Instructions For Form 944-X (Rev. February 2015) Page 6

ADVERTISEMENT

Medicare tax. You are certifying that you repaid or reimbursed to
line 6 (column 1)
the employees their share of prior year social security and
-line 6 (column 2)
Medicare tax and you received written statements from those
line 6 (column 3)
If the amount in column 2 is larger than the
employees stating that they did not and will not receive a refund
amount in column 1, use a minus sign in
or credit for the prior year taxes.
column 3.
5b. Check the box on line 5b if your overreported tax includes
each affected employee share of prior year social security and
Medicare tax and you have not yet repaid or reimbursed the
Example —Wages, tips, and other compensation
employee share of taxes. You are certifying that you received
increased. You reported $900 as total wages, tips, and other
consent from each affected employee to file a claim on the
compensation on line 1 of your 2014 Form 944. In July of 2015,
employee share of those taxes and you received written
you discover that you had overlooked $100 in tips for one of your
statements from those employees stating that they did not and
part-time employees. To correct the error, figure the difference
will not receive a refund or credit for the prior year taxes. Do not
on Form 944-X as shown.
send these statements and consents to the IRS. Keep them for
your records. Generally, all employment tax records must be
Column 1 (corrected amount)
1000.00
kept for at least 4 years.
Column 2 (from Form 944, line 1)
-900.00
In certain situations, you may not have repaid or reimbursed
Column 3 (difference)
100.00
your employees or obtained their consents before filing a claim,
such as in cases where the period of limitations on credit or
refund is about to expire. In those situations, file Form 944-X, but
Example —Wages, tips, and other compensation
do not check a box on line 5. Tell us on line 22 that you have not
decreased. You reported $900 as wages, tips, and other
repaid or reimbursed employees or obtained consents at the
compensation on line 1 of your 2014 Form 944. In December of
time you file the claim. However, you must repay or reimburse
2015, you discover that you included $200 in wages for one of
your employees and certify that you have done so before the
your employees twice. To correct the error, figure the difference
IRS can allow the claim.
on Form 944-X as shown.
5c. Check the box on line 5c to certify that your overreported tax
is only for the employer share of social security and Medicare
Column 1 (corrected amount)
700.00
tax. This applies when affected employees did not give you
Column 2 (from Form 944, line 1)
-900.00
consent to file a claim for refund for the employee share of social
Column 3 (difference)
-200.00
security and Medicare tax, they could not be found, or they did
not give you a statement described on line 5b.
Example—Auto allowance; wages, tips, and other
5d. Check the box on line 5d to certify that your overreported
compensation increased. You paid one of your employees a
amount is only for federal income tax, social security tax,
$50 monthly auto allowance from October–December 2013 and
Medicare tax, or Additional Medicare Tax that you did not
did not treat the payments as taxable wages. However, in
withhold from your employees.
February 2015, you realized that the payments were wages
Part 3: Enter the Corrections for the
because they were not reimbursements of deductible business
expenses that were substantiated and paid under an
Calendar Year You Are Correcting
accountable plan. Therefore, you must correct the error and treat
the auto allowance as wages subject to income, social security,
What Amounts Should You Report in Part 3?
and Medicare taxes. Use Form 944-X to report the additional
$150 of wages on line 6 and any underreported amounts on
On lines 6–11, columns 1 and 2, show amounts for all of your
lines 8 and 10.
employees, not just for those employees whose amounts you
are correcting.
The amount on line 6, column 1, should be used on
your Forms W-2 or Forms W-2c. This amount should
If a correction you report in column 4 includes both
TIP
also be used for any business expense deduction on
underreported and overreported amounts (see the instructions
your income tax return (or amended return) for wages paid.
for line 20), give us details for each error on line 22.
Because special circumstances apply for lines 12–16, 18a,
7. Federal Income Tax Withheld from Wages,
and 18b, read the instructions for each line carefully before
Tips, and Other Compensation
entering amounts in the columns.
If you are correcting the federal income tax withheld from wages,
If you previously adjusted or amended Form 944 using
tips, and other compensation you reported on Form 944, line 2,
Form 944-X or because of an IRS examination change,
!
enter the total corrected amount in column 1. In column 2, enter
show amounts in column 2 that include those previously
the amount you originally reported or as previously corrected. In
CAUTION
reported corrections.
column 3, enter the difference between columns 1 and 2. This
line does not apply to Form 944-SS.
6. Wages, Tips, and Other Compensation
If you are correcting the wages, tips, and other compensation
line 7 (column 1)
you reported on Form 944, line 1, enter the total corrected
-line 7 (column 2)
amount for ALL employees in column 1. In column 2, enter the
line 7 (column 3)
If the amount in column 2 is larger than the
amount you originally reported. In column 3, enter the difference
amount in column 1, use a minus sign in
between columns 1 and 2. This line does not apply to Form
column 3.
944-SS.
If you or the IRS previously corrected the amount reported on
Copy the amount in column 3 to column 4. Include any minus
Form 944, line 1, enter in column 2 the amount after any
sign shown in column 3.
previous corrections.
-6-
Instructions for Form 944-X (Rev. 2-2015)

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial