Instructions For Form 944 - Employer'S Annual Federal Tax Return - 2017


Department of the Treasury
Internal Revenue Service
Instructions for Form 944
Employer's ANNUAL Federal Tax Return
Section references are to the Internal Revenue Code
The payroll tax credit must generally be elected on an
unless otherwise noted.
original income tax return that is timely filed (including
extensions). However, Notice 2017-23 provides a limited
Future Developments
exception to that rule, allowing a qualified small business
that timely files its income tax return for a tax year
For the latest information about developments related to
beginning after December 31, 2015, but fails to make the
Form 944 and its instructions, such as legislation enacted
payroll tax credit election, to make the election on an
after they were published, go to
amended income tax return filed on or before December
What's New
31, 2017. The Form 6765 filed with that amended income
tax return must meet certain procedural requirements
New filing addresses. The filing addresses for
provided in section 4.02 of Notice 2017-23. If the payroll
employers located in Georgia, Illinois, Kentucky,
tax credit is elected on an amended income tax return
Michigan, Tennessee, and Wisconsin have changed. See
filed under Notice 2017-23, the payroll tax credit is
Where Should You File, later.
allowed against the employer share of social security tax
Social security and Medicare tax for 2017. The social
for the quarter that begins after the amended income tax
security tax rate is 6.2% each for the employee and
return is filed. The payroll tax credit can't be applied to an
employer, unchanged from 2016. The social security
earlier quarter.
wage base limit is $127,200.
The Medicare tax rate is 1.45% each for the employee
and employer, unchanged from 2016. There is no wage
Work opportunity tax credit for qualified tax-exempt
base limit for Medicare tax.
organizations hiring qualified veterans. The work
opportunity tax credit is available for eligible unemployed
Social security and Medicare taxes apply to the wages
of household workers you pay $2,000 or more in cash
veterans who begin work on or after November 22, 2011,
and before January 1, 2020. Qualified tax-exempt
wages in 2017. Social security and Medicare taxes apply
to election workers who are paid $1,800 or more in cash
organizations that hire eligible unemployed veterans can
claim the work opportunity tax credit against their payroll
or an equivalent form of compensation in 2017.
tax liability using Form 5884-C. For more information, go
Qualified small business payroll tax credit for in-
creasing research activities. For tax years beginning
COBRA premium assistance credit. Effective for tax
after December 31, 2015, a qualified small business may
periods beginning after December 31, 2013, the credit for
elect to claim up to $250,000 of its credit for increasing
COBRA premium assistance payments can't be claimed
research activities as a payroll tax credit against the
on Form 944. Instead, after filing your Form 944, file Form
employer's share of social security tax. The portion of the
944-X, Adjusted Employer's ANNUAL Federal Tax Return
credit used against the employer's share of social security
or Claim for Refund, to claim the COBRA premium
tax is allowed in the first calendar quarter beginning after
assistance credit. Filing a Form 944-X before filing a Form
the date that the qualified small business filed its income
944 for the year may result in errors or delays in
tax return. The first Form 944 that you can claim this credit
processing your Form 944-X. For more information, go to
on is Form 944 filed for calendar year 2017. The election
and determination of the credit amount that will be used
against the employer's share of social security tax are
If you’re entitled to claim the COBRA premium
made on Form 6765, Credit for Increasing Research
assistance credit, but aren't otherwise required to
Activities. The amount from Form 6765, line 44, must then
file Form 944, file a Form 944 with -0- entered on
be reported on Form 8974, Qualified Small Business
line 11 before filing a Form 944-X to claim the credit.
Payroll Tax Credit for Increasing Research Activities.
Form 8974 is used to determine the amount of the credit
Employers can choose to file Forms 941, 941-SS, or
that can be used in the current year. The amount from
941-PR instead of Form 944. Employers required to file
Form 8974, line 12, is reported on Form 944, line 8. If
Form 944, who want to file Forms 941, 941-SS, or 941-PR
you’re claiming the research payroll tax credit on your
instead, must notify the IRS they’re electing to file
Form 944, you must attach Form 8974 to Form 944. For
quarterly Forms 941, 941-SS, or 941-PR and opting out of
more information about the payroll tax credit, see Notice
filing Form 944. See What if you want to file Forms 941,
2017-23, 2017-16 I.R.B. 1100, available at
941-SS, or 941-PR instead of Form 944, later.
2017-16_IRB/ar07.html. Also see Adjusting tax liability for
Correcting a previously filed Form 944. If you
the qualified small business payroll tax credit for
discover an error on a previously filed Form 944, make the
increasing research activities reported on line 8, later.
correction using Form 944-X. Form 944-X is filed
separately from Form 944. For more information, see the
Oct 23, 2017
Cat. No. 39820A


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