Instructions For Form 943-X - 2015 Page 8
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13Tax withheld (column 4) because the error involves a
line 8 (column 3)
previous year and the amount previously reported for the
x .009
employee represents the actual amount withheld from the
line 8 (column 4)
If the amount in column 3 used a minus sign,
employee during 2014.
also use a minus sign in column 4.
Combination of prior year administrative and nonadmi-
nistrative errors. If you are reporting both administrative
errors and nonadministrative errors for the same prior year,
Example—Prior year administrative error (incorrectly
enter the total corrected amount in column 1. In column 2,
reported amount of Additional Medicare Tax actually
enter the amount you originally reported or as previously
withheld). Employee A's wages exceeded the $200,000
corrected. In column 3, enter the difference between columns
withholding threshold for Additional Medicare Tax in
1 and 2. However, multiply only the amount of wages
November 2014. The total wages paid to Employee A for
reported in column 3 that are related to administrative errors
2014 were $230,000. You withheld $270 ($30,000 x .009)
by .009 (0.9% tax rate). Do not multiply any wages reported
from the employee's wages. However, on your 2014 Form
in column 3 that are related to nonadministrative errors
943 you mistakenly reported $3,000 on line 6, and Additional
by .009 (0.9% tax rate). Use line 20 to explain in detail your
Medicare Tax withheld of $27 on line 7. You discover the
corrections. The explanation must include the reasons for the
error on March 16, 2015. This is an example of an
corrections and a breakdown of the amount reported in
administrative error that may be corrected in a later calendar
column 3 into the amounts related to administrative errors
year because the amount actually withheld differs from the
and nonadministrative errors.
amount reported on your 2014 Form 943. Use Form 943-X,
line 8, to correct the error as shown below.
Example—Combination of prior year administrative
and nonadministrative errors. Employee A's wages
exceeded the $200,000 withholding threshold for Additional
Column 1 (corrected amount)
30,000.00
Medicare Tax in November 2014. The total wages paid to
Column 2 (Form 943, line 6)
- 3,000.00
Employee A for 2014 were $230,000. You withheld $270
Column 3 (difference)
27,000.00
($30,000 x .009) from the employee's wages. However, on
your 2014 Form 943 you mistakenly reported $3,000 on
line 6, and Additional Medicare Tax withheld of $27 on line 7.
Use the difference in column 3 to determine your tax
The difference in wages subject to Additional Medicare Tax
correction.
related to this administrative error is $27,000 ($30,000 –
$3,000).
Column 3 (difference)
27,000.00
Employee B's wages exceeded the $200,000 withholding
Tax rate (0.9%)
x .009
threshold for Additional Medicare Tax in December 2014.
Column 4 (tax correction)
243.00
The total wages paid to Employee B for 2014 were $220,000.
You were required to withhold $180 ($20,000 x .009) but you
withheld nothing and did not report Employee B’s $20,000 in
Be sure to explain the reasons for this correction on
wages subject to Additional Medicare Tax withholding on
line 20.
line 6 of your 2014 Form 943.
Prior year nonadministrative errors. You may correct
You discover both errors on March 16, 2015. Use Form
only the taxable wages subject to Additional Medicare Tax
943-X, line 8, to correct the errors as shown below.
withholding that you reported on Form 943, line 6. Enter the
total corrected amount in column 1. In column 2, enter the
amount you originally reported or as previously corrected. In
Column 1 (corrected amount)
50,000.00
column 3, enter the difference between columns 1 and 2.
Column 2 (Form 943, line 6)
- 3,000.00
Column 3 (difference)
47,000.00
line 8 (column 1)
- line 8 (column 2)
line 8 (column 3)
If the amount in column 2 is larger than the
Determine the portion of wages reported in column 3 that
amount in column 1, use a minus sign in
is related to the administrative error ($47,000 - $20,000
column 3.
(nonadministrative error) = $27,000 (administrative error)).
Multiply this portion of column 3 by .009 (0.9% tax rate) to
determine your tax correction.
Do not multiply the amount in column 3 by .009 (0.9% tax
rate). Leave column 4 blank and explain the reasons for this
Difference related to administrative error
27,000.00
correction on line 20.
Tax rate (0.9%)
x .009
Example—Prior year nonadministrative error (failure
Column 4 (tax correction)
243.00
to withhold Additional Medicare Tax when required).
Employee B's wages exceeded the $200,000 withholding
threshold for Additional Medicare Tax in December 2014.
Be sure to explain the reasons for these corrections on
The total wages paid to Employee B for 2014 were $220,000.
line 20. You must also report that $20,000 of the amount
You were required to withhold $180 ($20,000 x .009) but you
shown in column 3 was related to the correction of a prior
withheld nothing and did not report an amount on line 6 or
year nonadministrative error and $27,000 of the amount
line 7 of your 2014 Form 943. You discover the error on
shown in column 3 was related to the correction of an
March 16, 2015. File Form 943-X to correct the wages
administrative error.
subject to Additional Medicare Tax withholding for your 2014
Form 943, but you may not correct the Additional Medicare
-8-
Instructions for Form 943-X (Rev. 2-2015)
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