Instructions For Form 944-X (Rev. February 2015) (Page 9 of 13) in pdf

administrative error that may be corrected in a later calendar

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

year because the amount actually withheld differs from the

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

amount reported on your 2014 Form 944. Use Form 944-X,

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

line 11, to correct the error as shown below.

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

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

difference in wages subject to Additional Medicare Tax related

Column 1 (corrected amount)

30,000.00

to this administrative error is $27,000 ($30,000 - $3,000).

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

-3,000.00

Employee B's wages exceeded the $200,000 withholding

Column 3 (difference)

27,000.00

threshold for Additional Medicare Tax in December 2014. The

total wages paid to Employee B for 2014 were $220,000. You

were required to withhold $180 ($20,000 x .009) but you

Use the difference in column 3 to determine your tax

withheld nothing and did not report Employee B’s $20,000 in

correction.

wages subject to Additional Medicare Tax withholding on line 4d

of your 2014 Form 944.

Column 3 (difference)

27,000.00

You discover both errors on March 16, 2015. Use Form

Tax rate (0.9%)

x .009

944-X, line 11, to correct the errors as shown below.

Column 4 (tax correction)

243.00

Column 1 (corrected amount)

50,000.00

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

-3,000.00

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

Column 3 (difference)

47,000.00

Prior year nonadministrative errors. You may correct only

the taxable wages and tips subject to Additional Medicare Tax

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

Determine the portion of wages and tips reported in column 3

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

that is related to the administrative error ($47,000 - $20,000

the amount you originally reported or as previously corrected. In

(nonadministrative error) = $27,000 (administrative error)).

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

Multiply this portion of column 3 by .009 (0.9% tax rate) to

determine your tax correction.

line 11 (column 1)

-line 11 (column 2)

Difference related to administrative error

27,000.00

line 11 (column 3)

If the amount in column 2 is larger than the

Tax rate (0.9%)

x .009

amount in column 1, use a minus sign in

Column 4 (tax correction)

243.00

column 3.

Do not multiply the amount in column 3 by .009 (0.9% tax rate).

Be sure to explain the reasons for these corrections on

Leave column 4 blank and explain the reasons for this correction

line 22. You must also report that $20,000 of the amount shown

on line 22.

in column 3 was related to the correction of a prior year

nonadministrative error and $27,000 of the amount shown in

Example—Prior year nonadministrative error (failure to

column 3 was related to the correction of an administrative error.

withhold Additional Medicare Tax when required).

Employee B's wages exceeded the $200,000 withholding

12. Tax Adjustments

threshold for Additional Medicare Tax in December 2014. The

total wages paid to Employee B for 2014 were $220,000. You

Use line 12 to correct any adjustments reported on Form 944,

were required to withhold $180 ($20,000 x .009) but you

line 6. Enter in column 1 the total corrected amount for Form

withheld nothing and did not report an amount on line 4d of your

944, line 6.

2014 Form 944. You discover the error on March 16, 2015. File

Enter in column 2 the total originally reported or previously

Form 944-X to correct wages and tips subject to Additional

corrected amount from Form 944, line 6. In column 3, enter the

Medicare Tax withholding for your 2014 Form 944, but you may

difference between columns 1 and 2.

not correct the Additional Medicare Tax withheld (column 4)

because the error involves a previous year and the amount

previously reported for the employee represents the actual

line 12 (column 1)

amount withheld from the employee during 2014.

-line 12 (column 2)

line 12 (column 3)

Combination of prior year administrative and nonadminis-

trative errors. If you are reporting both administrative errors

and nonadministrative errors for the same prior year, enter the

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

You may need to report negative numbers in any

amount you originally reported or as previously corrected. In

column. Make sure that the difference you enter in

TIP

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

column 3 accurately represents the change to

However, multiply only the amount of wages and tips reported in

adjustments originally reported or previously corrected on Form

column 3 that are related to administrative errors by .009 (0.9%

944, line 6.

tax rate). Do not multiply any wages and tips reported in column

Copy the amount in column 3 to column 4. Include any minus

3 that are related to nonadministrative errors by .009 (0.9% tax

sign shown in column 3.

rate). Use line 22 to explain in detail your corrections. The

explanation must include the reasons for the corrections and a

On line 22, describe what you misreported on Form 944. Tell

breakdown of the amount reported in column 3 into the amounts

us if your adjustment is for fractions of cents, third-party sick pay,

related to administrative errors and nonadministrative errors.

tips, or group-term life insurance.

Example—Combination of prior year administrative and

Example—Current year's third-party sick pay

nonadministrative errors. Employee A's wages exceeded the

underreported. You reported $690 (shown as “-690.00”) as a

$200,000 withholding threshold for Additional Medicare Tax in

third-party sick pay adjustment (reduction to tax) on your 2013

-9-

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

Instructions For Form 944-X (Rev. February 2015) Page 9

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