Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2010 Page 9
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1217. Advance EIC Payments Made to Employees
amounts on lines 7a and 7c. Your third-party sick pay
adjustment should have been $9,600 (shown as “-9,600.00”)
If you are correcting the advance EIC payments made to your
because your third-party sick pay payer withheld that amount of
employees that you reported on line 9 of Form 941, enter the
social security and Medicare taxes from your employees. You
total corrected amount for ALL employees in column 1. In
discovered the error in April of 2010. To correct the error, figure
column 2, enter the amount you originally reported or as
the difference on Form 941-X as shown.
previously corrected. In column 3, enter the difference between
columns 1 and 2. This line does not apply to Form 941-SS.
Column 1 (corrected amount)
-9,600.00
Column 2 (from line 7b of Form 941)
- (6,900.00)
line 17 (column 1)
Column 3 (difference)
-2,700.00
- line 17 (column 2)
Here is how you would enter the numbers on Form 941-X.
line 17 (column 3)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
Column 1
Column 2
Column 3
column 3.
(corrected amount)
(from line 7b, Form 941)
(difference)
Copy the amount in column 3 to column 4. However, to
-9,600.00
-6,900.00
-2,700.00
!
properly show the correction as a credit or balance due
item, enter a positive number in column 3 as a negative
Report “-2,700.00” as your correction in column 4.
CAUTION
number in column 4 or a negative number in column 3 as a
In this example, you are claiming a credit for $2,700 in
positive number in column 4. Remember, negative amounts in
overreported tax for your 2009 second quarter Form 941.
column 4 represent credits and positive amounts in column 4
Always enter the same amount in column 4 (including any
represent additional tax.
minus sign) that you enter in column 3.
Examples: If line 17, column 3 shows “560.00,” enter
“-560.00” in column 4.
Be sure to explain the reasons for this correction on line 23.
If line 17, column 3 shows “-990.00,” enter “990.00” in
Do not use line 12 to report corrections to amounts
column 4.
!
reported on lines 7d through 7g of pre-2009 Forms 941.
Example — Advance EIC payments increased: You filed
CAUTION
your 2009 fourth quarter Form 941 reporting zero (line left
blank) on line 9. On February 17, 2010, you discovered that you
13–15. Special Additions to Wages for Federal
forgot to report the $1,000 in advance EIC payments you made
Income Tax, Social Security Tax, and Medicare
on behalf of John Smith, one of your employees. You made no
Tax
other EIC payments for your other employees. This is an
Section 3509 provides special rates for the employee share of
example of an administrative error. To correct the error, file
social security and Medicare taxes and income tax withholding
Form 941-X showing the following.
when workers are reclassified as employees in certain
circumstances. The applicable rate depends on whether you
Column 1 (corrected amount)
1,000.00
Column 2 (from line 9 of Form 941)
- 0.00
filed required information returns. An employer cannot recover
Column 3 (difference)
1,000.00
any tax paid under this provision from the employees. The full
employer share of social security and Medicare tax is due for all
Reverse the mathematical sign of the amount in column 3
reclassifications.
and enter your correction in column 4.
Note. Section 3509 rates are not available if you intentionally
Column 4 (tax correction)
-1,000.00
disregarded the requirements to withhold taxes from the
employee, or if you withheld income tax but did not withhold
Be sure to explain the reasons for this correction on line 23.
social security and Medicare tax. Section 3509 rates are also
See section 13 of Pub. 15 (Circular E) for more
not available for certain statutory employees.
!
information about administrative errors and corrections
On lines 13, 14, and 15 enter only corrections to wages
during the calendar year. The same rules that apply to
CAUTION
resulting from reclassifying certain workers as employees when
withheld federal income taxes also apply to advance EIC
section 3509 rates are used to calculate the taxes.
payments made to employees.
Unlike other lines on Form 941-X, enter in column 1 only the
18a. COBRA Premium Assistance Payments
corrected wages for workers being reclassified, not the amount
If you are correcting the total COBRA premium assistance
paid to ALL employees. Enter previously reported wages to
payments reported on line 12a of Form 941, report on this line
reclassified employees (if any) in column 2. To get the amount
65% of the COBRA premiums for assistance eligible
for column 4, use the applicable section 3509 rates. The tax
individuals. Report the premium assistance credit on this line
correction in column 4 will be a positive number if you increased
only after the assistance eligible individual’s 35% share of the
the amount of wages you previously reported. See the
premium has been paid. For COBRA coverage provided under
instructions for line 22 for more information.
a self-insured plan, COBRA premium assistance is treated as
having been made for each assistance eligible individual who
If you misreported the taxes from worker reclassification
pays 35% of the COBRA premium. Do not include the
on line 7f or line 7g on a pre-2009 Form 941, you may
TIP
assistance eligible individual’s 35% of the premium in the
correct the amount using lines 13 through 15 of Form
amount entered on this line.
941-X. Be sure to complete all of the columns and provide a
detailed explanation on line 23.
Copy the amount in column 3 to column 4. However, to
properly show the correction as a credit or balance due item,
16. Subtotal
enter a positive number in column 3 as a negative number in
Combine the amounts from column 4 on lines 7 through 15.
column 4 or a negative number in column 3 as a positive
number in column 4. This is the same procedure as the
Example: You entered “1,400.00” in column 4 on line 7,
Advance EIC on line 17.
“-500.00” in column 4 on line 8, and “-100.00” in column 4 on
line 10. Combine these amounts and enter “800.00” in column 4
18b. Number of Individuals Provided COBRA
on line 16.
Premium Assistance on line 18a
Complete this line only if you are correcting line 12b of Form
Line 7
1,400.00
941. Enter in column 1 on line 18b the corrected number of
Line 8
-500.00
assistance eligible individuals provided COBRA premium
Line 10
-100.00
assistance. Count each assistance eligible individual who paid
Line 16
800.00
-8-
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