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

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

CAUTION

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

179.

pay reporting.

Enter the amount before deductions. Don't include tips

Specific Instructions

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

This Year

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,

TIP

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

reached.

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

x 0.124

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

CAUTION

Mariana Islands, the U.S. Virgin Islands, and Puerto Rico,

record.

unless you have employees who are subject to U.S.

income tax withholding.

line 4b (column 1)

x 0.124

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

Medicare tax.

Pub. 80, or section 15 of Pub. 179. For religious

-7-

Instructions for Form 944 (2017)

Instructions For Form 944 - Employer'S Annual Federal Tax Return - 2017 Page 7

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