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How to Change your Filing Type to Form 944

Background

If you’re an employer who owes less than $1,000 in federal taxes per year, you may qualify to be a 944 filer. The IRS allows eligible businesses to file Form 944 annually instead of the more frequent Form 941, which is filed quarterly. This option simplifies tax filing for smaller employers with minimal payroll tax obligations. The IRS will send you a notice if you are required to switch from Form 941 to Form 944.

For further details, you can visit the IRS website and refer to the article, “Certain Taxpayers May Now File Their Employment Taxes Annually.

How to update your payroll settings if you are a 944 Filer

If you’ve received a notice from the IRS requiring you to file Form 944 and you’re a Full Service payroll customer, you will need to update your payroll software to reflect this change.

By default, the payroll software is set to Form 941, which is more common. Follow these steps to update your Federal Filer Type in the software:

  1. Go to Settings > Payroll Settings > Tax Settings > Show Advanced Tax Settings.
  2. In the Advanced Tax Settings section at the bottom of the page, choose “944” for the Federal Filer Type.
  3. Click Save to apply the changes.

*If you are not a 944 filer, leave the default setting as “941.”

If your business is a small employer that owes less than $1000.00 in federal taxes per year, you may need to file Form 944 annually instead of Form 941 quarterly.  The IRS will send you a notice to let you know if you are required to file 944. 

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