Form 945 is used to report to the IRS taxes withheld from non-payroll payments made for a variety of reasons. One source of these withheld taxes is backup withholding, but some gambling winnings and military retirement benefits must have taxes withheld and these would be reported on this form as well.

Employers who paid wages to agricultural employees that are subject to income tax, social security or Medicare withholding must file a Form 943, Employer's Annual Federal Tax Return for Agricultural Employees PDF to report those wages. ... You pay an employee cash wages of $150 or more in the year for farm work, or.

File Form 944, Employer's Annual Federal Tax Return, if you have received written notification about the Form 944 program. File Form 945, Annual Return of Withheld Federal Income Tax, if you are filing to report backup withholding.

If you withhold or are required to withhold federal income tax (including backup withholding) from nonpayroll payments, you must file Form 945. See Purpose of Form 945, earlier. You don't have to file Form 945 for those years in which you don't have a nonpayroll tax liability.

A U.S. citizen or resident alien will be exempt from backup withholding if your reported name and Social Security Number matches the IRS records. Additionally, you are exempt if you have not been notified by the IRS that you are subject to mandatory backup withholding.

You must file IRS Form 941 if you operate a business and have employees working for you. Certain employers whose annual payroll tax and withholding liabilities are less than $1,000, might get approval to file the annual version Form 944.

Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.