2023

Instructions for Form 944

Employer's ANNUAL Federal Tax Return

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code 

unless otherwise noted.

Contents Page

Future Developments ........................ 1

What's New ............................... 1

Reminders ................................ 2

General Instructions ......................... 4

Purpose of Form 944 ..................... 4

Who Must File Form 944? .................. 4

When Must You File? ..................... 5

How Should You Complete Form 944? ......... 5

Where Should You File? ................... 6

Must You Deposit Your Taxes? ............... 7

What About Penalties and Interest? ........... 8

Specific Instructions ......................... 8

Part 1: Answer These Questions for This Year .... 8

Part 2: Tell Us About Your Deposit Schedule 

and Tax Liability for This Year ............. 16

Part 3: Tell Us About Your Business .......... 17

Part 4: May We Speak With Your Third-Party 

Designee? .......................... 18

Part 5: Sign Here (Approved Roles) .......... 18

How To Get Forms, Instructions, and Publications ... 19

Worksheet 1. Credit for Qualified Sick and Family 

Leave Wages Paid in 2023 for Leave Taken 

After March 31, 2020, and Before April 1, 

2021 ................................ 20

Worksheet 2. Credit for Qualified Sick and Family 

Leave Wages Paid in 2023 for Leave Taken 

After March 31, 2021, and Before October 1, 

2021 ................................ 20

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 IRS.gov/Form944.

What's New

Social security and Medicare tax for 2023. The rate of 

social security tax on taxable wages, including qualified 

sick leave wages and qualified family leave wages paid in 

2023 for leave taken after March 31, 2021, and before 

October 1, 2021, is 6.2% each for the employer and 

employee or 12.4% for both. Qualified sick leave wages 

and qualified family leave wages paid in 2023 for leave 

taken after March 31, 2020, and before April 1, 2021, 

aren't subject to the employer share of social security tax; 

therefore, the tax rate on these wages is 6.2%. The social 

security wage base limit is $160,200.

The Medicare tax rate is 1.45% each for the employee 

and employer, unchanged from 2022. There is no wage 

base limit for Medicare tax.

Social security and Medicare taxes apply to the wages 

of household workers you pay $2,600 or more in cash 

wages in 2023. Social security and Medicare taxes apply 

to election workers who are paid $2,200 or more in cash 

or an equivalent form of compensation in 2023.

Qualified small business payroll tax credit for increasing research activities. For tax years beginning 

before January 1, 2023, a qualified small business may 

elect to claim up to $250,000 of its credit for increasing 

research activities as a payroll tax credit. The Inflation 

Reduction Act of 2022 (the IRA) increases the election 

amount to $500,000 for tax years beginning after 

December 31, 2022. The payroll tax credit election must 

be made on or before the due date of the originally filed 

income tax return (including extensions). The portion of 

the credit used against payroll taxes is allowed in the first 

calendar quarter beginning after the date that the qualified 

small business filed its income tax return. The election 

and determination of the credit amount that will be used 

against the employer’s payroll taxes are made on Form 

6765, Credit for Increasing Research Activities. The 

amount from Form 6765, line 44, must then be reported 

on Form 8974, Qualified Small Business Payroll Tax Credit 

for Increasing Research Activities.

Starting in the first quarter of 2023, the payroll tax credit 

is first used to reduce the employer share of social 

security tax up to $250,000 per quarter and any remaining 

credit reduces the employer share of Medicare tax for the 

quarter. Any remaining credit, after reducing the employer 

share of social security tax and the employer share of 

Medicare tax, is then carried forward to the next quarter. 

Form 8974 is used to determine the amount of the credit 

that can be used in the current year. The amount from 

Form 8974, line 12 or, if applicable, line 17, is reported on 

line 8a. For more information about the payroll tax credit, 

see the Instructions for Form 8974 and go to IRS.gov/

ResearchPayrollTC. Also see Adjusting tax liability for 

nonrefundable credits claimed on lines 8a, 8b, and 8d, 

later.

Credit for COBRA premium assistance payments. 

The COBRA premium assistance credit lines have been 

“Reserved for future use” on Form 944 because the first 

quarter of 2022 was the last quarter in which most 

employers may have been eligible to claim the COBRA 

premium assistance credit. Section 9501 of the American 

Rescue Plan Act of 2021 (the ARP) provided for COBRA 

premium assistance in the form of a full reduction in the 

premium otherwise payable by certain individuals and 

their families who elected COBRA continuation coverage 

due to a loss of coverage as the result of a reduction in 

hours or an involuntary termination of employment 

Nov 14, 2023 Cat. No. 39820A
(assistance eligible individuals). This COBRA premium 

assistance was available for periods of coverage 

beginning on or after April 1, 2021, through periods of 

coverage beginning on or before September 30, 2021. A 

premium payee was entitled to the COBRA premium 

assistance credit at the time an eligible individual elected 

coverage. Therefore, due to the COBRA notice and 

election period requirements (generally, employers had 60 

days to provide notice and assistance eligible individuals 

had 60 days to elect coverage), the first quarter of 2022 

was the last quarter in which most employers may have 

been eligible to claim the COBRA premium assistance 

credit.

Forms 941-SS and 941-PR discontinued after 2023. 

Form 941-SS, Employer's QUARTERLY Federal Tax 

Return—American Samoa, Guam, the Commonwealth of 

the Northern Mariana Islands, and the U.S. Virgin Islands; 

and Form 941-PR, Planilla para la Declaración Federal 

TRIMESTRAL del Patrono, will no longer be available after 

the fourth quarter of 2023. Instead, employers in the U.S. 

territories who weren't notified to file Form 944 will file 

Form 941, or, if you prefer your form and instructions in 

Spanish, you can file new Form 941 (sp).

Pubs. 51, 80, and 179 discontinued after 2023. Pub. 

51, Agricultural Employer's Tax Guide; Pub. 80, Federal 

Tax Guide for Employers in the U.S. Virgin Islands, Guam, 

American Samoa, and the Commonwealth of the Northern 

Mariana Islands; and Pub. 179, Guía Contributiva Federal 

para Patronos Puertorriqueños, will no longer be available 

after 2023. Instead, information specific to agricultural 

employers and employers in the U.S. territories will be 

included in Pub. 15, beginning with the Pub. 15 for use in 

2024. Beginning in 2024, there will be a new Pub. 15 (sp) 

that is a Spanish-language version of Pub. 15. References 

to Pubs. 51, 80, and 179 were retained throughout these 

instructions because these instructions are for tax year 

2023. If you need information specific to tax year 2024, 

you will use Pub. 15 or Pub. 15 (sp) in 2024.

Reminders

Unless otherwise noted, references throughout 

these instructions to Form W-2 include Forms 

W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/

W-2PR; references to Form W-2c include Form 

499R-2c/W-2cPR; references to Form W-3 include Forms 

W-3SS and W-3PR; and references to Form W-3c include 

Form W-3C (PR).

The COVID-19 related credit for qualified sick and 

family leave wages is limited to leave taken after 

March 31, 2020, and before October 1, 2021. 

Generally, the credit for qualified sick and family leave 

wages, as enacted under the Families First Coronavirus 

Response Act (FFCRA) and amended and extended by 

the COVID-related Tax Relief Act of 2020, for leave taken 

after March 31, 2020, and before April 1, 2021, and the 

credit for qualified sick and family leave wages under 

sections 3131, 3132, and 3133 of the Internal Revenue 

Code, as enacted under the ARP, for leave taken after 

March 31, 2021, and before October 1, 2021, have 

expired. However, employers that pay qualified sick and 

family leave wages in 2023 for leave taken after March 31, 

TIP

2020, and before October 1, 2021, are eligible to claim a 

credit on Form 944 filed for 2023. For more information, 

see the instructions for line 8b, line 8d, line 10d, and 

line 10f, later.

Use Worksheet 1 to figure the credit for leave taken 

after March 31, 2020, and before April 1, 2021. Use 

Worksheet 2 to figure the credit for leave taken after 

March 31, 2021, and before October 1, 2021. For more 

information about the credit for qualified sick and family 

leave wages, go to IRS.gov/PLC.

Advance payment of COVID-19 credits ended. 

Although you may pay qualified sick and family leave 

wages in 2023 for leave taken after March 31, 2020, and 

before October 1, 2021, you may no longer request an 

advance payment of any credit on Form 7200, Advance 

Payment of Employer Credits Due to COVID-19.

Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of 

the Taxpayer Certainty and Disaster Tax Relief Act of 2020 

allows for a payroll tax credit for certain tax-exempt 

organizations affected by certain qualified disasters not 

related to COVID-19. This credit is claimed on Form 

5884-D (not on Form 944). Form 5884-D is filed after the 

Form 944 for the year for which the credit is being claimed 

has been filed. If you will claim this credit on Form 5884-D 

for 2023 and you're also claiming a credit for qualified sick 

and family leave wages for leave taken after March 31, 

2020, and before April 1, 2021, you must include any 

credit that will be claimed on Form 5884-D on Worksheet 

1. For more information about this credit, go to IRS.gov/

Form5884D.

Work opportunity tax credit for qualified tax-exempt 

organizations hiring qualified veterans. Qualified 

tax-exempt organizations that hire eligible unemployed 

veterans may be able to claim the work opportunity tax 

credit against their payroll tax liability using Form 5884-C. 

For more information, go to IRS.gov/WOTC.

Employers can request to file quarterly Forms 941 instead of Form 944. Employers required to file Form 944, 

who want to file quarterly Forms 941 instead, must contact 

the IRS to request to file quarterly Forms 941 and opt out 

of filing Form 944. See Requesting To File Quarterly 

Forms 941 Instead of Form 944, later.

Correcting a previously filed Form 944. If you discover 

an error on a previously filed Form 944, make the 

correction using Form 944-X. Form 944-X is filed 

separately from Form 944. For more information, see the 

Instructions for Form 944-X, section 13 of Pub. 15, or go to 

IRS.gov/CorrectingEmploymentTaxes.

Federal tax deposits must be made by electronic 

funds transfer (EFT). You must use EFT to make all 

federal tax deposits. Generally, an EFT is made using the 

Electronic Federal Tax Payment System (EFTPS). If you 

don't want to use EFTPS, you can arrange for your tax 

professional, financial institution, payroll service, or other 

trusted third party to make electronic deposits on your 

behalf. Also, you may arrange for your financial institution 

to initiate a same-day wire payment on your behalf. 

EFTPS is a free service provided by the Department of the 

Treasury. Services provided by your tax professional, 

-2- Instructions for Form 944 (2023)
financial institution, payroll service, or other third party 

may have a fee.

For more information on making federal tax deposits, 

see section 11 of Pub. 15, section 8 of Pub. 80, or section 

11 of Pub. 179. To get more information about EFTPS or 

to enroll in EFTPS, go to EFTPS.gov or call one of the 

following numbers.

• 800-555-4477

• 800-244-4829 (Spanish)

• 303-967-5916 if you're outside the United States (toll 

call)

To contact EFTPS using Telecommunications Relay 

Services (TRS) for people who are deaf, hard of hearing, 

or have a speech disability, dial 711 and then provide the 

TRS assistant with the 800-555-4477 number above or 

800-733-4829.

Additional information about EFTPS is also available in 

Pub. 966 or Pub. 966 (SP).

For an EFTPS deposit to be on time, you must 

submit the deposit by 8 p.m. Eastern time the day 

before the date the deposit is due.

Same-day wire payment option. If you fail to submit a 

deposit transaction on EFTPS by 8 p.m. Eastern time the 

day before the date a deposit is due, you can still make 

your deposit on time by using the Federal Tax Collection 

Service (FTCS) to make a same-day wire payment. To use 

the same-day wire payment method, you will need to 

make arrangements with your financial institution ahead of 

time. Please check with your financial institution regarding 

availability, deadlines, and costs. Your financial institution 

may charge you a fee for payments made this way. To 

learn more about the information you will need to give your 

financial institution to make a same-day wire payment, go 

to IRS.gov/SameDayWire.

Timeliness of federal tax deposits. If a deposit is 

required to be made on a day that isn't a business day, the 

deposit is considered timely if it is made by the close of 

the next business day. A business day is any day other 

than a Saturday, Sunday, or legal holiday. The term “legal 

holiday” for deposit purposes includes only those legal 

holidays in the District of Columbia. Legal holidays in the 

District of Columbia are provided in Pub. 15, Pub. 80, and 

Pub. 179.

Electronic filing and payment. Businesses can enjoy 

the benefits of filing tax returns and paying their federal 

taxes electronically. Whether you rely on a tax 

professional or handle your own taxes, the IRS offers you 

convenient and secure programs to make filing and paying 

easier. Spend less time worrying about taxes and more 

time running your business. Use e-file and EFTPS to your 

benefit.

• For e-file, go to IRS.gov/EmploymentEfile for more 

information. A fee may be charged to file electronically.

• For EFTPS, go to EFTPS.gov or call EFTPS at one of 

the numbers provided under Federal tax deposits must be 

made by electronic funds transfer (EFT), earlier.

• For electronic filing of Forms W-2, Wage and Tax 

Statement, go to SSA.gov/employer. You may be required 

to file Forms W-2 electronically. For details, see the 

General Instructions for Forms W-2 and W-3.

CAUTION

!

If you’re filing your tax return or paying your federal 

taxes electronically, a valid employer identification 

number (EIN) is required at the time the return is 

filed or the payment is made. If a valid EIN isn't provided, 

the return or payment won't be processed. This may result 

in penalties. See Employer identification number (EIN), 

later, for information about applying for an EIN.

Electronic funds withdrawal (EFW). If you file Form 

944 electronically, you can e-file and use EFW to pay the 

balance due in a single step using tax preparation 

software or through a tax professional. However, don't use 

EFW to make federal tax deposits. For more information 

on paying your taxes using EFW, go to IRS.gov/EFW.

Credit or debit card payments. You can pay the 

balance due shown on Form 944 by credit or debit card. 

Your payment will be processed by a payment processor 

who will charge a processing fee. Don't use a credit or 

debit card to make federal tax deposits. For more 

information on paying your taxes with a credit or debit 

card, go to IRS.gov/PayByCard.

Online payment agreement. You may be eligible to 

apply for an installment agreement online if you can’t pay 

the full amount of tax you owe when you file your return. 

For more information, see What if you can't pay in full, 

later.

Paid preparers. If you use a paid preparer to complete 

Form 944, the paid preparer must complete and sign the 

paid preparer's section of the form.

Outsourcing payroll duties. You’re responsible to 

ensure that tax returns are filed and deposits and 

payments are made, even if you contract with a third party 

to perform these acts. You remain responsible if the third 

party fails to perform any required action. Before you 

choose to outsource any of your payroll and related tax 

duties (that is, withholding, reporting, and paying over 

social security, Medicare, FUTA, and income taxes) to a 

third-party payer, such as a payroll service provider or 

reporting agent, go to IRS.gov/OutsourcingPayrollDuties 

for helpful information on this topic. For more information 

on the different types of third-party payer arrangements, 

see section 16 of Pub. 15.

Where can you get telephone help? For answers to 

your questions about completing Form 944 or tax deposit 

rules, call the IRS at one of the numbers listed below.

• 800-829-4933 (Business and Specialty Tax Line) or 

800-829-4059 (TDD/TTY for persons who are deaf, hard 

of hearing, or have a speech disability), Monday–Friday 

from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii 

follow Pacific time; employers in Puerto Rico receive 

service from 8:00 a.m. to 8:00 p.m. local time).

• 267-941-1000 if you're outside the United States (toll 

call), Monday–Friday from 6:00 a.m. to 11:00 p.m. Eastern 

time.

Photographs of missing children. The IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). Photographs of missing children 

selected by the Center may appear in instructions on 

pages that would otherwise be blank. You can help bring 

these children home by looking at the photographs and 

CAUTION

!

Instructions for Form 944 (2023) -3-
calling 1-800-THE-LOST (1-800-843-5678) if you 

recognize a child.

General Instructions

Purpose of Form 944

Form 944 is designed so the smallest employers (those 

whose annual liability for social security, Medicare, and 

withheld federal income taxes is $1,000 or less) will file 

and pay these taxes only once a year instead of every 

quarter. These instructions give you some background 

information about Form 944. They tell you who must file 

Form 944, how to complete it line by line, and when and 

where to file it.

If you want more in-depth information about payroll tax 

topics relating to Form 944, see Pub. 15, Pub. 80, or Pub. 

179, and go to IRS.gov/EmploymentTaxes.

Federal law requires you, as an employer, to withhold 

certain taxes from your employees' pay. Each time you 

pay wages, you must withhold—or take out of your 

employees' pay—certain amounts for federal income tax, 

social security tax, and Medicare tax. You must also 

withhold Additional Medicare Tax from wages you pay to 

an employee in excess of $200,000 in a calendar year. 

Under the withholding system, taxes withheld from your 

employees are credited to your employees in payment of 

their tax liabilities.

References to federal income tax withholding 

don't apply to employers in American Samoa, 

Guam, the Commonwealth of the Northern 

Mariana Islands (CNMI), the U.S. Virgin Islands (USVI), 

and Puerto Rico, unless you have employees who are 

subject to U.S. income tax withholding.

Federal law also requires you to pay any liability for the 

employer share of social security tax and Medicare tax. 

This share of social security tax and Medicare tax isn't 

withheld from employees.

For more information about annual employment tax 

filing and tax deposit rules, see Treasury Decision 9566, 

2012-8 I.R.B. 389, at IRS.gov/irb/2012-08_IRB#TD-9566.

Who Must File Form 944?

In general, if the IRS has notified you to file Form 944, you 

must file Form 944 instead of quarterly Forms 941 to 

report the following amounts.

• Wages you have paid.

• Tips your employees reported to you.

• Federal income tax you withheld.

• Both the employer and the employee share of social 

security and Medicare taxes.

• Additional Medicare Tax withheld from employees.

• Current year's adjustments to social security and 

Medicare taxes for fractions of cents, sick pay, tips, and 

group-term life insurance.

• Qualified small business payroll tax credit for increasing 

research activities.

• Credit for qualified sick and family leave wages paid in 

2023 for leave taken after March 31, 2020, and before 

October 1, 2021.

CAUTION

!

Exceptions

Special rules apply to some employers. The following 

employers can’t file Form 944.

• Household employers. If you employ only household 

employees, don't file Form 944. For more information, see 

Pub. 926 and Schedule H (Form 1040), or Pub. 179 and 

Anexo H (Formulario 1040).

• Agricultural employers. If you employ only agricultural 

employees, don't file Form 944. For more information, see 

Pub. 51 and Form 943, or Pub. 179 and Form 943 (sp).

• Employers who are notified by the IRS to file 

quarterly Forms 941. This includes if you requested and 

received written confirmation from the IRS that your filing 

requirement was changed from Form 944 to Form 941.

• Employers who aren’t notified to file Form 944. If 

the IRS doesn't notify you to file Form 944, don't file Form 

944. If you would like to file Form 944 instead of quarterly 

Forms 941, see Requesting To File Form 944 in 2024 

Instead of Quarterly Forms 941, later.

If the IRS notified you in writing to file Form 944, 

you must file Form 944 (and not quarterly Forms 

941) even if your tax liability for 2023 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 that you must file Form 941 

quarterly. However, until you receive the notice, continue 

to file Form 944 annually. If you’re unsure of your current 

filing requirement, call 800-829-4933. If you're outside the 

United States, call 267-941-1000 (toll call).

Requesting To File Form 944 in 2024 Instead of 

Quarterly Forms 941

If you haven't received notification to file Form 944 for 

2024 but estimate your employment tax liability for 

calendar year 2024 will be $1,000 or less and would like to 

file Form 944 instead of Forms 941, you can contact the 

IRS to request to file Form 944 for 2024. Based on current 

tax rates, if you pay $5,000 or less in wages subject to 

social security and Medicare taxes and federal income tax 

withholding during the calendar year, you're generally 

likely to pay $1,000 or less in employment taxes. To file 

Form 944 for calendar year 2024, you must call the IRS at 

800-829-4933 (267-941-1000 (toll call) if you're outside 

the United States) between January 1, 2024, and April 1, 

2024, or send a written request postmarked between 

January 1, 2024, and March 15, 2024.

The mailing addresses for written requests are 

provided under Requesting To File Quarterly Forms 941 

Instead of Form 944, later. The IRS will send you a written 

notice that your filing requirement has been changed to 

Form 944. If you don't receive this notice, you must file 

quarterly Forms 941 for calendar year 2024.

Requesting To File Quarterly Forms 941 Instead 

of Form 944

You must file Form 944 if the IRS has notified you to do so, 

unless the IRS notifies you to file quarterly Forms 941 

instead, or you contact the IRS to request to file those 

forms. To request to file quarterly Forms 941 to report your 

social security, Medicare, and withheld federal income 

taxes for the 2024 calendar year, call the IRS at 

CAUTION

!

-4- Instructions for Form 944 (2023)
800-829-4933 (267-941-1000 (toll call) if you're outside 

the United States) between January 1, 2024, and April 1, 

2024, or send a written request postmarked between 

January 1, 2024, and March 15, 2024.

Where to send written requests. Written requests 

should be sent to:

Department of the Treasury Department of the Treasury

Internal Revenue Service or Internal Revenue Service 

Ogden, UT 84201-0038 Cincinnati, OH 45999-0038

If you would mail your return filed without a payment to 

Ogden, as shown under Where Should You File, later, 

send your request to the Ogden address shown above. If 

you would mail your return filed without a payment to 

Kansas City, send your request to the address for 

Cincinnati shown above. After you contact the IRS, the 

IRS will send you a written notice that your filing 

requirement has been changed. If you don't receive this 

notice, you must file Form 944 for calendar year 2024. For 

more information about these procedures, see Rev. Proc. 

2009-51, 2009-45 I.R.B. 625, available at IRS.gov/irb/

2009-45_IRB#RP-2009-51.

What if You Reorganized or Closed Your 

Business?

If You Sold or Transferred Your Business...

If you sold or transferred your business in 2023, you and 

the new owner must each file a Form 944, 941, 941-SS, or 

941-PR, whichever is required, for the year in which the 

transfer occurred. Report only the wages you paid.

When two businesses merge, the continuing firm must 

file a return for the year in which the change took place 

and the other firm should file a final return.

Changing from one form of business to another—such 

as from a sole proprietorship to a partnership or 

corporation—is considered a transfer. If a transfer occurs, 

you may need a new EIN. See Pub. 1635 and section 1 of 

Pub. 15 for more information.

Attach a statement to your return with all the following 

information.

• The new owner's name (or the new name of the 

business).

• Whether the business is now a sole proprietorship, 

partnership, or corporation.

• The kind of change that occurred (a sale or transfer).

• The date of the change.

• The name of the person keeping the payroll records and 

the address where those records will be kept.

If Your Business Has Closed...

If you permanently go out of business or stop paying 

wages to your employees, you must file a final return. To 

tell the IRS that Form 944 for a particular year is your final 

return, check the box on line 14 and enter the final date 

you paid wages. Also attach a statement to your return 

showing the name of the person keeping the payroll 

records and the address where those records will be kept.

If you participated in a statutory merger or 

consolidation, or qualify for predecessor-successor status 

due to an acquisition, you should generally file 

Schedule D (Form 941), Report of Discrepancies Caused 

by Acquisitions, Statutory Mergers, or Consolidations. See 

the Instructions for Schedule D (Form 941) to determine 

whether you should file Schedule D (Form 941) and when 

you should file it.

When Must You File?

For 2023, file Form 944 by January 31, 2024. However, if 

you made deposits on time in full payment of the taxes 

due for the year, you may file the return by February 12, 

2024.

File Form 944 only once for each calendar year. If you 

filed Form 944 electronically, don't file a paper Form 944. 

For more information about filing Form 944 electronically, 

see Electronic filing and payment, earlier.

If we receive Form 944 after the due date, we will treat 

Form 944 as filed on time if the envelope containing Form 

944 is properly addressed, contains sufficient postage, 

and is postmarked by the U.S. Postal Service on or before 

the due date, or sent by an IRS-designated private 

delivery service (PDS) on or before the due date. If you 

don't follow these guidelines, we will generally consider 

Form 944 filed when it is actually received. For more 

information about PDSs, see Where Should You File, later.

How Should You Complete Form 944?

Enter your EIN, name, and address in the spaces 

provided. Also enter your name and EIN at the top of 

pages 2 and 3. Don't use your social security number 

(SSN) or individual taxpayer identification number (ITIN). 

Generally, enter the business (legal) name that you used 

when you applied for your EIN. For example, if you’re a 

sole proprietor, enter “Tyler Smith” on the Name line and 

“Tyler's Cycles” on the Trade name line. Leave the Trade 

name line blank if it is the same as your Name line.

If you use a tax preparer to complete Form 944, make 

sure the preparer uses your correct business name and 

EIN.

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 aren't sure which one to use, write to 

the IRS office where you file your returns (using the 

Without a payment address under Where Should You File, 

later) or call the IRS at 800-829-4933. If you're outside the 

United States, call 267-941-1000 (toll call).

If you don't have an EIN, you may apply for one online 

by going to IRS.gov/EIN. You may also apply for an EIN by 

Instructions for Form 944 (2023) -5-
faxing or mailing Form SS-4 or SS-4 (sp) to the IRS. If the 

principal business was created or organized outside of the 

United States or U.S. territories, you may also apply for an 

EIN by calling 267-941-1099 (toll call). If you have applied 

for an EIN but don't have your EIN by the time a return is 

due, file a paper return and write “Applied For” and the 

date you applied in the space shown for the number.

If you’re filing your tax return electronically, a valid 

EIN is required at the time the return is filed. If a 

valid EIN isn't provided, the return won't be 

accepted. This may result in penalties.

Always be sure the EIN on the form you file exactly 

matches the EIN the IRS assigned to your 

business. Don't use your SSN or ITIN on forms 

that ask for an EIN. If you used an EIN (including a prior 

owner's EIN) on Form 944 that is different from the EIN 

reported on Form W-3, see Box h—Other EIN used this 

year in the General Instructions for Forms W-2 and W-3. 

On Form W-3PR, “Other EIN used this year” is reported in 

box f. Filing a Form 944 with an incorrect EIN or using 

another business's EIN may result in penalties and delays 

in processing your return.

If you change your business name, business address, or responsible party. Notify the IRS immediately 

if you change your business name, business address, or 

responsible party.

• Write to the IRS office where you file your returns (using 

the Without a payment address under Where Should You 

File, later) to notify the IRS of any business name change. 

See Pub. 1635 to see if you need to apply for a new EIN.

• Complete and mail Form 8822-B to notify the IRS of a 

business address or responsible party change. Don't mail 

Form 8822-B with your Form 944. For a definition of 

"responsible party," see the Instructions for Form SS-4.

Completing and Filing Form 944

Make entries on Form 944 as follows to enable accurate 

processing.

• Use 12-point Courier font (if possible) for all entries if 

you’re typing or using a computer to complete Form 944. 

Portable Document Format (PDF) forms on IRS.gov have 

fillable fields with acceptable font specifications.

• Don't enter dollar signs and decimal points. Commas 

are optional. Report dollars to the left of the preprinted 

decimal point and cents to the right of it. Don’t round 

entries to whole dollars. Always show an amount for cents, 

even if it is zero.

• Leave blank any data field with a value of zero (except 

line 9).

• Enter negative amounts using a minus sign (if possible). 

Otherwise, use parentheses.

• Enter your name and EIN on all pages.

• Enter your name, your EIN, “Form 944,” and the tax 

period on all attachments.

• Staple multiple sheets in the upper left corner when 

filing.

Complete all three pages. You must complete all three 

pages of Form 944 and sign on page 3. Failure to do so 

may delay processing of your return.

CAUTION

!

TIP

Required Notice to Employees About the Earned 

Income Credit (EIC)

To notify employees about the EIC, employers in the 

United States must give the employees one of the 

following items.

• Form W-2 which has the required information about the 

EIC on the back of Copy B.

• A substitute Form W-2 with the same EIC information 

on the back of the employee's copy that is on the back of 

Copy B of the IRS Form W-2.

• Notice 797, Possible Federal Tax Refund Due to the 

Earned Income Credit (EIC).

• Your written statement with the same wording as

Notice 797.

For more information, see section 10 of Pub. 15, Pub. 

596, and IRS.gov/EIC.

Reconciling Form 944 With Form W-3

The IRS matches amounts reported on your Form 944 

with Form W-2 amounts totaled on your Form W-3. If the 

amounts don't agree, you may be contacted by the IRS or 

the Social Security Administration (SSA). The following 

amounts are reconciled.

• Federal income tax withholding, if applicable.

• Social security wages.

• Social security tips.

• Medicare wages and tips.

For more information, see section 12 of Pub. 15.

Where Should You File?

You’re encouraged to file Form 944 electronically. Go to 

IRS.gov/EmploymentEfile for more information on 

electronic filing. If you file a paper return, where you file 

depends on whether you include a payment with Form 

944. Mail your return to the address listed for your location 

in the table that follows.

PDSs can't deliver to P.O. boxes. You must use the U.S. 

Postal Service to mail an item to a P.O. box address. Go to 

IRS.gov/PDS for the current list of PDSs. For the IRS 

mailing address to use if you’re using a PDS, go to 

IRS.gov/PDSstreetAddresses. Select the mailing address 

listed on the webpage that is in the same state as the 

address to which you would mail returns filed without a 

payment, as shown next.

If you’re in . . .

Without a 

payment . . . With a payment . . .

Connecticut

Delaware

District of 

Columbia

Georgia 

Illinois

Indiana 

Kentucky 

Maine

Maryland

Massachusetts 

Michigan

New Hampshire

New Jersey

New York

North Carolina 

Ohio

Pennsylvania

Rhode Island 

South Carolina

Tennessee

Vermont

Virginia 

West Virginia

Wisconsin

Department of the 

Treasury 

Internal Revenue 

Service 

Kansas City, MO 

64999-0044

Internal Revenue 

Service 

P.O. Box 806532 

Cincinnati, OH

45280-6532

-6- Instructions for Form 944 (2023)
If you’re in . . .

Without a 

payment . . . With a payment . . .

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Florida

Hawaii 

Idaho 

Iowa 

Kansas 

Louisiana 

Minnesota 

Mississippi

Missouri 

Montana 

Nebraska 

Nevada 

New Mexico 

North Dakota 

Oklahoma 

Oregon 

South Dakota 

Texas 

Utah 

Washington 

Wyoming

Department of the 

Treasury 

Internal Revenue 

Service 

Ogden, UT 

84201-0044

Internal Revenue 

Service 

P.O. Box 932100

Louisville, KY 

40293-2100

No legal residence or principal 

place of business in any state

Internal Revenue 

Service 

P.O. Box 409101

Ogden, UT 84409

Internal Revenue 

Service 

P.O. Box 932100

Louisville, KY

40293-2100

Special filing address for 

exempt organizations; federal, 

state, and local governmental 

entities; and Indian tribal 

governmental entities, 

regardless of location

Department of the 

Treasury 

Internal Revenue 

Service

Ogden, UT 

84201-0044

Internal Revenue 

Service 

P.O. Box 932100

Louisville, KY

40293-2100

Your filing address may have changed from that 

used to file your employment tax return in prior 

years. Don't send Form 944 or any payments to 

the SSA.

Must You Deposit Your Taxes?

If your total taxes after adjustments and nonrefundable 

credits (Form 944, line 9) is less than $2,500 for the year, 

you can pay the taxes with your return. To avoid a penalty, 

you should pay in full and file on time. You don't have to 

deposit the taxes. However, you may choose to make 

deposits of these taxes even if your liability is less than 

$2,500. If your liability for these taxes is $2,500 or more, 

you’re generally required to deposit the taxes instead of 

paying them when you file Form 944. See the Federal Tax 

Deposit Requirements for Form 944 Filers chart, later. If 

you don't deposit the taxes when required, you may be 

subject to penalties and interest.

The $2,500 threshold at which federal tax deposits 

must be made is different from the amount of annual tax 

liability ($1,000 or less) that makes an employer eligible to 

file Form 944. Form 944 filers whose businesses grow 

during the year may be required to make federal tax 

deposits (see chart next), but they will still file Form 944 

for the year.

CAUTION

!

Federal Tax Deposit Requirements for Form 944 

Filers

If your tax liability is: Your deposit requirement is:

Less than $2,500 for the year No deposit required. You may pay 

the tax with your return. If you’re 

unsure that your tax liability for the 

year will be less than $2,500, 

deposit under the rules below.

$2,500 or more for the year, but 

less than $2,500 for the quarter

You can deposit by the last day of 

the month after the end of a 

quarter. However, if your fourth 

quarter tax liability is less than 

$2,500, you may pay the fourth 

quarter's tax liability with Form 

944.

$2,500 or more for the quarter You must deposit monthly or 

semiweekly depending on your 

deposit schedule. But, if you 

accumulate $100,000 or more of 

taxes on any day, you must 

deposit the tax by the next 

business day. See section 11 of 

Pub. 15, section 8 of Pub. 80, or 

section 11 of Pub. 179.

See section 11 of Pub. 15, section 8 of Pub. 80, or 

section 11 of Pub. 179 for information about payments 

made under the accuracy of deposits rule.

Note. When you make deposits depends on your deposit 

schedule, which is either monthly or semiweekly, 

depending on the amount of your tax liability during the 

lookback period. The lookback period for Form 944 filers 

is different from the lookback period for Form 941, 

941-SS, and 941-PR filers, so your deposit schedule may 

have changed. For more information, see section 11 of 

Pub. 15, section 8 of Pub. 80, or section 11 of Pub. 179. If 

you're a monthly schedule depositor and accumulate a 

$100,000 tax liability on any day during the deposit period, 

you become a semiweekly schedule depositor on the next 

day and remain so for at least the rest of the calendar year 

and for the following calendar year. The $100,000 tax 

liability threshold requiring a next-day deposit is 

determined before you consider any reduction of your 

liability for nonrefundable credits. For more information, 

including an example, see frequently asked question 17 at 

IRS.gov/ETD.

Reducing your deposits for the credit for qualified 

sick and family leave wages. Employers eligible to 

claim the credit for qualified sick and family leave wages 

paid in 2023 for leave taken after March 31, 2020, and 

before October 1, 2021, can reduce their deposits by the 

amount of their anticipated credit. Employers won’t be 

subject to a failure-to-deposit (FTD) penalty for reducing 

their deposits if certain conditions are met. See the 

instructions for line 8b and line 8d, later, for more 

information on these credits. For more information on 

reducing deposits, see Notice 2020-22, 2020-17 I.R.B. 

664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; 

and Notice 2021-24, 2021-18 I.R.B. 1122, available at 

IRS.gov/irb/2021-18_IRB#NOT-2021-24. See the 

instructions for line 13, later, for instructions on how to 

Instructions for Form 944 (2023) -7-
adjust your tax liabilities reported on line 13 or Form 945-A 

for nonrefundable credits.

What About Penalties and Interest?

Avoiding Penalties and Interest

You can avoid paying penalties and interest if you do all of 

the following.

• Deposit or pay your taxes when they are due, unless 

you meet the requirements discussed in Notice 2020-22 

and Notice 2021-24.

• File your fully completed Form 944 on time.

• Report your tax liability accurately.

• Submit valid checks for tax payments.

• Give accurate Forms W-2 to employees.

• File Form W-3 and Copies A of Forms W-2 with the 

SSA on time and accurately. Go to SSA.gov/employer for 

information on how to file Forms W-2 electronically.

Penalties and interest are charged on taxes paid late 

and returns filed late at a rate set by law. See sections 11 

and 12 of Pub. 15, section 8 of Pub. 80, or section 11 of 

Pub. 179 for details. Use Form 843 to request abatement 

of assessed penalties or interest. Don't request abatement 

of assessed penalties or interest on any other form.

If you receive a notice about a penalty after you file your 

return, reply to the notice with an explanation and we will 

determine if you meet reasonable-cause criteria. Don't 

include an explanation when you file your return.

If federal income, social security, and Medicare 

taxes that must be withheld (that is, trust fund 

taxes) aren't withheld or aren't deposited or paid 

to the United States Treasury, the trust fund recovery 

penalty may apply. The penalty is 100% of the unpaid trust 

fund tax. If these unpaid taxes can't be immediately 

collected from the employer or business, the trust fund 

recovery penalty may be imposed on all persons who are 

determined by the IRS to be responsible for collecting, 

accounting for, or paying over these taxes, and who acted 

willfully in not doing so. For more information, see section 

11 of Pub. 15, section 8 of Pub. 80, or section 11 of Pub. 

179. The trust fund recovery penalty won't apply to any 

amount of trust fund taxes an employer holds back in 

anticipation of any credits they are entitled to.

Specific Instructions

Part 1: Answer These Questions for 

This Year

Employers in American Samoa, Guam, the CNMI, 

the USVI, and Puerto Rico may skip lines 1 and 2, 

unless you have employees who are subject to 

U.S. income tax withholding.

For purposes of these instructions, all references 

to "sick pay" mean ordinary sick pay, not "qualified 

sick leave wages" that are reported on line 4a(i) 

for leave taken after March 31, 2020, and before April 1, 

2021, or reported on line 4a for leave taken after March 

31, 2021, and before October 1, 2021.

CAUTION

!

TIP TIP

1. Wages, Tips, and Other Compensation

Enter amounts on line 1 that would also be included in 

box 1 of your employees' Forms W-2. See Box 1—Wages, 

tips, other compensation in the General Instructions for 

Forms W-2 and W-3 for details. Include sick pay paid by 

your agent. Also include sick pay paid by a third party that 

isn't your agent (for example, an insurance company) if 

you were given timely notice of the payments and the third 

party transferred liability for the employer's taxes to you.

If you're a third-party payer of sick pay and not an agent 

of the employer, don't include sick pay that you paid to 

policyholders' employees here if you gave the 

policyholders timely notice of the payments. See section 6 

of Pub. 15-A, Employer's Supplemental Tax Guide, for 

more information about sick pay reporting and the 

procedures for transferring the liability to the employer.

2. Federal Income Tax Withheld From Wages, 

Tips, and Other Compensation

Enter the federal income tax that you withheld (or were 

required to withhold) from your employees on this year's 

wages, including qualified sick leave wages paid in 2023 

for leave taken after March 31, 2020, and before October 

1, 2021, and qualified family leave wages paid in 2023 for 

leave taken after March 31, 2020, and before October 1, 

2021; tips; taxable fringe benefits; and supplemental 

unemployment compensation benefits. Don't include any 

income tax withheld by a third-party payer of sick pay even 

if you reported it on Forms W-2. You will reconcile this 

difference on Form W-3. For information on the 

employment tax treatment of fringe benefits, see Pub. 

15-B, Employer's Tax Guide to Fringe Benefits. For 

information about supplemental unemployment 

compensation benefits, see section 5 of Pub. 15-A.

If you're a third-party payer of sick pay, enter the federal 

income tax you withheld (or were required to withhold) on 

third-party sick pay here.

References to federal income tax withholding 

don't apply to employers in American Samoa, 

Guam, the CNMI, the USVI, and Puerto Rico, 

unless you have employees who are subject to U.S. 

income tax withholding.

3. If No Wages, Tips, and Other Compensation 

Are Subject to Social Security or Medicare 

Tax . . .

If no wages, tips, and other compensation on line 1 are 

subject to social security or Medicare tax, check the box 

on line 3 and go to line 5. If this question doesn't apply to 

you, leave the box blank. For more information about 

exempt wages, see section 15 of Pub. 15, section 12 of 

Pub. 80, or section 15 of Pub. 179. For religious 

exemptions, see section 4 of Pub. 15-A. For information 

on the employment tax treatment of fringe benefits, see 

Pub. 15-B.

CAUTION

!

-8- Instructions for Form 944 (2023)
4a–4e. Taxable Social Security and Medicare 

Wages and Tips

Qualified sick leave wages and qualified family 

leave wages paid in 2023 for leave taken after 

March 31, 2020, and before April 1, 2021, are 

reported on lines 4a(i) and 4a(ii), respectively. Qualified 

sick leave wages and qualified family leave wages paid in 

2023 for leave taken after March 31, 2021, and before 

October 1, 2021, are reported on line 4a.

4a. Taxable social security wages. Enter the total 

wages, including qualified sick leave wages and qualified 

family leave wages paid in 2023 for leave taken after 

March 31, 2021, and before October 1, 2021; sick pay; 

and taxable fringe benefits subject to social security taxes 

that you paid to your employees during the year. Don't 

include the qualified sick leave wages paid in 2023 

reported on line 4a(i) or qualified family leave wages paid 

in 2023 reported on line 4a(ii) for leave taken after March 

31, 2020, and before April 1, 2021. 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 of Pub. 15-A for 

more information about sick pay reporting. See the 

instructions for line 6 for an adjustment that you may need 

to make on Form 944 for sick pay.

Enter the amount before payroll deductions. Don't 

include tips on this line. For information on types of wages 

subject to social security taxes, see section 5 of Pub. 15, 

section 4 of Pub. 80, or section 5 of Pub. 179.

For 2023, the rate of social security tax on taxable 

wages, except for qualified sick leave wages and qualified 

family leave wages paid in 2023 for leave taken after 

March 31, 2020, and before April 1, 2021, is 6.2% (0.062) 

each for the employer and employee or 12.4% (0.124) for 

both. Stop paying social security tax on and entering an 

employee's wages on line 4a when the employee's 

taxable wages, including qualified sick leave wages paid 

in 2023 that are reported on line 4a(i), qualified family 

leave wages paid in 2023 that are reported on line 4a(ii), 

and tips, reach $160,200 for the year. However, continue 

to withhold income and Medicare taxes for the whole year 

on all wages, including qualified sick leave wages paid in 

2023, qualified family leave wages paid in 2023, and tips, 

even when the social security wage base of $160,200 has 

been reached.

For purposes of the credit for qualified sick and family 

leave wages, qualified sick leave and family leave wages 

are wages for social security and Medicare tax purposes, 

determined without regard to the exclusions from the 

definition of employment under sections 3121(b)(1)–(22), 

that an employer pays that otherwise meet the 

requirements of the Emergency Paid Sick Leave Act 

(EPSLA) or the Emergency Family and Medical Leave 

Expansion Act (Expanded FMLA), as enacted under the 

FFCRA and amended for purposes of the ARP. However, 

don't include any wages otherwise excluded under section 

3121(b) when reporting qualified sick and family leave 

wages on lines 4a, 4a(i), 4a(ii), 4c, and, if applicable, 4d. 

See the instructions for line 8d for information about the 

credit for qualified sick and family leave wages paid in 

CAUTION

!

2023 for leave taken after March 31, 2021, and before 

October 1, 2021.

line 4a (column 1)

x  0.124

line 4a (column 2)

EPSLA. Employers with fewer than 500 employees 

and, for leave taken after March 31, 2021, and before 

October 1, 2021, certain governmental employers without 

regard to number of employees (except for the federal 

government and its agencies and instrumentalities unless 

described in section 501(c)(1)) are entitled to a credit if 

they provide paid sick leave to employees that otherwise 

meets the requirements of the EPSLA. Under the EPSLA, 

as amended for purposes of the ARP, wages are qualified 

sick leave wages if paid to employees that are unable to 

work or telework before October 1, 2021, because the 

employee:

1. Is subject to a federal, state, or local quarantine or 

isolation order related to COVID-19;

2. Has been advised by a health care provider to 

self-quarantine due to concerns related to COVID-19;

3. Is experiencing symptoms of COVID-19 and 

seeking a medical diagnosis; or, for leave taken after 

March 31, 2021, and before October 1, 2021, is seeking 

or awaiting the results of a diagnostic test for, or a medical 

diagnosis of, COVID-19 (and the employee has been 

exposed to COVID-19 or the employee's employer has 

requested such test or diagnosis), or the employee is 

obtaining immunizations related to COVID-19 or 

recovering from an injury, disability, illness, or condition 

related to such immunization;

4. Is caring for an individual subject to an order 

described in (1) or who has been advised as described in 

(2);

5. Is caring for a son or daughter because the school 

or place of care for that child has been closed, or the 

childcare provider for that child is unavailable, due to 

COVID-19 precautions; or

6. Is experiencing any other substantially similar 

condition specified by the U.S. Department of Health and 

Human Services, which for leave taken after March 31, 

2021, and before October 1, 2021, includes to accompany 

an individual to obtain immunization related to COVID-19, 

or to care for an individual who is recovering from any 

injury, disability, illness, or condition related to the 

immunization.

Son or daughter. A son or daughter must generally 

have been under 18 years of age or incapable of self-care 

because of a mental or physical disability. A son or 

daughter includes a biological child, adopted child, 

stepchild, foster child, legal ward, or child for whom the 

employee assumes parental status and carries out the 

obligations of a parent.

Limits on qualified sick leave wages. The EPSLA, 

as amended for purposes of the ARP, provides different 

limitations for different circumstances under which 

qualified sick leave wages are paid. For paid sick leave 

qualifying under (1), (2), or (3) above, the amount of 

qualified sick leave wages is determined at the 

Instructions for Form 944 (2023) -9-
employee's regular rate of pay, but the wages may not 

exceed $511 for any day (or portion of a day) for which the 

individual is paid sick leave. For paid sick leave qualifying 

under (4), (5), or (6) above, the amount of qualified sick 

leave wages is determined at two-thirds the employee's 

regular rate of pay, but the wages may not exceed $200 for 

any day (or portion of a day) for which the individual is 

paid sick leave. The EPSLA also limits each individual to a 

maximum of up to 80 hours of paid sick leave in total for 

leave taken after March 31, 2020, and before April 1, 

2021. The ARP resets this limit at 80 hours of paid sick 

leave for leave taken after March 31, 2021, and before 

October 1, 2021. Therefore, for leave taken after March 

31, 2020, and before April 1, 2021, the maximum amount 

of paid sick leave wages can’t exceed $5,110 for an 

employee for leave under (1), (2), or (3), and it can’t 

exceed $2,000 for an employee for leave under (4), (5), or 

(6). These maximum amounts also reset and apply to 

leave taken after March 31, 2021, and before October 1, 

2021.

For more information about qualified sick and family 

leave wages, go to IRS.gov/PLC.

Expanded FMLA. Employers with fewer than 500 

employees and, for leave taken after March 31, 2021, and 

before October 1, 2021, certain governmental employers 

without regard to number of employees (except for the 

federal government and its agencies and instrumentalities 

unless described in section 501(c)(1)) are entitled to a 

credit under the FFCRA, as amended for purposes of the 

ARP, if they provide paid family leave to employees that 

otherwise meets the requirements of the Expanded 

FMLA. For leave taken after March 31, 2020, and before 

April 1, 2021, wages are qualified family leave wages if 

paid to an employee who has been employed for at least 

30 calendar days when an employee is unable to work or 

telework due to the need to care for a son or daughter 

under 18 years of age or incapable of self-care because of 

a mental or physical disability because the school or place 

of care for that child has been closed, or the childcare 

provider for that child is unavailable, due to a public health 

emergency. See Son or daughter, earlier, for more 

information. For leave taken after March 31, 2021, and 

before October 1, 2021, the leave can be granted for any 

other reason provided by the EPSLA, as amended for 

purposes of the ARP.

For leave taken after March 31, 2020, and before April 

1, 2021, the first 10 days for which an employee takes 

leave may be unpaid. During this period, employees may 

use other forms of paid leave, such as qualified sick leave, 

accrued sick leave, annual leave, or other paid time off. 

After an employee takes leave for 10 days, the employer 

provides the employee paid leave (that is, qualified family 

leave wages) for up to 10 weeks. For leave taken after 

March 31, 2021, and before October 1, 2021, the 10-day 

rule discussed above doesn't apply and the paid leave 

can be provided for up to 12 weeks.

Rate of pay and limit on wages. The rate of pay must 

be at least two-thirds of the employee’s regular rate of pay 

(as determined under the Fair Labor Standards Act of 

1938), multiplied by the number of hours the employee 

would have otherwise been scheduled to work. For leave 

taken after March 31, 2020, and before April 1, 2021, the 

total qualified family leave wages can't exceed $200 per 

day or $10,000 in the aggregate per employee. For leave 

taken after March 31, 2021, and before October 1, 2021, 

the limit resets and the total qualified family leave wages 

can't exceed $200 per day or $12,000 in the aggregate 

per employee.

For more information about qualified sick and family 

leave wages, go to IRS.gov/PLC.

4a(i). Qualified sick leave wages. Enter the qualified 

taxable (subject to social security tax) sick leave wages 

you paid in 2023 to your employees for leave taken after 

March 31, 2020, and before April 1, 2021. Qualified sick 

leave wages for leave taken after March 31, 2020, and 

before April 1, 2021, aren't subject to the employer share 

of social security tax; therefore, the tax rate on these 

wages is 6.2% (0.062). Stop paying social security tax on 

and entering an employee's wages on line 4a(i) when the 

employee's taxable wages, including wages reported on 

line 4a, qualified sick leave wages reported on line 4a(i), 

qualified family leave wages reported on line 4a(ii), and 

tips, reach $160,200 for the year. See the instructions for 

line 4c for reporting Medicare tax on qualified sick leave 

wages, including the portion above the social security 

wage base.

For purposes of the credit for qualified sick and family 

leave wages, qualified sick leave wages are wages for 

social security and Medicare tax purposes, determined 

without regard to the exclusions from the definition of 

employment under sections 3121(b)(1)–(22), that an 

employer pays that otherwise meet the requirements of 

the EPSLA, as enacted under the FFCRA and amended 

by the COVID-related Tax Relief Act of 2020. However, 

don't include any wages otherwise excluded under section 

3121(b) when reporting qualified sick leave wages on 

lines 4a(i), 4c, and, if applicable, 4d. See the instructions 

for line 8b for information about the credit for qualified sick 

and family leave wages for leave taken after March 31, 

2020, and before April 1, 2021.

line 4a(i) (column 1)

x    0.062

line 4a(i) (column 2)

4a(ii). Qualified family leave wages. Enter the 

qualified taxable (subject to social security tax) family 

leave wages you paid in 2023 to your employees for leave 

taken after March 31, 2020, and before April 1, 2021. 

Qualified family leave wages for leave taken after March 

31, 2020, and before April 1, 2021, aren't subject to the 

employer share of social security tax; therefore, the tax 

rate on these wages is 6.2% (0.062). Stop paying social 

security tax on and entering an employee's wages on 

line 4a(ii) when the employee's taxable wages, including 

wages reported on line 4a, qualified sick leave wages 

reported on line 4a(i), qualified family leave wages 

reported on line 4a(ii), and tips, reach $160,200 for the 

year. See the instructions for line 4c for reporting Medicare 

tax on qualified family leave wages, including the portion 

above the social security wage base.

For purposes of the credit for qualified sick and family 

leave wages, qualified family leave wages are wages for 

social security and Medicare tax purposes, determined 

without regard to the exclusions from the definition of 

-10- Instructions for Form 944 (2023)
employment under sections 3121(b)(1)–(22), that an 

employer pays that otherwise meet the requirements of 

the Expanded FMLA, as enacted under the FFCRA and 

amended by the COVID-related Tax Relief Act of 2020. 

However, don't include any wages otherwise excluded 

under section 3121(b) when reporting qualified family 

leave wages on lines 4a(ii), 4c, and, if applicable, 4d. See 

the instructions for line 8b for information about the credit 

for qualified sick and family leave wages for leave taken 

after March 31, 2020, and before April 1, 2021.

line 4a(ii) (column 1)

x    0.062

line 4a(ii) (column 2)

4b. Taxable social security tips. Enter all tips your 

employees reported to you during the year until the total of 

the tips and taxable wages, including wages reported on 

line 4a, qualified sick leave wages reported on line 4a(i), 

and qualified family leave wages reported on line 4a(ii), for 

an employee reach $160,200 for the year. Include all tips 

your employees reported to you even if you were unable to 

withhold the 6.2% employee share of social security tax. 

You will reduce your total taxes by the amount of any 

uncollected employee share of social security and 

Medicare taxes on tips later on line 6; see Adjustments for 

tips and group-term life insurance, later. Don’t include 

service charges on line 4b. For details about the 

difference between tips and service charges, see Rev. 

Rul. 2012-18, 2012-26 I.R.B. 1032, available at 

IRS.gov/irb/2012-26_IRB#RR-2012-18.

Your employee must report cash tips to you by the 10th 

day of the month after the month the tips are received. 

Cash tips include tips paid by cash, check, debit card, and 

credit card. 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 (available only 

in Pub. 1244) or Form 4070-PR (available only in Pub. 

1244-PR), or submit a written statement or electronic tip 

record.

line 4b (column 1)

x   0.124

line 4b (column 2)

For more information on tips, see section 6 of Pub. 15, 

section 5 of Pub. 80, or section 6 of Pub. 179.

4c. Taxable Medicare wages and tips. Enter all 

wages, including qualified sick leave wages paid in 2023 

and qualified family leave wages paid in 2023; 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. See 

the instructions for line 6 for an adjustment that you may 

need to make on Form 944 for sick pay.

The rate of Medicare tax is 1.45% (0.0145) each for the 

employer and employee or 2.9% (0.029) 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   0.029

line 4c (column 2)

4d. Taxable wages & tips subject to Additional 

Medicare Tax withholding. Enter all wages, including 

qualified sick leave wages paid in 2023 and qualified 

family leave wages paid in 2023; tips; sick pay; and 

taxable fringe benefits that are subject to Additional 

Medicare Tax withholding. You’re 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 section 15 of Pub. 15. For more 

information on Additional Medicare Tax, go to IRS.gov/

ADMTfaqs. See the instructions for line 6 for an 

adjustment that you may need to make on Form 944 for 

sick pay.

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   0.009

line 4d (column 2)

4e. Total social security and Medicare taxes. Add 

the column 2 amounts on lines 4a–4d. Enter the result on 

line 4e.

5. Total Taxes Before Adjustments

Add the total federal income tax withheld from wages, tips, 

and other compensation from line 2 and the total social 

security and Medicare taxes before adjustments from 

line 4e. Enter the result on line 5.

6. Current Year's Adjustments

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, section 9 of 

Pub. 80, or section 12 of Pub. 179.

Adjustment for fractions of cents. Enter adjustments 

for fractions of cents (due to rounding) relating to the 

Instructions for Form 944 (2023) -11-
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' pay due to rounding 

social security and Medicare taxes based on statutory 

rates. This adjustment may be a positive or a negative 

adjustment.

Adjustment for sick pay. If your third-party payer of 

sick pay that isn't your agent (for example, an insurance 

company) transfers the liability for the employer share of 

the social security and Medicare taxes to you, enter a 

negative adjustment on line 6 for the employee share of 

social security and Medicare taxes that were withheld and 

deposited by your third-party sick pay payer on the sick 

pay. If you're the third-party sick pay payer and you 

transferred the liability for the employer share of the social 

security and Medicare taxes to the employer, enter a 

negative adjustment on line 6 for any employer share of 

these taxes required to be paid by the employer. The sick 

pay should be included on line 4a, line 4c, and, if the 

withholding threshold is met, line 4d.

No adjustment is reported on line 6 for sick pay that is 

paid through a third party as an employer's agent. An 

employer's agent bears no insurance risk and is 

reimbursed on a cost-plus-fee basis for payment of sick 

pay and similar amounts. If an employer uses an agent to 

pay sick pay, the employer reports the wages on line 4a, 

line 4c, and, if the withholding threshold is met, line 4d, 

unless the employer has an agency agreement with the 

third-party payer that requires the third-party payer to do 

the collecting, reporting, and/or paying or depositing 

employment taxes on the sick pay. See section 6 of Pub. 

15-A for more information about sick pay reporting.

Adjustments for tips and group-term life insurance. 

Enter a negative adjustment 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.

See the General Instructions for Forms W-2 and W-3 

for information on how to report the uncollected employee 

share of social security and Medicare taxes on tips and 

group-term life insurance on Form W-2.

Prior year's adjustments. If you need to adjust any 

amount reported on line 6 from a previously filed Form 

944, complete and file Form 944-X. Form 944-X is an 

adjusted return or claim for refund and is filed separately 

from Form 944. See section 13 of Pub. 15 or section 9 of 

Pub. 80.

7. Total Taxes After Adjustments

Combine the amounts shown on lines 5 and 6 and enter 

the result on line 7.

8a. Qualified Small Business Payroll Tax Credit 

for Increasing Research Activities

Enter the amount of the credit from Form 8974, line 12 or, 

if applicable, line 17.

If you enter an amount on line 8a, you must attach 

Form 8974.

Form 944 and these instructions use the terms 

“nonrefundable” and “refundable” when 

discussing credits. The term “nonrefundable” 

means the portion of the credit which is limited by law to 

the amount of certain taxes. The term “refundable” means 

the portion of the credit which is in excess of those taxes.

8b. Nonrefundable Portion of Credit for Qualified 

Sick and Family Leave Wages for Leave Taken 

After March 31, 2020, and Before April 1, 2021

Complete line 8b only if qualified sick leave 

wages and/or qualified family leave wages were 

paid in 2023 for leave taken after March 31, 2020, 

and before April 1, 2021.

Certain private employers with fewer than 500 

employees that provide paid sick leave under the EPSLA 

and/or provide paid family leave under the Expanded 

FMLA are eligible to claim the credit for qualified sick and 

family leave wages for leave taken after March 31, 2020, 

and before April 1, 2021. For purposes of this credit, 

qualified sick leave wages and qualified family leave 

wages are wages for social security and Medicare tax 

purposes, determined without regard to the exclusions 

from the definition of employment under sections 3121(b)

(1)–(22), that an employer pays that otherwise meet the 

requirements of the EPSLA or Expanded FMLA. Enter the 

nonrefundable portion of the credit for qualified sick and 

family leave wages from Worksheet 1, Step 2, line 2j. The 

credit for qualified sick and family leave wages consists of 

the qualified sick leave wages, the qualified family leave 

wages, the qualified health plan expenses allocable to 

those wages, and the employer share of Medicare tax 

allocable to those wages. The nonrefundable portion of 

the credit is limited to the employer share of social security 

tax reported on Form 944, lines 4a and 4b, after that share 

is first reduced by any credit claimed against the employer 

share of social security tax on Form 8974 for the qualified 

small business payroll tax credit for increasing research 

activities, any credit to be claimed on Form 5884-C for the 

work opportunity credit for qualified tax-exempt 

organizations hiring qualified veterans, and/or any credit to 

be claimed on Form 5884-D for the disaster credit for 

qualified tax-exempt organizations.

If you're a third-party payer of sick pay that isn't an 

agent (for example, an insurance company) and 

you're claiming the credit for qualified sick and 

family leave wages for amounts paid to your own 

employees, the amount of the employer share of social 

security tax reported on line 4a must be reduced by any 

adjustment you make on line 6 for the employer share of 

social security tax transferred to your client. See 

Worksheet 1 to figure your credit.

Any credit in excess of the remaining amount of the 

employer share of social security tax is refundable and 

reported on Form 944, line 10d. For more information on 

the credit for qualified sick and family leave wages, go to 

IRS.gov/PLC.

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-12- Instructions for Form 944 (2023)
Qualified health plan expenses allocable to qualified 

sick and family leave wages. The credit for qualified 

sick leave wages and qualified family leave wages is 

increased to cover the qualified health plan expenses that 

are properly allocable to the qualified leave wages for 

which the credit is allowed. These qualified health plan 

expenses are amounts paid or incurred by the employer to 

provide and maintain a group health plan but only to the 

extent such amounts are excluded from the employees’ 

income as coverage under an accident or health plan. The 

amount of qualified health plan expenses generally 

includes both the portion of the cost paid by the employer 

and the portion of the cost paid by the employee with pretax salary reduction contributions. However, qualified 

health plan expenses don’t include amounts that the 

employee paid for with after-tax contributions. For more 

information, go to IRS.gov/PLC.

You must include the full amount (both the 

nonrefundable and refundable portions) of the 

credit for qualified sick and family leave wages in 

your gross income for the tax year that includes the last 

day of any calendar quarter in which a credit is allowed.

8d. Nonrefundable Portion of Credit for 

Qualified Sick and Family Leave Wages for 

Leave Taken After March 31, 2021, and Before 

October 1, 2021

Complete line 8d only if qualified sick leave 

wages and/or qualified family leave wages were 

paid in 2023 for leave taken after March 31, 2021, 

and before October 1, 2021.

Employers with fewer than 500 employees and certain 

governmental employers without regard to number of 

employees (except for the federal government and its 

agencies and instrumentalities unless described in 

section 501(c)(1)) are entitled to a credit if they provide 

paid sick leave to employees that otherwise meets the 

requirements of the EPSLA, as amended for purposes of 

the ARP, and/or provide paid family leave to employees 

that otherwise meets the requirements under the 

Expanded FMLA, as amended for purposes of the ARP, 

for qualified sick and family leave wages for leave taken 

after March 31, 2021, and before October 1, 2021. For 

purposes of this credit, qualified sick leave wages and 

qualified family leave wages are wages for social security 

and Medicare tax purposes, determined without regard to 

the exclusions from the definition of employment under 

sections 3121(b)(1)–(22), that an employer pays that 

otherwise meet the requirements of the EPSLA or 

Expanded FMLA, as enacted under the FFCRA and 

amended for purposes of the ARP. Enter the 

nonrefundable portion of the credit for qualified sick and 

family leave wages from Worksheet 2, Step 2, line 2p.

The credit for qualified sick and family leave wages 

consists of the:

• Qualified sick leave wages and/or qualified family leave 

wages;

• Qualified health plan expenses allocable to qualified 

sick and family leave wages;

• Collectively bargained defined benefit pension plan 

contributions, subject to the qualified leave wage 

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CAUTION

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limitations, allocable to the qualified sick and family leave 

wages;

• Collectively bargained apprenticeship program 

contributions, subject to the qualified leave wage 

limitations, allocable to the qualified sick and family leave 

wages; and

• Employer share of social security and Medicare tax 

allocable to the qualified sick and family leave wages.

The nonrefundable portion of the credit is limited to the 

employer share of Medicare tax reported on Form 944, 

line 4c, after that share is first reduced by any credit 

claimed against the employer share of Medicare tax on 

Form 8974 for the qualified small business payroll tax 

credit for increasing research activities. You can’t claim the 

credit for leave taken after March 31, 2021, and before 

October 1, 2021, if you made qualified sick or family leave 

wages available in a manner that discriminates in favor of 

highly compensated employees, full-time employees, or 

employees on the basis of employment tenure. See Highly 

compensated employee, later, for the definition.

For leave taken after March 31, 2021, and before 

October 1, 2021, the credit for qualified sick and family 

leave wages is reduced by the amount of the credit 

allowed under section 41 (for the credit for increasing 

research activities) with respect to wages taken into 

account for determining the credit for qualified sick and 

family leave wages; and any wages taken into account in 

determining the credit for qualified sick and family leave 

wages can't be taken into account as wages for purposes 

of the credits under sections 45A, 45P, 45S, and 51. For 

leave taken after March 31, 2021, and before October 1, 

2021, qualified wages also don't include wages that were 

used as payroll costs in connection with a Shuttered 

Venue Operator Grant under section 324 of the Economic 

Aid to Hard-Hit Small Businesses, Nonprofits, and Venues 

Act; or a restaurant revitalization grant under section 5003 

of the ARP. Employers can receive both a Small Business 

Interruption Loan under the Paycheck Protection Program 

(PPP) and the credit for qualified sick and family leave 

wages; however, employers can't receive both loan 

forgiveness and a credit for the same wages. The same 

wages can’t be treated as both qualified sick leave wages 

and qualified family leave wages.

If you're a third-party payer of sick pay that isn't an 

agent (for example, an insurance company) and 

you're claiming the credit for qualified sick and 

family leave wages for amounts paid to your own 

employees, the amount of the employer share of Medicare 

tax reported on line 4c must be reduced by any 

adjustment you make on line 6 for the employer share of 

Medicare tax transferred to your client. See Worksheet 2 

to figure your credit.

Any credit in excess of the remaining amount of the 

employer share of Medicare tax is refundable and 

reported on Form 944, line 10f. For more information on 

the credit for qualified sick and family leave wages, go to 

IRS.gov/PLC.

Qualified health plan expenses allocable to qualified 

sick and family leave wages. The credit for qualified 

sick leave wages and qualified family leave wages is 

increased to cover the qualified health plan expenses that 

CAUTION

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Instructions for Form 944 (2023) -13-
are properly allocable to the qualified leave wages for 

which the credit is allowed. These qualified health plan 

expenses are amounts paid or incurred by the employer to 

provide and maintain a group health plan but only to the 

extent such amounts are excluded from the employees' 

income as coverage under an accident or health plan. The 

amount of qualified health plan expenses generally 

includes both the portion of the cost paid by the employer 

and the portion of the cost paid by the employee with 

pre-tax salary reduction contributions. However, qualified 

health plan expenses don't include amounts that the 

employee paid for with after-tax contributions. For more 

information, go to IRS.gov/PLC.

Collectively bargained defined benefit pension plan 

contributions. For purposes of qualified sick and family 

leave wages, collectively bargained defined benefit 

pension plan contributions are contributions for a calendar 

quarter that are:

• Paid or incurred by an employer on behalf of its 

employees to a defined benefit plan, as defined in section 

414(j), which meets the requirements of section 401(a);

• Made based on a pension contribution rate; and

• Required to be made under the terms of a collective 

bargaining agreement in effect during the quarter.

Pension contribution rate. The pension contribution 

rate is the contribution rate that the employer is obligated 

to pay under the terms of a collective bargaining 

agreement to a defined benefit plan, as the rate is applied 

to contribution base units, as defined by section 4001(a)

(11) of the Employee Retirement Income Security Act of 

1974 (ERISA).

Allocation rules. The amount of collectively bargained 

defined benefit pension plan contributions allocated to 

qualified sick leave wages and/or qualified family leave 

wages during a quarter is the pension contribution rate 

(expressed as an hourly rate) multiplied by the number of 

hours qualified sick leave wages and/or qualified family 

leave wages were provided to employees covered under 

the collective bargaining agreement during the quarter.

Collectively bargained apprenticeship program contributions. For purposes of qualified sick and family 

leave wages, collectively bargained apprenticeship 

program contributions are contributions for a calendar 

quarter that are:

• Paid or incurred by an employer on behalf of its 

employees to a registered apprenticeship program, which 

is an apprenticeship registered under the National 

Apprenticeship Act of August 16, 1937, and meets the 

standards of Federal Regulations under subpart A of Part 

29 and Part 30 of title 29;

• Made based on an apprenticeship program contribution 

rate; and

• Required to be made under the terms of a collective 

bargaining agreement in effect during the quarter.

Apprenticeship program contribution rate. The 

apprenticeship program contribution rate is the 

contribution rate that the employer is obligated to pay 

under the terms of a collective bargaining agreement for 

benefits under a registered apprenticeship program, as 

the rate is applied to contribution base units, as defined by 

section 4001(a)(11) of ERISA.

Allocation rules. The amount of collectively bargained 

apprenticeship program contributions allocated to 

qualified sick leave wages and/or qualified family leave 

wages in a quarter is the apprenticeship program 

contribution rate (expressed as an hourly rate) multiplied 

by the number of hours qualified sick leave wages and/or 

qualified family leave wages were provided to employees 

covered under the collective bargaining agreement during 

the quarter.

Highly compensated employee. A highly compensated 

employee is an employee who meets either of the 

following tests.

1. The employee was a 5% owner at any time during 

the year or the preceding year.

2. The employee received more than $135,000 in pay 

for the preceding year.

You can choose to ignore test (2) if the employee 

wasn’t also in the top 20% of employees when ranked by 

pay for the preceding year.

8g. Total Nonrefundable Credits

Add lines 8a, 8b, and 8d. Enter the total on line 8g.

9. Total Taxes After Adjustments and 

Nonrefundable Credits

Subtract line 8g from line 7 and enter the result on line 9. 

The amount entered on line 9 can't be less than zero.

• If line 9 is less than $2,500, you may pay the amount 

with Form 944 or you may deposit the amount.

• If line 9 is $2,500 or more, you must generally deposit 

your tax liabilities by EFT. However, if you deposited all 

taxes accumulated in the first 3 quarters of the year and 

your fourth quarter liability is less than $2,500, you may 

pay taxes accumulated during the fourth quarter with Form 

944. Also see section 11 of Pub. 15, section 8 of Pub. 80, 

or section 11 of Pub. 179 for information about payments 

made under the accuracy of deposits rule. The amount 

shown on line 9 must equal the amount shown on 

line 13m or the “Total tax liability for the year” shown on 

line M of Form 945-A, Annual Record of Federal Tax 

Liability. For more information, see the line 13 instructions, 

later.

For more information and rules about federal tax 

deposits, see Must You Deposit Your Taxes, earlier, and 

section 11 of Pub. 15, section 8 of Pub. 80, or section 11 

of Pub. 179. See Notice 2020-22 and Notice 2021-24 for 

information on reducing deposits for certain credits.

If you’re a semiweekly schedule depositor, you 

must complete Form 945-A. If you fail to complete 

and submit Form 945-A, the IRS may assess 

deposit penalties based on available information.

10a. Total Deposits for This Year

Enter your deposits for this year, including any 

overpayment that you applied from filing Form 944-X, 

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. Don't 

include any amount you didn't deposit because you 

reduced your deposits in anticipation of the credit for 

CAUTION

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-14- Instructions for Form 944 (2023)
qualified sick and family leave wages, as discussed in 

Notice 2020-22 and Notice 2021-24.

10d. Refundable Portion of Credit for Qualified 

Sick and Family Leave Wages for Leave Taken 

After March 31, 2020, and Before April 1, 2021

Complete line 10d only if qualified sick leave 

wages and/or qualified family leave wages were 

paid in 2023 for leave taken after March 31, 2020, 

and before April 1, 2021.

Certain private employers with fewer than 500 

employees that provided paid sick leave under the EPSLA 

and/or provided paid family leave under the Expanded 

FMLA are eligible to claim the credit for qualified sick and 

family leave wages. Enter the refundable portion of the 

credit for qualified sick and family leave wages from 

Worksheet 1, Step 2, line 2k. The credit for qualified sick 

and family leave wages consists of the qualified sick leave 

wages, the qualified family leave wages, the qualified 

health plan expenses allocable to those wages, and the 

employer share of Medicare tax allocable to those wages. 

The refundable portion of the credit is allowed after the 

employer share of social security tax is reduced to zero by 

nonrefundable credits that are applied against the 

employer share of social security tax.

10f. Refundable Portion of Credit for Qualified 

Sick and Family Leave Wages for Leave Taken 

After March 31, 2021, and Before October 1, 

2021

Complete line 10f only if qualified sick leave 

wages and/or qualified family leave wages were 

paid in 2023 for leave taken after March 31, 2021, 

and before October 1, 2021.

Employers with fewer than 500 employees and certain 

governmental employers without regard to number of 

employees (except for the federal government and its 

agencies and instrumentalities unless described in 

section 501(c)(1)) are entitled to a credit if they provide 

paid sick leave to employees that otherwise meets the 

requirements of the EPSLA, as amended for purposes of 

the ARP, and/or provide paid family leave to employees 

that otherwise meets the requirements under the 

Expanded FMLA, as amended for purposes of the ARP, 

for leave taken after March 31, 2021, and before October 

1, 2021. Enter the refundable portion of the credit for 

qualified sick and family leave wages from Worksheet 2, 

Step 2, line 2q. The refundable portion of the credit is 

allowed after the employer share of Medicare tax is 

reduced to zero by nonrefundable credits that are applied 

against the employer share of Medicare tax.

10h. Total Deposits and Refundable Credits

Add lines 10a, 10d, and 10f. Enter the total on line 10h.

11. Balance Due

If line 9 is more than line 10h, enter the difference on 

line 11. Otherwise, see the instructions for line 12, later. 

Never make an entry on both lines 11 and 12.

You don't have to pay if line 11 is less than $1. 

Generally, you should have a balance due only if your total 

CAUTION

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taxes after adjustments and nonrefundable credits (line 9) 

are less than $2,500. However, see If line 9 is $2,500 or 

more under the instructions for line 9, earlier, for 

exceptions.

If you were required to make federal tax deposits, pay 

the amount shown on line 11 by EFT. If you weren't 

required to make federal tax deposits (see the Federal Tax 

Deposit Requirements for Form 944 Filers chart, earlier) or 

you're a monthly schedule depositor making a payment 

under the accuracy of deposits rule, you may pay the 

amount shown on line 11 by EFT, credit card, debit card, 

check, money order, or EFW. For more information on 

electronic payment options, go to IRS.gov/Payments.

If you pay by EFT, credit card, or debit card, file your 

return using the Without a payment address under Where 

Should You File, earlier. Don't file Form 944-V, Payment 

Voucher.

If you pay by check or money order, make it payable to 

“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 you're required to make deposits and instead 

pay the taxes with Form 944, you may be subject 

to a penalty.

What if you can't pay in full? If you can't pay the full 

amount of tax you owe, you can apply for an installment 

agreement online. You can apply for an installment 

agreement online if:

• You can't pay the full amount shown on line 11,

• The total amount you owe is $25,000 or less, and

• You can pay the liability in full in 24 months.

To apply using the Online Payment Agreement 

Application, go to IRS.gov/OPA.

Under an installment agreement, you can pay what you 

owe in monthly installments. There are certain conditions 

you must meet to enter into and maintain an installment 

agreement, such as paying the liability within 24 months, 

and making all required deposits and timely filing tax 

returns during the length of the agreement.

If your installment agreement is accepted, you will be 

charged a fee and you will be subject to penalties and 

interest on the amount of tax not paid by the due date of 

the return.

12. Overpayment

If line 10h is more than line 9, enter the amount on 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 don't check either box or if you 

check both boxes, we will generally apply the 

overpayment to your next return. Regardless of any boxes 

you check or don’t check on line 12, we may apply your 

overpayment to any past due tax account that is shown in 

our records under your EIN.

If line 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.

CAUTION

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Instructions for Form 944 (2023) -15-
Part 2: Tell Us About Your Deposit 

Schedule and Tax Liability for This 

Year

13. Tax Liability

If line 9 is less than $2,500, check the first box on line 13 

and go to line 14.

If line 9 is $2,500 or more, check the second box on 

line 13. If you’re a monthly schedule depositor, enter your 

tax liability for each month and figure the total liability for 

the year. The amounts entered on line 13 are a summary 

of your monthly tax liabilities, not a summary of deposits 

you made. The IRS gets deposit data from EFTs. Enter 

your tax liabilities in the month that corresponds to the 

dates you paid wages to your employees, not the date 

payroll liabilities were accrued or deposits were made. If 

you don't enter your tax liability for each month, the IRS 

won't know when you should have made deposits and 

may assess an “averaged” FTD penalty. See section 11 of 

Pub. 15, section 8 of Pub. 80, or section 11 of Pub. 179. If 

your tax liability for any month is negative after accounting 

for your adjustments reported on line 6, don't 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.

The amount shown on line 13m must equal the 

amount shown on line 9. If it doesn't, your tax 

deposits and payments may not be counted as 

timely. Don't reduce your total liability reported on line 13 

by the refundable portion of the credit for qualified sick 

and family leave wages. Don't change your current year 

tax liability reported on line 13 by adjustments reported on 

any Forms 944-X.

If you’re a semiweekly schedule depositor or if you 

became one because you accumulated $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 

$100,000 Next-Day Deposit Rule in section 11 of Pub. 15, 

section 8 of Pub. 80, or section 11 of Pub. 179. Don't 

complete lines 13a–13m if you file Form 945-A.

Adjusting tax liability for nonrefundable credits 

claimed on lines 8a, 8b, and 8d. Monthly schedule 

depositors and semiweekly schedule depositors must 

account for nonrefundable credits claimed on lines 8a, 8b, 

and 8d when reporting their tax liabilities on line 13 or 

Form 945-A. The total tax liability for the year must equal 

the amount reported on line 9. Failure to account for the 

nonrefundable credits on line 13 or Form 945-A may 

cause line 13 or Form 945-A to report more than the total 

tax liability reported on line 9. Don't reduce your monthly 

tax liability reported on lines 13a through 13l or your daily 

tax liability reported on Form 945-A below zero.

Qualified small business payroll tax credit for 

increasing research activities (line 8a). Beginning 

with the first quarter of 2023, the qualified small business 

payroll tax credit for increasing research activities is first 

used to reduce the employer share of social security tax 

(up to $250,000) for the quarter and any remaining credit 

is then used to reduce the employer share of Medicare tax 

for the quarter until it reaches zero. In completing line 13 

CAUTION

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or Form 945-A, you take into account the payroll tax credit 

against the liability for the employer share of social 

security tax starting with the first payroll payment of the 

quarter that includes payments of wages subject to social 

security tax to your employees until you use up to 

$250,000 of credit against the employer share of social 

security tax and you then take into account any remaining 

payroll tax credit against the liability for the employer 

share of Medicare tax starting with the first payroll 

payment of the quarter that includes payments of wages 

subject to Medicare tax to employees. Consistent with the 

entries on line 13 or Form 945-A, the payroll tax credit 

should be taken into account in making deposits of 

employment tax. If any payroll tax credit is remaining at 

the end of the quarter that hasn’t been used completely 

because it exceeds $250,000 of the employer share of 

social security tax and the employer share of Medicare tax 

for the quarter, the excess credit may be carried forward to 

the succeeding quarter and allowed as a payroll tax credit 

for the succeeding quarter. The payroll tax credit may not 

be taken as a credit against income tax withholding, the 

employee share of social security tax, or the employee 

share of Medicare tax.

Also, the remaining payroll tax credit may not be carried 

back and taken as a credit against wages paid from 

preceding quarters that are reported on the same Form 

944 or on Forms 944 for preceding years. If an amount of 

payroll tax credit is unused at the end of the calendar year 

because it is in excess of the applicable employer share of 

social security tax and employer share of Medicare tax on 

wages paid during the applicable quarters in the calendar 

year, the remaining payroll tax credit may be carried 

forward to the first quarter of the succeeding calendar 

year as a payroll tax credit against the applicable 

employer share of social security tax and employer share 

of Medicare tax on wages paid in that quarter.

Example. Rose Co. is an employer with a calendar tax 

year that filed its timely 2022 income tax return on April 

18, 2023. Rose Co. elected to take the qualified small 

business payroll tax credit for increasing research 

activities on Form 6765. The third quarter of 2023 is the 

first quarter that begins after Rose Co. filed the income tax 

return making the payroll tax credit election. Therefore, the 

payroll tax credit applies against Rose Co.'s share of 

social security tax (up to $250,000) and Medicare tax on 

wages paid to employees in the third quarter of 2023. 

Rose Co. is a semiweekly schedule depositor. Rose Co. 

completes Form 945-A by reducing the amount of liability 

entered for the first payroll payment in the third quarter of 

2023 that includes wages subject to social security tax by 

the lesser of (1) its share of social security tax (up to 

$250,000) on the wages, or (2) the available payroll tax 

credit. If the payroll tax credit elected is more than Rose 

Co.'s share of social security tax on the first payroll 

payment of the quarter, the excess payroll tax credit would 

be carried forward to succeeding payroll payments in the 

third quarter until it is used against up to $250,000 of Rose 

Co.'s share of social security tax for the quarter. If the 

amount of the payroll tax credit exceeds Rose Co.'s share 

of social security tax (up to $250,000) on wages paid to its 

employees in the third quarter, any remaining credit is 

used against Rose Co.'s share of Medicare tax on the first 

payroll payment of the quarter and then the excess payroll 

-16- Instructions for Form 944 (2023)
tax credit would be carried forward to succeeding payroll 

payments in the third quarter until it is used against Rose 

Co.'s share of Medicare tax for the quarter. If Rose Co. still 

has credit remaining after reducing its share of social 

security tax (up to $250,000) and Medicare tax for the 

third quarter, the remainder would be treated as a payroll 

tax credit against its share of social security tax (up to 

$250,000) and Medicare tax on wages paid in the fourth 

quarter. If the amount of the payroll tax credit remaining 

exceeded Rose Co.'s share of social security tax (up to 

$250,000) and Medicare tax on wages paid in the fourth 

quarter, it could be carried forward and treated as a payroll 

tax credit for the first quarter of 2024.

Nonrefundable portion of credit for qualified sick 

and family leave wages for leave taken after March 

31, 2020, and before April 1, 2021 (line 8b). The 

nonrefundable portion of the credit for qualified sick and 

family leave wages paid in 2023 for leave taken after 

March 31, 2020, and before April 1, 2021, is limited to the 

employer share of social security tax on wages paid 

during the year that is remaining after that share is first 

reduced by any credit claimed against the employer share 

of social security tax on Form 8974, line 12, for the 

qualified small business payroll tax credit for increasing 

research activities; any credit to be claimed on Form 

5884-C, line 11, for the work opportunity credit for 

qualified tax-exempt organizations hiring qualified 

veterans; and/or any credit to be claimed on Form 5884-D 

for the disaster credit for qualified tax-exempt 

organizations. In completing line 13 or Form 945-A, you 

take into account the nonrefundable portion of the credit 

for qualified sick and family leave wages paid in 2023 

against the liability for the first payroll payment of the year, 

but not below zero. Then reduce the liability for each 

successive payroll payment of the year until the 

nonrefundable portion of the credit is used. Any credit for 

qualified sick and family leave wages paid in 2023 for 

leave taken after March 31, 2020, and before April 1, 

2021, that is remaining at the end of the year because it 

exceeds the employer share of social security tax is 

claimed on line 10d as a refundable credit. The refundable 

portion of the credit doesn’t reduce the liability reported on 

line 13 or Form 945-A.

Example. Maple Co. is a monthly schedule depositor 

that pays employees every Friday. In 2023, Maple Co. had 

pay dates every Friday starting on January 6, 2023. Maple 

Co. paid qualified sick and family leave wages on March 

10 and March 17 for leave taken after March 31, 2020, 

and before April 1, 2021. The nonrefundable portion of the 

credit for qualified sick and family leave wages for the year 

is $300. On line 13, Maple Co. will use the $300 to reduce 

the liability for the January 6 pay date, but not below zero. 

If any nonrefundable portion of the credit remains, Maple 

Co. applies it to the liability for the January 13 pay date, 

then the January 20 pay date, and so forth until the entire 

$300 is used.

Nonrefundable portion of credit for qualified sick 

and family leave wages for leave taken after March 

31, 2021, and before October 1, 2021 (line 8d). The 

nonrefundable portion of the credit for qualified sick and 

family leave wages paid in 2023 for leave taken after 

March 31, 2021, and before October 1, 2021, is limited to 

the employer share of Medicare tax on wages paid during 

the year that is remaining after that share is first reduced 

by any credit claimed against the employer share of 

Medicare tax on Form 8974, line 16, for the qualified small 

business payroll tax credit for increasing research 

activities. In completing line 13 or Form 945-A, you take 

into account the nonrefundable portion of the credit for 

qualified sick and family leave wages paid in 2023 against 

the liability for the first payroll payment of the year, but not 

below zero. Then reduce the liability for each successive 

payroll payment in the year until the nonrefundable portion 

of the credit is used. Any credit for qualified sick and 

family leave wages paid in 2023 for leave taken after 

March 31, 2021, and before October 1, 2021, that is 

remaining at the end of the year because it exceeds the 

employer share of Medicare tax is claimed on line 10f as a 

refundable credit. The refundable portion of the credit 

doesn’t reduce the liability reported on line 13 or Form 

945-A.

You may reduce your deposits by the amount of 

the nonrefundable and refundable portions of the 

credit for qualified sick and family leave wages, as 

discussed earlier under Reducing your deposits for the 

credit for qualified sick and family leave wages.

Part 3: Tell Us About Your Business

In Part 3, answer only those questions that apply to your 

business. If the questions don't apply, leave them blank 

and go to Part 4.

14. If Your Business Has Closed...

If you permanently go out of business or stop paying 

wages, you must file a final return. To tell 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. For additional filing requirements, 

including information about attaching a statement to your 

final return, see If Your Business Has Closed, earlier.

Lines 15, 16, and 19 Through 24

The amounts entered on lines 15, 16, and 19 through 24 

are amounts that you use on the worksheets at the end of 

these instructions to figure certain credits. If you’re 

claiming these credits, you must enter the applicable 

amounts.

Complete lines 15 and 16 only if qualified health 

plan expenses allocable to qualified sick leave 

wages and/or qualified family leave wages were 

paid in 2023 for leave taken after March 31, 2020, and 

before April 1, 2021.

15. Qualified Health Plan Expenses Allocable to 

Qualified Sick Leave Wages for Leave Taken 

After March 31, 2020, and Before April 1, 2021

Enter the qualified health plan expenses allocable to 

qualified sick leave wages paid in 2023 for leave taken 

after March 31, 2020, and before April 1, 2021. This 

amount is also entered on Worksheet 1, Step 2, line 2b.

TIP

CAUTION

!

Instructions for Form 944 (2023) -17-
16. Qualified Health Plan Expenses Allocable to 

Qualified Family Leave Wages for Leave Taken 

After March 31, 2020, and Before April 1, 2021

Enter the qualified health plan expenses allocable to 

qualified family leave wages paid in 2023 for leave taken 

after March 31, 2020, and before April 1, 2021. This 

amount is also entered on Worksheet 1, Step 2, line 2f.

Complete lines 19, 20, and 21 only if qualified 

sick leave wages were paid in 2023 for leave 

taken after March 31, 2021, and before October 1, 

2021.

19. Qualified Sick Leave Wages for Leave Taken 

After March 31, 2021, and Before October 1, 

2021

Enter the qualified sick leave wages you paid in 2023 to 

your employees for leave taken after March 31, 2021, and 

before October 1, 2021, including any qualified sick leave 

wages that were above the social security wage base and 

any qualified sick leave wages excluded from the 

definition of employment under sections 3121(b)(1)–(22). 

See the instructions for line 8d, earlier, for more 

information about qualified sick leave wages for leave 

taken after March 31, 2021, and before October 1, 2021. 

This amount is also entered on Worksheet 2, Step 2, 

line 2a.

20. Qualified Health Plan Expenses Allocable to 

Qualified Sick Leave Wages Reported on Line 19

Enter the qualified health plan expenses allocable to 

qualified sick leave wages paid in 2023 for leave taken 

after March 31, 2021, and before October 1, 2021. This 

amount is also entered on Worksheet 2, Step 2, line 2b.

21. Amounts Under Certain Collectively 

Bargained Agreements Allocable to Qualified 

Sick Leave Wages Reported on Line 19

Enter the collectively bargained defined benefit pension 

plan contributions and collectively bargained 

apprenticeship program contributions allocable to 

qualified sick leave wages paid in 2023 for leave taken 

after March 31, 2021, and before October 1, 2021. This 

amount is also entered on Worksheet 2, Step 2, line 2c.

Complete lines 22, 23, and 24 only if qualified 

family leave wages were paid in 2023 for leave 

taken after March 31, 2021, and before October 1, 

2021.

22. Qualified Family Leave Wages for Leave 

Taken After March 31, 2021, and Before October 

1, 2021

Enter the qualified family leave wages you paid in 2023 to 

your employees for leave taken after March 31, 2021, and 

before October 1, 2021, including any qualified family 

leave wages that were above the social security wage 

base and any qualified family leave wages excluded from 

the definition of employment under sections 3121(b)(1)–

(22). See the instructions for line 8d, earlier, for more 

information about qualified family leave wages for leave 

taken after March 31, 2021, and before October 1, 2021. 

CAUTION

!

CAUTION

!

This amount is also entered on Worksheet 2, Step 2, 

line 2g.

23. Qualified Health Plan Expenses Allocable to 

Qualified Family Leave Wages Reported on 

Line 22

Enter the qualified health plan expenses allocable to 

qualified family leave wages paid in 2023 for leave taken 

after March 31, 2021, and before October 1, 2021. This 

amount is also entered on Worksheet 2, Step 2, line 2h.

24. Amounts Under Certain Collectively 

Bargained Agreements Allocable to Qualified 

Family Leave Wages Reported on Line 22

Enter the collectively bargained defined benefit pension 

plan contributions and collectively bargained 

apprenticeship program contributions allocable to 

qualified family leave wages paid in 2023 for leave taken 

after March 31, 2021, and before October 1, 2021. This 

amount is also entered on Worksheet 2, Step 2, line 2i.

Part 4: May We Speak With Your 

Third-Party Designee?

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 five-digit personal identification number 

(PIN) of the specific person to speak with—not the name 

of the firm that prepared your tax return. The designee 

may choose any five numbers as their 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 of 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 won't send notices to your designee.

You’re 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.

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 wants to terminate the 

authorization, write to the IRS office for your location using 

the Without a payment address under Where Should You 

File, earlier.

Part 5: Sign Here (Approved Roles)

Complete all information and sign Form 944. The following 

persons are authorized to sign the return for each type of 

business entity.

• Sole proprietorship—The individual who owns the 

business.

• Corporation (including a limited liability company 

(LLC) treated as a corporation)—The president, vice 

president, or other principal officer duly authorized to sign.

-18- Instructions for Form 944 (2023)
• 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 IRS.gov/irb/

2005-28_IRB#RP-2005-39.

Paid Preparer Use Only

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 isn't 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’re a paid preparer, enter your Preparer Tax 

Identification Number (PTIN) in the space provided. 

Include your complete address. If you work for a firm, 

enter the firm's name and the EIN of the firm. You can 

apply for a PTIN online or by filing Form W-12. For more 

information about applying for a PTIN online, go to 

IRS.gov/PTIN. You can't use your PTIN in place of the EIN 

of the tax preparation firm.

Generally, don't complete this section if you’re filing the 

return as a reporting agent and have a valid Form 8655 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.

How To Get Forms, Instructions, and 

Publications

You can view, download, or print most of the 

forms, instructions, and publications you may 

need at IRS.gov/Forms. Otherwise, you can go to 

IRS.gov/OrderForms to place an order and have forms 

mailed to you.

Instructions for Form 944 (2023) -19-
Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid 

in 2023 for Leave Taken After March 31, 2020, and Before April 1, 

2021 Keep for Your Records

Determine how you will complete this worksheet.

If you paid qualified sick leave wages and/or qualified family leave wages for leave taken after March 31, 2020, and before April 1, 2021, 

complete Step 1 and Step 2. Caution: Use Worksheet 2 to figure the credit for qualified sick and family leave wages paid in 2023 for leave taken 

after March 31, 2021, and before October 1, 2021.

Step 1. Determine the employer share of social security tax after it is reduced by any credit claimed on Form 8974 and any 

credit to be claimed on Form 5884-C and/or Form 5884-D

1a Enter the amount of social security tax from Form 944, Part 1, line 4a, 

column 2 .......................................................... 1a

1b Enter the amount of social security tax from Form 944, Part 1, line 4b, 

column 2 .......................................................... 1b

1c Add lines 1a and 1b ................................................. 1c

1d Multiply line 1c by 50% (0.50) .......................................... 1d

1e If you’re a third-party payer of sick pay that isn't an agent and you're claiming credits 

for amounts paid to your employees, enter the employer share of social security tax 

included on Form 944, Part 1, line 6 (enter as a positive number) ................ 1e

1f Employer share of social security tax. Subtract line 1e from line 1d ........... 1f

1g Enter the amount from Form 8974, line 12, for this year ....................... 1g

1h Enter the amount to be claimed on Form 5884-C, line 11, for this year ............ 1h

1i Enter the amount to be claimed on Form 5884-D, line 12, for this year ............ 1i

1j Total nonrefundable credits already used against the employer share of social 

security tax. Add lines 1g, 1h, and 1i .................................... 1j

1k Employer share of social security tax remaining. Subtract line 1j 

from line 1f ........................................................ 1k

Step 2. Figure the sick and family leave credit

2a Qualified sick leave wages reported on Form 944, Part 1, line 4a(i), column 1 ....... 2a

2a(i) Qualified sick leave wages included on Form 944, Part 1, line 4c, but not included on 

Form 944, Part 1, line 4a(i), column 1, because the wages reported on that line were 

limited by the social security wage base .................................. 2a(i)

2a(ii) Total qualified sick leave wages. Add lines 2a and 2a(i) ....................... 2a(ii)

2a(iii) Qualified sick leave wages excluded from the definition of employment under sections 

3121(b)(1)–(22) ..................................................... 2a(iii)

2b Qualified health plan expenses allocable to qualified sick leave wages (Form 944, Part 

3, line 15) ......................................................... 2b

2c Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by 

1.45% (0.0145) ..................................................... 2c

2d Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b, and 2c ........ 2d

2e Qualified family leave wages reported on Form 944, Part 1, line 4a(ii), 

column 1 .......................................................... 2e

2e(i) Qualified family leave wages included on Form 944, Part 1, line 4c, but not included on 

Form 944, Part 1, line 4a(ii), column 1, because the wages reported on that line were 

limited by the social security wage base .................................. 2e(i)

2e(ii) Total qualified family leave wages. Add lines 2e and 2e(i) ...................... 2e(ii)

2e(iii) Qualified family leave wages excluded from the definition of employment under 

sections 3121(b)(1)–(22) .............................................. 2e(iii)

2f Qualified health plan expenses allocable to qualified family leave wages (Form 944, 

Part 3, line 16) ...................................................... 2f

2g Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii) by 

1.45% (0.0145) ..................................................... 2g

2h Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f, and 2g ....... 2h

2i Credit for qualified sick and family leave wages. Add lines 2d and 2h ......... 2i

2j Nonrefundable portion of credit for qualified sick and family leave wages for 

leave taken after March 31, 2020, and before April 1, 2021. Enter the smaller of 

line 1k or line 2i. Enter this amount on Form 944, Part 1, line 8b ................. 2j

2k Refundable portion of credit for qualified sick and family leave wages for leave 

taken after March 31, 2020, and before April 1, 2021. Subtract line 2j from line 2i 

and enter this amount on Form 944, Part 1, line 10d .......................... 2k

-20- Instructions for Form 944 (2023)
Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid 

in 2023 for Leave Taken After March 31, 2021, and Before October 1, 

2021 Keep for Your Records

Determine how you will complete this worksheet. 

If you paid qualified sick leave wages and/or qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, complete 

Step 1 and Step 2. Caution: Use Worksheet 1 to figure the credit for qualified sick and family leave wages paid in 2023 for leave taken after March 31, 

2020, and before April 1, 2021.

Step 1. Determine the employer share of Medicare tax after it is reduced by any credit claimed on Form 8974

1a Enter the amount of Medicare tax from Form 944, Part 1, line 4c, column 2 ........... 1a

1b Multiply line 1a by 50% (0.50) ........................................... 1b

1c If you're a third-party payer of sick pay that isn't an agent and you're claiming credits for 

amounts paid to your employees, enter the employer share of Medicare tax included on 

Form 944, Part 1, line 6 (enter as a positive number) ........................... 1c

1d Employer share of Medicare tax. Subtract line 1c from line 1b .................. 1d

1e Enter the amount from Form 8974, line 16, for this year ......................... 1e

1f Employer share of Medicare tax remaining. Subtract line 1e from line 1d .......... 1f

Step 2. Figure the sick and family leave credit

2a Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 

2021 (Form 944, Part 3, line 19) .......................................... 2a

2a(i) Qualified sick leave wages included on Form 944, Part 3, line 19, that were not included as 

wages reported on Form 944, Part 1, lines 4a and 4c, because the qualified sick leave 

wages were excluded from the definition of employment under sections 3121(b)(1)–

(22) .............................................................. 2a(i)

2a(ii) Subtract line 2a(i) from line 2a ........................................... 2a(ii)

2a(iii) Qualified sick leave wages included on Form 944, Part 3, line 19, that were not included as 

wages reported on Form 944, Part 1, line 4a, because the qualified sick leave wages were 

limited by the social security wage base .................................... 2a(iii)

2a(iv) Subtract line 2a(iii) from line 2a(ii) ........................................ 2a(iv)

2b Qualified health plan expenses allocable to qualified sick leave wages for leave taken after 

March 31, 2021, and before October 1, 2021 (Form 944, Part 3, line 20) ............. 2b

2c Amounts under certain collectively bargained agreements allocable to qualified sick leave 

wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 944, Part 3, 

line 21) ........................................................... 2c

2d Employer share of social security tax on qualified sick leave wages. Multiply line 2a(iv) by 

6.2% (0.062) ....................................................... 2d

2e Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by 1.45% 

(0.0145) .......................................................... 2e

2f Credit for qualified sick leave wages. Add lines 2a, 2b, 2c, 2d, and 2e ............ 2f

2g Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 

2021 (Form 944, Part 3, line 22) .......................................... 2g

2g(i) Qualified family leave wages included on Form 944, Part 3, line 22, that were not included 

as wages reported on Form 944, Part 1, lines 4a and 4c, because the qualified family leave 

wages were excluded from the definition of employment under sections 3121(b)(1)–

(22) .............................................................. 2g(i)

2g(ii) Subtract line 2g(i) from line 2g ........................................... 2g(ii)

2g(iii) Qualified family leave wages included on Form 944, Part 3, line 22, that were not included 

as wages reported on Form 944, Part 1, line 4a, because the qualified family leave wages 

were limited by the social security wage base ................................ 2g(iii)

2g(iv) Subtract line 2g(iii) from line 2g(ii) ........................................ 2g(iv)

2h Qualified health plan expenses allocable to qualified family leave wages for leave taken 

after March 31, 2021, and before October 1, 2021 (Form 944, Part 3, line 23) ......... 2h

2i Amounts under certain collectively bargained agreements allocable to qualified family 

leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 944, 

Part 3, line 24) ...................................................... 2i

2j Employer share of social security tax on qualified family leave wages. Multiply line 2g(iv) by 

6.2% (0.062) ....................................................... 2j

2k Employer share of Medicare tax on qualified family leave wages. Multiply line 2g(ii) by 

1.45% (0.0145) ..................................................... 2k

2l Credit for qualified family leave wages. Add lines 2g, 2h, 2i, 2j, and 2k ............ 2l

2m Credit for qualified sick and family leave wages. Add lines 2f and 2l ............. 2m

2n Enter any credit claimed under section 41 for increasing research activities with respect to 

any wages taken into account for the credit for qualified sick and family leave 

wages ............................................................ 2n

2o Credit for qualified sick and family leave wages after adjusting for other credits. 

Subtract line 2n from line 2m ............................................ 2o

2p Nonrefundable portion of credit for qualified sick and family leave wages for leave 

taken after March 31, 2021, and before October 1, 2021. Enter the smaller of line 1f or 

line 2o. Enter this amount on Form 944, Part 1, line 8d .......................... 2p

2q Refundable portion of credit for qualified sick and family leave wages for leave 

taken after March 31, 2021, and before October 1, 2021. Subtract line 2p from line 2o 

and enter this amount on Form 944, Part 1, line 10f ............................ 2q

Instructions for Form 944 (2023) -21-