If federal income, social security, and Medicare
exemptions, see section 4 of Pub. 15-A, Employer's
taxes that must be withheld (that is, trust fund
Supplemental Tax Guide.
taxes) aren't withheld or aren't deposited or paid
4a.–4e. Taxable Social Security and Medicare
to the United States Treasury, the trust fund recovery
Wages and Tips
penalty may apply. The penalty is 100% of the unpaid
trust fund tax. If these unpaid taxes can't be immediately
4a. Taxable social security wages. Enter the total
collected from the employer or business, the trust fund
wages, sick pay, and fringe benefits subject to social
recovery penalty may be imposed on all persons who are
security taxes that you paid to your employees during the
determined by the IRS to be responsible for collecting,
year. For this purpose, sick pay includes payments made
accounting for, or paying over these taxes, and who acted
by an insurance company to your employees for which
willfully in not doing so. For more information, see section
you received timely notice from the insurance company.
11 of Pub. 15, section 8 of Pub. 80, or section 11 of Pub.
See section 6 in Pub. 15-A for more information about sick
Enter the amount before deductions. Don't include tips
on this line. For information on types of wages subject to
social security taxes, see section 5 of Pub. 15, section 4
of Pub. 80, or section 5 of Pub. 179.
Part 1: Answer These Questions for
For 2017, the rate of social security tax on taxable
wages is 6.2% (0.062) for the employer and employee, or
12.4% (0.124) for both. Stop paying social security tax on
Employers in American Samoa, Guam, the
and reporting an employee's wages on line 4a when the
Commonwealth of the Northern Mariana Islands,
employee's taxable wages (including tips) reach $127,200
the U.S. Virgin Islands, and Puerto Rico may skip
for the year. However, continue to withhold income and
lines 1 and 2, unless you have employees who are subject
Medicare taxes for the whole year on wages and tips even
to U.S. income tax withholding.
when the social security wage base of $127,200 has been
1. Wages, Tips, and Other Compensation
line 4a (column 1)
Enter amounts on line 1 that would also be included in
box 1 of your employees' Forms W-2. Include sick pay
paid by a third party if you were given timely notice of the
line 4a (column 2)
payments and the third party transferred liability for the
employer's taxes to you. See the General Instructions for
4b. Taxable social security tips. Enter all tips your
Forms W-2 and W-3 for details.
employees reported to you during the year until the total of
the tips and wages for an employee reach $127,200 for
If you’re a third-party payer of sick pay, don't include
the year. Include all tips your employees reported to you
sick pay that you paid to policyholders' employees here if
even if you were unable to withhold the 6.2% employee's
you gave the policyholders timely notice of the payments.
share of social security tax. Don’t include service charges
2. Federal Income Tax Withheld From Wages,
on line 4b.
Tips, and Other Compensation
Your employee must report cash tips to you by the 10th
day of the month after the month the tips are received.
Enter the federal income tax that you withheld (or were
The report should include charged tips (for example,
required to withhold) from your employees on this year's
credit and debit card charges) you paid over to the
wages, tips, taxable fringe benefits, and supplemental
employee for charge customers, tips the employee
unemployment compensation benefits. Don't include any
received directly from customers, and tips received from
income tax withheld by a third-party payer of sick pay
other employees under any tip-sharing arrangement. Both
even if you reported it on Forms W-2. You will reconcile
directly and indirectly tipped employees must report tips to
this difference on Form W-3.
you. No report is required for months when tips are less
References to federal income tax withholding
than $20. Employees may use Form 4070 (available only
don't apply to employers in American Samoa,
in Pub. 1244), or Form 4070-PR (available only in Pub.
Guam, the Commonwealth of the Northern
1244-PR), or submit a written statement or electronic tip
Mariana Islands, the U.S. Virgin Islands, and Puerto Rico,
unless you have employees who are subject to U.S.
income tax withholding.
line 4b (column 1)
3. If No Wages, Tips, and Other Compensation
line 4b (column 2)
are Subject to Social Security or Medicare Tax
If no wages, tips, and other compensation on line 1 are
4c. Taxable Medicare wages and tips. Enter all
subject to social security or Medicare taxes, check the
wages, tips, sick pay, and taxable fringe benefits that are
box on line 3 and go to line 5. If this question doesn't apply
subject to Medicare tax. Unlike social security wages,
to you, leave the box blank. For more information about
there is no limit on the amount of wages subject to
exempt wages, see section 15 of Pub. 15, section 12 of
Pub. 80, or section 15 of Pub. 179. For religious
Instructions for Form 944 (2017)