Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2017 Page 9
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13you originally reported or as previously corrected. In column 3,
total wages paid to Employee B for 2014 were $220,000. You
enter the difference between columns 1 and 2.
were required to withhold $180 ($20,000 x .009) but you
withheld nothing and did not report an amount on line 5d of your
fourth quarter 2014 Form 941. You discover the error on March
line 11 (column 1)
16, 2015. File Form 941-X to correct wages and tips subject to
- line 11 (column 2)
Additional Medicare Tax withholding for your 2014 fourth quarter
line 11 (column 3)
If the amount in column 2 is larger than the amount
Form 941, but you may not correct the Additional Medicare Tax
in column 1, use a minus sign in column 3.
withheld (column 4) because the error involves a previous year
and the amount previously reported for the employee represents
the actual amount withheld from the employee during 2014.
Multiply the amount in column 3 by .009 (0.9% tax rate) and
enter that result in column 4.
Combination of prior year administrative and nonadminis-
trative errors. If you are reporting both administrative errors
and nonadministrative errors for the same quarter of a prior year,
line 11 (column 3)
enter the total corrected amount in column 1. In column 2, enter
x .009
the amount you originally reported or as previously corrected. In
line 11 (column 4)
If the amount in column 3 used a minus sign, also
column 3, enter the difference between columns 1 and 2.
use a minus sign in column 4.
However, multiply only the amount of wages and tips reported in
column 3 that are related to administrative errors by .009 (0.9%
tax rate). Do not multiply any wages and tips reported in column
Example—Prior year administrative error (incorrectly
3 that are related to nonadministrative errors by .009 (0.9% tax
reported amount of Additional Medicare Tax actually
rate). Use line 23 to explain in detail your corrections. The
withheld). Employee A's wages exceeded the $200,000
explanation must include the reasons for the corrections and a
withholding threshold for Additional Medicare Tax in November
breakdown of the amount reported in column 3 into the amounts
2014. The total wages paid to Employee A for 2014 were
related to administrative errors and nonadministrative errors.
$230,000. You withheld $270 ($30,000 x .009) from the
Example—Combination of prior year administrative and
employee's wages. However, on your fourth quarter 2014 Form
nonadministrative errors. Employee A's wages exceeded the
941 you mistakenly reported $3,000 on line 5d, column 1, and
$200,000 withholding threshold for Additional Medicare Tax in
Additional Medicare Tax withheld of $27 on line 5d, column 2.
November 2014. The total wages paid to Employee A for 2014
You discover the error on March 16, 2015. This is an example of
were $230,000. You withheld $270 ($30,000 x .009) from the
an administrative error that may be corrected in a later calendar
employee's wages. However, on your fourth quarter 2014 Form
year because the amount actually withheld differs from the
941 you mistakenly reported $3,000 on line 5d, column 1, and
amount reported on your fourth quarter 2014 Form 941. Use
Additional Medicare Tax withheld of $27 on line 5d, column 2.
Form 941-X, line 11, to correct the error as shown below.
The difference in wages subject to Additional Medicare Tax
related to this administrative error is $27,000 ($30,000 - $3,000).
Column 1 (corrected amount)
30,000.00
Employee B's wages exceeded the $200,000 withholding
Column 2 (Form 941, line 5d, column 1)
- 3,000.00
threshold for Additional Medicare Tax in December 2014. The
Column 3 (difference)
27,000.00
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
Use the difference in column 3 to determine your tax
wages subject to Additional Medicare Tax withholding on line 5d
correction.
of your fourth quarter 2014 Form 941.
You discover both errors on March 16, 2015. Use Form
Column 3 (difference)
27,000.00
941-X, line 11, to correct the errors as shown below.
Tax rate (0.9%)
x .009
Column 4 (tax correction)
243.00
Column 1 (corrected amount)
50,000.00
Column 2 (Form 941, line 5d, column 1)
- 3,000.00
Column 3 (difference)
47,000.00
Be sure to explain the reasons for this correction on line 23.
Prior year nonadministrative errors. You may correct only
the taxable wages and tips subject to Additional Medicare Tax
Determine the portion of wages and tips reported in column 3
withholding that you reported on Form 941, line 5d, column 1.
that is related to the administrative error ($47,000 - $20,000
Enter the total corrected amount in column 1. In column 2, enter
(nonadministrative error) = $27,000 (administrative error)).
the amount you originally reported or as previously corrected. In
Multiply this portion of column 3 by .009 (0.9% tax rate) to
column 3, enter the difference between columns 1 and 2.
determine your tax correction.
line 11 (column 1)
Difference related to administrative error
27,000.00
- line 11 (column 2)
Tax rate (0.9%)
x .009
line 11 (column 3)
If the amount in column 2 is larger than the
Column 4 (tax correction)
243.00
amount in column 1, use a minus sign in column 3.
Be sure to explain the reasons for these corrections on
Do not multiply the amount in column 3 by .009 (0.9% tax
line 23. You must also report that $20,000 of the amount shown
rate). Leave column 4 blank and explain the reasons for this
in column 3 was related to the correction of a prior year
correction on line 23.
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
threshold for Additional Medicare Tax in December 2014. The
-9-
Instructions for Form 941-X (Rev. 4-2015)
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