Payroll Tax Forms: A Guide for Business Owners for 2024 Tax Season

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Tax season is here, and the deadline to file crucial year-end tax forms is just 2 days away. Along with Forms 1099 and W-2, businesses must also file payroll tax forms under the IRS 94x series, including Forms 940, 941, 943, 944, and 945. Ensuring you file the right form on time is critical to staying compliant and avoiding penalties.

Understanding Payroll Tax Forms

As an employer, you’re responsible for withholding and paying payroll taxes, including Social Security tax, Medicare tax, federal income tax, and federal unemployment tax (FUTA). The IRS requires businesses to report these taxes using the appropriate 94x form based on their tax obligations. Here’s what you need to know about each form:

Form 940-Employer’s Annual Federal Unemployment (FUTA) Tax Return

You must file Form 940 if you meet either of the following conditions:

• If you paid employees $1,500 or more in wages in any calendar quarter during 2023 or 2024.
•  If you had at least one employee working for any part of the day in 20 or more weeks throughout the year (including full-time, part-time, temporary, or seasonal employees).

Note: If you did not make any employee payments in 2024 and are not liable for FUTA tax, check box C (“No payments to employees in 2024”) on Form 940, sign it, and submit it to the IRS.

Form 941- Employer’s Quarterly Federal Tax Return

You must file Form 941 each quarter to report the federal income taxes, Social Security tax, or Medicare tax withheld from your payee’s paychecks. You must also report the employer’s Social Security or Medicare tax portion to the IRS. Even if no wages were paid for the respective quarter, the tax amount will automatically be zero, and the IRS expects you to file Form 941 in such cases.

Form 943- Employer’s Annual Federal Tax Return for Agricultural Employees

You must file Form 943 annually for all the cash wages you pay to farmworkers that are subject to federal income tax withholding and social security and medicare taxes if you meet either of the following tests:

• You pay your employee cash wages of $150 or more in a year es (farmwork) (or)
• You pay all farmworkers the total wages (cash and noncash), which is $2,500 or more in a calendar year.

Form 944- Employer’s Annual Federal Tax Return

You must file Form 944 to report the annual tax liability for Social Security, Medicare, and withheld federal income taxes of $1000 or less. You will file and pay these taxes once a year instead of every quarter.

If the IRS has notified you in writing to file Form 944, you must file Form 944 and not quarterly Form 941, even if your tax liability for 2024 exceeds $1,000.

Once your annual tax liability exceeds $1,000, the IRS will notify you that you’re no longer eligible to file Form 944 in future years, and then you must file Form 941 quarterly. However, until you receive the notice, continue to file Form 944 annually.

Form 945- Annual Return of Withheld Federal Income Tax 

You must file Form 945 to report federal income tax withheld (or required to be withheld) from nonpayroll payments. This includes:

• Pensions, such as distributions from tax-favored retirement plans (e.g., section 401(k), section 403(b), and governmental section 457(b) plans), annuities, and IRA distributions
• Military retirement benefits
• Gambling winnings
• Indian gaming profits
• Certain government payments where the recipient elected voluntary income tax withholding
• Dividends and other distributions by an Alaska Native Corporation (ANC) on which the recipient elected voluntary income tax withholding
• Payments are subject to backup withholding

You are not required to file Form 945 for years when you do not have a nonpayroll tax liability. 

Final Thoughts

As the deadline is two days away, you must meet the payroll tax form filing deadline to avoid penalties and fines. Here’s a quick reminder of the key deadlines for the payroll forms

• Form 941: Due on the last day of the month following each quarter (April 30, July 31, October 31, and January 31, 2025, for Q4).
• Forms 940, 943, 944, and 945 are due on January 31, 2025.

TaxBandits is here to make your filing process smooth and stress-free. Whether you’re filing quarterly or annually, TaxBandits supports all payroll tax form filings, helping you stay compliant without the headache. 

Get ahead of the January 31st Deadline—file your payroll tax forms with TaxBandits today!