5884D.
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 quarterly Forms 941 instead of Form 944. Employers required to file Form 944,
who want to file quarterly Forms 941 instead, must contact
the IRS to request to file quarterly Forms 941 and opt out
of filing Form 944. See Requesting To File Quarterly
Forms 941 Instead of Form 944, later.
Correcting a previously filed Form 944. If you discover
an error on a previously filed Form 944, make the
correction using Form 944-X. Form 944-X is filed
separately from Form 944. For more information, see 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 the
Electronic Federal Tax Payment System (EFTPS). If you
don't want to use EFTPS, you can arrange for your tax
professional, financial institution, payroll service, or other
trusted third party to make electronic deposits on your
behalf. Also, you may arrange for your financial institution
to initiate a same-day wire payment on your behalf.
EFTPS is a free service provided by the Department of the
Treasury. Services provided by your tax professional,
2

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. 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
• 800-244-4829 (Spanish)
• 303-967-5916 if you're outside the United States (toll
call)
To contact EFTPS using Telecommunications Relay
Services (TRS) for people who are deaf, hard of hearing,
or have a speech disability, dial 711 and then provide the
TRS assistant with the 800-555-4477 number above or
800-733-4829.
Additional information about EFTPS is also available in
Pub. 966.

!

CAUTION

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

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.
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 and secure 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. The Social
Security Administration's Business Services Online (BSO)
is an independent program from the Government of
Puerto Rico electronic filing system. Employers in Puerto
Instructions for Form 944 (2024)

Rico must go to Hacienda.pr.gov for additional
information.
If you’re filing your tax return or paying your federal
taxes electronically, a valid employer identification
CAUTION number (EIN) is required at the time the return is
filed or the payment is made. If a valid EIN isn't provided,
the return or payment won't be processed. This may result
in penalties. 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.
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.
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.
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.
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.
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
Instructions for Form 944 (2024)

these children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you
recognize a child.

General Instructions
Purpose of Form 944

Form 944 is designed so the smallest employers (those
whose annual liability for social security, Medicare, and
withheld federal income taxes is $1,000 or less) will file
and pay these taxes only once a year instead of every
quarter. These instructions give you some background
information about Form 944. They tell you who must file
Form 944, how to complete it line by line, and when and
where to file it.
If you want more in-depth information about payroll tax
topics relating to Form 944, see Pub. 15 and go to
IRS.gov/EmploymentTaxes.
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.
References to federal income tax withholding
don't apply to employers in American Samoa,
CAUTION Guam, the Commonwealth of the Northern
Mariana Islands (CNMI), the U.S. Virgin Islands (USVI),
and Puerto Rico, unless you have employees who are
subject to U.S. income tax withholding. Contact your local
tax department for information about income tax
withholding.

!

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?
In general, if the IRS has notified you to file Form 944, you
must file Form 944 instead of quarterly Forms 941 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.
3

Exceptions

the United States) between January 1, 2025, and April 1,
2025, or send a written request postmarked between
January 1, 2025, and March 17, 2025.

• Household employers. If you employ only household

Where to send written requests. Written requests
should be sent to:

Special rules apply to some employers. The following
employers can’t file Form 944.
employees, don't file Form 944. For more information, see
Pub. 926 and Schedule H (Form 1040).
• Agricultural employers. If you employ only agricultural
employees, don't file Form 944. For more information, see
Pub. 15 and Form 943.
• Employers who are notified by the IRS to file
quarterly Forms 941. This includes if you requested and
received written confirmation from the IRS that your filing
requirement was changed from Form 944 to Form 941.
• Employers who aren’t notified to file Form 944. 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 quarterly
Forms 941, see Requesting To File Form 944 in 2025
Instead of Quarterly Forms 941, later.
If the IRS notified you in writing to file Form 944,
you must file Form 944 (and not quarterly Forms
CAUTION 941) even if your tax liability for 2024 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
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).

!

Requesting To File Form 944 in 2025 Instead of
Quarterly Forms 941

If you haven't received notification to file Form 944 for
2025 but estimate your employment tax liability for
calendar year 2025 will be $1,000 or less and would like to
file Form 944 instead of Forms 941, you can contact the
IRS to request to file Form 944 for 2025. 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. To file
Form 944 for calendar year 2025, you must call the IRS at
800-829-4933 (267-941-1000 (toll call) if you're outside
the United States) between January 1, 2025, and April 1,
2025, or send a written request postmarked between
January 1, 2025, and March 17, 2025.
The mailing addresses for written requests are
provided under Requesting To File Quarterly Forms 941
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
quarterly Forms 941 for calendar year 2025.

Requesting To File Quarterly Forms 941 Instead
of Form 944

You must file Form 944 if the IRS has notified you to do so,
unless the IRS notifies you to file quarterly Forms 941
instead, or you contact the IRS to request to file those
forms. To request to file quarterly Forms 941 to report your
social security, Medicare, and withheld federal income
taxes for the 2025 calendar year, call the IRS at
800-829-4933 (267-941-1000 (toll call) if you're outside
4

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

or

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 2025. 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.

What if You Reorganized or Closed Your
Business?
If You Sold or Transferred Your Business...
If you sold or transferred your business in 2024, you and
the new owner must each file a Form 944 or 941,
whichever is required, for the year in which the transfer
occurred. Report only the wages you paid.
When two businesses merge, the continuing firm must
file a return for the year in which the change took place
and the other firm should file a final return.
Changing from one form of business to another—such
as from a sole proprietorship to a partnership or
corporation—is considered a transfer. If a transfer occurs,
you may need a new EIN. See Pub. 1635 and section 1 of
Pub. 15 for more information.
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.
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
Instructions for Form 944 (2024)

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.

When Must You File?
For 2024, file Form 944 by January 31, 2025. 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,
2025.
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.

How Should You Complete Form 944?
Enter your EIN, name, and address in the spaces
provided. Also enter your name and EIN at the top of
page 2. Don't use your social security number (SSN) or
individual taxpayer identification number (ITIN). Generally,
enter the business (legal) name that you used when you
applied for your EIN. For example, if you’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.
If you use a tax preparer to complete Form 944, make
sure the preparer uses your correct business name and
EIN.
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, all 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 going to IRS.gov/EIN. You may also apply for an EIN by
Instructions for Form 944 (2024)

faxing or mailing Form SS-4 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 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.

!

Always be sure the EIN on the form you file exactly

TIP 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.
On Form W-3 (PR), “Other EIN used this year” is reported
in box f. Filing a Form 944 with an incorrect EIN or using
another business's EIN may result in penalties and delays
in processing your return.
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.

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.
• 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, your EIN, “Form 944,” and the tax
period on all attachments.
• Staple multiple sheets in the upper left corner when
filing.
Complete both pages. You must complete both pages
of Form 944 and sign on page 2. Failure to do so may
delay processing of your return.
5

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

To notify employees about the EIC, you must give the
employees, except for employees in American Samoa,
Guam, Puerto Rico, the CNMI, and the USVI, 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 With Form W-3

The IRS matches amounts reported on your Form 944
with Form W-2 amounts totaled on your Form W-3. If the
amounts don't agree, you may be contacted by the IRS or
the Social Security Administration (SSA). The following
amounts are reconciled.

•
•
•
•

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

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

With a payment . . .

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,
including employers in American
Samoa, Guam, the CNMI, the
USVI, and Puerto Rico

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

Federal income tax withholding, if applicable.
Social security wages.
Social security tips.
Medicare wages and tips.

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 SSA.

For more information, see section 12 of Pub. 15.

Must You Deposit Your Taxes?

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 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.
Without a
payment . . .

If you’re in . . .
Connecticut
Delaware
District of
Columbia
Georgia
Illinois
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
New Hampshire

6

Without a
payment . . .

If you’re in . . .

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

With a payment . . .
Internal Revenue
Service
P.O. Box 806532
Cincinnati, OH
45280-6532

!

If your total taxes after adjustments and nonrefundable
credits (Form 944, line 9) are 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.
The $2,500 threshold at which federal tax deposits
must be made is different from the amount of annual tax
liability ($1,000 or less) that makes an employer eligible to
file Form 944. Form 944 filers whose businesses grow
during the year may be required to make federal tax
deposits (see chart next), but they will still file Form 944
for the year.

Instructions for Form 944 (2024)

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.

See section 11 of Pub. 15 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 filers, so
your deposit schedule may have changed. For more
information, see section 11 of Pub. 15. 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. The $100,000 tax liability
threshold requiring a next-day deposit is determined
before you consider any reduction of your liability for
nonrefundable credits.

What About Penalties and Interest?
Avoiding Penalties and Interest

You can avoid paying penalties and interest if you do all of
the following.

•
•
•
•
•
•

Deposit or pay your taxes when they are due.
File your fully completed Form 944 on time.
Report your tax liability accurately.
Submit valid checks for tax payments.
Give accurate Forms W-2 to employees.
File Form W-3 and Copies A of Forms W-2 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 for details. Use Form 843 to request
abatement of assessed penalties or interest. Don't request
abatement of assessed penalties or interest on any other
form.
Instructions for Form 944 (2024)

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. 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.

!

Specific Instructions
Part 1: Answer These Questions for
This Year
Employers in American Samoa, Guam, the CNMI,

TIP the USVI, and Puerto Rico may skip lines 1 and 2,

unless you have employees who are subject to
U.S. income tax withholding.

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, 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.

7

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.
References to federal income tax withholding
don't apply to employers in American Samoa,
CAUTION Guam, the CNMI, the USVI, 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. 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, sick pay, and taxable fringe benefits subject to
social security taxes that you paid to your employees
during the year. For this purpose, sick pay includes
payments made by an insurance company to your
employees for which you received timely notice from the
insurance company. See section 6 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.
For 2024, the rate of social security tax on taxable
wages is 6.2% (0.062) each for the employer and
employee. Stop paying social security tax on and entering
an employee's wages on line 4a when the employee's
taxable wages and tips reach $168,600 for the year.
However, continue to withhold income and Medicare taxes
for the whole year on all wages and tips, even when the
social security wage base of $168,600 has been reached.
line 4a (column 1)
x  0.124
line 4a (column 2)

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, for an employee reaches $168,600 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.
8

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 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.
4c. Taxable Medicare wages and tips. Enter all
wages, tips, sick pay, and taxable fringe benefits that are
subject to Medicare tax. Unlike social security wages,
there is no limit on the amount of wages subject to
Medicare tax. 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. Include all tips your employees
reported during the year, even if you were unable to
withhold the employee tax of 1.45%.
line 4c (column 1)
x   0.029
line 4c (column 2)

4d. Taxable wages & tips subject to Additional
Medicare Tax withholding. Enter all wages, tips, sick
pay, and taxable fringe benefits that are subject to
Additional Medicare Tax withholding. You’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 section 15 of Pub. 15. For more
information on Additional Medicare Tax, go to IRS.gov/
ADMTfaqs. 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%.

Instructions for Form 944 (2024)

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
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.
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:

Instructions for Form 944 (2024)

• 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.

7. Total Taxes After Adjustments

Combine the amounts shown on lines 5 and 6 and enter
the result on line 7.

8. Qualified Small Business Payroll Tax Credit
for Increasing Research Activities

Enter the amount of the credit from Form 8974, line 12 or,
if applicable, line 17.

!

If you enter an amount on line 8, you must attach
Form 8974.

CAUTION

9. Total Taxes After Adjustments and
Nonrefundable Credits

Subtract line 8 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 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.
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.

!

10. Total Deposits for This Year

Enter your deposits for this year, including any
overpayment that you applied from filing Form 944-X,
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.
9

11. Balance Due

If line 9 is more than line 10, enter the difference on
line 11. Otherwise, see the instructions for line 12, 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, 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
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 10 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
10

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” failure-to-deposit penalty. See
section 11 of Pub. 15. 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 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.
Don't complete lines 13a–13m if you file Form 945-A.
Adjusting tax liability for the qualified small business
payroll tax credit for increasing research activities
(line 8). Monthly schedule depositors and semiweekly
schedule depositors must account for the qualified small
business payroll tax credit for increasing research
activities (line 8) 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 qualified small business payroll tax credit
for increasing research activities 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.
Beginning with the first quarter of 2023, the qualified
small business payroll tax credit for increasing research
activities is first used to reduce the employer share of
social security tax (up to $250,000) for the quarter and any
remaining credit is then used to reduce the employer
Instructions for Form 944 (2024)

share of Medicare tax for the quarter until it reaches zero.
In completing line 13 or Form 945-A, you take into account
the payroll tax credit against the liability for the employer
share of social security tax starting with the first payroll
payment of the quarter that includes payments of wages
subject to social security tax to your employees until you
use up to $250,000 of credit against the employer share of
social security tax and you then take into account any
remaining payroll tax credit against the liability for the
employer share of Medicare tax starting with the first
payroll payment of the quarter that includes payments of
wages subject to Medicare tax to employees. 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 $250,000 of the employer share of
social security tax and the employer share of Medicare 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, the
employee share of social security tax, or the employee
share of Medicare 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 calendar year
because it is in excess of the applicable employer share of
social security tax and employer share of Medicare 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 applicable
employer share of social security tax and employer share
of Medicare tax on wages paid in that quarter.
Example. Rose Co. is an employer with a calendar tax
year that filed its timely 2023 income tax return on April
15, 2024. Rose Co. elected to take the qualified small
business payroll tax credit for increasing research
activities on Form 6765. The third quarter of 2024 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 (up to $250,000) and Medicare tax on
wages paid to employees in the third quarter of 2024.
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
2024 that includes wages subject to social security tax by
the lesser of (1) its share of social security tax (up to
$250,000) 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 against up to $250,000 of Rose
Co.'s share of social security tax for the quarter. If the
amount of the payroll tax credit exceeds Rose Co.'s share
of social security tax (up to $250,000) on wages paid to its
employees in the third quarter, any remaining credit is
used against Rose Co.'s share of Medicare tax on the first
Instructions for Form 944 (2024)

payroll payment of the quarter and then the excess payroll
tax credit would be carried forward to succeeding payroll
payments in the third quarter until it is used against Rose
Co.'s share of Medicare tax for the quarter. If Rose Co. still
has credit remaining after reducing its share of social
security tax (up to $250,000) and Medicare tax for the
third quarter, the remainder would be treated as a payroll
tax credit against its share of social security tax (up to
$250,000) and Medicare 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 (up to
$250,000) and Medicare 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 2025.

Part 3: Tell Us About Your Business
In Part 3, answer question 14 only if it applies to your
business. If it doesn’t apply, leave it blank and go to Part 4.

14. If Your Business Has Closed...

If you 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.

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 their 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.

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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

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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.

Instructions for Form 944 (2024)

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on these forms to carry out the
Internal Revenue laws of the United States. You’re required to give us the information. We need it to ensure that you’re
complying with these laws and to allow us to figure and collect the right amount of tax. Section 6011 requires you to
provide the requested information if the tax is applicable to you. Section 6109 requires you to provide your identification
number. You’re not required to provide the information requested on a form that is subject to the Paperwork Reduction
Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the
IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may
disclose your tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District
of Columbia, and U.S. commonwealths and territories for use in administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or
to federal law enforcement and intelligence agencies to combat terrorism.
Estimates of taxpayer burden. These estimates include forms in the Form 944 series, including attachments; Forms
CT-1, CT-2, SS-8, W-2, W-3, 940, 945, 2032, 2678, 8027, 8027-T, 8453-EMP, 8850, 8879-EMP, 8922, 8952, and 8974,
and their schedules; and all the forms employers attach to employment-related tax returns and related wage statements
to employees.
The following table shows burden estimates based on current statutory requirements as of April 15, 2023, for
employers filing employment tax reporting forms and wage statement forms. Time spent and out-of-pocket costs are
presented separately. Time burden is the time spent to comply with employer reporting responsibilities, including
recordkeeping, preparing and submitting forms, and preparing and providing wage statements to employees.
Out-of-pocket costs (“money”) include any expenses incurred to comply with employer reporting responsibilities. The
amount of taxes paid isn’t included in reporting burden.
The time and money burdens reported below include all associated forms and schedules, across all tax return
preparation methods and employer reporting. They are national averages and don’t necessarily reflect a “typical”
employer’s reporting burden. Most employers experience lower than average burden, with burden varying considerably
by the number of Forms W-2 that an employer files. For instance, the estimated average burden for an employer who
issues four Forms W-2 is 63 hours (15.8 hours x 4) and $2,304 ($576 x 4). The estimated average burden for a large
employer who issues 2,000 Forms W-2 is 800 hours (2,000 x 0.4) and $28,000 (2,000 x $14).

Annual Average Burden
Total Time (hours)

Recordkeeping Time
(hours)

Time Spent on W-2
Activities (hours)

All Other Time
(hours)

Out-of-Pocket
Costs

Total Monetized
Burden*

Filers with Form 941

65

19

4

42

$2,710

$4,799

Filers with Form 943

57

16

6

35

$935

$1,955

Filers with Form 944

24

4

3

18

$368

$619

*Total monetized burden = monetized hours + out-of-pocket costs.

Annual Average Burden per Employee by Number of Employees (Form W-2 Count)
Number of Employees

Total Time (hours)

Out-of-Pocket Costs

Total Monetized Burden*

All

10.7

$404

$700

1 to 5

15.8

$576

$998

6 to 10

5.9

$264

$444

11 to 25

4.4

$190

$327

26 to 50

3.5

$126

$237

51 to 100

2.7

$97

$185

101 to 250

1.8

$90

$159

251 to 500

1.3

$70

$119

501 to 1,000

0.8

$48

$79

Over 1,000

0.4

$14

$28

Filers with Form 941

10.5

$408

$705

Filers with Form 943

19.2

$269

$562

Filers with Form 944

12

$198

$334

*Total monetized burden = monetized hours + out-of-pocket costs.

Comments. If you have comments concerning the accuracy of these time estimates or suggestions for making Form
944 simpler, we would be happy to hear from you. You can send us comments from IRS.gov/FormComments. Or you can
send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Don’t send Form 944 to this address. Instead, see Where Should You File, earlier.

Instructions for Form 944 (2024)

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