Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2017 Page 7
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13because they were not reimbursements of deductible business
Column 1 (corrected amount)
9,000.00
expenses that were substantiated and paid under an
Column 2 (Form 941, line 3)
- 6,000.00
accountable plan. You correct the error by treating the auto
Column 3 (difference)
3,000.00
allowance as wages subject to income, social security, and
Medicare taxes. Report the additional $1,500 of wages on lines
6, 8, and 10.
Report the $3,000 as a tax correction in column 4.
The amount on line 6, column 1, should be used on
Be sure to explain the reasons for this correction on line 23.
your Forms W-2 or Forms W-2c. This amount should
TIP
8. Taxable Social Security Wages
also be used for any business expense deduction on
your income tax return (or amended return) for wages paid.
The 2011 and 2012 employee tax rate for social
security was 4.2%.
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7. Federal Income Tax Withheld from Wages,
CAUTION
Tips, and Other Compensation
If you are correcting the taxable social security wages you
If you are correcting the federal income tax withheld from wages,
reported on Form 941, line 5a, column 1, enter the total
tips, and other compensation you reported on Form 941, line 3,
corrected amount in column 1. In column 2, enter the amount
enter the total corrected amount in column 1. In column 2, enter
you originally reported or as previously corrected. In column 3,
the amount you originally reported or as previously corrected. In
enter the difference between columns 1 and 2.
column 3, enter the difference between columns 1 and 2. This
line does not apply to Form 941-SS.
line 8 (column 1)
- line 8 (column 2)
line 7 (column 1)
line 8 (column 3)
If the amount in column 2 is larger than the amount
- line 7 (column 2)
in column 1, use a minus sign in column 3.
line 7 (column 3)
If the amount in column 2 is larger than the
amount in column 1, use a minus sign in column 3.
Multiply the amount in column 3 by .124 (.104 for corrections
to a 2011 or 2012 return) and enter that result in column 4.
Copy the amount in column 3 to column 4. Include any minus
sign shown in column 3.
line 8 (column 3)
Generally, you may correct federal income tax
x .124
(Use .104 for corrections to a 2011 or 2012 return.)
withholding errors only if you discovered the errors in
!
line 8 (column 4)
If the amount in column 3 used a minus sign, also
the same calendar year you paid the wages. However,
use a minus sign in column 4.
CAUTION
you may correct errors to federal income tax withholding for prior
years if the amount reported on Form 941, line 3, does not agree
with the amount you actually withheld. This type of error is an
administrative error. You may also correct errors to federal
Note. If you are correcting only the employer share of tax on a
income tax withholding for prior years if section 3509 rates
decrease to social security wages, use .062 (6.2%) when
apply. See section 13 of Pub. 15 (Circular E) for more
multiplying the amount shown in column 3. If you are correcting
information about corrections during the calendar year and
both shares of tax for some employees and only the employer
about administrative errors. See section 2 of Pub. 15 (Circular E)
share for other employees, enter the properly calculated amount
for more information about section 3509. If section 3509 rates
in column 4. Be sure to show your calculations on line 23.
apply, see the instructions for line 14, later.
Example—Social security wages decreased. Following
Example—Wages, tips, and other compensation decreased in
Example—Failure to withhold income tax when
the instructions for line 6, the wages that you counted twice were
required. You were required to withhold $400 of federal income
also taxable social security wages. To correct the error, figure
tax from an employee's bonus that was paid in December of
the difference on Form 941-X as shown.
2014 but you withheld nothing. You discovered the error on
March 16, 2015. You cannot file Form 941-X to correct your
2014 fourth quarter Form 941 because the error involves a
Column 1 (corrected amount)
7,000.00
previous year and the amount previously reported for the
Column 2 (Form 941, line 5a, column 1)
- 9,000.00
employee represents the actual amount withheld from the
Column 3 (difference)
-2,000.00
employee during 2014.
Example—Administrative error reporting income tax.
Use the difference in column 3 to determine your tax
You had three employees. In the fourth quarter of 2014, you
correction.
withheld $1,000 of federal income tax from employee A, $2,000
from employee B, and $6,000 from employee C. The total
amount of federal income tax you withheld was $9,000. You
Column 3 (difference)
-2,000.00
mistakenly reported $6,000 on line 3 of your 2014 fourth quarter
Tax rate (12.4%)
x .124
Form 941. You discovered the error on March 13, 2015. This is
Column 4 (tax correction)
-248.00
an example of an administrative error that may be corrected in a
later calendar year because the amount actually withheld from
employees' wages differs from the amount reported on Form
Be sure to explain the reasons for this correction on line 23.
941. Use Form 941-X to correct the error. Enter $9,000 in
column 1 and $6,000 in column 2. Subtract the amount in
Note. If the example above was for a correction to a 2011 or
column 2 from the amount in column 1.
2012 return, the amount in column 3 would be multiplied by .104.
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Instructions for Form 941-X (Rev. 4-2015)
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