Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2011 Page 9
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1212c. Exempt wages/tips paid to qualified employees this
14–16. Special Additions to Wages for Federal
quarter. Enter the amount of exempt wages/tips paid in the
Income Tax, Social Security Tax, and Medicare
quarter you are correcting to all qualified employees. Enter the
Tax
corrected amount from line 6c of the previously filed Form 941.
Section 3509 provides special rates for the employee share of
Enter the corrected amount in column 1. In column 2, enter the
social security and Medicare taxes and income tax withholding
amount you originally reported or as previously corrected. In
when workers are reclassified as employees in certain
column 3, enter the difference between columns 1 and 2. If the
circumstances. The applicable rate depends on whether you
amount in column 2 is larger than the amount in column 1, use
filed required information returns. An employer cannot recover
a minus sign in column 3. Multiply the amount in column 3 by
any tax paid under this provision from the employees. The full
.062 and enter the result in column 4. However, to properly
employer share of social security and Medicare taxes is due for
show the correction as a credit or balance due item, enter a
all reclassifications.
positive number in column 3 as a negative number in column 4
or a negative number in column 3 as a positive number in
Note. Section 3509 rates are not available if you intentionally
column 4. See the instructions for line 12a for definitions of
disregarded the requirements to withhold taxes from the
qualified and exempt wages/tips.
employee, or if you withheld income tax but did not withhold
social security and Medicare taxes. Section 3509 rates are also
13. Tax Adjustments
not available for certain statutory employees.
Use line 13 to correct any adjustments reported on lines 7 – 9
On lines 14 – 16 enter only corrections to wages resulting
(lines 7a – 7c for quarters ending before 2011) of Form 941.
from reclassifying certain workers as employees when section
Enter in column 1 the total corrected amount for lines 7 – 9
3509 rates are used to calculate the taxes.
(lines 7a – 7c for quarters ending before 2011) of Form 941.
If the employer issued the required information returns, use
Enter in column 2 the total originally reported or previously
the section 3509 rates as follows.
corrected amounts from lines 7 – 9 (lines 7a – 7c for quarters
•
For social security taxes, use the employer rate of 6.2% plus
ending before 2011) of Form 941. In column 3, enter the
20% of the employee rate of 6.2% (4.2% for 2011), for a total
difference between columns 1 and 2.
rate of 7.44% (7.04% for 2011) of wages.
•
For Medicare taxes, use the employer rate of 1.45% plus
line 13 (column 1)
20% of the employee rate of 1.45%, for a total rate of 1.74% of
-line 13 (column 2)
wages.
line 13 (column 3)
•
For income tax withholding, the rate is 1.5% of wages.
You may need to report negative numbers in any
If the employer did not issue the required information
column. Make sure that the difference you enter in
TIP
returns, use the section 3509 rates as follows.
column 3 accurately represents the change to
•
For social security taxes, use the employer rate of 6.2% plus
adjustments originally reported or previously corrected on lines
40% of the employee rate of 6.2% (4.2% for 2011), for a total
7 – 9 (lines 7a – 7c for quarters ending before 2011) of Form
rate of 8.68% (7.88% for 2011) of wages.
941.
•
For Medicare taxes, use the employer rate of 1.45% plus
Copy the amount in column 3 to column 4. Include any
40% of the employee rate of 1.45%, for a total rate of 2.03% of
minus sign shown in column 3.
wages.
•
For income tax withholding, the rate is 3.0% of wages.
On line 24, describe what you misreported on Form 941. Tell
us if your adjustment is for fractions of cents, third-party sick
Unlike other lines on Form 941-X, enter in column 1 only the
pay, tips, or group-term life insurance.
corrected wages for workers being reclassified, not the amount
Example — Current quarter’s third-party sick pay
paid to ALL employees. Enter previously reported wages to
underreported: You reported $6,900 (shown as “-6,900.00”)
reclassified employees (if any) in column 2. To get the amount
as a third-party sick pay adjustment (reduction to tax) on line 7b
for column 4, use the applicable section 3509 rates. The tax
of your 2010 second quarter Form 941. You did not report any
correction in column 4 will be a positive number if you increased
amounts on lines 7a and 7c. Your third-party sick pay
the amount of wages you previously reported. See the
adjustment should have been $9,600 (shown as “-9,600.00”)
instructions for line 23 for more information.
because your third-party sick pay payer withheld that amount of
If you misreported the taxes from worker reclassification
social security and Medicare taxes from your employees. You
on line 7f or line 7g on a pre-2009 Form 941, you may
TIP
discovered the error in April of 2011. To correct the error, figure
correct the amount using lines 14 – 16 of Form 941-X.
the difference on Form 941-X as shown.
Be sure to complete all of the columns and provide a detailed
explanation on line 24.
Column 1 (corrected amount)
-9,600.00
17. Subtotal
Column 2 (from line 7b of Form 941)
- (6,900.00)
Column 3 (difference)
-2,700.00
Combine the amounts from column 4 on lines 7 – 16.
Here is how you would enter the numbers on Form 941-X.
Example: You entered “1,400.00” in column 4 on line 7,
“-500.00” in column 4 on line 8, and “-100.00” in column 4 on
Column 1
Column 2
Column 3
line 10. Combine these amounts and enter “800.00” in column 4
(corrected
(from line 7b of Form 941)
(difference)
on line 17.
amount)
-9,600.00
-6,900.00
-2,700.00
Line 7
1,400.00
Line 8
-500.00
Report “-2,700.00” as your correction in column 4.
Line 10
-100.00
In this example, you are claiming a credit for $2,700 in
Line 17
800.00
overreported tax for your 2010 second quarter Form 941.
Always enter the same amount in column 4 (including any
18. Advance EIC Payments Made to Employees
minus sign) that you enter in column 3.
The option of receiving advance payroll payments of
Be sure to explain the reasons for this correction on line 24.
!
EIC is no longer available after December 31, 2010.
Note. If the example above was for a correction to a 2011
Corrections to advance EIC can be made only for
CAUTION
return, the references to line 7b change to line 8.
quarters ending before January 1, 2011.
Do not use line 13 to report corrections to amounts
If you are correcting the advance EIC payments made to
!
reported on lines 7d – 7g of pre-2009 Forms 941.
your employees that you reported on line 9 of Form 941 (only
for quarters ending before January 1, 2011), enter the total
CAUTION
-8-
Instructions for Form 941-X (Rev. 1-2011)
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