Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2011 Page 7
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128. Taxable Social Security Wages
Column 1 (corrected amount)
7,000.00
Column 2 (from line 2, of Form 941)
- 9,000.00
Column 3 (difference)
-2,000.00
The 2011 employee tax rate for social security is 4.2%.
!
The employer tax rate for social security is 6.2%.
Example — Auto allowance; wages, tips, and other
CAUTION
compensation increased: You paid one of your employees a
$500 monthly auto allowance from October through December
If you are correcting the taxable social security wages you
2010 and did not treat the payments as taxable wages. In
reported on line 5a, column 1 of Form 941, enter the total
February 2011, you realized that the payments were wages
corrected amount in column 1. In column 2, enter the amount
because they were not reimbursements of deductible business
you originally reported or as previously corrected. In column 3,
expenses that were substantiated and paid under an
enter the difference between columns 1 and 2.
accountable plan. You correct the error by treating the auto
allowance as wages subject to income, social security, and
line 8 (column 1)
Medicare taxes. Report the additional $1,500 of wages on lines
- line 8 (column 2)
6, 8, and 10.
line 8 (column 3)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
Use the amount in column 1 on line 6 when you prepare
column 3.
your Forms W-2 or Forms W-2c.
TIP
Multiply the amount in column 3 by .124 (.104 for corrections
to a 2011 return) and enter that result in column 4.
7. Income Tax Withheld from Wages, Tips, and
line 8 (column 3)
Other Compensation
x .124
(Use .104 for corrections to a 2011 return.)
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
Form 941, enter the total corrected amount in column 1. In
Note. If you are correcting only the employer share of tax on a
column 2, enter the amount you originally reported or as
decrease to social security wages, use .062 (6.2%) when
previously corrected. In column 3, enter the difference between
multiplying the amount shown in column 3. If you are correcting
columns 1 and 2. This line does not apply to Form 941-SS.
both shares of tax for some employees and only the employer
share for other employees, enter the properly calculated
line 7 (column 1)
amount in column 4. Be sure to show your calculations on line
- line 7 (column 2)
24.
line 7 (column 3)
If the amount in column 2 is larger than the
Example — Social security wages decreased: Following
amount in column 1, use a minus sign in
Example — Wages, tips and other compensation decreased 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
!
withholding errors only if you discovered the errors in
Column 1 (corrected amount)
7,000.00
the same calendar year you paid the wages. However,
Column 2 (from line 5a, column 1 of Form 941)
- 9,000.00
CAUTION
you may correct federal income tax withholding errors for prior
Column 3 (difference)
-2,000.00
years if the amounts shown on Form 941 do not agree with the
Use the difference in column 3 to determine your tax
amounts you actually withheld, that is, an administrative error or
correction.
if section 3509 rates apply. See section 13 of Pub. 15 (Circular
E) for more information about corrections during the calendar
Column 3 (difference)
-2,000.00
year and about administrative errors. See section 2 of Pub. 15
Tax rate (12.4%)
x .124
(Circular E) for more information about section 3509.
Column 4 (tax correction)
-248.00
Example — Failure to withhold income tax when
required: You were required to withhold $400 of federal
Be sure to explain the reasons for this correction on line 24.
income tax from an employee’s bonus that was paid in
Note. If the example above was for a correction to a 2011
December of 2010 but you withheld nothing. You discovered
return, the amount in column 3 would be multiplied by .104.
the error on March 15, 2011. You cannot file Form 941-X to
correct your 2010 fourth quarter Form 941 because the error
9. Taxable Social Security Tips
involves a previous year and the amount previously reported for
the employee represents the actual amount withheld from the
The 2011 employee tax rate for social security is 4.2%.
employee during 2010.
!
The employer tax rate for social security is 6.2%.
Example — Administrative error reporting income tax:
CAUTION
You had three employees. In the fourth quarter of 2010, you
withheld $1,000 of federal income tax from employee A, $2,000
If you are correcting the taxable social security tips you
from employee B, and $6,000 from employee C. The total
reported on line 5b, column 1 of Form 941, enter the total
amount of federal income tax you withheld was $9,000. You
corrected amount in column 1. In column 2, enter the amount
mistakenly reported $6,000 on line 3 of your 2010 fourth quarter
you originally reported or as previously corrected. In column 3,
Form 941. You discovered the error on March 16, 2011. This is
enter the difference between columns 1 and 2.
an example of an administrative error that may be corrected in
a later calendar year because the amount actually withheld
line 9 (column 1)
- line 9 (column 2)
from employees’ wages differs from the amount reported on
line 9 (column 3)
If the amount in column 2 is larger than the
Form 941. Use Form 941-X to correct the error. Enter $9,000 in
amount in column 1, use a minus sign in
column 1 and $6,000 in column 2. Subtract the amount in
column 3.
column 2 from the amount in column 1.
Multiply the amount in column 3 by .124 (.104 for corrections
Column 1 (corrected amount)
9,000.00
to a 2011 return) and report that result in column 4.
Column 2 (from line 3, of Form 941)
- 6,000.00
Column 3 (difference)
3,000.00
line 9 (column 3)
x .124
(Use .104 for corrections to a 2011 return.)
Report the 3,000.00 as a tax correction in column 4.
line 9 (column 4)
If the amount in column 3 used a minus sign,
Be sure to explain the reasons for this correction on line 24.
also use a minus sign in column 4.
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Instructions for Form 941-X (Rev. 1-2011)
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