What are the different types of businesses that need to file the 94x form series?
251 views |Last modified 11/7/2023 3:02:16 AM EST | Added by TaxBandits Team

The 94x form series includes forms 940, 941, 943, 944, and 945. These are typically associated with different types of employers and their specific tax responsibilities. Here's a brief overview of which types of businesses or entities may need to file these forms:

• Form 940 (Employer's Annual Federal Unemployment Tax Return):

All employers, regardless of their business type, must file Form 940 annually to report and pay federal unemployment tax (FUTA) if they meet certain criteria:

1. Paid wages of at least $1,500 to any employee during the standard calendar year.
2. Had an employee (temporary, part-time, or full-time) work anytime during 20 or more weeks. The 20 weeks do not need to be consecutive.

However, it is important to note that businesses are still responsible for filing Form 940 to state that they didn’t make employee payments, even if they normally have employees but didn’t pay them during a particular calendar year.

• Form 941 (Employer's Quarterly Federal Tax Return):

Most employers who withhold federal income tax, Social Security tax, and Medicare tax from their employees' wages are required to file Form 941. 

This includes businesses of various types, such as corporations, partnerships, sole proprietorships, and nonprofit organizations.

However, some employers are exempt from filing Form 941 if:

1. Filed a final return
2. A seasonal employer
3. Employ household employees (e.g., Schedule H)
4. Employ farm employees (e.g., Form 943)
5. Said by the IRS to file Form 944 instead

• Form 943 (Employer's Annual Federal Tax Return for Agricultural Employees):

This form is specific to employers in the agricultural sector to report federal income tax, Social Security tax, and Medicare tax withheld from agricultural employees’ wages. Types of agricultural employees may include harvesters, soil surveyors, and farm managers.

However, it is important to note that agricultural employers must withhold taxes from employees’ wages if one of the following is true:

1. Paid an employee cash wages of $150 or more during the tax year for farm work
2. The total wages (cash and noncash) paid to all farm workers during the year is $2,500 or more.

• Form 944 (Employer's Annual Federal Tax Return):

Small employers with a relatively low annual payroll tax liability (usually $1,000 or less) are required to file Form 944 instead of Form 941 to report federal income tax, Social Security tax, and Medicare tax withholdings on a yearly basis.

However, the eligibility criteria for using Form 944 are determined by the IRS. This form is available to various types of businesses, including sole proprietors, partnerships, and corporations.

• Form 945 (Annual Return of Withheld Federal Income Tax):

Employers who withhold federal income tax from non-employee compensation, such as pensions, annuities, and gambling winnings, are required to file Form 945. This can include a wide range of entities, including retirement plans, casinos, and other businesses making such payments.

This form is filed annually to report and pay the withheld federal income tax.

However, it is important to note that some independent contractors might be exempt from backup withholding. Exempt contractors include:

1. Tax-exempt organizations
2. Government agencies
3. Corporations