Instructions for Form 944-X - Introductory Material


Future Developments

For the latest information about developments related to Form 944-X and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form944x.

What's New

Correcting wages and tips subject to Additional Medicare Tax withholding.   Beginning 2013, wages and tips subject to Additional Medicare Tax withholding are reported on Form 944, line 4d. Any errors discovered on a previously filed Form 944 are corrected on Form 944-X, line 11. For more information about Additional Medicare Tax withholding, see the Instructions for Form 944 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 944-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 corrections on lines 8 and 9.

Retroactive increase in excludible transit benefits for 2012.   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.

Reminders

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 2010 Form 944 for this exemption are corrected on Form 944-X, lines 12a and 12b.

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 2010 Form 944 for this credit are corrected on Form 944-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 944 for this credit are corrected on Form 944-X, line 19.

Correcting the COBRA premium assistance credit.   Employers who make COBRA premium assistance payments for assistance eligible individuals are allowed a credit for the payments on Form 944. Any errors discovered on a previously filed Form 944 for this credit or for the number of individuals provided COBRA premium assistance are corrected on Form 944-X. See the instructions for lines 20a and 20b, later.


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