Form 944: Employers are required to file Form 944 if their annual tax liability is less than $1,000 for Social Security, Medicare, and withheld federal income tax. These employers will file Form 944 annually instead of every quarter, and usually are smaller employers.
Form 941: If an employer's tax liability and withheld federal income tax is more than $1,000 per year, then they will need to use Form 941 and file it quarterly.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.
Form 944 vs. 941: Which filing form should I choose?
