The Deadline to file Form 941 for Q3 2023 is October 31, 2023.
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Overview of Form 941 vs 944

Updated on October 12, 2023 - 10:30 AM by Admin, TaxBandits

Tax filing can be overwhelming, especially for small business owners. Two common forms that often cause confusion are Form 941 and Form 944. While they both pertain to employment taxes, they serve different purposes and apply to different situations. In this article, we'll break down the key differences between Form 941 and Form 944 and help you determine which one is right for your business.

1. What is Form 941?

941 Form is used by most other employers to report the organization's Federal taxes, as well as the Medicare and Social Security taxes withheld from employees' paychecks. This form also reports the employees' share of Medicare and Social Security taxes. Unlike Form 944, which is reported annually, Form 941 is reported quarterly.

2. What is Form 944?

A Form 944 is an annual tax return designed specifically for small businesses to report the Medicare, Social Security, and federal income taxes withheld from their employees' wages. Small businesses with an annual tax liability of $1,000 or less can file Form 944 with the IRS each year.

For example, if your business's annual employment tax liability is $1,000 or less, you can choose to
file Form 944 annually instead of on a quarterly basis.

3. Key Difference between 941 and 944

Aspect Form 941 Form 944
Purpose Used by most employers to report quarterly payroll tax liabilities. Used by small employers with annual payroll tax liability of $1,000 or less.
Filing Frequency Quarterly Annually
Tax Reporting Period Covers a specific calendar quarter
(e.g., January 1 - March 31).
Covers the entire calendar year
(January 1 - December 31).
Filing Deadline Due on the last day of the month following the end of the quarter
(e.g., April 30 for Q1).
Typically due by January 31st of the
following year.
Tax Deposit Schedule Payment of payroll taxes is done quarterly. Payment of payroll taxes is typically done annually.
Eligibility Most employers other than those with annual liabilities of $1,000 or less. Small employers with minimal tax liability.

4. When to file Form 941 vs 944?

The deadline to File Form 941 and 944 varies based on your business's specific circumstances.

Form 941:

Form 941, on the other hand, is filed quarterly by most employers who withhold federal income tax, Social Security tax, or Medicare tax from their employees' wages. The due dates for filing Form 941 are as follows:

  • Quarter 1 (January, February, March): Due by April 30th
  • Quarter 2 (April, May, June): Due by July 31st
  • Quarter 3 (July, August, September): Due by October 31st
  • Quarter 4 (October, November, December): Due by January 31st of the following year

Form 944:

This form is designed for small employers who meet certain criteria. To be eligible to file Form 944, your average annual liability for employment taxes (including federal income tax, Social Security, and Medicare taxes) must be $1,000 or less. This means you'll file annually by January 31st for the previous calendar year.

5. Do household employers need to file Form 941?

Household employers have a different set of filing requirements. Form 941 applies more to
home-based businesses and entities that withhold taxes from their employees. If your workers are engaged in business activities at your home, you would typically file Form 941. However, if you are a household employer and meet any of the following criteria, you should use Schedule H, not Form 941:

  • Step 1: You paid any one household worker over $2,100 in cash wages during the year.
  • Step 2: You paid all household workers at least $1,000 in a quarter during the current year or the previous year.
  • Step 3: You withheld federal income taxes from any household employees during
    the year.

If any of these conditions apply to you, then the wages you pay are subject to Social Security and Medicare taxes, and they should be detailed on Schedule H.

6. How do I file Form 941 and 944 with TaxBandits?

Filing employment tax forms becomes a simpler process when you have the right tools available to you. Whether you are filing Form 941 or 944, TaxBandits offers a user-friendly platform that allows you to complete your filing with ease. With TaxBandits you can:

  • Easily file Form 941 and Form 944 with just a few simple steps.
  • Utilize features like bulk filing to streamline the process when dealing with multiple forms.
  • Access support for various forms, including 941-PR, 941-SS, and 941 Schedule R.
  • Choose from easy options to pay your IRS balance due, if any.