Form 944

[oceanlovin'ea]

If you are a 944 filer, when are the payroll tax deposits due? Are they due every month by the 15th of the month?

Linda, EA

[S T]

Maybe this will assist you, Deposit Rules still apply

See Tax Topic 757 - Form 941-944 Deposit Requirements
[ur]http://www.irs.gov/taxtopics/tc757.html[/url]

And Notice 931 - http://www.irs.gov/pub/irs-pdf/n931.pdf

Sandy

[zeros]

One Payday a Year

I only have one payday per year. When I do, I deposit the taxes the same day and wait until the end of the year to file the 944 form.

[oceanlovin'ea]

I have a client that had done that for a couple of years now. Just one or two paychecks during the year. But now her business is doing better and she has more net income so we are doing monthly payroll checks for her. After this year, she will probably be a 941 return.

I hadn't thought about it till this came up. I write my husband a check every month, but usually just make a deposit either quarterly or 2 times a year. Guess I better change that.

Linda, EA

[Kram BergGold]

No deposits

944 is for filer's whose total payroll tax is under $2500 per year. So you pay the full amount when you file the 944. A Form 944 filer should never make deposits.

[S T]

See Form 944 Instructions - Page 4 - there is also a chart - http://www.irs.gov/pub/irs-pdf/i944.pdf

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. Designated Form 944 filers whose businesses grow during the year may be required to make federal tax deposits (see chart below), but they will still file Form 944 for
the year.

Sandy

[Black Bart]

944s & deposits & 8655

944 is for filer's whose total payroll tax is under $2500 per year. So you pay the full amount when you file the 944. A Form 944 filer should never make deposits.

Another part of Sandy's link (http://www.irs.gov/pub/irs-pdf/i944.pdf) also says this (on page four under the heading of "MUST YOU DEPOSIT YOUR TAXES?":

"...you do not have to deposit the taxes. However, you may choose to make deposits of these taxes even if your liability is less than $2,500."

Sorry Kram; didn't mean to rap you on the knuckles but I just noticed this post and had also wondered about 944 deposits (I need a little schoolin' myself -- ask Harlan, he'll...tell...you ).

Anyway, do you happen to know whether or not if -- by sending in form 8655 (Reporting Agent Authorization) for making EF deposits on the client's behalf -- we make ourselves liable for clients' delinquent payments? I once got into that by being on a corporation's check-signin' signature card. The IRS agent said I could have paid the payroll taxes even if the boss didn't say to do it (I thought it a tad unreasonable since I'd have been fired) and I've been somewhat leery ever since.

Just a point of curiosity of course and not to imply that any client would ever dream (perish, the thought) of making late/no payments and leave me holding the bag.

[Snaggletooth]

Liability

Anyway, do you happen to know whether or not if -- by sending in form 8655 (Reporting Agent Authorization) for making EF deposits on the client's behalf -- we make ourselves liable for clients' delinquent payments?

Bart I think you're exactly right about this. The "acid test" for IRS being able to assess this is whether you had the ability to do so, and the 8655 gives you this ability. Ever since I found out IRS is going after bookkeepers, paymasters, and other employees who get told what to do, I have absolutely REFUSED to be on anyone's signature authority.

This is also dirty tactics by IRS. If anyone has ever worked for a living, they know they have to do what they are told. IRS needs to prosecute the bosses who are calling the shots and because that is hard to do, they go after clerks and bookkeepers largely unable to defend themselves.

No 8655s for me. There's just some responsibility the client has to take for himself. They can depend on us to calculate or planning, but they can DO some things themselves.

[oceanlovin'ea]

When my husband starting working more with me and I am paying him more, I don't like to have to pay all of that at the end of the year when my money is running out. So I decided to send in a deposit quarterly.
EFTPS allows you to make 944 payments anytime so I figured it was okay.

As to the issue with the 8655, I have them sign this so that I can file the returns electronically. I do not want to give them returns to mail in. I want to file them electronically and then we know it is done. I also have them set up on EFTPS and for a few of them I make the monthly transfers. Then I send them an email and tell them the amount that will be deducted from their account on the date due. For my people it has worked well. But as I said I have only a few that I do that for. For 5 I actually make the transfer, for 2 I tell them the amount and they do it themselves. But I do all payroll reports. They are all after the fact accounts. They write one or two payroll checks a month for the same amount each time. So very easy to do.

Linda, EA

[Nashville]

Mixed Responsibility

If you are filing payroll tax reports electronically, that does not subject you to the IRS penalties for failure to pay.

If you are using EFTPS and the employer has given YOU the password, then you are enabled to make payments and become responsible.

My opinion.