Table of Contents
For the latest information about developments related to Form 941-X and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form941x.
Correcting wages and tips subject to Additional Medicare Tax withholding.
Beginning with the first quarter of 2013, wages and tips subject to Additional Medicare Tax withholding are reported
on Form 941, line 5d. Any errors discovered on a previously filed Form 941 are corrected on Form 941-X, line 11. For more
information about Additional Medicare Tax withholding, see the Instructions for Form 941 and go to IRS.gov and enter “Additional Medicare Tax” in the search box. See the instructions for line 11 for more information on the types of errors that can be corrected and
how the correction is reported on Form 941-X.
Social security tax rate for 2013.
The employee social security tax rate is 6.2% and the employer social security tax rate is 6.2% (12.4% total). In
2011 and 2012, the employee social security tax rate was 4.2% and the employer social security tax rate was 6.2% (10.4% total).
Be sure to use the correct rate when reporting correct amounts on lines 8 and 9.
Retroactive increase in excludible transit benefits.
The American Taxpayer Relief Act (ATRA) increased the monthly transit benefit exclusion from $125 per participating
employee to $240 per participating employee for the period of January 1, 2012, through December 31, 2012. Employers were
provided instructions on how to correct the social security and Medicare taxes on the excess transit benefits in Notice 2013-8,
2013-7 I.R.B. 486, available at www.irs.gov/irb/2013-07_IRB/ar08.html.
Aggregate Form 941.
Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when correcting an
aggregate Form 941. Schedule R (Form 941) is completed only for those clients who have corrections reported on Form 941-X.
Schedule R (Form 941) is filed as an attachment to Form 941-X. Aggregate Forms 941 are filed by agents approved by the IRS
under section 3504. To request approval to act as an agent for an employer, the agent files Form 2678, Employer/Payer Appointment
of Agent, with the IRS.
Section 3121(q) Notice and Demand—Tax due on unreported tips.
An employer enters the amount of social security and Medicare taxes on unreported tips shown on the Section 3121(q)
Notice and Demand on line 5f (line 5e for quarters ending before January 1, 2013) of the employer's Form 941 for the calendar
quarter corresponding to the “Date of Notice and Demand.” Any errors discovered on a previously filed Form 941 for these taxes are corrected on Form 941-X, line 12. In addition,
any errors relating to Section 3121(q) Notice and Demand amounts reported on Form 941, line 7c (for quarters ending before
January 1, 2011) should be corrected on Form 941-X, line 12.
Qualified employer's social security tax exemption expired.
The qualified employer's exemption for their share (6.2%) of social security tax on wages/tips paid to qualified employees
expired on December 31, 2010. Any errors discovered on a previously filed Form 941 (for quarters ending after March 31, 2010,
and before January 1, 2011) for this exemption are corrected on Form 941-X, lines 13a–13c.
Qualified employer's social security tax credit.
Qualified employers were allowed a credit for their share (6.2%) of social security tax on wages/tips paid to qualified
employees after March 18, 2010, and before April 1, 2010. Any errors discovered on a previously filed Form 941 for the second
quarter of 2010 for this credit are corrected on Form 941-X, lines 20c and 20d.
Advance payment of earned income credit (EIC).
The option of receiving advance payroll payments of EIC expired on December 31, 2010. Any errors discovered on a previously
filed Form 941 for this credit are corrected on Form 941-X, line 19.
COBRA premium assistance payments.
Employers who make COBRA premium assistance payments for assistance eligible individuals are allowed a credit for
the payments on Form 941. Any errors discovered on a previously filed Form 941 for this credit are corrected on Form 941-X,
lines 20a and 20b. See COBRA Premium Assistance Payments, later.
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