Form 944 for Eligible Small Employers
If your combined liability for Social Security, Medicare, and federal income tax withholdings is annually $1,000 or less, you may begin receiving the Form 944 Employer's Annual Federal Tax Return instead of the Form 941 Employer's Quarterly Federal Tax Return. This new annual filing of the Form 944 replaces the quarterly Form 941 filing for these smaller employers.
If your filing status changed, the IRS will send you notification of this change in February. Please watch for an Assisted Payroll communication early in 2007 containing instructions on what to do if you receive a change-in-status notification.
Please note: You may be required to make tax payments more frequently if your tax liability for the 2006 tax year meets certain requirements.
Read the IRS news release about the new Form 944, or Instructions for Form 944 (Rev. November 2006) posted on the IRS Web site at www.irs.gov to understand who qualifies.