Employment Taxes for Small Employers

by | March 1, 2006

The IRS has implemented a special tax filing break for small employers effective January 1, 2006. It allows employers who expect annual employment taxes to be less than $1000 (which amounts to about $4000 in wages) to file an annual Form 944 rather than the quarterly Form 941. The IRS sent letters to businesses that qualify in the month of February. For more information, see the Inc. column on Small Employer Taxes or the IRS Form 941 Employer’s Annual Federal Tax Return.

Disclaimer: I am not a tax attorney and not providing tax advice in this posting. Contact your tax professional for guidance.

Author: Michelle Bomberger, King County Business Attorney