Paying Employment Taxes With Return (Form 941 or Form 944)

Instead of depositing taxes, very small employers may be able to make their tax payments directly to the IRS when they file Form 941 (or Form 944) if one of the following applies:

  • You report less than a $2,500 tax liability for the quarter on line 10 of Form 941, and you pay in full with a timely filed return.

For example, say you have only one employee, here's what to do for the first quarter (due April 30).

  • Add up the federal income taxes, social security and Medicare taxes withheld during January, February, and March (the first quarter) from the employee's pay.
  • Next, add your share (as the employer) of social security and Medicare taxes for the first quarter to the total amount of taxes you withheld from the employee's pay (step 1).
  • If your total employment tax liability for the first quarter is less than $2,500, you may include a check for your tax liability for that quarter along with Form 941.

CAUTION! If you're not sure whether you will be reporting a tax liability of less than $2,500, then deposit under the appropriate deposit rules to avoid a failure-to-deposit penalty.

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