Instructions For Form 944-X (Rev. February 2015) (Page 8 of 13) in pdf

both shares of tax for some employees and only the employer

Column 1 (corrected amount)

700.00

share for other employees, report the properly calculated

Column 2 (from Form 944, line 4c, Column 1)

-900.00

amount in column 4. Be sure to show your calculations on

Column 3 (difference)

-200.00

line 22.

Example—Social security tips increased. Following the

Example—Wages, tips, and other compensation increased in

Use the difference in column 3 to determine your tax

the instructions for line 6, the tips that you overlooked were also

correction.

taxable social security tips. To correct the error, figure the

difference on Form 944-X as shown.

Column 3 (difference)

-200.00

Tax rate (2.9%)

x .029

Column 1 (corrected amount)

1000.00

Column 4 (tax correction)

-5.80

Column 2 (from Form 944, line 4b, Column 1)

- 900.00

Column 3 (difference)

100.00

Be sure to explain the reasons for this correction on line 22.

Use the difference in column 3 to determine your tax

11. Taxable Wages and Tips Subject to

correction.

Additional Medicare Tax Withholding

Generally, you may correct errors to Additional Medicare Tax

Column 3 (difference)

100.00

withholding only if you discovered the errors in the same

Tax rate (12.4%)

x .124

calendar year the wages and tips were paid to employees.

Column 4 (tax correction)

12.40

However, you may correct errors to Additional Medicare Tax

withholding for prior years if the amount reported on Form 944,

line 4d, column 2, does not agree with the amount you actually

Be sure to explain the reasons for this correction on line 22.

withheld. This type of error is an administrative error. You may

also correct errors to Additional Medicare Tax withholding for

Note. If the example above was for a correction to a 2011 or

prior years if section 3509 rates apply. If section 3509 rates

2012 return, the amount in column 3 would be multiplied by .104.

apply, see the instructions for line 16, later.

10. Taxable Medicare Wages and Tips

If a prior year error was a nonadministrative error, you may

correct only the wages and tips subject to Additional Medicare

If you are correcting the taxable Medicare wages and tips you

Tax withholding that were originally reported on Form 944,

reported on Form 944, line 4c, column 1, enter the total

line 4d, column 1, or previously corrected on Form 944-X. You

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

cannot correct the tax reported on Form 944, line 4d, column 2.

you originally reported or as previously corrected. In column 3,

enter the difference between columns 1 and 2.

Prior year administrative errors. If you are correcting the

taxable wages and tips subject to Additional Medicare Tax

withholding that you reported on Form 944, line 4d, column 1,

line 10 (column 1)

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

-line 10 (column 2)

the amount you originally reported or as previously corrected. In

line 10 (column 3)

If the amount in column 2 is larger than the

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

amount in column 1, use a minus sign in

column 3.

line 11 (column 1)

-line 11 (column 2)

Multiply the amount in column 3 by .029 (2.9% tax rate) and

line 11 (column 3)

If the amount in column 2 is larger than the

enter the result in column 4.

amount in column 1, use a minus sign in

column 3.

line 10 (column 3)

x .029

Multiply the amount in column 3 by .009 (0.9% tax rate) and

line 10 (column 4)

If the amount in column 3 used a minus sign,

enter that result in column 4.

also use a minus sign in column 4.

line 11 (column 3)

x .009

Note. If you are correcting only the employer share of tax on a

decrease to Medicare wages and tips, use .0145 (1.45%) when

line 11 (column 4)

If the amount in column 3 used a minus sign, also

multiplying the amount in column 3. If you are correcting both

use a minus sign in column 4.

shares of tax for some employees and only the employee share

for other employees, enter the properly calculated amount in

column 4. Be sure to explain your calculations on line 22.

Example—Prior year administrative error (incorrectly

Example—Medicare wages and tips decreased.

reported amount of Additional Medicare Tax actually

Following Example—Wages, tips, and other compensation

withheld). Employee A's wages exceeded the $200,000

decreased in the instructions for line 6, the wages that you

withholding threshold for Additional Medicare Tax in November

counted twice were also taxable Medicare wages and tips. To

2014. The total wages paid to Employee A for 2014 were

correct the error, figure the difference on Form 944-X as shown.

$230,000. You withheld $270 ($30,000 x .009) from the

employee's wages. However, on your 2014 Form 944 you

mistakenly reported $3,000 on line 4d, column 1, and Additional

Medicare Tax withheld of $27 on line 4d, column 2. You discover

the error on March 16, 2015. This is an example of an

-8-

Instructions for Form 944-X (Rev. 2-2015)

Instructions For Form 944-X (Rev. February 2015) Page 8

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