Small employers can file an annual return—Form 944, Employer’s Annual Federal Tax Return—rather than the quarterly Form 941. The form is used only if federal income tax withholding is $1,000 or less for the year and the IRS notifies the employer about eligibility for Form 944. But the IRS says the form will not be used after 2025. The reason: the number of small employers using the form each year has decreased and there’s still confusion about which form to file. The IRS also says it plans to allow free quarterly e-filing for small employers starting in 2026. Stay tuned for details. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
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