Instructions For Form 943-X - 2015 (Page 10 of 13) in pdf

Note. If the example above was for a correction to a year

previously reported. See the instructions for line 19 for more

ending before January 1, 2013, the references to line 10

information.

change to line 8.

15. Subtotal

Only use line 10 to correct adjustments for fractions

Combine the amounts from column 4 on lines 6–14 and enter

of cents, third-party sick pay, or group-term life

the result on line 15.

insurance previously reported. File a separate Form

CAUTION

Example. You entered “-500.00” in column 4 of line 6,

943-X for each year being corrected.

“-100.00” in column 4 of line 7, and “1,400.00” in column 4 of

line 10. Combine these amounts and enter “800.00” in

11–14. Special Additions to Wages for Federal

column 4 of line 15.

Income Tax, Social Security Tax, Medicare Tax,

and Additional Medicare Tax

Line 6

-500.00

Section 3509 provides special rates for the employee share

Line 7

-100.00

of social security tax, Medicare tax, Additional Medicare Tax,

Line 10

+1,400.00

and income tax withholding when workers are reclassified as

Line 15

800.00

employees in certain circumstances. The applicable rate

depends on whether you filed required information returns.

An employer cannot recover any tax paid under this provision

16a. Claiming or Correcting the COBRA

from the employees. The full employer share of social

Premium Assistance Credit

security and Medicare tax is due for all reclassifications.

The COBRA premium assistance credit was

Note. Section 3509 rates are not available if you

available to an employer for premiums paid on

intentionally disregarded the requirements to withhold taxes

behalf of employees who were involuntarily

from the employee, or if you withheld income tax but did not

CAUTION

terminated from employment between September 1, 2008,

withhold social security and Medicare tax. Section 3509 rates

and May 31, 2010. The COBRA premium assistance credit is

are also not available for certain statutory employees.

not available for individuals who were involuntarily terminated

On lines 11–14, enter only corrections to wages resulting

after May 31, 2010. Therefore, only in rare circumstances,

from reclassifying certain workers as employees when

such as instances where COBRA eligibility was delayed as a

section 3509 rates are used to calculate the taxes.

result of employer provided health insurance coverage

following termination, will the credit be available.

If the employer issued the required information returns,

use the section 3509 rates as follows.

Enter 65% of the total COBRA premium assistance

For social security taxes, use the employer rate of 6.2%

payments for all assistance eligible individuals in column 1.

plus 20% of the employee rate of 6.2% (4.2% for 2011 and

Report the premium assistance payments on this line only

2012), for a total rate of 7.44% (7.04% for 2011 and 2012) of

after the assistance eligible individual's 35% share of the

wages.

premium has been paid. For COBRA coverage provided

For Medicare taxes, use the employer rate of 1.45% plus

under a self-insured plan, COBRA premium assistance is

20% of the employee rate of 1.45%, for a total rate of 1.74%

treated as having been made for each assistance eligible

of wages.

individual who paid 35% of the COBRA premium. Do not

For Additional Medicare Tax, 0.18% (20% of the employee

include the assistance eligible individual's 35% of the

rate of 0.9%) of wages subject to Additional Medicare Tax.

premium in the amount entered on this line.

For income tax withholding, the rate is 1.5% of wages.

For tax periods ending before January 1, 2014, enter any

If the employer did not issue the required information

COBRA premium assistance payments previously claimed

returns, use the section 3509 rates as follows.

on Form 943, line 13a (line 11a for calendar years 2011 and

For social security taxes, use the employer rate of 6.2%

2012), in column 2. For tax periods beginning after

plus 40% of the employee rate of 6.2% (4.2% for 2011 and

December 31, 2013, enter -0- in column 2, unless you are

2012), for a total rate of 8.68% (7.88% for 2011 and 2012) of

correcting a COBRA premium assistance payment

wages.

previously reported on a Form 943-X. If you or the IRS

For Medicare taxes, use the employer rate of 1.45% plus

previously corrected the amount reported, the amount

40% of the employee rate of 1.45%, for a total rate of 2.03%

entered in column 2 should take into account all previous

of wages.

corrections.

For Additional Medicare Tax, 0.36% (40% of the employee

rate of 0.9%) of wages subject to Additional Medicare Tax.

Enter the difference between column 1 and 2 in column 3.

Copy the amount in column 3 to column 4. However, to

For income tax withholding, the rate is 3.0% of wages.

properly show the amount as a credit or balance due item,

Unlike other lines on Form 943-X, enter in column 1 only

enter a positive number in column 3 as a negative number in

the corrected wages for workers being reclassified, not the

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

amount paid to ALL employees. Enter in column 2 previously

number in column 4.

reported wages (if any) to reclassified employees. To get the

amount for column 4, use the applicable section 3509 rates.

The COBRA premium assistance credit is treated as

If you filed the required information returns for some

a credit on the first day of the return period (that is,

employees but did not file them for other employees, be sure

January 1). However, because the credit is now

CAUTION

to use the applicable rates for each employee when

claimed on Form 943-X filed AFTER submission of the Form

calculating the amounts in column 4 and show your

943, an employer that reduces its required deposits in

calculations on line 20. The tax correction in column 4 will be

anticipation of the credit will receive a system-generated

a positive number if you increased the amount of wages you

notice reflecting a balance due and associated penalties and

-10-

Instructions for Form 943-X (Rev. 2-2015)

Instructions For Form 943-X - 2015 Page 10

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