Form 941 is a quarterly Federal Unemployment Tax Act (FUTA) return that employers use to report and payout benefits to U.S citizens who have worked enough hours during the calendar quarter. Form 944 is a monthly Federal Tax Deposit (FTD) that employers use to report and payout benefits to U.S. citizens who have worked enough hours during the calendar month.
Read the article to learn the difference between Form 941 and Form 944, so you can use the accurate one for your business.
But first, let us understand payroll taxes.
Payroll Taxes
Payroll taxes usually fall under the purview of federal, state, and municipal governments. Though the vast majority of the U.S. tax code is administered by the Internal Revenue Service, some payroll taxes are collected by the federal government itself. The federal tax responsibilities incorporate:
- Federal income tax
- Medicare tax
- Social Security tax
- Federal unemployment tax
Form 944 vs. Form 941
In business, it is important to keep up with the tax forms that you have to file since if you have an error, you can be fined for it. This is why you need to keep your forms in order.
The United States Internal Revenue Service (IRS) is the agency that enforces federal tax laws and administers the collection of tax revenue for the United States federal government. Form 941 is the form that employers use to report employee wage and payroll tax information to the IRS. Form 944 is the form that employers use to report the business income, including any nontaxable fringe benefits, to the IRS.
Both the forms are used to report wage and payroll tax information to the IRS. Also, the forms ask for the same information. The basic difference is that how often you need to report the form, quarterly or annually.
Here is some of the information to report on both forms:
- Employer information (such as Employer Identification Number, name, and address)
- Federal income tax withheld
- Medicare tax withheld
- Wages, tips, and compensation you paid employees
- Social Security tax withheld
- Total tax liability
- Adjustments
Form 941 vs. Form 944 Filing Requirements
IRS Form 944 vs. Form 941 filing requirements incorporate:
- How to file
- Payments
- Due dates
Due Dates of IRS Form 944 vs. 941
To avoid penalties, correctly report employee wages and tax information on either Form 941 or Form 944 by their due dates.
Submit Form 941 to the IRS by:
- Quarter 1 (April 30)
- Quarter 2 (July 31)
- Quarter 3 (October 31)
- Quarter 4 (January 31)
Submit Form 944 to the IRS by:
- Quarters 1 – 4 (January 31)
Final Words
There are some differences between the two forms. When choosing between the 941 and the 944, the employer must understand their needs. If you are still unsure of which form to use or have questions about them, join the Compliance Prime webinar.
