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

The rate of Medicare tax is 1.45% (0.0145) each for the

refund and is filed separately from Form 944. See section

employer and employee, or 2.9% (0.029) for both. Include

13 of Pub. 15 or section 9 of Pub. 80.

all tips your employees reported during the year, even if

Adjustment for fractions of cents. Enter adjustments

you were unable to withhold the employee tax of 1.45%.

for fractions of cents (due to rounding) relating to the

employee share of social security and Medicare taxes

line 4c (column 1)

withheld. The employee share of amounts shown in

x 0.029

column 2 of lines 4a–4d may differ slightly from amounts

line 4c (column 2)

actually withheld from employees' paychecks due to

rounding social security and Medicare taxes based on

statutory rates.

For more information on tips, see section 6 of Pub. 15,

Adjustment for sick pay. Enter the adjustment for the

section 5 of Pub. 80, or section 6 of Pub. 179.

employee share of social security and Medicare taxes that

4d. Taxable wages & tips subject to Additional

were withheld and deposited by your third-party sick pay

Medicare Tax withholding. Enter all wages, tips, sick

payer with regard to sick pay paid by the third party.

pay, and taxable fringe benefits that are subject to

These wages should be included on line 4a, line 4c, and,

Additional Medicare Tax withholding. You’re required to

if the withholding threshold is met, line 4d. If you are the

begin withholding Additional Medicare Tax in the pay

third-party sick pay payer, enter the adjustment for any

period in which you pay wages in excess of $200,000 to

employer share of these taxes required to be paid by the

an employee and continue to withhold it each pay period

employer.

until the end of the calendar year. Additional Medicare

Adjustments for tips and group-term life insurance.

Tax is only imposed on the employee. There is no

Enter adjustments for:

employer share of Additional Medicare Tax. All wages that

Any uncollected employee share of social security and

are subject to Medicare tax are subject to Additional

Medicare taxes on tips, and

Medicare Tax withholding if paid in excess of the

The uncollected employee share of social security and

$200,000 withholding threshold.

Medicare taxes on group-term life insurance premiums

For more information on what wages are subject to

paid for former employees.

Medicare tax, see the chart, Special Rules for Various

Types of Services and Payments, in section 15 of Pub. 15.

7. Total Taxes After Adjustments

For more information on Additional Medicare Tax, go to

Combine the amounts shown on lines 5 and 6 and enter

IRS.gov/ADMT.

the result on line 7.

Once wages and tips exceed the $200,000 withholding

threshold, include all tips your employees reported during

8. Qualified Small Business Payroll Tax Credit

the year, even if you were unable to withhold the

for Increasing Research Activities

employee tax of 0.9%.

Enter the total amount of the credit from Form 8974,

line 12.

line 4d (column 1)

x 0.009

If you enter an amount on line 8, you must attach

Form 8974.

line 4d (column 2)

CAUTION

4e. Total social security and Medicare taxes. Add

9. Total Taxes After Adjustments and Credits

the column 2 amounts on lines 4a–4d. Enter the result on

Subtract line 8 from line 7 and enter the result on line 9.

line 4e.

If line 9 is less than $2,500, you may pay the amount

5. Total Taxes Before Adjustments

with Form 944 or you may deposit the amount.

Add the total federal income tax withheld from wages,

If line 9 is $2,500 or more, you generally must deposit

your tax liabilities by EFT. However, if you deposited all

tips, and other compensation from line 2 and the total

taxes accumulated in the first three quarters of the year

social security and Medicare taxes before adjustments

and your fourth quarter liability is less than $2,500, you

from line 4e. Enter the result on line 5.

may pay taxes accumulated during the fourth quarter with

6. Current Year's Adjustments

Form 944. The amount shown on line 9 must equal the

amount shown on line 13m.

Enter tax amounts that result from current period

adjustments. Use a minus sign (if possible) to show an

For more information and rules about federal tax

adjustment that decreases the total taxes shown on line 5.

deposits, see Must You Deposit Your Taxes, earlier, and

Otherwise, use parentheses.

section 11 of Pub. 15, section 8 of Pub. 80, or section 11

of Pub. 179.

In certain cases, you must adjust the amounts you

entered as social security and Medicare taxes in column 2

If you’re a semiweekly depositor, you must

of lines 4a–4d to figure your correct tax liability for this

complete Form 945-A, Annual Record of Federal

year's Form 944. See section 13 of Pub. 15, section 9 of

Tax Liability. If you fail to complete and submit

CAUTION

Pub. 80, or section 12 of Pub. 179.

Form 945-A, the IRS may assert deposit penalties based

on available information.

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

-8-

Instructions for Form 944 (2017)

Instructions For Form 944 - Employer'S Annual Federal Tax Return - 2017 Page 8

Related Articles

Related forms

Related Categories