Can all new employers use Form 944 instead of Form 941?

Form 944 is specifically designed for smaller employers who meet certain criteria. It allows these employers to report and pay their annual Social Security and Medicare taxes rather than filing quarterly reports with Form 941. However, not all new employers qualify to use Form 944; only those whose total annual payroll tax liability is $1,000 or less in the previous year can take advantage of this form. Therefore, the statement that not all new employers can use Form 944 is accurate and reflects the specific criteria set forth by the IRS for utilizing this form. This ensures that the option is available primarily for smaller businesses, allowing them to reduce the frequency of their tax filings given their relatively low payroll tax liability.