Instructions For Form 943-X (Page 8 of 13) in pdf

Note. If you are correcting only the employer share of

Form 943. You discovered the error on February 17,

tax on a decrease to Medicare wages, use .0145 (1.45%)

2012. This is an example of an administrative error that

when multiplying the amount in column 3. If you are

may be corrected in a later calendar year because the

correcting both shares of tax for some employees and

amount actually withheld from employees’ wages differs

only the employer share for other employees, enter the

from the amount reported on Form 943. Use Form 943-X

properly calculated amount in column 4. Be sure to

to correct the error. Enter $9,000 in column 1 and $6,000

explain your calculations on line 21.

in column 2. Subtract the amount in column 2 from the

amount in column 1.

Example —Medicare wages decreased. Following

Example—Social security wages decreased in the

Column 1 (corrected amount)

9,000.00

instructions for line 6, the wages that you counted twice

Column 2 (from line 6 of Form 943)

- 6,000.00

were also taxable Medicare wages. To correct the error,

Column 3 (difference)

3,000.00

figure the difference on Form 943-X as shown.

Report the 3,000.00 as a tax correction in column 4.

Column 1 (corrected amount)

7,000.00

Be sure to explain the reasons for this correction on

Column 2 (from line 4 of Form 943)

- 9,000.00

line 21.

Column 3 (difference)

- 2,000.00

Lines 9a and 9b apply only for corrections to the

Use the difference in column 3 to determine your tax

2010 Form 943.

correction.

CAUTION

Column 3 (difference)

-2,000.00

9. Employer’s Social Security Tax

Tax rate (2.9%)

x .029

Exemption

Column 4 (tax correction)

-58.00

Complete lines 9a–9b to correct the payroll tax

Be sure to explain the reasons for this correction on

exemption for the employer’s share (6.2%) of social

line 21.

security tax on exempt wages paid to one or more

8. Federal Income Tax Withheld

qualified employees from April 1–December 31, 2010.

An employer must be a qualified employer to be eligible

If you are correcting the federal income tax withheld from

for the employer’s social security tax exemption. A

wages that you reported on line 6 of Form 943, enter the

qualified employer is any employer other than Federal,

total corrected amount in column 1. In column 2, enter

State, and any related government entities. All public

the amount you originally reported or as previously

institutions of higher education and Indian tribal

corrected. In column 3, enter the difference between

governments are qualified employers.

columns 1 and 2.

For more information regarding the employer’s social

security tax exemption, visit IRS.gov and enter the

line 8 (column 1)

keywords HIRE Act in the search box.

-line 8 (column 2)

line 8 (column 3)

If the amount in column 2 is larger than

9a. Number of qualified employees paid

the amount in column 1, use a minus

exempt wages April 1–December 31, 2010

Enter on line 9a (column 1) the corrected number of

Copy the amount in column 3 to column 4. Include any

qualified employees paid wages to which you applied the

minus sign shown in column 3.

social security tax exemption. Enter on line 9a (column 2)

Generally, you may correct federal income tax

the number of qualified employees originally reported on

withholding errors only if you discovered the

line 7a of the previously filed 2010 Form 943. If you are

errors in the same calendar year you paid the

not correcting line 7a of the previously filed 2010 Form

CAUTION

wages. However, you may correct federal income tax

943 and are making a correction on line 9b, enter the

withholding errors for prior years if the amounts shown on

number from line 7a of the previously filed 2010 Form

Form 943 do not agree with the amounts you actually

943 on line 9a.

withheld, that is, an administrative error or if section 3509

A qualified employee is an employee who:

rates apply. See section 9 of Pub. 51 (Circular A) for

•

Began employment with you after February 3, 2010,

more information about corrections during the calendar

and before January 1, 2011;

year and about administrative errors.

•

Certifies by signed affidavit (Form W-11, Hiring

Example —Failure to withhold income tax when

Incentives to Restore Employment (HIRE) Act Employee

required. You were required to withhold $400 of federal

Affidavit, or similar statement) under penalties of perjury,

income tax from an employee bonus that was paid in

that he or she has not been employed for more than 40

December of 2011 but you withheld nothing. You

hours during the 60-day period (including 2009) ending

discovered the error on March 15, 2012. You cannot file

on the date the employee began employment with you;

•

Form 943-X to correct your 2011 Form 943 because the

Is not employed by you to replace another employee

error involves a previous year and the amount previously

unless the other employee separated from employment

reported for the employee represents the actual amount

voluntarily or for cause (including downsizing); and

withheld from the employee during 2011.

•

Is not related to you. An employee is related to you if

Example —Administrative error reporting income

he or she is your child or a descendant of your child, your

tax. You had three employees. In 2011, you withheld

sibling or stepsibling, your parent or ancestor of your

$1,000 of federal income tax from employee A, $2,000

parent, your stepparent, your niece or nephew, your aunt

from employee B, and $6,000 from employee C. The total

or uncle, or your in-law. An employee is also related to

amount of federal income tax you withheld was $9,000.

you if he or she is related to anyone who owns more than

You mistakenly reported $6,000 on line 6 of your 2011

50% of your outstanding stock or capital and profits

-7-

Instructions for Form 943-X

Instructions For Form 943-X Page 8

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