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6a Through 6c: Tier I Employer

Is not employed by you to replace another employee unless

the other employee separated from employment voluntarily or

Tax—Compensation

for cause (including downsizing); and

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

Line 6a. Correcting Total Tier I

she is your child or a descendent of your child, your sibling or

Employer –Compensation

stepsibling, your parent or ancestor or your parent, your

If you are correcting the compensation (other than tips and sick

stepparent, your niece or nephew, your aunt or uncle, or your

pay) for the Tier I Employer tax you reported on line 1a of Form

in-law. An employee is also related to you if he or she is related

CT-1, enter the total corrected amount for all employees in

to anyone who owns more than 50% of your outstanding stock

column 1. In column 2, enter the amount you originally reported.

or capital and profits interest or is your dependent or a

In column 3, enter the difference between columns 1 and 2. If

dependent of anyone who owns more than 50% of your

you (or the IRS) previously corrected the amount reported on

outstanding stock or capital and profits interest.

line 1a of Form CT-1, enter in column 2 the amount after any

Exempt compensation is compensation paid to qualified

previous corrections.

employees for which you are exempt from paying your share

(6.2%) of the Tier I employer tax.

line 6a (column 1)

For more information about the employer’s Tier I tax

-line 6a (column 2)

exemption, visit IRS.gov and enter the keywords “HIRE Act” in

line 6a (column 3)

If the amount in column 2 is larger than

the amount in column 1, use a minus

the search box.

6b. Number of qualified employees paid exempt

Multiply the amount in column 3 by .062 (6.2% tax rate) and

compensation including sick pay April 1-December 31,

enter the result in column 4.

2010. Enter on line 6b (column 1) the total corrected number

of qualified employees paid compensation including sick pay to

line 6a (column 3)

which you applied the employer’s Tier I tax exemption. Enter on

.062

line 6b (column 2) the total number of qualified employees

line 6a (column 4)

If the amount in column 3 used a minus sign,

originally reported on line 1c of the previously filed Form CT-1.

also use a minus sign in column 4.

On line 6b (column 3), enter the difference between columns 1

Example — Tier I Employer compensation decreased.

and 2.

You reported $9,000 as Tier I Employer compensation in

Be sure to explain the reasons for this correction on line 21.

computing the tax on line 1b of your 2010 Form CT-1. In

December of 2011, you discovered that you included $2,000 in

If you make a correction to line 6b, then you must

compensation for one of your employees twice. To correct the

complete line 6c.

error, figure the difference on Form CT-1 X as shown.

CAUTION

6c. Exempt compensation (other than tips and sick pay)

Column 1 (corrected amount)

7,000.00

paid to qualified employees after March 31. Enter on line 6c

Column 2 (from line 1a of Form CT-1)

- 9,000.00

(column 1) the total corrected amount from line 1d of the

Column 3 (difference)

- 2,000.00

previously filed Form CT-1. Enter on line 6c (column 2) the

Use the difference in column 3 to determine your tax

amount you originally reported or as previously corrected. On

correction.

line 6c (column 3), enter the difference between columns 1 and

2. If the amount in column 2 is larger than the amount in column

Column 3 (difference)

-2,000.00

1, use a minus sign in column 3.

Tax rate (6.2%)

x .062

Multiply the amount in column 3 by .062 (6.2% tax rate) and

Column 4 (tax correction)

-124.00

enter that result in column 4. However, to properly show the

correction as a credit or balance due item, enter a positive

Be sure to explain the reasons for this correction on line 21.

number in column 3 as a negative number in column 4 or a

Correcting Tier I Employer RRTA Tax Exemption

negative number in column 3 as a positive number in column 4.

See Correcting Tier I Employer RRTA Tax Exemption on this

Lines 6b and 6c apply only for 2010.

page for the definition of qualified employee and exempt

compensation.

CAUTION

Be sure to explain the reasons for this correction on line 21.

Complete lines 6b, 6c, and 12b to correct the payroll tax

If you make a correction to line 6c, then you must

exemption for your share (6.2%) of Tier I Employer Tax on

complete line 6b.

exempt compensation paid to one or more qualified employees.

CAUTION

You must be a qualified employer to qualify for the Tier I

7. Tier I Employer Medicare Tax—Compensation

employer tax exemption. A qualified employer is any employer

other than federal, state, and any related governmental entities.

If you are correcting the compensation (other than tips and sick

All public institutions of higher education and Indian tribal

pay) for the Tier I Employer Medicare tax you reported on line 2

governments are also qualified employers. For more

of Form CT-1, enter the total corrected amount in column 1. In

information regarding the employer’s RRTA tax exemption, visit

column 2, enter the amount you originally reported or as

IRS.gov and enter the keywords “HIRE Act” in the search box.

previously corrected. In column 3, enter the difference between

columns 1 and 2.

You may elect not to claim the Tier I exemption for a

qualified employee. The election is made by not including that

line 7 (column 1)

employee’s compensation on lines 1c through 1d and line 7c of

-line 7 (column 2)

Form CT-1.

line 7 (column 3)

If the amount in column 2 is larger

A qualified employee is an employee who:

than the amount in column 1, use a

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Begins employment with you after February 3, 2010, and

minus sign in column 3.

before January 1, 2011;

Multiply the amount in column 3 by .0145 (1.45% tax rate)

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Certifies by signed affidavit (Form W-11, Hiring Incentives to

and enter that result in column 4.

Restore Employment (HIRE) Act Employee Affidavit, or similar

statement) under penalties of perjury that he or she has not

line 7 (column 3)

been employed for more than 40 hours during the 60-day

x .0145

period (including 2009) ending on the date the employee begins

line 7 (column 4)

If the amount in column 3 used a minus sign,

employment with you;

also use a minus sign in column 4.

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Instructions for Form CT-1 X (2011)

Instructions For Form Ct-1 X - Adjusted Employer'S Annual Railroad Retirement Tax Return Or Claim For Refund Page 6

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