Instructions For Form Ct-1 - 2011 (Page 7 of 8) in pdf

15-A. Include such compensation with current year

If this is the only entry on line 12, you are not

compensation on lines 1 through 6, as appropriate.

required to attach a statement explaining the

TIP

adjustment.

Lines 7 Through 10—Tier I Taxes on

Line 13—Total Railroad Retirement

Sick Pay

Taxes Based on Compensation

Enter any sick pay payments during the year that are

subject to Tier I taxes and Tier I Medicare taxes in the

Combine the amounts shown on lines 11 and 12 and enter

Compensation column. Multiply by the rate for the line and

the result on line 13.

enter the result in the Tax column for that line. For Tier I

Employer taxes, do not enter more than $106,800 per

Line 14—Total Deposits for the Year

employee in the Compensation column on lines 1 and 7

Enter the total Form CT-1 taxes you deposited. Also, include

combined. For Tier I Employee taxes, do not enter more

any overpayment applied from your 2010 Form CT-1 and

than $106,800 per employee in the Compensation column

from Form CT-1 X.

on lines 4 and 9 combined. Tier I Medicare taxes are not

subject to this limitation.

Line 15— Balance Due

If you are a railroad employer paying your employees

Subtract line 14 from line 13. You should have a balance

sick pay, or a third-party payer who did not notify the

due only if line 13 is less than $2,500, unless the balance

employer of the payments (thereby subject to the employee

due is a shortfall amount for monthly schedule depositors as

and employer tax), make entries on lines 7 through 10. If

explained under the Accuracy of Deposits Rule, earlier.

you are subject to only the employer or employee tax,

complete only the applicable lines. Multiply by the

Form CT-1(V), Payment Voucher, has instructions for

appropriate rates and enter the results in the

making a payment with Form CT-1. You do not have to pay

Tax column.

if line 15 is less than $1.

Line 12—Adjustments to Taxes

Line 16— Overpayment

Based on Compensation

Enter the overpayment on the designated entry line. Then

check the appropriate box to have the overpayment applied

to your 2012 Form CT-1 or refunded to you. If line 16 is less

Do not use line 12 for prior period adjustments. Make

than $1, we will send you a refund or apply it to your next

all prior period adjustments on Form CT-1 X.

return only on written request.

CAUTION

Third-Party Designee

Enter on line 12:

•

A fractions of cents adjustment (see Fractions of cents,

If you want to allow an employee of your business, a return

later);

preparer, or another third party to discuss your 2011

•

Credits for overpayments of penalty or interest paid on tax

Form CT-1 with the IRS, check the “Yes” box in the

for earlier years; and

Third-Party Designee section of Form CT-1. Also, enter the

•

Any uncollected Tier I Employee tax, Tier I Employee

designee’s name, phone number, and any five digits that

Medicare tax, and Tier II Employee tax on tips.

person chooses as his or her personal identification number

(PIN).

Enter the total of these adjustments in the Tax column. If

you are reporting both an addition and a subtraction, enter

By checking the “Yes” box, you are authorizing the IRS to

only the difference between the two on line 12. If the net

speak with the designee to answer any questions relating to

adjustment is negative, report the amount on line 12 using a

the processing of or the information reported on Form CT-1.

minus sign, if possible. If your computer software does not

You are also authorizing the designee to:

•

allow the use of minus signs, you may use parentheses.

Give the IRS any information that is missing from your

return,

Do not include on line 12 the 2010 overpayment that is

•

Call the IRS for information about processing your return,

applied to this year’s return (this is included on line 14).

and

•

Required statement. Except for adjustments for fractions

Respond to certain IRS notices that you have shared with

of cents, explain amounts entered on line 12 in a separate

the designee about math errors and return preparation. The

statement. Include your name, employer identification

IRS will not send notices to your designee.

number (EIN), calendar year of the return, and “Form CT-1”

You are not authorizing the designee to receive any

on each page you attach. Include in the statement the

refund check, bind you to anything (including additional tax

following information.

liability), or otherwise represent you before the IRS. If you

•

An explanation of the item the adjustment is intended to

want to expand the designee’s authority, see Pub. 947,

correct showing the compensation subject to Tier I and

Practice Before the IRS and Power of Attorney.

Tier II taxes and their respective tax rates.

•

The amount of the adjustment.

The authorization will automatically expire 1 year from the

•

The name and account number of any employee from

due date (without regard to extensions) for filing your 2011

whom employee tax was undercollected or overcollected.

Form CT-1. If you or your designee wants to revoke this

•

authorization, send the revocation or withdrawal to the IRS

How you and the employee have settled any

office at which you file your Form CT-1. See Pub. 947 for

undercollection or overcollection of employee tax.

more information.

Fractions of cents. If there is a difference between the

total employee tax (lines 4, 5, 6, 9, and 10) and the total

Who Must Sign

actually deducted (employee compensation including tips

plus the employer’s contribution) due to rounding fractions of

Form CT-1 must be signed as follows:

•

Sole proprietorship — The individual who owns the

cents when collecting the tax, report the deduction or

addition on line 12.

business.

-6-

Instructions for Form CT-1 (2011)

Instructions For Form Ct-1 - 2011 Page 7

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