Form 944 is a great step to reduce the compliance burden for the smallest employers. As you must be aware that an employer is required to withhold taxes from employee wages, then file and deposit the payroll taxes. After that, company employer is required to file quarterly federal payroll and income taxes. Now, very small businesses (read employers) can file FORM 944 just once a year and save themselves from year-rounded compliance burden under Internal Revenue Code. You will see that the Form 944 , a simplified employers annual tax return , indeed asking for very little details as under:
- Employer Identification Number
- Employer contact information
- Employee wages, tips, and other compensation
- Federal income tax withheld
- Taxable Social Security and Medicare wages
- Adjustments
- Deposit information
Read moreForm 944 to Simplify Tax Filing for Small Business Owners