What form is required for employers with less than $1,000 in tax liability?

The correct form for employers with less than $1,000 in tax liability is Form 944. This form is specifically designed for small employers who owe very little in federal payroll taxes and allows them to file their employment tax returns annually instead of quarterly, which is the requirement for larger employers.

Filing Form 944 is beneficial for small businesses as it reduces the administrative burden associated with filing more frequently. The IRS instituted this form to streamline the reporting process for employers with minimal payroll tax responsibilities, thus making it easier for them to comply with tax obligations.

In contrast, Form 941 is used by employers that have a quarterly payroll tax liability exceeding $1,000. Form 943 is for agricultural wage payments, while Form 945 is used for reporting backup withholding. Each of these forms serves different employer needs based on the nature and amount of payroll taxes owed. Therefore, Form 944 is the most appropriate choice for those employers with a tax liability of less than $1,000.