Form 944 for 2013

(If you need to see the 2012 Form 944, click here.)

Federal Form 944 is used to report federal income tax withheld and employer and employee social security and Medicare taxes on wages paid to employees.

File Form 944 by January 31, 2014. However, if you made deposits on time in full payment of the taxes due for the year, you may file the return as late as February 10, 2014.

Assisted Payroll users: Assisted Payroll files Form 944 on your behalf. You should use this clickable form for reference only. If your forms need to be corrected, contact Assisted Payroll Support at 888.712.9702. Do not follow the instructions on the clickable form to correct QuickBooks.

What's New

Future developments. For the latest information about developments related to Form 944 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form944.

Social security and Medicare taxes for 2013. The employee tax rate for social security is 6.2%. Previously, the employee tax rate for social security was 4.2%. The employer tax rate for social security remains unchanged at 6.2%. The social security wage base limit is $113,700. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2012. There is no wage base limit for Medicare tax.

Social security and Medicare taxes apply to the wages of household workers you pay $1,800 or more in cash or an equivalent form of compensation in 2013. Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation in 2013.

Additional Medicare Tax withholding. In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.

For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Pub. 15 (Circular E), Employer's Tax Guide. For more information on Additional Medicare Tax, visit www.irs.gov and enter "Additional Medicare Tax" in the search box.

Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. For more information, visit www.irs.gov and enter "work opportunity tax credit" in the search box.

If you change your name, or address, or responsible party. For a definition of "responsible party" and how to notify the IRS of a change in the identity of your responsible party, see the instructions for Form 8822-B. Notify the IRS immediately if you change your business name or address. Write to the IRS office where you file your return to notify the IRS of any name change. See Pub. 1635, Employer Identification Number: Understanding Your EIN, to see if you need to apply for a new EIN. Complete and mail Form 88220B, Change of Address or Responsible Party--Business, to notify the IRS of an address change.

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This is an IRS form. In order to print your forms directly from QuickBooks, you must purchase pre-printed forms. Click here to go to our tax forms page where you may purchase forms. If you use QuickBooks preprinted forms, they may look different, but they have been approved by the IRS.

Employer Identification Number

IRS directions

Enter your EIN in the space provided. Also enter your EIN on the top of page 2. Do not use your social security number (SSN) or individual taxpayer identification number (ITIN).

If you use a tax preparer to complete Form 944, make sure the preparer uses your correct EIN.

About the employer identification number (EIN). To make sure that businesses comply with federal tax laws, the IRS monitors tax filings and payments by using a numerical system to identify taxpayers. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports.

Your business should have only one EIN. If you have more than one and are not sure which one to use, write to the IRS office where you file your returns or call the IRS at 1-800-829-4933.

If you do not have an EIN, you may apply for one online. Visit www.irs.gov and click on the Apply for an EIN Online link under Tools. You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4 to the IRS. If you have applied for an EIN but do not have your EIN by the time a return is due, write "Applied For" and the date you applied in the space shown for the number.

QuickBooks behavior

QuickBooks pulls this number from the Company Information window.

How to verify your QuickBooks result

If the EIN is incorrect, choose Company Information from the Company menu. Change the EIN in the Company Identification section, and click OK. Follow the on-screen instructions for changing the EIN with the payroll service.

Name (not your trade name)

IRS directions

Enter the business (legal) name that you used when you applied for your EIN. For example, if you are a sole proprietor, enter "Tyler Smith" on the Name line and "Tyler's Cycles" on the Trade name line.

If you use a tax preparer to complete Form 944, make sure the preparer uses your correct business name.

QuickBooks behavior

QuickBooks pulls this name from the Company Information window.

How to verify your QuickBooks result

If the company name is incorrect, click Company, and then Company Information. Make any necessary correction to the Legal Information section, and click OK.

Trade Name (if any)

IRS directions

Enter your trade name. For example, if you are a sole proprietor, enter "Tyler Smith" on the Name line and "Tyler's Cycles" on the Trade name line. Leave the Trade name blank if it is the same as your Name line.

QuickBooks behavior

QuickBooks pulls this information from the Name section of the Company Information window.

How to verify your QuickBooks result

If the trade name is incorrect, click Company, and then Company Information. Make any necessary correction to the Company Name field, and click OK.

Address

IRS directions

Enter your legal business address.

QuickBooks behavior

QuickBooks pulls this information from the Legal Information section of the Company Information window.

How to verify your QuickBooks result

If the company address is incorrect, click Company, and then Company Information. Make any necessary address correction in the Legal Information section, and click OK.

Line 1 - Wages, tips, and other compensation

IRS directions

Enter amounts on line 1 that would also be included in box 1 of your employees' Forms W-2. Include sick pay paid by a third party if you were given timely notice of the payments and the third party transferred liability for the employer&339;s taxes to you. See the General Instructions for Forms W-2 and W-3 for details.

If you are a third-party payer of sick pay, do not include sick pay that you paid to policyholders' employees here if you gave the policyholders timely notice of the payments.

QuickBooks behavior

QuickBooks totals everything with a tax-tracking type that affects line 1 of the 944. This corresponds to the tax-tracking type that affects line 2 of Form 941.

How to verify your QuickBooks result

  1. Run the Payroll Item Listing Report.
  2. Filter the report and, in the Columns, clear everything but the Payroll Item and Tax Tracking type.
  3. Print the report. Put a check mark next to any item that has a tax tracking type of Compensation, Reported Tips, Dependent Care FSA, Section 457 Distribution, Non-qual. Plan Distr, Fringe Benefits, Other, Moving Expenses, 401(k), 403(b), 408(k)(6)SEP, Elective 457(b), Simple IRA, Taxable Grp Trm Life, Med Care Flex Spend, Premium Only/125, SCorp Pd Med Premium.
  4. Run a Payroll Summary report for the entire calendar year.
  5. Click Modify Report.
  6. Click the Filters tab.
  7. Under Current filter choices, click Payroll Item.
  8. In the drop-down line in the middle, pick Multiple Payroll Items.
  9. Check off all the payroll items you marked earlier.
  10. Run the report and add the amount for 'Adjusted Gross Pay' to 'Total Employer Taxes and Contributions.' The total should equal line 1 on Form 944.

To modify tax tracking for any payroll item:

  1. Go to the Payroll Item List.
  2. Double click the payroll item in question.
  3. Click next until you get to Tax Tracking Type.
  4. Correct the tracking type, and click next until you reach Finish. This will correct the form, but if the taxability changed, a Payroll Checkup should be run to correct the taxable wage bases.

Line 2 - Federal income tax withheld from wages, tips, and other compensation

IRS directions

Enter the federal income tax that you withheld (or were required to withhold) from your employees on this year's wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits. Do not include any income tax withheld by a third-party payer of sick pay even if you reported it on Form W-2. You will reconcile this difference on Form W-3.

Caution: References to federal income tax withholding do not apply to employers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico.

QuickBooks behavior

QuickBooks adds the Federal Withholding from all the paychecks.

How to verify your QuickBooks result

Run the Payroll Summary report for the calendar year. The total of the Federal Withholding will be line 2. If an employee's federal withholding is incorrect, a liability adjustment for that employee will need to be entered. The amount of the adjustment may then need to be collected from or refunded to the employee.

To prevent this from occurring in the future:

  1. Go to the Employee Center and click the Employees Tab.
  2. Double-click on the employee's name.
  3. Switch the Change Tabs from Personal Info to Payroll and Compensation Info.
  4. Click the Taxes button.
  5. Correct the filing status and allowances as necessary.

Line 3 - If no wages, tips, and other compensation are subject to social security or Medicare tax

IRS directions

If no wages, tips, and other compensation on line 1 are subject to social security or Medicare taxes, check the box on line 3 and go to line 5. If this question does not apply to you, leave the box blank. For more information about exempt wages, see section 15 of Pub. 15 (Circular E), section 12 of Pub. 80 (Circular SS), or section 15 of Pub. 179 (Circular PR). For religious exemptions, see section 4 of Pub. 15-A, Employer's Supplemental Tax Guide.

QuickBooks behavior

QuickBooks does not check this box for you.

Line 4a - Taxable social security wages

IRS directions

Enter the total wages, sick pay, and fringe benefits subject to social security taxes that you paid to your employees during the year. For this purpose, sick pay includes payments made by an insurance company to your employees for which you received timely notice from the insurance company. See section 6 in Pub. 15-A for more information about sick pay reporting.

Enter the amount before deductions. Do not include tips on this line. For information on types of wages subject to social security taxes, see section 5 of Pub. 15 (Circular E), section 12 of Pub. 80 (Circular SS), or section 15 of Pub. 179 (Circular PR).

For 2013, the rate of social security tax on taxable wages is 6.2% (.062) for the employer and employee, or 12.4% (.124) for both. Stop paying social security tax on and reporting an employee's wages on line 4a when the employee's taxable wages (including tips) reach $113,700 for the year. However, continue to withhold income and Medicare taxes for the whole year on wages and tips even when the social security wage base of $113,700 has been reached.

          line 4a (column 1)
        x   .124
        ---------
          line 4a (column 2)

QuickBooks behavior

QuickBooks pulls column 1 from the wage base of the Social Security payroll item minus the wage base tips. Column 2 is a calculated amount.

How to verify your QuickBooks result


  1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Modify Report button.
  3. Click the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee.
  8. Clear any other selected items, and Click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Social Security Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1, amount.

To correct line 4a, column 1:

The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the QuickBooks Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

Report

QuickBooks pulls column 1 from the wage base of the Social Security payroll item minus the wage base tips. Column 2 is a calculated amount.

Line 4b - Taxable social security tips

IRS directions

Enter all tips your employees reported to you during the year until the total of the tips and wages for an employee reach $113,700 for the year. Include all tips your employees reported to you even if you were unable to withhold the 6.2% employee's share of social security tax.

Your employee must report cash tips to you by the 10th day of the month after the month the tips were received. The report should include charged tips (for example, credit and debit card charges) you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Both directly and indirectly tipped employees must report tips to you. No report is required for months when tips are less than $20. Employees may use Form 4070, Employee's Report of Tips to Employer (available only in Pub. 1244, Employee's Daily Record of Tips and Report of Tips to Employer), or Form 4070-PR, Informe al Patrono de Propinas Recibidas por el(la) Empleado(a) (available only in Pub. 1244-PR, Registro Diario de Propinas Recibidas por el(la) Empleado(a) e Informe al Patrono), or submit a written statement or electronic tip record.

          line 4b (column 1)
        x   .124
        ---------
          line 4b (column 2)

QuickBooks behavior

QuickBooks pulls amounts for column 1 from the wage base tips of the Social Security payroll item. Column 2 is a calculated amount.

How to verify your QuickBooks result


  1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Modify Report button.
  3. Click the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee.
  8. Clear any other selected items and Click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Social Security Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1 amount.

To correct, line 4b, column 1:

The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the QuickBooks Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

Report

Run a payroll summary for the entire calendar year. Double-click either the total of Social Security Employee or Social Security Company.

Line 4c - Taxable Medicare wages and tips

IRS directions

Enter all wages, tips, sick pay, and taxable fringe benefits that are subject to Medicare tax. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax.

The rate of Medicare tax is 1.45% (.0145) each for the employer and employee or 2.9% (.029) for both. Include all tips your employees reported during the year, even if you were unable to withhold the employee tax of 1.45%.

          line 4c (column 1)
        x   .029
        ---------
          line 4c (column 2)

For more information on tips, see section 6 of Pub. 15 (Circular E), section 5 of Pub. 80 (Circular SS), or section 6 of Pub. 179 (Circular PR).

QuickBooks behavior

QuickBooks supplies the number for column 1 from the wage base of the Medicare payroll item. Column 2 is a calculated amount.

How to verify your QuickBooks result


  1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Modify Report button.
  3. Click the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, Medicare Company and Medicare Employee.
  8. Clear any other selected items and Click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Medicare Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total should equal the line 4c, Column 1 amount.

To correct line 4c, column 1:

The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the QuickBooks Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks will adjust Social Security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

Line 4d - Taxable wages and tips subject to Additional Medicare Tax withholding

IRS directions

Enter all wages, tips, sick pay, and taxable fringe benefits that are subject to Additional Medicare Tax withholding. You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.

For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Pub. 15 (Circular E). For more information on Additional Medicare Tax, visit www.irs.gov and enter "Additional Medicare Tax" in the search box.

Once wages and tips exceed the $200,000 withholding threshold, include all tips your employees reported during the year, even if you were unable to withhold the employee tax of 0.9%.

          line 4d (column 1)
        x   .009
        ---------
          line 4d (column 2)

QuickBooks behavior

QuickBooks supplies the number for column 1 from the wage base for the Medicare Employee Addl Tax payroll item. Column 2 is a calculated amount, but it should match the amount of tax withheld as calculated by QuickBooks (within a few cents rounding difference).

How to verify your QuickBooks result


  1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Modify (or Customize) Report button.
  3. Click the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Medicare Employee Addl Tax.
  8. Clear any other selected items, and click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Medicare Employee Addl Tax Total amount to display the Transactions by Payroll Item report. The Wage Base column total should equal the line 4d, Column 1 amount. The Amount column total should equal line 4d, column 2 (within a few cents rounding difference).

To correct line 4d, column 1:

The wage base amount for Medicare Employee Addl Tax uses each paycheck and year-to-date adjustment entered into QuickBooks for the year once the employee's wages exceed $200,000 as long as the payroll item was on the employee's record before the employee was paid $200,000. If the wage base amount is incorrect, your payroll item may be set up incorrectly, or you may not have had the Medicare Employee Addl Tax payroll item added to the employee's record before the employee was paid $200,000. Verify the setup of the Medicare Employee Addl Tax payroll item.

As long as you have at least one transaction with the Medicare Employee Addl Tax payroll item on the employee record, you can locate and fix any incorrect employee wage bases by choosing My Payroll Service > Run Payroll Checkup from the Employees menu. If any wage bases require correction, QuickBooks will post a liability adjustment to the employee if still in the same calendar year.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

If you didn't set up the Medicare Employee Addl Tax payroll item and didn't withhold this tax from employee's wages over $200,000, you'll need to report this to the IRS following the instructions here. (If you're an Assisted Payroll user, you need to contact Assisted Payroll support at 888.712.9702 for assistance.)

Line 4e - Total social security and Medicare taxes

IRS directions

Add the column 2 amounts on lines 4a-4d. Enter the result on line 4e.

        line 4a (column 2)
     + line 4b (column 2)
     + line 4c (column 2)
     + line 4d (column 2)
     -------------------------
        line 4e

QuickBooks behavior

QuickBooks adds column 2 of lines 4a, 4b, 4c, and 4d.

How to verify your QuickBooks result

Use the verification steps for lines 4a, 4b, 4c, and 4d.

Line 5 - Total taxes before adjustments

IRS directions

Add the total federal income withheld from wages, tips, and other compensation from line 2 and the total social security tax and Medicare taxes before adjustments from line 4e. Enter the result on line 5.

QuickBooks behavior

QuickBooks calculates the amount by adding lines 2 and 4e.

Line 6 - Current year's adjustments

IRS directions

Enter tax amounts that result from current period adjustments. Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 5. Otherwise, use parentheses.

In certain cases, you must adjust the amounts you entered as social security and Medicare taxes in column 2 of lines 4a-4d to figure your correct tax liability for this year's Form 944. See section 13 of Pub. 15 (Circular E), section 9 of Pub. 80 (Circular SS), or section 12 of Pub. 179 (Circular PR).

If you need to adjust any amount reported on line 6 from a previously filed Form 944 or 944-SS, complete and file Form 944-X. Form 944-X is an adjusted return and is filed separately from Form 944. See section 13 of Pub. 15 (Circular E) or section 9 of Pub. 80 (Circular SS).

If you need to adjust any amount reported on line 6 from a previously filed Form 944-PR, complete and file Form 944-X(PR). Form 944-X(PR) is an adjusted return and is filed separately from Form 944. See section 12 of Pub. 179 (Circular PR).

Adjustment for fractions of cents. Enter adjustments for fractions of cents (due to rounding) relating to the employee share of social security and Medicare taxes withheld. The employee share of amounts shown in column 2 of lines 4a-4d may differ slightly from amounts actually withheld from employees' paychecks due to rounding social security and Medicare taxes based on statutory rates.

Adjustment for sick pay. Enter the adjustment for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer with regard to sick pay paid by the third party. These wages should be included on line 4a, line 4c, and, if the withholding threshold is met, line 4d. If you are the third-party sick pay payer, enter the adjustment for any employer share of these taxes required to be paid by the employer.

Adjustments for tips and group-term life insurance. Enter adjustments for:

  • Any uncollected employee share of social security and Medicare taxes on tips, and
  • The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees.

QuickBooks behavior

QuickBooks automatically calculates fractions of cents. You must manually enter the number to add any sick pay or adjustments to tips and group-term life insurance.

Line 7 - Total taxes after adjustments

IRS directions

Combine the amounts shown on lines 5 and 6 and enter the result on line 7.

  • If line 7 is less than $2,500, you may pay the amount with Form 944 or you may deposit the amount.
  • If line 7 is $2,500 or more, you generally must deposit your tax liabilities by electronic funds transfer. However, if you deposited all taxes accumulated in the first three quarters of the year and your fourth quarter liability is less than $2,500, you may pay taxes accumulated during the fourth quarter on Form 944. The amount shown on line 7 must equal the amount shown on line 13m.

For more information and rules about federal tax deposits, see Must You Deposit Your Taxes in the Instructions for Form 944 and section 11 of Pub. 15 (Circular E), section 8 of Pub. 80 (Circular SS), or section 11 of Pub. 179 (Circular PR).

QuickBooks behavior

QuickBooks calculates this amount by adding lines 5 and 6.

Line 8 - Total deposits for this year

IRS directions

Enter your deposits for this year, including any overpayment that you applied from filing Form 944-X, 944-X(PR), 944-X(SP), 941-X, or 941-X(PR) in the current year. Also include in the amount shown any overpayment from a previous period that you applied to this return.

QuickBooks behavior

QuickBooks adds all the deposits for Federal Withholding, Medicare Employee, Medicare Employee Addl Tax, Medicare Company, Social Security Employee, and Social Security Company with a paid through date that falls within the year the 944 is reporting. If you need to include a prior year's overpayment, you will have to right click and override the amount listed to add the overpayment.

How to troubleshoot your QuickBooks result

  1. Run the Payroll Liabilities Balances report for the year the 944 is reporting.
  2. Click Modify Report.
  3. Change the Display columns by option to Total only.
  4. Click the Filters tab
  5. Click Payroll Item under Current Filter Choices. In the middle, click the drop-down next to Payroll Item and pick Multiple Payroll Items. Check off only Federal Withholding, Medicare Employee, Medicare Employee Addl Tax, Medicare Company, Social Security Employee, and Social Security Company, and click OK.
  6. Click the Transaction Type under Choose Filter on the left. In the middle, click the drop-down next to Transaction type and choose Payroll Liability Check. Click OK.
  7. The total balance should equal the amount of line 8. This can be double-clicked to see the transactions that contribute to the total. Double check that all deposits have been recorded.

If you know you've made a deposit but don't see it, expand your date range to see if the deposit appears. If it does, double-click that deposit and change the Paid Through date so that it falls within the quarter it's supposed to.

If the number on line 10 doesn't match the report that was made, then a liability adjustment has been entered or a payment was entered incorrectly. To find a liability adjustment:

  1. Click Modify Report and Filters.
  2. Under Transaction Type, click Multiple Transaction Types and from the list that pops up pick Liability Adjustment. This will show you any liability adjustments made within the quarter in addition to your payments. Double check that the liability adjustment is actually needed.

If you know you've recorded the deposit in your QuickBooks, find the deposit and check that the type is specifically LIAB CHK and not just CHK.

If the transaction has not been reconciled then you can delete it and record it as a payroll liability check.

Line 9a - COBRA premium assistance payments

IRS directions

Enter 65% of the COBRA premiums for assistance eligible individuals. Take the COBRA premium assistance credit on this line only after the assistance eligible individual's 35% share of the premium has been paid. For COBRA coverage provided under a self-insured plan, COBRA premium assistance is treated as having been made for each assistance eligible individual who pays 35% of the COBRA premium. Do not include the assistance eligible individual's 35% of the premium in the amount entered on this line. For more information on the COBRA premium subsidy, visit www.irs.gov and enter COBRA in the search box.

Caution: The amount reported on line 9a is treated as a deposit of taxes on the first day of the return period and must not be used to adjust line 13 or Form 945-A.

QuickBooks behavior

If you set up a COBRA Subsidy Credit payroll item and associated liability accounts and made appropriate liability adjustments in QuickBooks for COBRA subsidies, QuickBooks supplies the total COBRA premium assistance payments.

If this amount is incorrect, you can change it in the 944 interview; if you make changes, you must make corresponding adjustments in your QuickBooks records.

How to verify your QuickBooks result

If you receive an error on this field, complete the following steps:

  1. Go to the Payroll Center in QuickBooks, and click the Transactions tab.
  2. Click Liability Adjustments, and select the appropriate date range.
  3. Look for liability adjustments associated with the Payroll item "COBRA Subsidy Credit".
  4. Change any positive values to negative values.
  5. Return to your filing process.

Line 9b - Number of individuals provided COBRA premium assistance

IRS directions

Enter the total number of assistance eligible individuals provided COBRA premium assistance reported on line 9a. Count each assistance eligible individual who paid a reduced COBRA premium in the year as one individual, whether or not the reduced premium was for insurance that covered more than one assistance eligible individual. For example, if the reduced COBRA premium was for coverage for a former employee, spouse, and two children, you would include one individual in the number entered on line 9b for the premium assistance. Further, each individual is reported only once per year. For example, an assistance eligible individual who made monthly premium payments during the year would only be reported as one individual.

QuickBooks behavior

QuickBooks does not supply this number.

Line 10 - Total deposits and credits

IRS directions

Add lines 8 and 9a.

QuickBooks behavior

QuickBooks calculates this amount by adding lines 8 and 9a.

Line 11 - Balance due

IRS directions

If line 7 is more than line 10, enter the difference on line 11. Otherwise, see Overpayment (line 12).

You do not have to pay if line 11 is less than $1. Generally, you should have a balance due only if your total taxes after adjustments (line 7) are less than $2,500. See if line 7 is $2,500 or more (line 7) for an exception.

If line 11 is $1 or more, but less than $2,500, you can pay the amount owed with your return.

You may pay the amount shown on line 11 using EFTPS, credit card, debit card, check, money order, or electronic funds withdrawal (EFW). Do not use a credit card, debit card, or EFW to pay taxes that were required to be deposited. For more information on electronic payment options, visit the IRS website at www.irs.gov/e-pay.

If you pay by EFTPS, credit card, or debit card, file your return using the address where you file your return. Do not file Form 944-V, Payment Voucher.

If you pay by check or money order, make it payable to the "United States Treasury." Enter your EIN, Form 944, and the tax period on your check or money order. Complete Form 944-V and enclose it with Form 944.

If line 11 is $2,500 or more, you must deposit your tax. See Must You Deposit Your Taxes in the Instructions for Form 944.

Caution: If you are required to make deposits and, instead, pay the taxes with Form 944, you may be subject to a penalty.

QuickBooks behavior

QuickBooks takes the difference between line 10 and line 7. If line 7 is greater than line 10, the amount is entered on line 11.

Line 12 - Overpayment

IRS directions

If line 10 is more than line 7, enter the amount in line 12. Never make an entry on both lines 11 and 12.

If you deposited more than the correct amount for the year, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check only one box on line 12. If you do not check either box or if you check both boxes, generally we will apply the overpayment to your account. We may apply your overpayment to any past due tax account that is shown in our records under your EIN.

If box 12 is less than $1, we will send a refund or apply it to your next return only if you ask us in writing to do so.

QuickBooks behavior

QuickBooks takes the difference between line 10 and line 7. If line 10 is greater than line 7, the amount is entered on line 12.

Name (not your trade name)

IRS directions

Enter the legal business name that you entered on page 1.

QuickBooks behavior

QuickBooks pulls this name from the Company Information window.

How to verify your QuickBooks result

If the company name is incorrect, choose Company Information from the Company menu. Make any necessary correction to the Legal Information section, and click OK.

Employer Identification Number

IRS directions

Enter the employer identification number you entered on page 1.

QuickBooks behavior

QuickBooks pulls this number from the Company Information window.

How to verify your QuickBooks result

If the EIN is incorrect, choose Company Information from the Company menu. Change the EIN in the Company Identification section, and click OK. Follow the on-screen instructions for changing the EIN with the payroll service.

Line 13 - Check one

IRS directions

If line 7 is less than $2,500, check the first box in line 13 and go to line 14.

If line 7 is $2,500 or more, check the second box on line 13. If you are a monthly schedule depositor, fill out your tax liability for each month and figure the total liability for the year. If you do not enter your tax liability for each month, the IRS will not know when you should have made deposits and may assess an "averaged" failure-to-deposit penalty. See section 11 of Pub. 15 (Circular E), section 8 of Pub. 80 (Circular SS), or section 11 of Pub. 179 (Circular PR). If your tax liability for any month is negative (for example, if you are adjusting an overreported liability in a prior month), do not enter a negative amount for the month. Instead, enter zero for the month and subtract that negative amount from your tax liability for the next month.

Note. The amount shown on line 13m must equal the amount shown on line 7.

If you are a semiweekly schedule depositor or if you accumulate $100,000 or more in tax liability on any day in a deposit period, you must complete Form 945-A and file it with Form 944. See the $100,000 Next Day Deposit Rule in section 11 of Pub. 15 (Circular E), section 8 of Pub. 80 (Circular SS), or section 11 of Pub. 179 (Circular PR). Do not complete lines 13a-13m if you file Form 945-A.

QuickBooks behavior

If the amount on line 7 is less than $2,500, QuickBooks checks the first box and does not list the liability amount.

If the amount on line 7 is more than $2,500, QuickBooks checks the second box and lists the amount of liability by month.

How to verify your QuickBooks result


  1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Modify Report button.
  3. Click the Display tab and then set the date range to the calendar year.
  4. In the Display columns by drop-down list, select Month, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. Clear any other selected items and then Click OK.
  8. Click OK to return to the Payroll Summary report.
  9. Ignoring any negative signs, add up each column's amounts for Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee taxes. The totals should correspond to the amounts in 13a through 131. Any of the numbers on the report can be double-clicked to see what transactions contribute to their amounts.

Line 14 - If your business has closed

IRS directions

If you go out of business or stop paying wages, you must file a final return. To notify the IRS that a particular Form 944 is your final return, check the box on line 14 and enter the date you last paid wages in the space provided.

QuickBooks behavior

If this is your last, or final return, you must manually check the box and enter a date.

Part 4 - Third-party designee

IRS directions

If you want to allow an employee, a paid tax preparer, or another person to discuss your Form 944 with the IRS, check the "Yes" box in Part 4. Enter the name, phone number, and the 5-digit personal identification number (PIN) of the specific person to contact--not the name of the firm who prepared your tax return. The designee may choose any numbers as his or her PIN.

By checking "Yes," you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return. You also authorize your designee to do all the following.

  • Give us any information that is missing from your return.
  • Call us for information about processing your return.
  • Respond to certain IRS notices that you have shared with your designee about math errors and return preparation. The IRS will not send notices to your designee.

You are not authorizing your designee to bind you to anything (including additional tax liability) or to otherwise represent you before the IRS. If you want to expand your designee's authorization, see Pub. 947, Practice Before the IRS and Power of Attorney.

The authorization will automatically expire 1 year after the due date (without regard to extensions) for filing your Form 944. If you or your designee want to terminate the authorization, write to the IRS office for your locality using the "Without a payment" address.

QuickBooks behavior

This section must be filled in manually. If you select No, continue on to Part 5. If you select Yes, fill in the designee's name and phone number and enter in a 5-digit number to be used by the designee as a personal identification number (PIN).

Part 5 - Signature

IRS directions

Complete all information in Part 5 and sign Form 944 as follows.

  • Sole proprietorship - The individual who owns the business.
  • Corporation (including an LLC treated as a corporation) - The president, vice president, or other principal officer duly authorized to sign.
  • Partnership (including an LLC treated as a partnership) or unincorporated organization - A responsible and duly authorized partner, member, or officer having knowledge of its affairs.
  • Single member LLC treated as a disregarded entity for federal income tax purposes - The owner of the LLC or a principal officer duly authorized to sign.
  • Trust or estate - The fiduciary.

Form 944 may be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.

Alternative signature method. Corporate officers or duly authorized agents may sign Form 944 by rubber stamp, mechanical device, or computer software program. For details and required documentation, see Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at www.irs.gov/irb/2005-28_IRB/ar16.html.

QuickBooks behavior

You can manually fill in the fields for Print Name, Date, Phone, and Title. QuickBooks may also prefill some of this information if it has been entered into the Company Information. You must sign the form after you print it.

How to verify your QuickBooks result

If the name or phone is incorrect, choose Company Information from the Company menu. Make any necessary correction to the Payroll Tax Form section, and click OK.

Paid Preparer Use Only

IRS directions

A paid preparer must sign Form 944 and provide the information in the Paid Preparer Use Only section of Part 5 if the preparer was paid to prepare Form 944 and is not an employee of the filing entity. Paid preparers must sign paper returns with a manual signature. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS.

If you are a paid preparer, write your Preparer Tax Identification Number (PTIN) in the space provided. Include your complete address. If you work for a firm, write the firm's name and the EIN of the firm. You can apply for a PTIN online or by filing Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal. For more information about applying for a PTIN online, visit the IRS website at www.irs.gov/ptin. You cannot use your PTIN in place of the EIN of the tax preparation firm.

Generally, do not complete this section if you are filling the return as a reporting agent and have a valid Form 8655, Reporting Agent Authorization, on file with the IRS. However, a reporting agent must complete this section if the reporting agent offered legal advice, for example, advising the client on determining whether its workers are employees or independent contractors for Federal tax purposes.

QuickBooks behavior

If the form is prepared by a third party, fill out the appropriate information in fields for Paid Preparer Name, Firm Name, Address, City, State, Zip code, Date, Preparer PTIN, and Firm EIN. You can sign the form once you print it.

If you are using QuickBooks Premier Accountant Edition, this section can be automatically filled in using information located under the Company menu by clicking on Company Information and clicking the Auto-fill Contact Info... button.