Business FinancesQuestion 509 of 690
What is the key difference between IRS Form 941 and Form 944 for payroll-tax reporting?
a.941 is for federal income tax; 944 is for state income tax
b.941 is filed by S-corporations; 944 is filed by sole proprietors
c.941 is filed quarterly; 944 is filed annually by very small employers whose annual payroll-tax liability is $1,000 or less, when designated by the IRS
d.941 is for employees; 944 is for independent contractors
Explanation
Form 941 is the quarterly federal payroll-tax return used by most employers. Form 944 is an annual version for the smallest employers (annual employment-tax liability of $1,000 or less) and is only available when the IRS notifies the employer in writing that it may use 944 instead of quarterly 941s.
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