Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2010 Page 7
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127. Income Tax Withheld from Wages, Tips, and
line 8 (column 3)
x .124
Other Compensation
line 8 (column 4)
If the amount in column 3 used a minus sign,
If you are correcting the federal income tax withheld from
also use a minus sign in column 4.
wages, tips, and other compensation you reported on line 3 of
Note. If you are correcting only the employer share of tax on a
Form 941, enter the total corrected amount in column 1. In
decrease to social security wages, use .062 (6.2%) when
column 2, enter the amount you originally reported or as
multiplying the amount shown in column 3. If you are correcting
previously corrected. In column 3, enter the difference between
both shares of tax for some employees and only the employer
columns 1 and 2. This line does not apply to Form 941-SS.
share for other employees, enter the properly calculated
amount in column 4. Be sure to show your calculations on line
line 7 (column 1)
23.
- line 7 (column 2)
Example — Social security wages decreased: Following
line 7 (column 3)
If the amount in column 2 is larger than the
Example — Wages, tips and other compensation decreased in
amount in column 1, use a minus sign in
column 3.
the instructions for line 6, the wages that you counted twice
Copy the amount in column 3 to column 4. Include any minus
were also taxable social security wages. To correct the error,
sign shown in column 3.
figure the difference on Form 941-X as shown.
Generally, you may correct federal income tax
Column 1 (corrected amount)
7,000.00
!
withholding errors only if you discovered the errors in
Column 2 (from line 5a, column 1 of Form 941)
- 9,000.00
the same calendar year you paid the wages. However,
CAUTION
Column 3 (difference)
-2,000.00
you may correct federal income tax withholding errors for prior
Use the difference in column 3 to determine your tax
years if the amounts shown on Form 941 do not agree with the
correction.
amounts you actually withheld, that is, an administrative error or
if section 3509 rates apply. See section 13 of Pub. 15 (Circular
Column 3 (difference)
-2,000.00
E) for more information about corrections during the calendar
Tax rate (12.4%)
x .124
year and about administrative errors. See section 2 of Pub. 15
Column 4 (tax correction)
-248.00
(Circular E) for more information about section 3509.
Example — Failure to withhold income tax when
Be sure to explain the reasons for this correction on line 23.
required: You were required to withhold $400 of federal
9. Taxable Social Security Tips
income tax from an employee’s bonus that was paid in
December of 2009 but you withheld nothing. You discovered
If you are correcting the taxable social security tips you reported
the error on March 15, 2010. You cannot file Form 941-X to
on line 5b, column 1 of Form 941, enter the total corrected
correct your 2009 fourth quarter Form 941 because the error
amount in column 1. In column 2, enter the amount you
involves a previous year and the amount previously reported for
originally reported or as previously corrected. In column 3, enter
the employee represents the actual amount withheld from the
the difference between columns 1 and 2.
employee during 2009.
line 9 (column 1)
Example — Administrative error reporting income tax:
- line 9 (column 2)
You had three employees. In the fourth quarter of 2009, you
line 9 (column 3)
If the amount in column 2 is larger than the
withheld $1,000 of federal income tax from employee A, $2,000
amount in column 1, use a minus sign in
from employee B, and $6,000 from employee C. The total
column 3.
amount of federal income tax you withheld was $9,000. You
Multiply the amount in column 3 by .124 (12.4% tax rate) and
mistakenly reported $6,000 on line 3 of your 2009 fourth quarter
report that result in column 4.
Form 941. You discovered the error on March 16, 2010. This is
an example of an administrative error that may be corrected in
line 9 (column 3)
a later calendar year because the amount actually withheld
x .124
from employees’ wages differs from the amount reported on
line 9 (column 4)
If the amount in column 3 used a minus sign,
Form 941. Use Form 941-X to correct the error. Enter $9,000 in
also use a minus sign in column 4.
column 1 and $6,000 in column 2. Subtract the amount in
Note. If you are correcting only the employer share of tax on a
column 2 from the amount in column 1.
decrease to social security tips, use .062 (6.2%) when
multiplying the amount shown in column 3. If you are correcting
Column 1 (corrected amount)
9,000.00
both shares of tax for some employees and only the employer
Column 2 (from line 3, of Form 941)
- 6,000.00
share for other employees, report the properly calculated
Column 3 (difference)
3,000.00
amount in column 4. Be sure to show your calculations on line
Report the 3,000.00 as a tax correction in column 4.
23.
Be sure to explain the reasons for this correction on line 23.
Following the Example — Wages, tips, and other
8. Taxable Social Security Wages
compensation increased in the instructions for line 6, the tips
that you overlooked were also taxable social security tips. To
If you are correcting the taxable social security wages you
correct the error, figure the difference on Form 941-X as shown.
reported on line 5a, column 1 of Form 941, enter the total
corrected amount in column 1. In column 2, enter the amount
Column 1 (corrected amount)
10,000.00
you originally reported or as previously corrected. In column 3,
Column 2 (from line 5b, column 1 of Form 941)
- 9,000.00
enter the difference between columns 1 and 2.
Column 3 (difference)
1,000.00
Use the difference in column 3 to determine your tax
line 8 (column 1)
correction.
- line 8 (column 2)
line 8 (column 3)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
Column 3 (difference)
1,000.00
column 3.
Tax rate (12.4%)
x .124
Column 4 (tax correction)
124.00
Multiply the amount in column 3 by .124 (12.4% tax rate) and
enter that result in column 4.
Be sure to explain the reasons for this correction on line 23.
10. Taxable Medicare Wages and Tips
If you are correcting the taxable Medicare wages and tips you
reported on line 5c, column 1 of Form 941, enter the total
-6-
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