Instructions for Form 941-X (2023)

Instructions for Form 941-X

Department of the Treasury

Internal Revenue Service

(Rev. April 2023)

Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund

Section references are to the Internal Revenue Code

unless otherwise noted.

Contents

Page

General Instructions: Understanding Form 941-X . . . . 4

What Is the Purpose of Form 941-X? . . . . . . . . . . 4

Where Can You Get Help? . . . . . . . . . . . . . . . . . 5

When Should You File Form 941-X? . . . . . . . . . . 5

Is There a Deadline for Filing Form 941-X? . . . . . . 6

Where Should You File Form 941-X? . . . . . . . . . . 6

How Should You Complete Form 941-X? . . . . . . . 6

Overview of the Process . . . . . . . . . . . . . . . . . . . 7

Specific Instructions: . . . . . . . . . . . . . . . . . . . . . . . . . 8

Part 1: Select ONLY One Process . . . . . . . . . . . . 8

Part 2: Complete the Certifications . . . . . . . . . . . . 8

Part 3: Enter the Corrections for This Quarter . . . 10

Part 4: Explain Your Corrections for This

Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Part 5: Sign Here . . . . . . . . . . . . . . . . . . . . . . . 26

Worksheet 1. Adjusted Credit for Qualified Sick

and Family Leave Wages for Leave Taken

After March 31, 2020, and Before April 1,

2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Worksheet 2. Adjusted Employee Retention Credit

for Qualified Wages Paid After March 12, 2020,

and Before July 1, 2021 . . . . . . . . . . . . . . . . . . 28

Worksheet 3. Adjusted Credit for Qualified Sick

and Family Leave Wages for Leave Taken

After March 31, 2021, and Before October 1,

2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Worksheet 4. Adjusted Employee Retention Credit

for Qualified Wages Paid After June 30, 2021,

and Before January 1, 2022 . . . . . . . . . . . . . . . . 30

Worksheet 5. Adjusted COBRA Premium

Assistance Credit . . . . . . . . . . . . . . . . . . . . . . . 31

How Can You Get Forms, Instructions, and

Publications From the IRS? . . . . . . . . . . . . . . . . 31

Future Developments

For the latest information about developments related to

Form 941-X and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form941X.

These instructions have been updated for

TIP changes to the qualified small business payroll tax

credit for increasing research activities reported

on Form 8974. You may use these instructions and the

April 2023 revision of Form 941-X for all years for which

the statute of limitations on corrections hasn't expired.

Before you proceed with these instructions and

completing Form 941-X, you'll need a copy of the

Instructions for Form 941 for the quarter that you're

correcting because these instructions don't repeat all of

May 18, 2023

the information included in the Instructions for Form 941.

For example, these instructions don't discuss who is

eligible to claim the credit for qualified sick and family

leave wages, the employee retention credit, or the

COBRA premium assistance credit. Prior revisions of the

Instructions for Form 941 are available at IRS.gov/

Form941 (select the link for “All Form 941 Revisions”

under “Other Items You May Find Useful”).

What's New

Qualified small business payroll tax credit for increasing research activities. For tax years beginning

before January 1, 2023, a qualified small business may

elect to claim up to $250,000 of its credit for increasing

research activities as a payroll tax credit. The Inflation

Reduction Act of 2022 (the IRA) increases the election

amount to $500,000 for tax years beginning after

December 31, 2022. The payroll tax credit election must

be made on or before the due date of the originally filed

income tax return (including extensions). The portion of

the credit used against payroll taxes is allowed in the first

calendar quarter beginning after the date that the qualified

small business filed its income tax return. The election

and determination of the credit amount that will be used

against the employer's payroll taxes are made on Form

6765, Credit for Increasing Research Activities. The

amount from Form 6765, line 44, must then be reported

on Form 8974, Qualified Small Business Payroll Tax

Credit for Increasing Research Activities.

For quarters beginning before January 1, 2023, the

payroll tax credit can be used only against the employer

share of social security tax for the quarter and any

remaining credit is carried forward to the next quarter.

Starting in the first quarter of 2023, the payroll tax credit is

first used to reduce the employer share of social security

tax up to $250,000 per quarter and any remaining credit

reduces the employer share of Medicare tax for the

quarter. Any remaining credit, after reducing the employer

share of social security tax and the employer share of

Medicare tax, is then carried forward to the next quarter.

Form 8974 is used to determine the amount of the credit

that can be used in the current quarter. Corrections to this

credit are made on Form 941-X, line 16. If you make a

correction to Form 941-X, line 16, you must attach a

corrected Form 8974. For more information, see the

Instructions for Form 8974 and go to IRS.gov/

ResearchPayrollTC.

Reminders

If a line on Form 941-X doesn't apply to you, leave

TIP it blank. If you're correcting a quarter that began

before April 1, 2020, you must leave blank lines 9,

10, 17, 18a, 24, 25, 26a, 28, 29, 30, 31a, 32, 33a, and 34.

If you're correcting a quarter that began before July 1,

Cat. No. 20331U

employee retention credit solely because your business is

a recovery startup business.

2020, you must leave blank line 33b. If you're correcting a

quarter that began before April 1, 2021, you must leave

blank lines 18b, 18c, 18d, 26b, 26c, 35, 36, 37, 38, 39,

and 40. If you're correcting a quarter that began before

July 1, 2021, you must leave blank line 31b. If you're

correcting a quarter that began after December 31, 2021,

you must leave blank lines 18a, 26a, 30, 31a, and 31b.

Credit for COBRA premium assistance payments is

limited to periods of coverage beginning on or after

April 1, 2021, through periods of coverage beginning

on or before September 30, 2021. Section 9501 of the

ARP provides for COBRA premium assistance in the form

of a full reduction in the premium otherwise payable by

certain individuals and their families who elect COBRA

continuation coverage due to a loss of coverage as the

result of a reduction in hours or an involuntary termination

of employment (assistance eligible individuals). This

COBRA premium assistance was available for periods of

coverage beginning on or after April 1, 2021, through

periods of coverage beginning on or before September

30, 2021. A premium payee was entitled to the COBRA

premium assistance credit at the time an eligible individual

elects coverage. Therefore, other than in rare

circumstances, due to the COBRA notice and election

period requirements (generally, employers have 60 days

to provide notice and assistance eligible individuals have

60 days to elect coverage), the first quarter of 2022 was

the last quarter in which employers may have been

eligible to claim the COBRA premium assistance credit on

Form 941. Employers eligible to claim the COBRA

premium assistance credit after March 31, 2022, must file

Form 941-X to claim the credit.

For more information on COBRA premium assistance

payments and the credit, see Notice 2021-31, 2021-23

I.R.B. 1173, available at IRS.gov/irb/

2021-23_IRB#NOT-2021-31; and Notice 2021-46,

2021-33 I.R.B. 303, available at IRS.gov/irb/

2021-33_IRB#NOT-2021-46.

Corrections to amounts reported on Form 941, lines

11e, 11f, and 13f, for the COBRA premium assistance

credit are reported on Form 941-X, lines 18c, 18d, and

26c, respectively.

The COVID-19 related credit for qualified sick and

family leave wages is limited to leave taken after

March 31, 2020, and before October 1, 2021. The

credit for qualified sick and family leave wages, as

enacted under the Families First Coronavirus Response

Act (FFCRA) and amended and extended by the

COVID-related Tax Relief Act of 2020, is for leave taken

after March 31, 2020, and before April 1, 2021, and the

credit for qualified sick and family leave wages under

sections 3131, 3132, and 3133 of the Internal Revenue

Code, as enacted under the American Rescue Plan Act of

2021 (the ARP), is for leave taken after March 31, 2021,

and before October 1, 2021. For more information about

the credit for qualified sick and family leave wages, go to

IRS.gov/PLC.

Corrections to amounts reported on Form 941, lines

5a(i), 5a(ii), 11b, 13c, 19, and 20, for the credit for

qualified sick and family leave wages for leave taken after

March 31, 2020, and before April 1, 2021, are reported on

Form 941-X, lines 9, 10, 17, 25, 28, and 29, respectively.

Corrections to amounts reported on Form 941, lines

11d, 13e, 23, 24, 25, 26, 27, and 28, for the credit for

qualified sick and family leave wages for leave taken after

March 31, 2021, and before October 1, 2021, are reported

on Form 941-X, lines 18b, 26b, 35, 36, 37, 38, 39, and 40,

respectively.

The COVID-19 related employee retention credit has

expired. The employee retention credit enacted under

the Coronavirus Aid, Relief, and Economic Security

(CARES) Act and amended and extended by the

Taxpayer Certainty and Disaster Tax Relief Act of 2020

was limited to qualified wages paid after March 12, 2020,

and before July 1, 2021. The employee retention credit

under section 3134 of the Internal Revenue Code, as

enacted by the ARP and amended by the Infrastructure

Investment and Jobs Act, was limited to qualified wages

paid after June 30, 2021, and before October 1, 2021,

unless the employer was a recovery startup business. An

employer that was a recovery startup business could also

claim the employee retention credit for qualified wages

paid after September 30, 2021, and before January 1,

2022. For more information about the employee retention

credit, including the dates for which the credit may be

claimed, go to IRS.gov/ERC.

Corrections to amounts reported on Form 941, lines

11c, 13d, 21, and 22, for the employee retention credit are

reported on Form 941-X, lines 18a, 26a, 30, and 31a,

respectively. However, how you figure the employee

retention credit for qualified wages paid after March 12,

2020, and before July 1, 2021, is different from how you

figure the credit for qualified wages paid after June 30,

2021, and before January 1, 2022. Also, for corrections to

qualified wages paid after June 30, 2021, you may need

to complete line 31b to tell us if you're eligible for the

If you claimed the credit for qualified sick and

family leave wages for leave taken after March 31,

CAUTION 2020, and before April 1, 2021, and you make any

corrections on Form 941‐X to amounts used to figure this

credit, you'll need to refigure the amount of this credit

using Worksheet 1. You'll also use this worksheet to figure

this credit if you’re claiming it for the first time on Form

941-X. If you claimed the credit for qualified sick and

family leave wages for leave taken after March 31, 2021,

and before October 1, 2021, and you make any

corrections on Form 941‐X to amounts used to figure this

credit, you'll need to refigure the amount of this credit

using Worksheet 3. You'll also use this worksheet to figure

this credit if you’re claiming it for the first time on Form

941-X. If you claimed the employee retention credit for

wages paid after March 12, 2020, and before July 1,

2021, and you make any corrections on Form 941‐X to

amounts used to figure this credit, you'll need to refigure

the amount of this credit using Worksheet 2. You'll also

use this worksheet to figure this credit if you’re claiming it

for the first time on Form 941-X. If you claimed the

employee retention credit for wages paid after June 30,

2021, and before January 1, 2022, and you make any

corrections on Form 941‐X to amounts used to figure this

credit, you'll need to refigure the amount of this credit

!

-2-

Instructions for Form 941-X (Rev. 4-2023)

using Worksheet 4. You'll also use this worksheet to figure

this credit if you’re claiming it for the first time on Form

941-X. If you claimed the COBRA premium assistance

credit and you make any corrections on Form 941‐X to

amounts used to figure this credit, you'll need to refigure

the amount of this credit using Worksheet 5. You'll also

use this worksheet to figure this credit if you’re claiming it

for the first time on Form 941-X.

13 of Pub. 15, Employer’s Tax Guide, for more information

about corrections during the calendar year and about

administrative errors. See section 2 of Pub. 15 for more

information about section 3509. If section 3509 rates

apply, see the instructions for lines 19–22, later.

Form 941-X is filed to correct Form 941 or Form

941-SS. References to Form 941 on Form 941-X and in

these instructions also apply to Form 941-SS, Employer's

QUARTERLY Federal Tax Return (American Samoa,

Guam, the Commonwealth of the Northern Mariana

Islands, and the U.S. Virgin Islands), unless otherwise

noted.

You can’t file a Form 941-X to correct federal income

tax withholding for prior years for nonadministrative errors.

In other words, you can’t correct federal income tax

actually withheld from an employee in a prior year if you

discover that you didn’t withhold the right amount. For

example, you can’t correct federal income tax withheld in

a prior year because you used the wrong income tax

withholding table or you didn’t treat a payment correctly as

taxable or nontaxable. Similarly, if you paid federal

income tax in a prior year on behalf of your employee,

rather than deducting it from the employee’s pay (which

resulted in additional wages subject to tax), and in a

subsequent year you determine that you incorrectly

calculated the amount of tax, you can’t correct the federal

income tax withholding. However, you must still correct

the amount of wages you reported on Form 941 and Form

W-2, Wage and Tax Statement, for a prior year by filing

Form 941-X and Form W-2c, Corrected Wage and Tax

Statement, respectively. You'll report the correct wages

on Form 941-X, line 6, column 1.

Only transposition or math errors involving the

inaccurate reporting of the amount withheld are

CAUTION administrative errors.

!

Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of

the Taxpayer Certainty and Disaster Tax Relief Act of

2020 allows for a payroll tax credit for certain tax-exempt

organizations affected by certain qualified disasters not

related to COVID-19. This credit is claimed on Form

5884-D. Form 5884-D is filed after the Form 941 for the

quarter for which the credit is being claimed has been

filed. If applicable to the quarter that you're correcting,

you'll enter the credit claimed on Form 5884-D on

Worksheet 1 to figure your credit for qualified sick and

family leave wages for leave taken before April 1, 2021, or

Worksheet 2 to figure the employee retention credit for

wages paid after March 12, 2020, and before July 1,

2021. For more information about this credit, go to

IRS.gov/Form5884D.

The amount actually withheld is reflected on

TIP payroll information or on Form W-2, which can be

used by the employee to claim a credit for

withholding for individual income tax return purposes.

Employee consents to support a claim for refund.

Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at

IRS.gov/irb/2017-14_IRB#RP-2017-28, provides

guidance to employers on the requirements for employee

consents used by an employer to support a claim for

refund of overcollected social security tax and Medicare

tax. The revenue procedure clarifies the basic

requirements for both a request for employee consent and

for the employee consent, and permits a consent to be

requested, furnished, and retained in an electronic format

as an alternative to a paper format. The revenue

procedure also contains guidance concerning when an

employer may claim a refund of only the employer share

of overcollected social security tax and Medicare tax. The

revenue procedure requires that any request for consent

include an Additional Medicare Tax notice indicating that

any claim on the employee’s behalf won’t include a claim

for overpaid Additional Medicare Tax.

Correcting Additional Medicare Tax withholding and

wages and tips subject to Additional Medicare Tax

withholding. Wages and tips subject to Additional

Medicare Tax withholding are reported on Form 941,

line 5d. Certain errors discovered on a previously filed

Form 941 are corrected on Form 941-X, line 13. However,

you can’t file a Form 941-X to correct the wrong amount of

Additional Medicare Tax actually withheld from an

employee in a prior year, including any amount you paid

on behalf of your employee rather than deducting it from

the employee’s pay (which resulted in additional wages

subject to tax). See the instructions for line 13, later, for

more information on the types of errors that can be

corrected and how the correction is reported on Form

941-X. For more information about Additional Medicare

Tax withholding, see the Instructions for Form 941 or go to

IRS.gov/ADMTfaqs.

Correcting federal income tax withheld. Generally,

you may correct federal income tax withholding errors

only if you discovered the errors in the same calendar

year you paid the wages. In addition, for an overcollection,

you may correct federal income tax withholding only if you

also repaid or reimbursed the employees in the same

year.

For prior years, you may only correct administrative

errors to federal income tax withholding (that is, errors in

which the amount reported on Form 941, line 3, isn't the

amount you actually withheld from an employee’s wages)

and errors for which section 3509 rates apply. See section

Instructions for Form 941-X (Rev. 4-2023)

You may need to attach Schedule R (Form 941) to

your Form 941-X. If you were required to file Schedule R

(Form 941), Allocation Schedule for Aggregate Form 941

Filers, when you filed Form 941, you must complete

Schedule R (Form 941) when correcting an aggregate

Form 941. Schedule R (Form 941) is completed only for

those clients and customers who have corrections

reported on Form 941-X. Schedule R (Form 941) is filed

as an attachment to Form 941-X.

Approved section 3504 agents and certified

professional employer organizations (CPEOs) must

-3-

adjustments to Form 941, lines 11d, 13e, 23, 24, 25, 26,

27, and 28;

• Amounts reported on Form 941 for the employee

retention credit, including adjustments to Form 941, lines

11c, 13d, 21, and 22, (for the second quarter of 2020, also

Form 941, lines 24 and 25); and

• Amounts reported on Form 941 for the COBRA

premium assistance credit, for periods of coverage

beginning on or after April 1, 2021, through periods of

coverage beginning on or before September 30, 2021,

including adjustments to Form 941, lines 11e, 11f, and

13f.

complete and file Schedule R (Form 941) when filing an

aggregate Form 941. 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 with the IRS. Aggregate Forms 941

are also filed by CPEOs approved by the IRS under

section 7705. To become a CPEO, the organization must

apply through the IRS Online Registration System at

IRS.gov/CPEO. CPEOs file Form 8973, Certified

Professional Employer Organization/Customer Reporting

Agreement, to notify the IRS that they started or ended a

service contract with a customer.

Other third-party payers that file aggregate Forms 941,

such as non-certified PEOs, must complete and file

Schedule R (Form 941) if they have clients that are

claiming the qualified small business payroll tax credit for

increasing research activities, the credit for qualified sick

and family leave wages, the employee retention credit,

and/or the COBRA premium assistance credit, or clients

deferring the employer or the employee share of social

security tax. If you're an other third-party payer that didn't

file Schedule R (Form 941) with Form 941 because you

didn't meet these requirements, but are now filing Form

941-X to report these credits or the deferral of the

employer or the employee share of social security tax for

your clients, then you must now file Schedule R (Form

941) and attach it to Form 941-X.

See the March 2022 revision of the Instructions for

Form 941 for information about when a third party is

considered the person to whom COBRA premium

assistance payments are payable.

Use Form 843, Claim for Refund and Request for

Abatement, to request a refund or abatement of assessed

interest or penalties. Don’t request a refund or abatement

of assessed interest or penalties on Form 941 or Form

941-X.

We use the terms “correct” and “corrections” on

TIP Form 941-X and in these instructions to include

interest-free adjustments under sections 6205 and

6413 and claims for refund and abatement under sections

6402, 6414, and 6404. See Rev. Rul. 2009-39 for

examples of how the interest-free adjustment and claim

for refund rules apply in 10 different situations. You can

find Rev. Rul. 2009-39, 2009-52 I.R.B. 951, at IRS.gov/irb/

2009-52_IRB#RR-2009-39.

When you discover an error on a previously filed Form

941, you must:

• Correct that error using Form 941-X;

• File a separate Form 941-X for each Form 941 that

you’re correcting; and

• Generally, file Form 941-X separately. Don't file Form

941-X with Form 941. However, if you didn't previously file

Form 941 because you mistakenly treated your

employees as nonemployees, you may have to file Form

941-X with Form 941. See the instructions for line 42,

later.

General Instructions:

Understanding Form 941-X

What Is the Purpose of Form 941-X?

Use Form 941-X to correct errors on a Form 941 that you

previously filed. Use Form 941-X to correct:

• Wages, tips, and other compensation;

• Income tax withheld from wages, tips, and other

compensation;

• Taxable social security wages;

• Taxable social security tips;

• Taxable Medicare wages and tips;

• Taxable wages and tips subject to Additional Medicare

Tax withholding;

• Deferred amount of the employer share of social

security tax;

• Deferred amount of the employee share of social

security tax;

• Qualified small business payroll tax credit for increasing

research activities;

• Amounts reported on Form 941 for the credit for

qualified sick and family leave wages for leave taken after

March 31, 2020, and before April 1, 2021, including

adjustments to Form 941, lines 5a(i), 5a(ii), 11b, 13c, 19,

and 20;

• Amounts reported on Form 941 for the credit for

qualified sick and family leave wages for leave taken after

March 31, 2021, and before October 1, 2021, including

If you didn’t file a Form 941 for one or more quarters,

don’t use Form 941-X. Instead, file Form 941 for each of

those quarters. Also, see When Should You File Form

941-X, later. However, if you didn’t file Forms 941

because you improperly treated workers as independent

contractors or nonemployees and are now reclassifying

them as employees, see the instructions for line 42, later.

Unless otherwise specified in these instructions,

TIP an underreported employment tax credit or social

security tax deferral should be treated like an

overreported tax amount. An overreported employment

tax credit or social security tax deferral should be treated

like an underreported tax amount. For more information,

including which process to select on lines 1 and 2, see

Correcting an employment tax credit or social security tax

deferral, later.

Report the correction of underreported and

overreported tax amounts for the same tax period on a

single Form 941-X, unless you’re requesting a refund or

abatement. If you’re requesting a refund or abatement and

are correcting both underreported and overreported tax

amounts, file one Form 941-X correcting the

-4-

Instructions for Form 941-X (Rev. 4-2023)

federal tax liabilities reported on Form 941, Part 2, or on

Schedule B (Form 941), see the Instructions for

Schedule B (Form 941).

underreported tax amounts only and a second Form

941-X correcting the overreported tax amounts.

You’ll use the adjustment process if you underreported

employment taxes and are making a payment, or if you

overreported employment taxes and will be applying the

credit to Form 941 for the period during which you file

Form 941-X. However, see the Caution under Is There a

Deadline for Filing Form 941-X, later, if you’re correcting

overreported tax amounts during the last 90 days of a

period of limitations. You’ll use the claim process if you

overreported employment taxes and are requesting a

refund or abatement of the overreported tax amount.

Follow the chart on page 6 of Form 941-X for help in

choosing whether to use the adjustment process or the

claim process. Be sure to give us a detailed explanation

on line 43 for each correction that you show on Form

941-X.

Due dates. The due date for filing Form 941-X depends

on when you discover an error and if you underreported or

overreported tax. If you underreported tax, see

Underreported tax, later. For overreported tax amounts,

you may choose to either make an interest-free

adjustment or file a claim for refund or abatement. If you’re

correcting overreported tax amounts, see Overreported

tax—Adjustment process or Overreported tax—Claim

process, later.

If any due date falls on a Saturday, Sunday, or legal

holiday, you may file Form 941-X on the next business

day. If we receive Form 941-X after the due date, we will

treat Form 941-X as filed on time if the envelope

containing Form 941-X is properly addressed, contains

sufficient postage, and is postmarked by the U.S. Postal

Service on or before the due date, or sent by an

IRS-designated private delivery service (PDS) on or

before the due date. If you don’t follow these guidelines,

we will consider Form 941-X filed when it is actually

received. See Pub. 15 or Pub. 80 for more information on

legal holidays. For more information about PDSs, see

Where Should You File Form 941-X, later.

Continue to report current quarter fractions of cents,

third-party sick pay, tips, and group-term life insurance on

Form 941, lines 7–9.

You have additional requirements to complete when

filing Form 941-X, such as certifying that you filed (or will

file) all applicable Forms W-2 and Forms W-2c with the

Social Security Administration (SSA). For corrections of

overreported federal income tax, social security tax,

Medicare tax, or Additional Medicare Tax, you must make

any certifications that apply to your situation.

Underreported tax. If you’re correcting underreported

tax, you must file Form 941-X by the due date of the return

for the return period in which you discovered the error and

pay the amount you owe by the time you file. Doing so

will generally ensure that your correction is interest free

and not subject to failure-to-pay (FTP) or failure-to-deposit

(FTD) penalties. See What About Penalties and Interest,

later. For details on how to make a payment, see the

instructions for line 27, later.

If Form 941-X is filed late (after the due date of the

return for the return period in which you discovered the

error), you must attach an amended Schedule B (Form

941) to Form 941-X. Otherwise, the IRS may assess an

“averaged” FTD penalty. See “Averaged” FTD penalty in

section 11 of Pub. 15 or section 8 of Pub. 80 for more

information about “averaged” FTD penalties. The total tax

reported on the “Total liability for the quarter” line of

Schedule B (Form 941) must match the corrected tax

(Form 941, line 12, combined with any correction entered

on Form 941-X, line 23) for the quarter, less any previous

abatements and interest-free tax assessments.

Don’t use Form 941-X to correct Form CT-1, 943,

944, or 945. Instead, use the “X” form that

CAUTION corresponds to those forms (Form CT-1 X, 943-X,

944-X, or 945-X).

!

Where Can You Get Help?

For help filing Form 941-X or for questions about federal

employment taxes and tax corrections, you can:

• Go to IRS.gov/EmploymentTaxes and IRS.gov/

CorrectingEmploymentTaxes;

• See Pub. 15 for correcting Form 941, or Pub. 80,

Federal Tax Guide for Employers in the U.S. Virgin

Islands, Guam, American Samoa, and the Commonwealth

of the Northern Mariana Islands, for correcting Form

941-SS; or

• Call the IRS Business and Specialty Tax Line at

800-829-4933 or 800-829-4059 (TDD/TTY for persons

who are deaf, hard of hearing, or have a speech

disability), Monday–Friday from 7:00 a.m. to 7:00 p.m.

local time (Alaska and Hawaii follow Pacific time).

See also How Can You Get Forms, Instructions, and

Publications From the IRS, later.

When Should You File Form 941-X?

File Form 941-X when you discover an error on a

previously filed Form 941.

Form 941-X is due . . .

1. January, February, March

2. April, May, June

3. July, August, September

4. October, November,

December

April 30

July 31

October 31

January 31

The dates shown in the table above apply only to corrections of

underreported amounts. If any due date falls on a Saturday,

Sunday, or legal holiday, you may file Form 941-X on the next

business day.

However, if your only errors on Form 941 relate to the

number of employees who received wages (Form 941,

line 1) or to federal tax liabilities reported on Form 941,

Part 2, or on Schedule B (Form 941), Report of Tax

Liability for Semiweekly Schedule Depositors, don’t file

Form 941-X. For more information about correcting

Instructions for Form 941-X (Rev. 4-2023)

If you discover an error in . . .

Example—You owe tax. On July 7, 2023, you

discover that you underreported $10,000 of social security

-5-

If you file Form 941-X to correct overreported tax

amounts in the last 90 days of a period of

CAUTION limitations, you must use the claim process. You

can’t use the adjustment process. If you’re also correcting

underreported tax amounts, you must file another Form

941-X to correct the underreported tax amounts using the

adjustment process and pay any tax due.

and Medicare wages on your 2023 first quarter Form 941.

File Form 941-X and pay the amount you owe by October

31, 2023, because you discovered the error in the third

quarter of 2023, and October 31, 2023, is the due date for

that quarter. If you file Form 941-X before October 31,

2023, pay the amount you owe by the time you file.

!

The due date for filing the adjusted return is

TIP determined by the type of return (Form 941 or

Where Should You File Form 941-X?

Form 944) being corrected, without regard to your

current filing requirements. Therefore, if you're currently

filing Form 941 and you're correcting a previously filed

Form 944, you must file Form 944-X by January 31 of the

year following the year you discover the error.

Send your completed Form 941-X to the address shown

next.

IF you’re in . . .

Overreported tax—Adjustment process. If you

overreported tax on Form 941 and choose to apply the

credit to Form 941 or Form 944, file an adjusted return on

Form 941-X soon after you discover the error but more

than 90 days before the period of limitations on the credit

or refund for Form 941 expires. See Is There a Deadline

for Filing Form 941-X, later.

Overreported tax—Claim process. If you overreported

tax on Form 941, you may choose to file a claim for refund

or abatement on Form 941-X any time before the period of

limitations on credit or refund expires on Form 941. If you

also need to correct any underreported tax amounts, you

must file another Form 941-X reporting only corrections to

the underreported amounts. See Is There a Deadline for

Filing Form 941-X? next.

You may not file a refund claim to correct federal

income tax or Additional Medicare Tax actually

CAUTION withheld from employees.

!

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999-0005

Alabama, Alaska, Arizona,

Arkansas, California, Colorado,

Hawaii, Idaho, Iowa, Kansas,

Louisiana, Minnesota,

Mississippi, Missouri, Montana,

Nebraska, Nevada, New Mexico,

North Dakota, Oklahoma,

Oregon, South Dakota, Texas,

Utah, Washington, Wyoming

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0005

No legal residence or principal

place of business in any state

Is There a Deadline for Filing Form

941-X?

Special filing address for

exempt organizations; federal,

state, and local governmental

entities; and Indian tribal

governmental entities, regardless

of location

Generally, you may correct overreported taxes on a

previously filed Form 941 if you file Form 941-X within 3

years of the date Form 941 was filed or 2 years from the

date you paid the tax reported on Form 941, whichever is

later. You may correct underreported taxes on a

previously filed Form 941 if you file Form 941-X within 3

years of the date the Form 941 was filed. We call each of

these time frames a period of limitations. For purposes of

the period of limitations, Forms 941 for a calendar year

are considered filed on April 15 of the succeeding year if

filed before that date.

THEN use this address . . .

Connecticut, Delaware, District of

Columbia, Florida, Georgia,

Illinois, Indiana, Kentucky, Maine,

Maryland, Massachusetts,

Michigan, New Hampshire, New

Jersey, New York, North Carolina,

Ohio, Pennsylvania, Rhode

Island, South Carolina,

Tennessee, Vermont, Virginia,

West Virginia, Wisconsin

Internal Revenue Service

P.O. Box 409101

Ogden, UT 84409

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0005

PDSs can't deliver to P.O. boxes. You must use the

U.S. Postal Service to mail an item to a P.O. box address.

Go to IRS.gov/PDS for the current list of PDSs. If you file

Form 941-X using a PDS, send it to the following address.

Ogden - Internal Revenue Submission Processing

Center

1973 Rulon White Blvd.

Ogden, UT 84201

Example. You filed your 2020 fourth quarter Form 941

on January 26, 2021, and payments were timely made.

The IRS treats the return as if it were filed on April 15,

2021. On January 24, 2024, you discover that you

overreported social security and Medicare wages on that

form by $350. To correct the error, you must file Form

941-X by April 15, 2024, which is the end of the period of

limitations for Form 941, and use the claim process.

Use this address even if your business is located in a

state that files in Cincinnati.

How Should You Complete Form

941-X?

Use a Separate Form 941-X for Each Quarter

You’re Correcting

Use a separate Form 941-X for each Form 941 that you’re

correcting. For example, if you found errors on your Forms

-6-

Instructions for Form 941-X (Rev. 4-2023)

941 for the third and fourth quarters of 2022, file one Form

941-X to correct the 2022 third quarter Form 941 and file a

second Form 941-X to correct the 2022 fourth quarter

Form 941.

• Complete all five pages and sign Form 941-X on

page 5.

• Staple multiple sheets in the upper-left corner.

Employer Identification Number (EIN), Name,

and Address

Generally, your correction of an underreported tax amount

won’t be subject to an FTP penalty, an FTD penalty, or

interest if you:

• File on time (by the due date of Form 941 for the quarter

in which you discover the error),

• Pay the amount shown on line 27 by the time you file

Form 941-X,

• Enter the date you discovered the error, and

• Explain in detail the grounds and facts relied on to

support the correction.

What About Penalties and Interest?

Enter your EIN, name, and address in the spaces

provided. Also enter your name and EIN on the top of

pages 2, 3, 4, and 5, and on any attachments. If your

address has changed since you filed your Form 941, enter

the corrected information and the IRS will update your

address of record. Be sure to write your name, EIN, “Form

941-X,” the calendar quarter you’re correcting (for

example, “Quarter 2”), and the calendar year of the

quarter you’re correcting on the top of any attachments.

No correction will be eligible for interest-free treatment

if any of the following apply.

• The amounts underreported relate to an issue that was

raised in an examination of a prior period.

• You knowingly underreported your employment tax

liability.

• You received a notice and demand for payment.

• You received a notice of determination under section

7436.

Return You’re Correcting

In the box at the top of page 1, check the type of return

(Form 941 or Form 941-SS) you’re correcting. Check the

appropriate box for the one quarter you’re correcting.

Enter the calendar year of the Form 941 you’re correcting.

Enter the quarter and calendar year on pages 2, 3, 4, and

5.

Enter the Date You Discovered Errors

If you receive a notice about a penalty after you file this

return, reply to the notice with an explanation and we will

determine if you meet the reasonable-cause criteria. Don’t

attach an explanation when you file your return.

You must enter the date you discovered errors. You

discover an error when you have enough information to be

able to correct it. If you’re reporting several errors that you

discovered at different times, enter the earliest date you

discovered them here. Report any subsequent dates and

related errors on line 43.

Overview of the Process

To correct a previously filed Form 941, use Form 941-X to

file either an adjusted employment tax return or a claim for

refund or abatement. The adjustment process and the

claim process are outlined below.

If you underreported the tax. If you underreported

the tax on a previously filed Form 941, check the box on

line 1 and pay any additional amount you owe by the

time you file Form 941-X. For details on how to make a

payment, see the instructions for line 27, later.

Must You Make an Entry on Each Line?

You must provide all of the information requested at the

top of page 1 of Form 941-X. You must check one box

(but not both) in Part 1. In Part 2, you must check the box

on line 3 and any applicable boxes on lines 4 and 5. In

Part 3, if any line doesn’t apply, leave it blank. Complete

Parts 4 and 5 as instructed.

How Should You Report Negative Amounts?

Example—You underreported employment taxes.

On July 7, 2023, you discover an error that results in

additional tax on your 2022 third quarter Form 941. File

Form 941-X by October 31, 2023, and pay the amount

you owe by the time you file. See When Should You File

Form 941-X, earlier. Don’t attach Form 941-X to your 2023

third quarter Form 941.

If you overreported the tax. If you overreported the

tax on a previously filed Form 941, you may choose one

of the following options.

• Use the adjustment process. Check the box on line 1 to

apply any credit (negative amount) from line 27 to Form

941 for the quarter during which you file Form 941-X.

• Use the claim process. Check the box on line 2 to file a

claim on Form 941-X requesting a refund or abatement of

the amount shown on line 27.

Form 941-X uses negative numbers to show reductions in

tax (credits) and positive numbers to show additional tax

(amounts you owe).

When reporting a negative amount in columns 3 and 4,

use a minus sign instead of parentheses. For example,

enter “-10.59” instead of “(10.59).” However, if you’re

completing the return on your computer and your software

only allows you to use parentheses to report negative

amounts, you may use them.

How Should You Make Entries on Form 941-X?

You can help the IRS process Form 941-X timely and

accurately if you follow these guidelines.

• Type or print your entries.

• Use Courier font (if possible) for all typed or

computer-generated entries.

• Omit dollar signs. You may use commas and decimal

points, if desired. Enter dollar amounts to the left of any

preprinted decimal point and cents to the right of it.

• Always show an amount for cents, even if it is zero.

Don’t round entries to whole dollars.

Instructions for Form 941-X (Rev. 4-2023)

To ensure that the IRS has enough time to

TIP process a credit for an overreporting tax

adjustment in the quarter during which you file

Form 941-X, you’re encouraged to file Form 941-X

correcting the overreported tax amount in the first 2

months of a quarter. For example, if you discover an

-7-

date you discovered the error, and explain the correction

on line 43.

overreported tax amount in March, June, September, or

December, you may want to file Form 941-X in the first 2

months of the next quarter. However, there must be 90

days remaining on the period of limitations when you file

Form 941-X. See the Caution under Is There a Deadline

for Filing Form 941-X, earlier. This should ensure that the

IRS will have enough time to process Form 941-X so the

credit will be posted before you file Form 941, thus

avoiding an erroneous balance due notice from the IRS.

See the example below.

If you have a credit. You overreported employment

taxes (you have a negative amount on line 27) and want

the IRS to apply the credit to Form 941 or Form 944 for the

period during which you filed Form 941-X. The IRS will

apply your credit on the first day of the Form 941 or Form

944 period during which you filed Form 941-X. However,

the credit you show on Form 941-X, line 27, may not be

fully available on your Form 941 or Form 944 if the IRS

corrects it during processing or you owe other taxes,

penalties, or interest. The IRS will notify you if your

claimed credit changes or if the amount available as a

credit on Form 941 or Form 944 was reduced because of

unpaid taxes, penalties, or interest.

Example—You want your overreported tax applied

as a credit to Form 941. On September 18, 2023, you

discover you overreported your tax on your 2022 fourth

quarter Form 941 and want to choose the adjustment

process. To allow the IRS enough time to process the

credit, you file Form 941-X on October 2, 2023, and take

the credit on your fourth quarter 2023 Form 941.

Don’t check the box on line 1 if you’re correcting

overreported tax amounts and the period of

CAUTION limitations on credit or refund for Form 941 will

expire within 90 days of the date you file Form 941-X. See

Is There a Deadline for Filing Form 941-X, earlier.

!

If you currently file Form 944 and you’re making a

TIP correction to a previously filed Form 941 that will

be claimed as a credit on Form 944, file Form

941-X before December in any year before the expiration

of the period of limitations for the previously filed Form

941. In the year that the period of limitations for the

previously filed Form 941 expires, file Form 941-X at least

90 days before the expiration date.

2. Claim

Check the box on line 2 to use the claim process if you’re

correcting overreported tax amounts only and you’re

claiming a refund or abatement for the negative amount

(credit) shown on line 27. Don’t check this box if you’re

correcting any underreported tax amounts on this form.

Specific Instructions:

You must check the box on line 2 if you have a credit (a

negative amount on line 27) and the period of limitations

on credit or refund for Form 941 will expire within 90 days

of the date you file Form 941-X. See Is There a Deadline

for Filing Form 941-X, earlier.

Part 1: Select ONLY One Process

Because Form 941-X may be used to file either an

adjusted employment tax return or a claim for refund or

abatement, you must check one box on either line 1 or

line 2. Don’t check both boxes.

The IRS usually processes claims shortly after they are

filed. The IRS will notify you if your claim is denied,

accepted as filed, or selected to be examined. See Pub.

556, Examination of Returns, Appeal Rights, and Claims

for Refund, for more information.

Correcting an employment tax credit or social security tax deferral. For lines 1 and 2, if you underreported an

employment tax credit or the amount of social security tax

deferred, treat it like you overreported a tax amount. If you

overreported an employment tax credit or the amount of

social security tax deferred, treat it like you underreported

a tax amount. If you're filing Form 941-X to adjust only an

employment tax credit and/or the amount of social

security tax deferred and you're not correcting any

overreported taxes on Form 941-X, lines 6–13, skip lines 4

and 5.

Unless the IRS corrects Form 941-X during processing

or you owe other taxes, penalties, or interest, the IRS will

refund the amount shown on line 27, plus any interest that

applies.

You may not file a refund claim to correct federal

income tax or Additional Medicare Tax actually

CAUTION withheld from employees.

!

Part 2: Complete the Certifications

1. Adjusted Employment Tax Return

Check the box on line 1 if you’re correcting underreported

tax amounts or overreported tax amounts and you would

like to use the adjustment process to correct the errors.

You must complete all certifications that apply by

checking the appropriate boxes. If all of your corrections

relate to underreported tax amounts, complete line 3 only;

skip lines 4 and 5 and go to Part 3. If your corrections

relate to overreported tax amounts, other than corrections

related to underreported employment tax credits and

social security tax deferrals, you have a duty to ensure

that your employees' rights to recover overpaid employee

social security and Medicare taxes that you withheld are

protected. The certifications on lines 4 and 5 address the

requirement to:

• Repay or reimburse your employees for the

overcollection of employee social security and Medicare

taxes, or

If you’re correcting both underreported tax amounts

and overreported tax amounts on this form, you must

check this box. If you check this box, any negative amount

shown on line 27 will be applied as a credit (tax deposit) to

your Form 941 or Form 944 for the period in which you’re

filing this form. See Example—You want your

overreported tax applied as a credit to Form 941, earlier.

If you owe tax. Pay the amount shown on line 27 by the

time you file Form 941-X. Generally, you won’t be

charged interest if you file on time, pay on time, enter the

-8-

Instructions for Form 941-X (Rev. 4-2023)

• Obtain consents from your employees to file a claim on

their behalf. See Rev. Proc. 2017-28 for guidance on the

requirements for both a request for employee consent and

for the employee consent.

security tax, Medicare tax, or Additional Medicare Tax that

you didn’t withhold from your employees.

5. Certifying Claims

If you’re filing a claim for refund or abatement of

overreported federal income tax, social security tax,

Medicare tax, or Additional Medicare Tax and checked

the box on line 2, check the appropriate box on line 5. You

may need to check more than one box. If you obtained

written statements or consents from some employees but

you couldn’t locate employees or secure the statements

or consents of the remaining employees, check all

applicable boxes. Provide a summary on line 43 of the

amount of the corrections for both the employees who

provided statements or consents and for those who didn’t.

3. Filing Forms W-2 or Forms W-2c

Check the box on line 3 to certify that you filed or will file

Forms W-2 or Forms W-2c with the SSA, as required,

showing your employees' correct wage and tax amounts.

See the General Instructions for Forms W-2 and W-3 for

detailed information about filing requirements. References

to Form W-2 on Form 941-X and in these instructions also

apply to Forms W-2AS, W-2CM, W-2GU, and W-2VI,

unless otherwise noted.

You must check the box on line 3 to certify that you filed

Forms W-2 or Forms W-2c even if your corrections on

Form 941-X don’t change amounts shown on those forms.

For example, if your only correction to Form 941 involves

misstated tax adjustments, which don't impact the

amounts reported on your employees’ Forms W-2 (see

the instructions for line 15, later), check the box on line 3

to certify that you already filed all required Forms W-2 and

W-2c with the SSA. In this situation, you're certifying that

you don't need to file Form W-2c because you already

filed a correct Form W-2.

You can’t file a refund claim to correct the

incorrect amount of federal income tax or

CAUTION Additional Medicare Tax actually withheld from

employees in a prior year. If you request their consent to

file a claim for social security tax or Medicare tax, you

must tell your employees that you can’t claim a refund of

any Additional Medicare Tax on their behalf. See Rev.

Proc. 2017-28 for sample language to use in your request.

!

5a. Check the box on line 5a if your overreported tax

includes each affected employee share of social security

and Medicare taxes. You’re certifying that you repaid or

reimbursed to the employees their share of social security

and Medicare taxes. For refunds of employee social

security and Medicare taxes overcollected in prior years,

you’re certifying that you received written statements from

those employees stating that they didn’t and won’t receive

a refund or credit for the prior year taxes. Don’t send these

statements to the IRS. Keep them for your records.

Generally, all employment tax records must be kept for at

least 4 years. Records related to qualified sick leave

wages and qualified family leave wages for leave taken

after March 31, 2021, and before October 1, 2021, and

records related to qualified wages for the employee

retention credit paid after June 30, 2021, should be kept

for at least 6 years. Copies must be submitted to the IRS if

requested.

4. Certifying Overreporting Adjustments

If you overreported federal income tax, social security tax,

Medicare tax, or Additional Medicare Tax and checked

the box on line 1, check the appropriate box on line 4. You

may need to check more than one box. If you obtained

written statements from some employees but you couldn’t

locate employees or secure the statements of the

remaining employees, check all applicable boxes. Provide

a summary on line 43 of the amount of the corrections

both for the employees who provided written statements

and for those who didn’t.

4a. Check the box on line 4a if your overreported amount

includes each affected employee share of overcollected

taxes. You’re certifying that you repaid or reimbursed the

employee share of current and prior year taxes and you

received written statements from the employees stating

that they didn’t and won’t receive a refund or credit for the

prior year taxes. You’re certifying that you adjusted federal

income tax or Additional Medicare Tax withheld from

employees for the current calendar year only. Don’t send

these statements to the IRS. Keep them for your records.

Generally, all employment tax records must be kept for at

least 4 years. Records related to qualified sick leave

wages and qualified family leave wages for leave taken

after March 31, 2021, and before October 1, 2021, and

records related to qualified wages for the employee

retention credit paid after June 30, 2021, should be kept

for at least 6 years. Copies must be submitted to the IRS if

requested.

5b. Check the box on line 5b if your overreported tax

includes each affected employee share of social security

and Medicare taxes and you haven’t yet repaid or

reimbursed the employee share of taxes. You’re certifying

that you received consent from each affected employee to

file a claim on the employee share of those taxes and you

received written statements from those employees stating

that they didn’t and won’t receive a refund or credit for the

prior year taxes.

An employee consent must:

• Contain the name, address, and social security number

(or truncated taxpayer identification number, when

appropriate) of the employee;

• Contain the name, address, and EIN of the employer;

• Contain the tax period(s), the type of tax, and the

amount of tax for which the consent is provided;

• Affirmatively state that the employee authorizes the

employer to claim a refund for the overpayment of the

employee share of tax;

4b. Check the box on line 4b to certify that your

overreported amount is only for the employer share of

taxes on those employees who you were unable to find or

those who didn’t give you a statement described on

line 4a.

4c. Check the box on line 4c to certify that your

overreported amount is only for federal income tax, social

Instructions for Form 941-X (Rev. 4-2023)

-9-

• For amounts collected in a prior year, include the

employee’s written statement certifying that the employee

hasn’t made any previous claims (or the claims were

rejected) and won’t make any future claims for refund or

credit of the amount of the overcollection;

• Identify the basis of the claim; and

• Be dated and contain the employee’s signature under

penalties of perjury. The penalties of perjury statement

should be located immediately above the required

signature.

Don’t send these statements and consents to the IRS.

Keep them for your records. Generally, all employment

tax records must be kept for at least 4 years. Records

related to qualified sick leave wages and qualified family

leave wages for leave taken after March 31, 2021, and

before October 1, 2021, and records related to qualified

wages for the employee retention credit paid after June

30, 2021, should be kept for at least 6 years. Copies must

be submitted to the IRS if requested.

In certain situations, you may not have repaid or

reimbursed your employees or obtained their consents

prior to filing a claim, such as in cases where the period of

limitations on credit or refund is about to expire. In those

situations, file Form 941-X, but don’t check a box on

line 5. Tell us on line 43 that you haven’t repaid or

reimbursed employees or obtained consents at the time

you file the claim. However, you must repay or reimburse

your employees and certify that you’ve done so before the

IRS can allow the claim.

5c. Check the box on line 5c to certify that your

overreported tax is only for the employer share of social

security and Medicare taxes. This applies when affected

employees didn’t give you consent to file a claim for

refund for the employee share of social security and

Medicare taxes, they couldn’t be found, or they didn’t give

you a statement described on line 5b.

5d. Check the box on line 5d to certify that your

overreported amount is only for federal income tax, social

security tax, Medicare tax, or Additional Medicare Tax that

you didn’t withhold from your employees.

Part 3: Enter the Corrections for This

Quarter

If you previously adjusted or amended Form 941

by using Form 941-X or because of an IRS

CAUTION examination change, show amounts in column 2

that include those previously reported corrections.

!

6. Wages, Tips, and Other Compensation

If you’re correcting the wages, tips, and other

compensation you reported on Form 941, line 2, enter the

total corrected amount for all employees in column 1. In

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2. This line doesn’t apply to Form

941-SS.

If you or the IRS previously corrected the amount

reported on Form 941, line 2, enter in column 2 the

amount after any previous corrections.

line 6 (column 1)

- line 6 (column 2)

line 6 (column 3)

Example—Wages, tips, and other compensation

increased. You reported $9,000 as total wages, tips, and

other compensation on line 2 of your 2023 first quarter

Form 941. In May of 2023, you discovered that you had

overlooked $1,000 in tips for one of your employees. To

correct the error, figure the difference on Form 941-X as

shown.

On lines 6–13, columns 1 and 2, for each line you're

correcting, show amounts for all of your employees, not

just for those employees whose amounts you’re

correcting.

Because special circumstances apply for lines 14–22,

24–26c, and 28–40, read the instructions for each line

carefully before entering amounts in the columns.

If any line doesn't apply to you, leave it blank.

Column 1 (corrected amount)

Column 2 (Form 941, line 2)

10,000.00

- 9,000.00

Column 3 (difference)

1,000.00

Example—Wages, tips, and other compensation

decreased. You reported $9,000 as wages, tips, and

other compensation on line 2 of your 2023 first quarter

Form 941. In May of 2023, you discovered that you

included $2,000 in wages for one of your employees

twice. To correct the error, figure the difference on Form

941-X as shown.

What Amounts Should You Report in Part 3?

If a correction that you report in column 4 includes both

underreported and overreported amounts (see the

instructions for line 41, later), give us details for each error

on line 43.

If the amount in column 2 is larger than the

amount in column 1, use a minus sign in

column 3.

Column 1 (corrected amount)

Column 2 (Form 941, line 2)

7,000.00

- 9,000.00

Column 3 (difference)

-2,000.00

Example—Auto allowance; wages, tips, and other

compensation increased. You paid one of your

employees a $500 monthly auto allowance from October

through December 2022, and didn’t treat the payments as

taxable wages. In February 2023, you realized that the

payments were wages because they weren’t

reimbursements of deductible business expenses that

were substantiated and paid under an accountable plan.

You correct the error by treating the auto allowance as

wages subject to income, social security, and Medicare

taxes. Report the additional $1,500 of wages on Form

941-X, lines 6, 8, 12, and, if applicable, 13.

-10-

Instructions for Form 941-X (Rev. 4-2023)

Be sure to explain the reasons for the corrections on

line 43.

The quarterly amount on line 6, column 1, should

TIP be used to figure the annual amount to report on

your Forms W-2 or Forms W-2c. This amount

should also generally be used for any business expense

deduction on your income tax return (or amended return)

for wages paid.

7. Federal Income Tax Withheld From Wages,

Tips, and Other Compensation

If you’re correcting the federal income tax withheld from

wages, tips, and other compensation you reported on

Form 941, line 3, enter the total corrected amount in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. This line doesn’t

apply to Form 941-SS.

line 7 (column 1)

- line 7 (column 2)

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.

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

minus sign shown in column 3.

Generally, you may correct federal income tax

withholding errors only if you discovered the

CAUTION errors in the same calendar year you paid the

wages. In addition, for an overcollection, you may correct

federal income tax withholding only if you also repaid or

reimbursed the employees in the same year. For prior

years, you may only correct administrative errors to

federal income tax withholding (that is, errors in which the

amount reported on Form 941, line 3, isn't the amount you

actually withheld from an employee’s wages) and errors

for which section 3509 rates apply. Only transposition or

math errors involving the inaccurate reporting of the

amount withheld are administrative errors. See section 13

of Pub. 15 for more information about corrections during

the calendar year and about administrative errors. See

section 2 of Pub. 15 for more information about section

3509. If section 3509 rates apply, see the instructions for

lines 19–22, later.

Example—Prior year nonadministrative error

(failure to withhold federal income tax when

required). You were required to withhold $400 of federal

income tax from an employee's bonus that was paid in

December of 2022 but you withheld nothing. You

discovered the error on March 13, 2023. You can’t file

Form 941-X to correct federal income tax withheld

reported on your 2022 fourth quarter Form 941 because

the error involves a previous year and the amount

previously reported for the employee represents the

actual amount withheld from the employee during 2022.

Example—Prior year administrative error

(incorrectly reported amount of federal income tax

actually withheld). You had three employees. In the

fourth quarter of 2022, you withheld $1,000 of federal

income tax from Xavier Black, $2,000 from Sophie Rose,

and $6,000 from Leo Wood. The total amount of federal

income tax you withheld was $9,000. You mistakenly

reported $6,000 on line 3 of your 2022 fourth quarter Form

941. You discovered the error on March 10, 2023. This is

an example of an administrative error that may be

corrected in a later calendar year because the amount

actually withheld from the employees' wages isn’t the

amount reported on Form 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 column 2 from the amount in

column 1.

!

You can’t file a Form 941-X to correct federal income

tax withholding for prior years for nonadministrative errors.

In other words, you can’t correct federal income tax

actually withheld from an employee in a prior year if you

discover that you didn’t withhold the right amount. For

example, you can’t correct federal income tax withheld in

a prior year because you used the wrong income tax

withholding table or you didn’t treat a payment correctly as

taxable or nontaxable. Similarly, if you paid federal

income tax in a prior year on behalf of your employee,

rather than deducting it from the employee’s pay (which

resulted in additional wages subject to tax), and in a

subsequent year you determine that you incorrectly

calculated the amount of tax, you can’t correct the federal

income tax withholding.

Instructions for Form 941-X (Rev. 4-2023)

Column 1 (corrected amount)

Column 2 (Form 941, line 3)

9,000.00

- 6,000.00

Column 3 (difference)

3,000.00

Report the $3,000 as a tax correction in column 4.

Be sure to explain the reasons for this correction on

line 43.

Example—Nonadministrative error reporting

federal income tax because of repayment of wages

paid in prior year. You prepaid Jack Brown $4,000 of

wages for 2 months of work in September 2022. You

withheld $400 of federal income tax at the time you paid

Jack. These amounts were reported on your 2022 third

quarter Form 941. Jack left employment in October 2022

(after only 1 month of service). In January 2023, Jack

repaid $2,000 to you for the 1 month Jack didn't work. You

can’t file Form 941-X to reduce the federal income tax

withheld because you actually withheld the federal income

tax from wages. You also can’t file Form 941-X to reduce

wages because the wages were income to Jack for the

prior year. These amounts were correctly reported on

Form 941.

8. Taxable Social Security Wages

Qualified sick leave wages and qualified family

TIP leave wages for leave taken after March 31, 2021,

and before October 1, 2021, were included on

Form 941, line 5a, column 1, and can be adjusted only on

Form 941-X, line 8.

If you’re correcting the taxable social security wages

you reported on Form 941, line 5a, column 1, enter the

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

amount you originally reported or as previously corrected.

-11-

In column 3, enter the difference between columns 1 and

2.

line 8 (column 1)

- line 8 (column 2)

line 8 (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 0.124 and enter that

result in column 4.

line 8 (column 3)

x 0.124

line 8 (column 4)

If the amount in column 3 used a minus sign,

also use a minus sign in column 4.

Note. If you checked the box on Form 941-X, line 4b or

line 5c, because you’re correcting only the employer

share of tax on a decrease to social security wages, use

0.062 (6.2%) when multiplying the amount shown in

column 3. If you’re correcting both shares of tax for some

employees and only the employer share for other

employees, enter the properly calculated amount in

column 4. Be sure to show your calculations on line 43.

Example—Social security wages decreased.

Following Example—Wages, tips, and other

compensation decreased in the instructions for line 6, the

wages that you counted twice were also taxable social

security wages. To correct the error, figure the difference

on Form 941-X as shown.

Column 1 (corrected amount)

Column 2 (Form 941, line 5a, column 1)

7,000.00

- 9,000.00

Column 3 (difference)

-2,000.00

reported on Form 941‐X, line 25. Adjustments to qualified

health plan expenses allocable to qualified sick leave

wages and to qualified family leave wages for leave taken

after March 31, 2020, and before April 1, 2021, are

reported on Form 941‐X, lines 28 and 29, respectively. If

you claimed the credit for qualified sick and family leave

wages for leave taken after March 31, 2020, and before

April 1, 2021, on your original Form 941 for the quarter,

and you make any corrections on Form 941‐X for the

quarter to amounts used to figure this credit, you'll need to

refigure the amount of this credit using Worksheet 1. You'll

also use this worksheet to figure this credit if you’re

claiming the credit for the first time on Form 941-X. For

more information about the credit for qualified sick and

family leave wages, go to IRS.gov/PLC.

Qualified sick leave wages paid with respect to leave

taken after March 31, 2020, and before April 1, 2021,

aren't subject to the employer share of social security tax;

therefore, the tax rate on these wages is 6.2% (0.062). For

more information about qualified sick leave wages, see

Definition of qualified sick and family leave wages for

leave taken after March 31, 2020, and before April 1,

2021, later, and go to IRS.gov/PLC. If you’re correcting

the qualified sick leave wages you reported on Form 941,

line 5a(i), column 1, enter the total corrected amount in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2.

line 9 (column 1)

- line 9 (column 2)

line 9 (column 3)

Multiply the amount in column 3 by 0.062 and enter that

result in column 4.

line 9 (column 3)

x 0.062

Use the difference in column 3 to determine your tax

correction.

Column 3 (difference)

Tax rate (12.4%)

Column 4 (tax correction)

line 9 (column 4)

-2,000.00

x 0.124

-248.00

Be sure to explain the reasons for this correction on

line 43.

9. Qualified Sick Leave Wages (For Leave Taken

After March 31, 2020, and Before April 1, 2021)

Adjustments to the social security tax on qualified

TIP sick leave wages and qualified family leave wages

for leave taken after March 31, 2020, and before

April 1, 2021, are reported on Form 941‐X, lines 9 and 10,

respectively. Adjustments to the nonrefundable portion of

the credit for qualified sick and family leave wages for

leave taken after March 31, 2020, and before April 1,

2021, are reported on Form 941‐X, line 17, and

adjustments to the refundable portion of the credit are

If the amount in column 2 is larger than the

amount in column 1, use a minus sign in

column 3.

If the amount in column 3 used a minus sign,

also use a minus sign in column 4.

Note. If you erroneously reported qualified sick leave

wages for leave taken after March 31, 2020, and before

April 1, 2021, on Form 941, line 5a, instead of on

line 5a(i), you'll need to make a correction on Form 941-X,

lines 8 and 9, and enter the properly calculated amount in

column 4 for each line.

Example—Qualified sick leave wages increased.

You paid $2,000 of qualified sick leave wages to only one

of your employees in the second quarter of 2020. In

March 2023, you discovered that you only reported

$1,000 of qualified sick leave wages on Form 941 for the

second quarter. To correct the error, figure the difference

on Form 941‐X as shown.

-12-

Instructions for Form 941-X (Rev. 4-2023)

Column 1 (corrected amount)

Column 2 (Form 941, line 5a(i), column 1)

2,000.00

- 1,000.00

Column 3 (difference)

1,000.00

wages on Form 941 for the second quarter. To correct the

error, figure the difference on Form 941‐X as shown.

Use the difference in column 3 to determine your tax

correction.

Column 3 (difference)

Tax rate (6.2%)

1,000.00

x 0.062

Column 4 (tax correction)

line 10 (column 1)

- line 10 (column 2)

line 10 (column 3)

If the amount in column 2 is larger than the

amount in column 1, use a minus sign in

column 3.

Column 3 (difference)

-2,000.00

Column 3 (difference)

Tax rate (6.2%)

11. Taxable Social Security Tips

If you’re correcting the taxable social security tips you

reported on Form 941, line 5b, column 1, enter the total

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

amount you originally reported or as previously corrected.

In column 3, enter the difference between columns 1 and

2.

line 11 (column 1)

- line 11 (column 2)

line 11 (column 3)

If the amount in column 3 used a minus sign,

also use a minus sign in column 4.

Note. If you erroneously reported qualified family leave

wages for leave taken after March 31, 2020, and before

April 1, 2021, on Form 941, line 5a, instead of on

line 5a(ii), you'll need to make a correction on Form

941-X, lines 8 and 10, and enter the properly calculated

amount in column 4 for each line.

Example—Qualified family leave wages

decreased. You paid $1,000 of qualified family leave

wages to only one of your employees in the second

quarter of 2020. In March 2023, you discovered that you

erroneously reported $3,000 of qualified family leave

Instructions for Form 941-X (Rev. 4-2023)

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 0.124 and report

that result in column 4.

line 11 (column 3)

x 0.124

Multiply the amount in column 3 by 0.062 and enter that

result in column 4.

line 10 (column 4)

-124.00

Be sure to explain the reasons for this correction on

line 43.

line 11 (column 4)

line 10 (column 3)

x 0.062

-2,000.00

x 0.062

Column 4 (tax correction)

Be sure to explain the reasons for this correction on

line 43.

Qualified family leave wages paid with respect to leave

taken after March 31, 2020, and before April 1, 2021,

aren't subject to the employer share of social security tax;

therefore, the tax rate on these wages is 6.2% (0.062). For

more information about qualified family leave wages, see

Definition of qualified sick and family leave wages for

leave taken after March 31, 2020, and before April 1,

2021, later, and go to IRS.gov/PLC. If you’re correcting

the qualified family leave wages you reported on Form

941, line 5a(ii), column 1, enter the total corrected amount

in column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2.

1,000.00

- 3,000.00

Use the difference in column 3 to determine your tax

correction.

62.00

10. Qualified Family Leave Wages (For Leave

Taken After March 31, 2020, and Before April 1,

2021)

Column 1 (corrected amount)

Column 2 (Form 941, line 5a(ii), column 1)

If the amount in column 3 used a minus sign,

also use a minus sign in column 4.

Note. If you checked the box on Form 941-X, line 4b or

line 5c, because you’re correcting only the employer

share of tax on a decrease to social security tips, use

0.062 (6.2%) when multiplying the amount shown in

column 3. If you’re correcting both shares of tax for some

employees and only the employer share for other

employees, report the properly calculated amount in

column 4. Be sure to show your calculations on line 43.

Example—Social security tips increased.

Following Example—Wages, tips, and other

compensation increased in the instructions for line 6, the

tips that you overlooked were also taxable social security

tips. To correct the error, figure the difference on Form

941-X as shown.

-13-

Column 1 (corrected amount)

Column 2 (Form 941, line 5b, column 1)

10,000.00

- 9,000.00

Column 3 (difference)

1,000.00

Use the difference in column 3 to determine your tax

correction.

Column 3 (difference)

Tax rate (2.9%)

Use the difference in column 3 to determine your tax

correction.

Column 3 (difference)

Tax rate (12.4%)

1,000.00

x 0.124

Column 4 (tax correction)

124.00

Be sure to explain the reasons for this correction on

line 43.

12. Taxable Medicare Wages & Tips

If you’re correcting the taxable Medicare wages and tips

you reported on Form 941, line 5c, column 1, enter the

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

amount you originally reported or as previously corrected.

In column 3, enter the difference between columns 1 and

2.

line 12 (column 1)

- line 12 (column 2)

line 12 (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 0.029 (2.9% tax

rate) and enter that result in column 4.

line 12 (column 3)

x 0.029

line 12 (column 4)

If the amount in column 3 used a minus sign,

also use a minus sign in column 4.

Note. If you checked the box on Form 941-X, line 4b or

line 5c, because you’re correcting only the employer

share of tax on a decrease to Medicare wages and tips,

use 0.0145 (1.45%) when multiplying the amount in

column 3. If you’re correcting both shares of tax for some

employees and only the employer share for other

employees, enter the properly calculated amount in

column 4. Be sure to explain your calculations on line 43.

Example—Medicare wages and tips decreased.

Following Example—Wages, tips, and other

compensation decreased in the instructions for line 6, the

wages that you counted twice were also taxable Medicare

wages and tips. To correct the error, figure the difference

on Form 941-X as shown.

Column 1 (corrected amount)

Column 2 (Form 941, line 5c, column 1)

7,000.00

- 9,000.00

Column 3 (difference)

-2,000.00

-2,000.00

x 0.029

Column 4 (tax correction)

-58.00

Be sure to explain the reasons for this correction on

line 43.

13. Taxable Wages & Tips Subject to Additional

Medicare Tax Withholding

Generally, you may correct errors to Additional Medicare

Tax withholding only if you discovered the errors in the

same calendar year the wages and tips were paid to

employees. However, you may correct errors to Additional

Medicare Tax withholding for prior years if the amount

reported on Form 941, line 5d, column 2, isn’t the amount

you actually withheld, including any amount you paid on

behalf of your employee rather than deducting it from the

employee’s pay (which resulted in additional wages

subject to tax). This type of error is an administrative error.

The administrative error adjustment corrects the amount

reported on Form 941 to agree with the amount actually

withheld from employees.

You may also correct errors to Additional Medicare Tax

withholding for prior years if section 3509 rates apply. If

section 3509 rates apply, see the instructions for lines 19–

22, later.

If a prior year error was a nonadministrative error, you

may correct only the wages and tips subject to

Additional Medicare Tax withholding that were originally

reported on Form 941, line 5d, column 1, or previously

corrected on Form 941-X. You can’t correct the tax

reported on Form 941, line 5d, column 2.

Errors discovered in the same calendar year or prior

year administrative errors. If you’re correcting the

taxable wages and tips subject to Additional Medicare Tax

withholding that you reported on Form 941, line 5d,

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

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2.

line 13 (column 1)

- line 13 (column 2)

line 13 (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 0.009 (0.9% tax

rate) and enter that result in column 4.

line 13 (column 3)

x 0.009

line 13 (column 4)

-14-

If the amount in column 3 used a minus sign,

also use a minus sign in column 4.

Instructions for Form 941-X (Rev. 4-2023)

Example—Prior year administrative error

(incorrectly reported amount of Additional Medicare

Tax actually withheld). Xavier Black's wages exceeded

the $200,000 withholding threshold for Additional

Medicare Tax in November 2022. The total wages paid to

Xavier for 2022 were $230,000. You withheld $270

($30,000 x 0.009) from Xavier's wages. However, on your

fourth quarter 2022 Form 941, you mistakenly reported

$3,000 on line 5d, column 1, and Additional Medicare Tax

withheld of $27 on line 5d, column 2. You discover the

error on March 13, 2023. This is an example of an

administrative error that may be corrected in a later

calendar year because the amount actually withheld isn’t

the amount reported on your fourth quarter 2022 Form

941. Use Form 941-X, line 13, to correct the error as

shown below.

Column 1 (corrected amount)

Column 2 (Form 941, line 5d, column 1)

30,000.00

- 3,000.00

Column 3 (difference)

27,000.00

Use the difference in column 3 to determine your tax

correction.

Column 3 (difference)

Tax rate (0.9%)

27,000.00

x 0.009

Column 4 (tax correction)

243.00

Be sure to explain the reasons for this correction on

line 43.

Prior year nonadministrative errors. You may correct

only the taxable wages and tips subject to Additional

Medicare Tax withholding that you reported on Form 941,

line 5d, column 1. Enter the total corrected amount in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2.

line 13 (column 1)

- line 13 (column 2)

line 13 (column 3)

Medicare Tax withheld (column 4) because the error

involves a previous year and the amount previously

reported for Sophie represents the actual amount withheld

from Sophie during 2022.

Combination of prior year administrative and nonadministrative errors. If you’re reporting both

administrative errors and nonadministrative errors for the

same quarter of a prior year, enter the total corrected

amount in column 1. In column 2, enter the amount you

originally reported or as previously corrected. In column 3,

enter the difference between columns 1 and 2. However,

multiply only the amount of wages and tips reported in

column 3 that are related to administrative errors by 0.009

(0.9% tax rate). Don’t multiply any wages and tips

reported in column 3 that are related to nonadministrative

errors by 0.009 (0.9% tax rate). Use line 43 to explain in

detail your corrections. The explanation must include the

reasons for the corrections and a breakdown of the

amount reported in column 3 into the amounts related to

administrative errors and nonadministrative errors.

Example—Combination of prior year administrative

and nonadministrative errors. Xavier Black’s wages

exceeded the $200,000 withholding threshold for

Additional Medicare Tax in November 2022. The total

wages paid to Xavier for 2022 were $230,000. You

withheld $270 ($30,000 x 0.009) from Xavier's wages.

However, on your fourth quarter 2022 Form 941, you

mistakenly reported $3,000 on line 5d, column 1, and

Additional Medicare Tax withheld of $27 on line 5d,

column 2. The difference in wages subject to Additional

Medicare Tax related to this administrative error is

$27,000 ($30,000 - $3,000).

Sophie Rose’s wages exceeded the $200,000

withholding threshold for Additional Medicare Tax in

December 2022. The total wages paid to Sophie for 2022

were $220,000. You were required to withhold $180

($20,000 x 0.009) but you withheld nothing and didn’t

report Sophie's $20,000 in wages subject to Additional

Medicare Tax withholding on line 5d of your fourth quarter

2022 Form 941.

You discover both errors on March 13, 2023. Use Form

941-X, line 13, to correct the errors as shown below.

If the amount in column 2 is larger than the

amount in column 1, use a minus sign in

column 3.

Don’t multiply the amount in column 3 by 0.009 (0.9%

tax rate). Leave column 4 blank and explain the reasons

for this correction on line 43.

Example—Prior year nonadministrative error

(failure to withhold Additional Medicare Tax when

required). Sophie Rose’s wages exceeded the $200,000

withholding threshold for Additional Medicare Tax in

December 2022. The total wages paid to Sophie for 2022

were $220,000. You were required to withhold $180

($20,000 x 0.009) but you withheld nothing and didn’t

report an amount on line 5d of your fourth quarter 2022

Form 941. You discover the error on March 13, 2023. File

Form 941-X to correct wages and tips subject to

Additional Medicare Tax withholding for your 2022 fourth

quarter Form 941, but you may not correct the Additional

Instructions for Form 941-X (Rev. 4-2023)

Column 1 (corrected amount)

Column 2 (Form 941, line 5d, column 1)

50,000.00

- 3,000.00

Column 3 (difference)

47,000.00

Determine the portion of wages and tips reported in

column 3 that is related to the administrative error

($47,000 - $20,000 (nonadministrative error) = $27,000

(administrative error)). Multiply this portion of column 3 by

0.009 (0.9% tax rate) to determine your tax correction.

Difference related to administrative error

Tax rate (0.9%)

Column 4 (tax correction)

27,000.00

x 0.009

243.00

Be sure to explain the reasons for these corrections on

line 43. You must also report that $20,000 of the amount

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

-15-

year nonadministrative error and $27,000 of the amount

shown in column 3 was related to the correction of an

administrative error.

14. Section 3121(q) Notice and Demand—Tax

on Unreported Tips

Enter on line 14 any corrections to amounts reported on

Form 941, line 5f, for the tax due from a Section 3121(q)

Notice and Demand. The IRS issues a Section 3121(q)

Notice and Demand to advise an employer of the amount

of tips received by employees who failed to report or

underreported tips to the employer. An employer isn’t

liable for the employer share of the social security and

Medicare taxes on unreported tips until a Section 3121(q)

Notice and Demand for the taxes is made to the employer

by the IRS.

Be sure to explain the reasons for any corrections on

line 43.

15. Tax Adjustments

For purposes of these instructions, all references

TIP to “sick pay” mean ordinary sick pay, not “qualified

sick leave wages.”

Use line 15 to correct any adjustments reported on

Form 941, lines 7–9. Enter in column 1 the total corrected

amount for Form 941, lines 7–9.

Enter in column 2 the total originally reported or

previously corrected amounts from Form 941, lines 7–9. In

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

line 15 (column 1)

-line 15 (column 2)

line 15 (column 3)

You may need to report negative numbers in any

Column 1 (corrected amount)

Column 2 (Form 941, line 8)

Column 3 (difference)

-9,600.00

- (6,900.00)

-2,700.00

Here is how you would enter the numbers on Form

941-X.

Column 1

(corrected

amount)

-9,600.00

Column 2

(Form 941, line 8)

Column 3

(difference)

-6,900.00

-2,700.00

Report “-2,700.00” as your correction in column 4.

In this example, you’re claiming a credit for $2,700 in

overreported tax for your 2022 second quarter Form 941.

Always enter the same amount in column 4 (including any

minus sign) that you enter in column 3.

Be sure to explain the reasons for this correction on

line 43.

16. Qualified Small Business Payroll Tax Credit

for Increasing Research Activities

The payroll tax credit election must be made on or

before the due date of the originally filed income

CAUTION tax return (including extensions). Any election to

take the payroll tax credit may be revoked only with the

consent of the IRS.

!

If you’re correcting the qualified small business payroll

tax credit for increasing research activities that you

reported on Form 941, line 11a (line 11 for quarters

beginning before April 1, 2020), enter the total corrected

amount in column 1. In column 2, enter the amount you

originally reported or as previously corrected. In column 3,

enter the difference between columns 1 and 2.

TIP column. Make sure that the difference you enter in

column 3 accurately represents the change to

adjustments originally reported or previously corrected on

Form 941, lines 7–9.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4.

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

minus sign shown in column 3.

You must attach a corrected Form 8974 and explain

the reasons for this correction on line 43.

On line 43, describe what you misreported on Form

941. Tell us if your adjustment is for fractions of cents,

third-party sick pay, tips, or group-term life insurance.

17. Nonrefundable Portion of Credit for

Qualified Sick and Family Leave Wages for

Leave Taken After March 31, 2020, and Before

April 1, 2021

Example—Current quarter's third-party sick pay

underreported. You reported $6,900 (shown as

“-6,900.00”) as a third-party sick pay adjustment

(reduction to tax) on line 8 of your 2022 second quarter

Form 941. You didn’t report any amounts on lines 7 and 9.

Your third-party sick pay adjustment should’ve been

$9,600 (shown as “-9,600.00”) because your third-party

sick pay payer withheld that amount of social security and

Medicare taxes from your employees. You discovered the

error in April of 2023. To correct the error, figure the

difference on Form 941-X as shown.

Form 941-X and these instructions use the terms

TIP “nonrefundable” and “refundable” when

discussing credits. The term “nonrefundable”

means the portion of the credit which is limited by law to

certain taxes. The term “refundable” means the portion of

the credit which is in excess of those taxes.

For corrections to Form 941, line 11b, the credit for

qualified sick and family leave wages is only available for

wages paid with respect to leave taken after March 31,

2020, and before April 1, 2021. Don't enter an amount on

line 17 if you're correcting a quarter that began before

April 1, 2020.

-16-

Instructions for Form 941-X (Rev. 4-2023)

If you’re correcting the nonrefundable portion of the

credit for qualified sick and family leave wages for leave

taken after March 31, 2020, and before April 1, 2021, that

you reported on Form 941, line 11b, enter the total

corrected amount from Worksheet 1, Step 2, line 2j, in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. For more

information about the credit for qualified sick and family

leave wages, go to IRS.gov/PLC.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4.

Definition of qualified sick and family leave wages

for leave taken after March 31, 2020, and before April

1, 2021. For purposes of the credit for qualified sick and

family leave wages, qualified sick and family leave wages

are wages for social security and Medicare tax purposes,

determined without regard to the exclusions from the

definition of employment under sections 3121(b)(1)–(22),

that an employer pays that otherwise meet the

requirements of the Emergency Paid Sick Leave Act

(EPSLA) or the Emergency Family and Medical Leave

Expansion Act (Expanded FMLA), as enacted under the

FFCRA and amended by the COVID-related Tax Relief

Act of 2020. However, don't include any wages otherwise

excluded under sections 3121(b)(1)–(22) when reporting

qualified sick and family leave wages on your employment

tax return and when figuring the credit on Worksheet 1,

Step 2, lines 2a and 2a(i), and on Step 2, lines 2e and

2e(i). Instead, include qualified sick leave wages and

qualified family leave wages excluded from the definition

of employment under sections 3121(b)(1)–(22) separately

in Step 2, line 2a(iii) and/or line 2e(iii), respectively, before

you figure your total credit in Step 2, line 2d (credit for

qualified sick leave wages), or Step 2, line 2h (credit for

qualified family leave wages).

The April 2020 revision and July 2020 revision of the

Instructions for Form 941 were released before the

COVID-related Tax Relief Act of 2020 was enacted on

December 27, 2020; therefore, Worksheet 1, in those

Instructions for Form 941, didn't include lines to add the

wages that meet an exclusion under sections 3121(b)(1)–

(22) when figuring the credits for qualified sick and family

leave wages. If your Form 941 for the second, third, or

fourth quarter of 2020 didn't claim the correct amount of

the credit for qualified sick and family leave wages

because you paid qualified sick leave wages and/or

qualified family leave wages that meet an exclusion under

sections 3121(b)(1)–(22), you may file Form 941-X and

complete Worksheet 1 to claim the correct amount of the

credit. You'll also include on Form 941-X, lines 28 and 29,

and on Worksheet 1 any qualified health plan expenses

allocable to those wages. The appropriate lines related to

the exclusions under sections 3121(b)(1)–(22) were

added to Worksheet 1 in the first quarter 2021 Instructions

for Form 941 (Revised March 2021).

Example—Nonrefundable portion of credit for

qualified sick and family leave wages increased.

Following Example—Qualified sick leave wages

Instructions for Form 941-X (Rev. 4-2023)

increased in the instructions for line 9, you originally

reported a $1,000 nonrefundable portion of the credit for

qualified sick and family leave wages on Form 941,

line 11b, for the second quarter of 2020. You use

Worksheet 1 to refigure the correct nonrefundable portion

of the credit for qualified sick and family leave wages and

you determine that the correct credit is now $2,000. To

correct the error, figure the difference on Form 941‐X as

shown.

Column 1 (corrected amount)

Column 2 (Form 941, line 11b)

2,000.00

- 1,000.00

Column 3 (difference)

1,000.00

To properly show the credit increase as a reduction to

your tax balance, enter the positive number in column 3 as

a negative number in column 4. Here is how you would

enter the numbers on Form 941‐X, line 17.

Column 1

(corrected

amount)

2,000.00

Column 2

(Form 941,

line 11b)

1,000.00

Column 3

(difference)

Column 4

(tax correction)

1,000.00

-1,000.00

Be sure to explain the reasons for this correction on

line 43.

18a. Nonrefundable Portion of Employee

Retention Credit

Use line 18a only for corrections to quarters beginning

after March 31, 2020, and before January 1, 2022.

Section 206(c) of the Taxpayer Certainty and

TIP Disaster Tax Relief Act of 2020 removed the

restriction on an employer who has received a

Small Business Interruption Loan under the Paycheck

Protection Program (PPP) from claiming the employee

retention credit. The eligible employer can claim the

employee retention credit on any qualified wages that

aren't counted as payroll costs in obtaining PPP loan

forgiveness. Any wages that could count toward eligibility

for the employee retention credit or PPP loan forgiveness

can be applied to either of these two programs, but not

both. If your Form 941 didn't claim the correct amount for

the employee retention credit because you received a

Small Business Interruption Loan under the PPP, you may

file Form 941-X and complete Worksheet 2 to claim the

correct amount of the credit. For more information, see

Notice 2021-20, 2021-11 I.R.B. 922, available at

IRS.gov/irb/2021-11_IRB#NOT-2021-20; and Rev. Proc.

2021-33, 2021-34 I.R.B. 327, available at IRS.gov/irb/

2021-34_IRB#REV-PROC-2021-33.

Instructions for Qualified Wages Paid After March

12, 2020, and Before July 1, 2021

If you’re correcting the nonrefundable portion of the

employee retention credit for qualified wages paid after

March 12, 2020, and before July 1, 2021, that you

reported on Form 941, line 11c, enter the total corrected

amount from Worksheet 2, Step 2, line 2j, in column 1. In

-17-

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

For more information about the employee retention

credit for qualified wages paid after March 12, 2020, and

before January 1, 2021, see Notice 2021-20. See Notice

2021-23, 2021-16 I.R.B. 1113, available at IRS.gov/irb/

2021-16_IRB#NOT-2021-23, for more information about

the employee retention credit for qualified wages paid

after December 31, 2020, and before July 1, 2021. Also

see section IV of Notice 2021-49, 2021-34 I.R.B. 316,

available at IRS.gov/irb/2021-34_IRB#NOT-2021-49; and

Rev. Proc. 2021-33.

Be sure to explain the reasons for this correction on

line 43.

Adjustments to the nonrefundable portion of the

TIP employee retention credit for qualified wages paid

after March 12, 2020, and before July 1, 2021, are

reported on Form 941-X, line 18a, and adjustments to the

refundable portion of the credit are reported on Form

941-X, line 26a. Adjustments to qualified wages for the

employee retention credit are reported on Form 941-X,

line 30. Adjustments to qualified health plan expenses

allocable to the employee retention credit are reported on

Form 941-X, line 31a. Adjustments to qualified wages

paid March 13, 2020, through March 31, 2020, for the

employee retention credit are reported on Form 941-X,

line 33a, and adjustments to qualified health plan

expenses allocable to these wages are reported on Form

941-X, line 34. The employee retention credit may only be

claimed on Form 941 filed for quarters beginning after

March 31, 2020. The employee retention credit for wages

paid March 13, 2020, through March 31, 2020, is claimed

on Form 941 for the second quarter of 2020; therefore,

any corrections to the employee retention credit for the

period from March 13, 2020, through March 31, 2020,

should be reported on Form 941‐X filed for the second

quarter of 2020. Don’t file Form 941‐X for the first quarter

of 2020 to report these amounts. If you claimed the

employee retention credit on your original Form 941 for

the quarter, and you make any corrections on Form 941‐X

for the quarter to amounts used to figure this credit, you'll

need to refigure the amount of the credit using Worksheet

2. You'll also use this worksheet to figure this credit if

you’re claiming the credit for the first time on Form 941-X.

Instructions for Qualified Wages Paid After June

30, 2021, and Before January 1, 2022

The Infrastructure Investment and Jobs Act

amends section 3134 of the Internal Revenue

CAUTION Code, as enacted under the ARP, to limit the

availability of the employee retention credit in the fourth

!

quarter of 2021 to employers that are recovery startup

businesses, as defined in section 3134(c)(5). Thus, for

wages paid after September 30, 2021, and before

January 1, 2022, only the wages paid by recovery startup

businesses can be qualified wages. See the December

2021 revision of the Instructions for Form 941 for more

information about a recovery startup business.

If you're correcting the nonrefundable portion of the

employee retention credit for qualified wages paid after

June 30, 2021, and before January 1, 2022, that you

reported on Form 941, line 11c, enter the total corrected

amount from Worksheet 4, Step 2, line 2h, in column 1. In

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

For more information about the employee retention

credit for qualified wages paid after June 30, 2021, and

before January 1, 2022, see Notice 2021-49 and Rev.

Proc. 2021-33. See Notice 2021-65, 2021-51 I.R.B. 880,

available at IRS.gov/irb/2021-51_IRB#NOT-2021-65, for

modifications to Notice 2021-49.

Be sure to explain the reasons for this correction on

line 43.

Adjustments to the nonrefundable portion of the

TIP employee retention credit for qualified wages paid

after June 30, 2021, and before January 1, 2022,

are reported on Form 941-X, line 18a, and adjustments to

the refundable portion of the credit are reported on Form

941-X, line 26a. Adjustments to qualified wages for the

employee retention credit are reported on Form 941-X,

line 30. Adjustments to qualified health plan expenses

allocable to the employee retention credit are reported on

Form 941-X, line 31a. If you claimed the employee

retention credit on your original Form 941 for the quarter,

and you make any corrections on Form 941-X for the

quarter to amounts used to figure this credit, you'll need to

refigure the amount of the credit using Worksheet 4. You'll

also use this worksheet to figure this credit if you’re

claiming the credit for the first time on Form 941-X.

18b. Nonrefundable Portion of Credit for

Qualified Sick and Family Leave Wages for

Leave Taken After March 31, 2021, and Before

October 1, 2021

For corrections to Form 941, line 11d, the credit for

qualified sick and family leave wages is only available for

wages paid with respect to leave taken after March 31,

2021, and before October 1, 2021. Don't enter an amount

on line 18b if you're correcting a quarter that began before

April 1, 2021.

-18-

Instructions for Form 941-X (Rev. 4-2023)

If you’re correcting the nonrefundable portion of the

credit for qualified sick and family leave wages for leave

taken after March 31, 2021, and before October 1, 2021,

that you reported on Form 941, line 11d, enter the total

corrected amount from Worksheet 3, Step 2, line 2r, in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. For more

information about the credit for qualified sick and family

leave wages, go to IRS.gov/PLC.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Definition of qualified sick and family leave wages

for leave taken after March 31, 2021, and before October 1, 2021. For purposes of this credit, qualified sick

leave wages and qualified family leave wages are wages

for social security and Medicare tax purposes, determined

without regard to the exclusions from the definition of

employment under sections 3121(b)(1)–(22), that an

employer pays that otherwise meet the requirements of

the EPSLA or Expanded FMLA, as enacted under the

FFCRA and amended for purposes of the ARP. Taxable

qualified sick leave wages and qualified family leave

wages for leave taken after March 31, 2021, and before

October 1, 2021, were included on Form 941, line 5a,

column 1, and can be adjusted only on Form 941-X,

line 8. Total qualified sick and family leave wages for

leave taken after March 31, 2021, and before October 1,

2021, including any qualified leave wages that were

above the social security wage base and any qualified

leave wages excluded from the definition of employment

under sections 3121(b)(1)–(22), were included on Form

941, lines 23 and 26, respectively, and can be adjusted

only on Form 941-X, lines 35 and 38, respectively. Use

Worksheet 3 to figure your credit.

Be sure to explain the reasons for this correction on

line 43.

18c. Nonrefundable Portion of COBRA Premium

Assistance Credit

The COBRA premium assistance was available for

periods of coverage beginning on or after April 1, 2021,

through periods of coverage beginning on or before

September 30, 2021. For more information, see Credit for

COBRA premium assistance payments is limited to

periods of coverage beginning on or after April 1, 2021,

through periods of coverage beginning on or before

September 30, 2021 under Reminders, earlier. Use

line 18c only for corrections to quarters beginning after

March 31, 2021.

Premium payees that receive an election from an

TIP assistance eligible individual are entitled to the

COBRA premium assistance credit for premiums

not paid during the quarter in which the election is

received. See Notice 2021-31 for more information.

Instructions for Form 941-X (Rev. 4-2023)

If you’re correcting the nonrefundable portion of the

COBRA premium assistance credit that you reported on

Form 941, line 11e, enter the total corrected amount from

Worksheet 5, Step 2, line 2g, in column 1. In column 2,

enter the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Be sure to explain the reasons for this correction on

line 43.

18d. Number of Individuals Provided COBRA

Premium Assistance

Use line 18d only for corrections to quarters beginning

after March 31, 2021.

If you’re correcting the number of individuals provided

COBRA premium assistance that you reported on Form

941, line 11f, enter the total corrected amount in column 1.

In column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2.

Be sure to explain the reasons for this correction on

line 43.

19–22. Special Additions to Wages for Federal

Income Tax, Social Security Taxes, Medicare

Taxes, and Additional Medicare Tax

Section 3509 provides special rates for the employee

share of federal income tax, social security tax, Medicare

tax, and Additional Medicare Tax withholding when

workers are reclassified as employees in certain

circumstances. The applicable rate depends on whether

you filed required information returns. An employer can’t

recover any tax paid under this provision from the

employees. The full employer share of social security tax

and Medicare tax is due for all reclassifications.

Note. Section 3509 rates aren’t available if you

intentionally disregarded the requirements to withhold

taxes from the employee, or if you withheld federal income

tax but didn’t withhold social security and Medicare taxes.

Section 3509 rates are also not available for certain

statutory employees.

On lines 19–22, enter only corrections to wages

resulting from reclassifying certain workers as employees

when section 3509 rates are used to calculate the taxes.

If the employer issued the required information returns,

use the section 3509 rates as follows.

• For social security taxes, use the employer rate of 6.2%

plus 20% of the employee rate of 6.2%, for a total rate of

7.44% of wages.

• For Medicare taxes, use the employer rate of 1.45%

plus 20% of the employee rate of 1.45%, for a total rate of

1.74% of wages.

-19-

• For Additional Medicare Tax, 0.18% (20% of the

employee rate of 0.9%) of wages subject to Additional

Medicare Tax.

• For federal income tax withholding, the rate is 1.5% of

wages.

If the employer didn’t issue the required information

returns, use the section 3509 rates as follows.

• For social security taxes, use the employer rate of 6.2%

plus 40% of the employee rate of 6.2%, for a total rate of

8.68% of wages.

• For Medicare taxes, use the employer rate of 1.45%

plus 40% of the employee rate of 1.45%, for a total rate of

2.03% of wages.

• For Additional Medicare Tax, 0.36% (40% of the

employee rate of 0.9%) of wages subject to Additional

Medicare Tax.

• For federal income tax withholding, the rate is 3.0% of

wages.

Unlike some other lines on Form 941-X, enter in

column 1 only the corrected wages for workers being

reclassified, not the amount paid to all employees. Enter

in column 2 previously reported wages (if any) to

reclassified employees. To get the amount for column 4,

use the applicable section 3509 rates. If you filed the

required information returns for some employees but

didn’t file them for other employees, be sure to use the

applicable rates for each employee when calculating the

amounts in column 4 and show your calculations on

line 43. The tax correction in column 4 will be a positive

number if you increased the amount of wages you

previously reported. See the instructions for line 42, later,

for more information.

23. Subtotal

Combine the amounts from column 4 on lines 7–22 and

enter the result on line 23.

Example. You entered “1,400.00” in column 4 on

line 7, “-500.00” in column 4 on line 8, and “-100.00” in

column 4 on line 12. Combine these amounts and enter

“800.00” in column 4 on line 23.

Line 7

Line 8

Line 12

1,400.00

(500.00)

+ (100.00)

Line 23

800.00

24. Deferred Amount of Social Security Tax

Use Form 941-X, line 24, if you need to correct the

deferred amount of the employer share of social security

tax for the second, third, or fourth quarter of 2020, and/or

the deferred amount of the employee share of social

security tax for the third or fourth quarter of 2020, that you

reported on Form 941, line 13b. Enter the total corrected

amount in column 1. In column 2, enter the amount you

originally reported or as previously corrected by you or the

IRS. In column 3, enter the difference between columns 1

and 2.

Copy the amount in column 3 to column 4. However,

because an increase to the deferred amount of the

employer and/or the employee share of social security tax

defers the payment due, to properly show the amount as a

deferral of payment, enter a positive number in column 3

as a negative number in column 4. A decrease to the

deferred amount of the employer and/or the employee

share of social security tax decreases the payment you

can defer and must be shown as a balance due item;

therefore, to properly show the amount as a balance due

item, enter a negative number in column 3 as a positive

number in column 4. If you make any corrections to the

deferred amount of the employee share of social security

tax on Form 941-X, line 24, you may also need to make a

correction on Form 941-X, line 33b.

Be sure to explain the reasons for any corrections on

line 43.

Deferred amount of the employer share of social security tax. If you’re filing Form 941-X to increase the

amount of social security wages paid on or after March

27, 2020, and before January 1, 2021, so that there is an

additional amount of social security tax that hasn’t yet

been paid, and hasn’t yet been deferred, then you may

use Form 941-X to increase the amount of the deferred

employer share of social security tax originally reported on

Form 941, line 13b. If you’re filing Form 941-X to decrease

the amount of social security wages paid on or after

March 27, 2020, and before January 1, 2021, so that there

is a decrease in the amount of social security tax that is

eligible for deferral, then you must use Form 941-X to

decrease the amount of the deferred employer share of

social security tax originally reported on Form 941,

line 13b, if the decrease in wages causes the amount you

originally deferred to exceed the amount that is now

eligible for deferral. Otherwise, you may only correct the

amount of the deferred employer share of social security

tax if the amount originally reported on Form 941, line 13b,

isn’t the amount you actually deferred (for example, you

incorrectly reported the amount that you actually

deferred). If you already paid the correct amount of the

employer’s share of social security tax for a calendar

quarter during the payroll tax deferral period, you may not

subsequently defer the payment by filing Form 941-X. See

IRS.gov/ETD for more information about the interaction of

credits and the deferral of employment tax deposits and

payments.

The deferred amount of the employer share of social

security tax was only available for deposits and payments

due on or after March 27, 2020, and before January 1,

2021, as well as deposits and payments due after January

1, 2021, that were required for wages paid during the

quarter ending on December 31, 2020. One-half of the

deferred amount of the employer share of social security

tax was due by December 31, 2021, and the remainder

was due by December 31, 2022. Because both December

31, 2021, and December 31, 2022, were nonbusiness

days, payments made on the next business day were

considered timely. Any payments or deposits you made

before December 31, 2021, were first applied against your

payment due on December 31, 2021, and then applied

against your payment due on December 31, 2022. For

more information about the deferral of employment tax

deposits, go to IRS.gov/ETD and see the Instructions for

Form 941, available at IRS.gov/Form941.

-20-

Instructions for Form 941-X (Rev. 4-2023)

Deferred amount of the employee share of social security tax. You may only correct the amount of the

deferred employee share of social security tax if the

amount originally reported on Form 941, line 13b, isn’t the

amount you actually deferred (for example, you incorrectly

reported the amount that you actually deferred). If you

already paid the correct amount of the employee’s share

of social security tax, you may not subsequently defer the

payment by filing Form 941-X.

The deferred amount of the employee share of social

security tax was only available for social security wages of

less than $4,000 paid to an employee in any biweekly pay

period (or the equivalent threshold amount for other pay

periods) paid on a pay date during the period beginning

on September 1, 2020, and ending on December 31,

2020. The due date for withholding and payment of the

deferred employee share of social security tax was

postponed until the period beginning on January 1, 2021,

and ending on December 31, 2021. The employer was

liable to pay the deferred employee share of social

security tax to the IRS and was required to do so before

January 1, 2022, to avoid interest, penalties, and

additions to tax on those amounts. Because January 1,

2022, was a nonbusiness day, payments made on

January 3, 2022, were considered timely. For more

information about the deferral of the employee share of

social security tax, see Notice 2020-65, 2020-38 I.R.B.

567, available at IRS.gov/irb/2020-38_IRB#NOT-2020-65;

and Notice 2021-11, 2021-06 I.R.B. 827, available at

IRS.gov/irb/2021-06_IRB#NOT-2021-11.

25. Refundable Portion of Credit for Qualified

Sick and Family Leave Wages for Leave Taken

After March 31, 2020, and Before April 1, 2021

For corrections to Form 941, line 13c, the credit for

qualified sick and family leave wages is only available for

wages paid with respect to leave taken after March 31,

2020, and before April 1, 2021. Don't enter an amount on

line 25 if you're correcting a quarter that began before

April 1, 2020.

If you’re correcting the refundable portion of the credit

for qualified sick and family leave wages for leave taken

after March 31, 2020, and before April 1, 2021, that you

reported on Form 941, line 13c, enter the total corrected

amount from Worksheet 1, Step 2, line 2k, in column 1. In

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2. For more information about the

credit for qualified sick and family leave wages, go to

IRS.gov/PLC.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Be sure to explain the reasons for this correction on

line 43.

Instructions for Form 941-X (Rev. 4-2023)

26a. Refundable Portion of Employee Retention

Credit

Use line 26a only for corrections to quarters beginning

after March 31, 2020, and before January 1, 2022.

Instructions for Qualified Wages Paid After March

12, 2020, and Before July 1, 2021

If you’re correcting the refundable portion of the employee

retention credit that you reported on Form 941, line 13d,

for qualified wages paid after March 12, 2020, and before

July 1, 2021, enter the total corrected amount from

Worksheet 2, Step 2, line 2k, in column 1. In column 2,

enter the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2. For more information about the

employee retention credit for qualified wages paid after

March 12, 2020, and before January 1, 2021, see Notice

2021-20. See Notice 2021-23 for more information about

the employee retention credit for qualified wages paid

after December 31, 2020, and before July 1, 2021. Also

see section IV of Notice 2021-49, and Rev. Proc.

2021-33.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Be sure to explain the reasons for this correction on

line 43.

Instructions for Qualified Wages Paid After June

30, 2021, and Before January 1, 2022

If you're correcting the refundable portion of the employee

retention credit that you reported on Form 941, line 13d,

for qualified wages paid after June 30, 2021, and before

January 1, 2022, enter the total corrected amount from

Worksheet 4, Step 2, line 2i, in column 1. In column 2,

enter the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2. For more information about the

employee retention credit for qualified wages paid after

June 30, 2021, and before January 1, 2022, see Notice

2021-49 and Rev. Proc. 2021-33. See Notice 2021-65 for

modifications to Notice 2021-49.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Be sure to explain the reasons for this correction on

line 43.

-21-

Corrections to Form 941, Line 13f (For Quarters

Beginning After March 31, 2020, and Ending

Before April 1, 2021) or Line 13h (For Quarters

Beginning After March 31, 2021, and Ending

Before January 1, 2022)

Form 941-X doesn't include a line to correct amounts

reported on Form 941, line 13f (13h), for the total

advances received from filing Form(s) 7200 for the

quarter. If a discrepancy exists between the amount

reported on Form 941 and the amount of advance

payments issued, the IRS will generally correct the

amount reported on Form 941, line 13f (13h), to match the

amount of advance payments issued. However,

aggregate filers may need to correct the amount reported

on Form 941, line 13f (13h), to reflect the correct advance

payments received by their clients or customers. If you’re

an aggregate filer that needs to correct the amount

reported on Form 941, line 13f (13h), include any increase

or decrease to the amount in the “Total” reported on Form

941-X, line 27; write “Correction to line 13f” or "Correction

to line 13h," as applicable, on the dotted line to the left of

the entry box on line 27; explain your correction on line 43;

and attach Schedule R (Form 941) to Form 941-X to show

corrections for your clients or customers.

26b. Refundable Portion of Credit for Qualified

Sick and Family Leave Wages for Leave Taken

After March 31, 2021, and Before October 1,

2021

For corrections to Form 941, line 13e, the credit for

qualified sick and family leave wages is only available for

wages paid with respect to leave taken after March 31,

2021, and before October 1, 2021. Don't enter an amount

on line 26b if you're correcting a quarter that began before

April 1, 2021.

If you’re correcting the refundable portion of the credit

for qualified sick and family leave wages for leave taken

after March 31, 2021, and before October 1, 2021, that

you reported on Form 941, line 13e, enter the total

corrected amount from Worksheet 3, Step 2, line 2s, in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. For more

information about the credit for qualified sick and family

leave wages, go to IRS.gov/PLC.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Be sure to explain the reasons for this correction on

line 43.

26c. Refundable Portion of COBRA Premium

Assistance Credit

The COBRA premium assistance was available for

periods of coverage beginning on or after April 1, 2021,

through periods of coverage beginning on or before

September 30, 2021. For more information, see Credit for

COBRA premium assistance payments is limited to

periods of coverage beginning on or after April 1, 2021,

through periods of coverage beginning on or before

September 30, 2021 under Reminders, earlier. Use

line 26c only for corrections to quarters beginning after

March 31, 2021.

If you’re correcting the refundable portion of the

COBRA premium assistance credit that you reported on

Form 941, line 13f, enter the total corrected amount from

Worksheet 5, Step 2, line 2h, in column 1. In column 2,

enter the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2.

Copy the amount in column 3 to column 4. However, to

properly show the amount as a credit or balance due item,

enter a positive number in column 3 as a negative number

in column 4 or a negative number in column 3 as a

positive number in column 4. For an example of how to

report amounts in columns 1–4 for an employment tax

credit, see the instructions for line 17, earlier.

Be sure to explain the reasons for this correction on

line 43.

27. Total

Combine the amounts from column 4 on lines 23–26c and

enter the result on line 27.

Your credit. If the amount entered on line 27 is less than

zero, for example, “-115.00,” you have a credit because

you overreported your federal employment taxes.

• If you checked the box on line 1, include this amount on

the "Total deposits" line of Form 941 for the quarter during

which you filed Form 941-X. If you currently file Form 944

because your filing requirement changed, include this

amount on the "Total deposits" line of Form 944 for the

year during which you filed Form 941-X. Don’t make any

changes to your record of federal tax liability reported on

Form 941, line 16, or Schedule B (Form 941) if your Form

941-X is filed timely. The amounts reported on the record

should reflect your actual tax liability for the period.

• If you checked the box on line 2, you’re filing a claim for

refund or abatement of the amount shown.

If your credit is less than $1, we will send a refund or

apply it only if you ask us in writing to do so.

Amount you owe. If the amount on line 27 is a positive

number, you must pay the amount you owe by the time

you file Form 941-X. You may not use any credit that you

show on another Form 941-X to pay the amount you owe,

even if you filed for the amount you owe and the credit at

the same time.

If you owe tax and are filing a timely Form 941-X, don’t

file an amended Schedule B (Form 941) unless you were

assessed an FTD penalty caused by an incorrect,

incomplete, or missing Schedule B (Form 941). Don’t

include the tax increase reported on Form 941-X on any

amended Schedule B (Form 941) you file.

If you owe tax and are filing a late Form 941-X, that is,

after the due date for Form 941 for the quarter in which

you discovered the error, you must file an amended

Schedule B (Form 941) with the Form 941-X. Otherwise,

the IRS may assess an “averaged” FTD penalty. The total

-22-

Instructions for Form 941-X (Rev. 4-2023)

29. Qualified Health Plan Expenses Allocable to

Qualified Family Leave Wages for Leave Taken

After March 31, 2020, and Before April 1, 2021

tax reported on the “Total liability for the quarter” line of

Schedule B (Form 941) must match the corrected tax

(Form 941, line 12, combined with any correction reported

on Form 941-X, line 23) for the quarter, less any previous

abatements and interest-free tax assessments.

Payment methods. You may pay the amount you owe

on line 27 electronically using the Electronic Federal Tax

Payment System (EFTPS), by credit or debit card, or by a

check or money order.

• The preferred method of payment is EFTPS. For more

information, go to EFTPS.gov or call 800-555-4477. To

contact EFTPS using Telecommunications Relay

Services (TRS) for people who are deaf, hard of hearing,

or have a speech disability, dial 711 and then provide the

TRS assistant the 800-555-4477 number above or

800-733-4829. Additional information about EFTPS is

also available in Pub. 966.

• To pay by credit or debit card, go to IRS.gov/

PayByCard. Your payment will be processed by a

payment processor who will charge a processing fee.

• If you pay by check or money order, make it payable to

“United States Treasury.” On your check or money order,

be sure to write your EIN, “Form 941-X,” the calendar

quarter you corrected (for example, “Quarter 2”), and the

calendar year of the quarter you corrected.

You don’t have to pay if the amount you owe is less

than $1.

Previously assessed FTD penalty. If line 27 reflects

overreported tax and the IRS previously assessed an FTD

penalty, you may be able to reduce the penalty. For more

information, see the Instructions for Schedule B (Form

941).

Lines 28–40

If you’re correcting the qualified health plan expenses

allocable to qualified family leave wages for leave taken

after March 31, 2020, and before April 1, 2021, that you

reported on Form 941, line 20, enter the total corrected

amount for all employees in column 1. In column 2, enter

the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2. Enter the corrected amount from column

1 on Worksheet 1, Step 2, line 2f.

30. Qualified Wages for the Employee Retention

Credit

Use line 30 only for corrections to quarters beginning after

March 31, 2020, and before January 1, 2022.

If you’re correcting the qualified wages for the

employee retention credit that you reported on Form 941,

line 21, enter the total corrected amount for all employees

in column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. Enter the corrected

amount from column 1 on Worksheet 2, Step 2, line 2a, for

qualified wages paid after March 12, 2020, and before

July 1, 2021. Enter the corrected amount from column 1

on Worksheet 4, Step 2, line 2a, for qualified wages paid

after June 30, 2021, and before January 1, 2022.

31a. Qualified Health Plan Expenses for the

Employee Retention Credit

For lines 28–31a and lines 32–40, you'll only enter

amounts in columns 1, 2, and 3. These lines don’t have an

entry space for column 4 because these adjustments

don’t directly result in an increase or decrease to your tax.

The amounts entered on lines 28–31a and lines 32–40 are

amounts that you use in Worksheets 1–5, as applicable, to

figure your credits. If you reported an incorrect amount on

lines 19–28 on your original Form 941, then you'll use

lines 28–31a and lines 32–40 of Form 941‐X to report the

correction. Use Worksheets 1–5, as applicable, to refigure

your credits based on the corrected amounts reported in

column 1. For details on how to complete line 31b, see the

instructions for line 31b, later. Be sure to explain the

reasons for your corrections on line 43.

28. Qualified Health Plan Expenses Allocable to

Qualified Sick Leave Wages for Leave Taken

After March 31, 2020, and Before April 1, 2021

If you’re correcting the qualified health plan expenses

allocable to qualified sick leave wages for leave taken

after March 31, 2020, and before April 1, 2021, that you

reported on Form 941, line 19, enter the total corrected

amount for all employees in column 1. In column 2, enter

the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2. Enter the corrected amount from column

1 on Worksheet 1, Step 2, line 2b.

Instructions for Form 941-X (Rev. 4-2023)

Use line 31a only for corrections to quarters beginning

after March 31, 2020, and before January 1, 2022.

If you’re correcting the qualified health plan expenses

allocable to wages reported on Form 941, line 21, that you

reported on Form 941, line 22, enter the total corrected

amount for all employees in column 1. In column 2, enter

the amount you originally reported or as previously

corrected. In column 3, enter the difference between

columns 1 and 2. Enter the corrected amount from column

1 on Worksheet 2, Step 2, line 2b, for qualified health plan

expenses allocable to qualified wages paid after March

12, 2020, and before July 1, 2021. Enter the corrected

amount from column 1 on Worksheet 4, Step 2, line 2b, for

qualified health plan expenses allocable to qualified

wages paid after June 30, 2021, and before January 1,

2022.

31b. Recovery Startup Business Checkbox

For the fourth quarter of 2021, only a recovery

startup business may claim the employee

CAUTION retention credit.

!

Whether you check the box on line 31b to tell us if

you're eligible for the employee retention credit in the third

or fourth quarter of 2021 solely because your business is

a recovery startup business depends on its applicability

and how you originally answered the question on Form

941, line 18b.

• If you checked the box on line 18b on your originally

filed Form 941 and you still qualify for the employee

-23-

retention credit solely because your business is a

recovery startup business, check the box on line 31b.

• If you checked the box on line 18b on your originally

filed Form 941 but that response is no longer accurate,

don't check the box on line 31b. However, explain in detail

on line 43 why you no longer think that you're a recovery

startup business and, if correcting the third quarter of

2021, the reasons that you still qualify for the employee

retention credit.

• If you didn't check the box on line 18b on your originally

filed Form 941 and this question still doesn't apply, don't

check the box on line 31b.

• If you didn't check the box on line 18b on your originally

filed Form 941 but you're now claiming the employee

retention credit as a recovery startup business, check the

box on line 31b.

Recovery startup business. For the third quarter of

2021, a recovery startup business is an employer that:

• Began carrying on a trade or business after February

15, 2020;

• Had average annual gross receipts of $1 million or less

for the 3 tax years ending with the tax year before the

calendar quarter in which the employee retention credit is

claimed; and

• Isn't otherwise eligible for the employee retention credit

because business operations aren't fully or partially

suspended due to a governmental order or because gross

receipts (within the meaning of section 448(c) or, if you're

a tax-exempt organization, section 6033) aren't less than

80% of the gross receipts for the same calendar quarter in

calendar year 2019. The employee retention credit isn't

available in the second quarter of 2021 on the basis of

being a recovery startup business.

For the fourth quarter of 2021, a recovery startup

business is an employer that began carrying on a trade or

business after February 15, 2020, and had average

annual gross receipts of $1 million or less for the 3 tax

years ending with the tax year before the calendar quarter

in which the employee retention credit is claimed.

Recovery startup businesses are limited to a

maximum employee retention credit of $50,000

CAUTION per quarter. If you check the box on line 31b, don't

enter more than $50,000 per quarter in total on lines 18a

and 26a.

!

32. Credit From Form 5884‐C, Line 11, for This

Quarter

Use line 32 only for corrections to quarters beginning after

March 31, 2020, and before April 1, 2021.

If you’re correcting the credit from Form 5884‐C,

line 11, for the second, third, or fourth quarter of 2020, or

the first quarter of 2021, that you reported on Form 941,

line 23, enter the total corrected amount in column 1. In

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2. Enter the corrected amount

from column 1 on Worksheet 1, Step 1, line 1j. Entering an

amount here is strictly for purposes of figuring the credit

for qualified sick and family wages for leave taken after

March 31, 2020, and before April 1, 2021, on Worksheet

1. For purposes of figuring the employee retention credit

for qualified wages paid after March 12, 2020, and before

July 1, 2021, enter the corrected amount from column 1

on Worksheet 2, Step 1, line 1k, unless you also

completed Worksheet 1 and you're bringing the amount

from Worksheet 1, Step 1, line 1l, forward to Worksheet 2,

Step 1, line 1a. Reporting a correction on this line doesn't

correct the credit claimed on Form 5884-C.

33a. Qualified Wages Paid March 13 Through

March 31, 2020, for the Employee Retention

Credit

Use line 33a only for corrections to the second quarter of

2020.

If you’re correcting the qualified wages paid March 13,

2020, through March 31, 2020, for the employee retention

credit that you reported on Form 941, line 24, for the

second quarter of 2020, enter the total corrected amount

for all employees in column 1. In column 2, enter the

amount you originally reported or as previously corrected.

In column 3, enter the difference between columns 1 and

2. Enter the corrected amount from column 1 on

Worksheet 2, Step 2, line 2c.

33b. Deferred Amount of the Employee Share of

Social Security Tax Included on Form 941,

Line 13b

Use line 33b only for corrections to the third and fourth

quarters of 2020.

If you're correcting the deferred amount of the

employee share of social security tax (for the third and

fourth quarters of 2020) that you reported on Form 941,

line 24, enter the total corrected amount for all employees

in column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2.

34. Qualified Health Plan Expenses Allocable to

Wages Reported on Form 941, Line 24

Use line 34 only for corrections to the second quarter of

2020.

If you’re correcting the qualified health plan expenses

allocable to wages reported on Form 941, line 24, that you

reported on Form 941, line 25, for the second quarter of

2020, enter the total corrected amount for all employees in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. Enter the corrected

amount from column 1 on Worksheet 2, Step 2, line 2d.

35. Qualified Sick Leave Wages for Leave Taken

After March 31, 2021, and Before October 1,

2021

If you’re correcting the qualified sick leave wages for leave

taken after March 31, 2021, and before October 1, 2021,

that you reported on Form 941, line 23, enter the total

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

amount you originally reported or as previously corrected.

In column 3, enter the difference between columns 1 and

2. Enter the corrected amount from column 1 on

Worksheet 3, Step 2, line 2a.

-24-

Instructions for Form 941-X (Rev. 4-2023)

Be sure to explain the reasons for this correction on

line 43.

between columns 1 and 2. Enter the corrected amount

from column 1 on Worksheet 3, Step 2, line 2h.

36. Qualified Health Plan Expenses Allocable to

Qualified Sick Leave Wages for Leave Taken

After March 31, 2021, and Before October 1,

2021

Be sure to explain the reasons for this correction on

line 43.

If you’re correcting the qualified health plan expenses

allocable to qualified sick leave wages for leave taken

after March 31, 2021, and before October 1, 2021, that

you reported on Form 941, line 24, enter the total

corrected amount for all employees in column 1. In

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

between columns 1 and 2. Enter the corrected amount

from column 1 on Worksheet 3, Step 2, line 2b.

Be sure to explain the reasons for this correction on

line 43.

37. Amounts Under Certain Collectively

Bargained Agreements Allocable to Qualified

Sick Leave Wages for Leave Taken After March

31, 2021, and Before October 1, 2021

If you’re correcting the amounts under certain collectively

bargained agreements allocable to qualified sick leave

wages for leave taken after March 31, 2021, and before

October 1, 2021, that you reported on Form 941, line 25,

enter the total corrected amount for all employees in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. Enter the corrected

amount from column 1 on Worksheet 3, Step 2, line 2c.

Be sure to explain the reasons for this correction on

line 43.

38. Qualified Family Leave Wages for Leave

Taken After March 31, 2021, and Before October

1, 2021

If you’re correcting the qualified family leave wages for

leave taken after March 31, 2021, and before October 1,

2021, that you reported on Form 941, line 26, enter the

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

amount you originally reported or as previously corrected.

In column 3, enter the difference between columns 1 and

2. Enter the corrected amount from column 1 on

Worksheet 3, Step 2, line 2g.

Be sure to explain the reasons for this correction on

line 43.

39. Qualified Health Plan Expenses Allocable to

Qualified Family Leave Wages for Leave Taken

After March 31, 2021, and Before October 1,

2021

If you’re correcting the qualified health plan expenses

allocable to qualified family leave wages for leave taken

after March 31, 2021, and before October 1, 2021, that

you reported on Form 941, line 27, enter the total

corrected amount for all employees in column 1. In

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference

Instructions for Form 941-X (Rev. 4-2023)

40. Amounts Under Certain Collectively

Bargained Agreements Allocable to Qualified

Family Leave Wages for Leave Taken After

March 31, 2021, and Before October 1, 2021

If you’re correcting the amounts under certain collectively

bargained agreements allocable to qualified family leave

wages for leave taken after March 31, 2021, and before

October 1, 2021, that you reported on Form 941, line 28,

enter the total corrected amount for all employees in

column 1. In column 2, enter the amount you originally

reported or as previously corrected. In column 3, enter the

difference between columns 1 and 2. Enter the corrected

amount from column 1 on Worksheet 3, Step 2, line 2i.

Be sure to explain the reasons for this correction on

line 43.

Part 4: Explain Your Corrections for

This Quarter

41. Corrections of Both Underreported and

Overreported Amounts

Check the box on line 41 if any corrections you entered on

lines 7–26c, or lines 28–31a, or lines 32–40, column 3,

reflect both underreported and overreported amounts.

Example. If you had an increase to social security

wages of $15,000 for Xavier Black and a decrease to

social security wages of $5,000 for Sophie Rose, you

would enter $10,000 on line 8, column 3. That $10,000

represents the net change from corrections.

On line 43, you must explain the reason for both the

$15,000 increase and the $5,000 decrease.

42. Did You Reclassify Any Workers?

Check the box on line 42 if you reclassified any workers to

be independent contractors or nonemployees. Also check

this box if the IRS (or you) determined that workers you

treated as independent contractors or nonemployees

should be classified as employees. On line 43, give us a

detailed reason why any worker was reclassified and, if

you used section 3509 rates on lines 19–22 for any worker

reclassified as an employee, explain why section 3509

rates apply and what rates you used.

Return not filed because you didn’t treat any workers

as employees. If you didn’t previously file Form 941

because you mistakenly treated all workers as

independent contractors or as nonemployees, file a Form

941 for each delinquent quarter.

On each Form 941 for which you’re entitled to use

section 3509 rates, complete the following steps.

• Write “Misclassified Employees” in bold letters

across the top margin of page 1.

• Enter a zero on line 12.

• Complete the signature area.

• Attach a completed Form 941-X (see instructions next).

On each Form 941-X, complete the following steps.

-25-

• Complete the top of Form 941-X, including the date you

discovered the error.

• Enter the wage amounts on lines 19–22, column 1.

• Enter zeros on lines 19–22, column 2.

• Complete columns 3 and 4 as instructed in Part 3.

• Provide a detailed statement on line 43.

• Complete the signature area.

If you can’t use section 3509 rates (for example,

because the workers you treated as

CAUTION nonemployees were certain statutory employees),

file a Form 941 for each delinquent quarter. Write

“Misclassified Employees” in bold letters across the top

margin of page 1 of each Form 941. Complete Form 941

using the Instructions for Form 941. Attach a Form 941-X

to each Form 941. Complete the top of Form 941-X,

including the date you discovered the error, and provide a

detailed explanation on line 43.

!

43. Explain Your Corrections

Treasury regulations require you to explain in detail the

grounds and facts relied upon to support each correction.

On line 43, describe in detail each correction you entered

in column 4 on lines 7–22, and lines 24–26c. Also use

line 43 to describe corrections made on line 6 and lines

28–40. If you need more space, attach additional sheets,

but be sure to write your name, EIN, “Form 941-X,” the

quarter you’re correcting (for example, “Quarter 2”), and

the calendar year of the quarter you’re correcting on the

top of each sheet.

You must describe the events that caused the

underreported or overreported amounts. Explanations

such as “social security and Medicare wages were

overstated” or “administrative/payroll errors were

discovered” or “taxes were not withheld” are insufficient

and may delay processing your Form 941-X because the

IRS may need to ask for a more complete explanation.

Provide the following information in your explanation for

each correction.

• Form 941-X line number(s) affected.

• Date you discovered the error.

• Difference (amount of the error).

• Cause of the error.

You may report the information in paragraph form. The

following paragraph is an example.

“The $1,000 difference shown in column 3 on lines 6, 8,

and 12 was discovered on May 15, 2023, during an

internal payroll audit. We discovered that we included

$1,000 of wages for one of our employees twice. This

correction removes the reported wages that were never

paid.”

For corrections shown on lines 19–22, explain why the

correction was necessary and attach any notice you

received from the IRS.

Who must sign the Form 941-X? The following persons

are authorized to sign the return for each type of business

entity.

• Sole proprietorship—The individual who owns the

business.

• Corporation (including a limited liability company

(LLC) treated as a corporation)—The president, vice

president, or other principal officer duly authorized to sign.

• Partnership (including an LLC treated as a

partnership) or unincorporated organization—A

responsible and duly authorized member, partner, or

officer having knowledge of its affairs.

• Single-member LLC treated as a disregarded entity

for federal income tax purposes—The owner of the

LLC or a principal officer duly authorized to sign.

• Trust or estate—The fiduciary.

Form 941-X may also be signed by a duly authorized

agent of the taxpayer if a valid power of attorney has been

filed.

Alternative signature method. Corporate officers or

duly authorized agents may sign Form 941-X by rubber

stamp, mechanical device, or computer software

program. For details and required documentation, see

Rev. Proc. 2005-39. You can find Rev. Proc. 2005-39,

2005-28 I.R.B. 82, at IRS.gov/irb/

2005-28_IRB#RP-2005-39.

Paid Preparer Use Only

A paid preparer must sign Form 941-X and provide the

information in the Paid Preparer Use Only section of Part

5 if the preparer was paid to prepare Form 941-X and isn’t

an employee of the filing entity. Paid preparers must sign

paper returns with a manual signature. The preparer must

give you a copy of the return in addition to the copy to be

filed with the IRS.

If you’re a paid preparer, enter your Preparer Tax

Identification Number (PTIN) in the space provided.

Include your complete address. If you work for a firm,

enter the firm's name and the EIN of the firm. You can

apply for a PTIN online or by filing Form W-12. For more

information about applying for a PTIN online, go to the IRS

website at IRS.gov/PTIN. You can’t use your PTIN in

place of the EIN of the tax preparation firm.

Generally, you’re not required to complete this section

if you’re filing the return as a reporting agent and have a

valid Form 8655 on file with the IRS. However, a reporting

agent must complete this section if the reporting agent

offered legal advice, for example, advising the client on

determining whether its workers are employees or

independent contractors for federal tax purposes.

Part 5: Sign Here

You must complete all five pages of Form 941-X and sign

it on page 5. If you don’t sign, processing of Form 941-X

will be delayed.

-26-

Instructions for Form 941-X (Rev. 4-2023)

Worksheet 1. Adjusted Credit for Qualified Sick and Family Leave

Wages for Leave Taken After March 31, 2020, and Before April 1,

2021

Keep for Your Records

You must use this worksheet if you claimed the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and

before April 1, 2021, on your original Form 941 and you correct any amounts used to figure the credit for qualified sick and family leave

wages for leave taken after March 31, 2020, and before April 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it

for the first time on Form 941-X. If you're a third-party payer, you must complete this worksheet for each client for which it is applicable, on a

client-by-client basis.

Step 1.

1a

1b

1c

1d

1e

1f

1g

1h

1i

1j

1j(i)

1k

1l

Step 2.

Determine the corrected employer share of social security tax this quarter after it is reduced by any credit

claimed on Form 8974, Form 5884-C, and/or Form 5884-D

Enter the amount of social security wages from Form 941, Part 1, line 5a, column 1,

or, if corrected, the amount from Form 941-X, line 8, column 1 . . . . . . . . . . . . . . . . . 1a

Enter the amount of social security tips from Form 941, Part 1, line 5b, column 1, or,

if corrected, the amount from Form 941-X, line 11, column 1 . . . . . . . . . . . . . . . . . . . 1b

Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c

Multiply line 1c by 6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d

If you're a third-party payer of sick pay that isn't an agent and you're claiming credits

for amounts paid to your employees, enter the employer share of social security tax

included on Form 941, Part 1, line 8, or, if corrected, the amount of the employer

share of social security tax on sick pay that you included on Form 941-X, line 15,

column 1 (enter as a negative number) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1e

Employer share of social security tax included on Form 941-X, line 20,

column 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1f

If you received a Section 3121(q) Notice and Demand during the quarter, enter the

amount of the employer share of social security tax from the notice . . . . . . . . . . . . . 1g

Employer share of social security tax. Combine lines 1d, 1e, 1f, and 1g . . . . . . .

1h

Enter the amount from Form 8974, line 12 (including any amended Form 8974

attached to Form 941-X) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1i

Enter the amount from Form 5884-C, line 11, for this quarter (for quarters ending

before April 1, 2021, this amount was also included on Form 941, Part 3, line 23, or,

if corrected, the amount from Form 941-X, line 32, column 1) . . . . . . . . . . . . . . . . . . 1j

Enter the amount from Form 5884-D, line 12, for this quarter . . . . . . . . . . . . . . . . . . 1j(i)

Total nonrefundable credits already used against the employer share of

social security tax. Add lines 1i, 1j, and 1j(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1k

Employer share of social security tax remaining. Subtract line 1k

from line 1h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1l

Figure the sick and family leave credit

Qualified sick leave wages reported on Form 941, Part 1, line 5a(i), column 1, or, if

corrected, the amount from Form 941-X, line 9, column 1 . . . . . . . . . . . . . . . . . . . . . 2a

2a(i) Qualified sick leave wages included on Form 941, Part 1, line 5c, or, if corrected, the

amount from Form 941-X, line 12, column 1, but not included on Form 941, Part 1,

line 5a(i), column 1, or Form 941-X, line 9, column 1, because the wages reported

on that line were limited by the social security wage base . . . . . . . . . . . . . . . . . . . . . 2a(i)

2a(ii) Total qualified sick leave wages. Add lines 2a and 2a(i) . . . . . . . . . . . . . . . . . . . . . . 2a(ii)

2a(iii) Qualified sick leave wages excluded from the definition of employment under

sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a(iii)

2b

Qualified health plan expenses allocable to qualified sick leave wages (Form 941,

Part 3, line 19, or, if corrected, Form 941-X, line 28, column 1) . . . . . . . . . . . . . . . . . 2b

2c

Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by

1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c

2d

Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b, and 2c . . . . . . .

2e

Qualified family leave wages reported on Form 941, Part 1, line 5a(ii), column 1, or,

if corrected, the amount from Form 941-X, line 10, column 1 . . . . . . . . . . . . . . . . . . . 2e

2e(i) Qualified family leave wages included on Form 941, Part 1, line 5c, or, if corrected,

the amount from Form 941-X, line 12, column 1, but not included on Form 941, Part

1, line 5a(ii), column 1, or Form 941-X, line 10, column 1, because the wages

reported on that line were limited by the social security wage base . . . . . . . . . . . . . . 2e(i)

2e(ii) Total qualified family leave wages. Add lines 2e and 2e(i) . . . . . . . . . . . . . . . . . . . . . 2e(ii)

2e(iii) Qualified family leave wages excluded from the definition of employment under

sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e(iii)

2f

Qualified health plan expenses allocable to qualified family leave wages (Form 941,

Part 3, line 20, or, if corrected, Form 941-X, line 29, column 1) . . . . . . . . . . . . . . . . . 2f

2g

Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii)

by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g

2h

Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f, and 2g . . . . .

2i

Credit for qualified sick and family leave wages. Add lines 2d and 2h . . . . . . . .

2j

Nonrefundable portion of credit for qualified sick and family leave wages for

leave taken after March 31, 2020, and before April 1, 2021. Enter the smaller of

line 1l or line 2i. Enter this amount on Form 941-X, line 17, column 1 . . . . . . . . . . . .

2k

Refundable portion of credit for qualified sick and family leave wages for

leave taken after March 31, 2020, and before April 1, 2021. Subtract line 2j from

line 2i and enter this amount on Form 941-X, line 25, column 1 . . . . . . . . . . . . . . . . .

2a

Instructions for Form 941-X (Rev. 4-2023)

-27-

2d

2h

2i

2j

2k

Worksheet 2. Adjusted Employee Retention Credit for Qualified

Wages Paid After March 12, 2020, and Before July 1, 2021

Keep for Your Records

You must use this worksheet if you claimed the employee retention credit for qualified wages paid after March 12, 2020, and before July 1,

2021, on your original Form 941 and you correct any amounts used to figure the employee retention credit for qualified wages paid after

March 12, 2020, and before July 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it for the first time on Form

941-X. If you're a third-party payer, you must complete this worksheet for each client for which it is applicable, on a client-by-client basis.

Step 1.

1a

1b

1c

1d

1e

1f

1g

1h

1i

1j

1k

1l

1m

1n

Step 2.

2a

2b

2c

2d

2e

2f

2g

2h

2i

2j

2k

Determine the corrected employer share of social security tax this quarter after it is reduced by any credit

claimed on Form 8974, Form 5884-C, and/or Form 5884-D

If you completed Worksheet 1 to claim a credit for qualified sick and family leave

wages for leave taken after March 31, 2020, and before April 1, 2021, for a quarter

in which you're also claiming the employee retention credit, enter the amount from

Worksheet 1, Step 1, line 1l, and go to Step 2. Otherwise, complete lines 1b–1n

below and then go to Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1a

Enter the amount of social security wages from Form 941, Part 1, line 5a, column 1,

or, if corrected, the amount from Form 941-X, line 8, column 1 . . . . . . . . . . . . . . . . . 1b

Enter the amount of social security tips from Form 941, Part 1, line 5b, column 1, or,

if corrected, the amount from Form 941-X, line 11, column 1 . . . . . . . . . . . . . . . . . . . 1c

Add lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d

Multiply line 1d by 6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1e

If you're a third-party payer of sick pay that isn't an agent and you're claiming credits

for amounts paid to your employees, enter the employer share of social security tax

included on Form 941, Part 1, line 8, or, if corrected, the amount of the employer

share of social security tax on sick pay that you included on Form 941-X, line 15,

column 1 (enter as a negative number) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1f

Employer share of social security tax included on Form 941-X, line 20,

column 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1g

If you received a Section 3121(q) Notice and Demand during the quarter, enter the

amount of the employer share of social security tax from the notice . . . . . . . . . . . . . 1h

Employer share of social security tax. Combine lines 1e, 1f, 1g, and 1h . . . . . . .

1i

Enter the amount from Form 941, Part 1, line 11a, or, if corrected, the amount from

Form 941-X, line 16, column 1 (credit from Form 8974) . . . . . . . . . . . . . . . . . . . . . . . 1j

Enter the amount from Form 5884-C, line 11, for this quarter (for quarters ending

before April 1, 2021, this amount was also included on Form 941, Part 3, line 23, or,

if corrected, the amount from Form 941-X, line 32, column 1) . . . . . . . . . . . . . . . . . . 1k

Enter the amount from Form 5884-D, line 12, for this quarter . . . . . . . . . . . . . . . . . . 1l

Total nonrefundable credits already used against the employer share of

social security tax. Add lines 1j, 1k, and 1l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1m

Employer share of social security tax remaining. Subtract line 1m

from line 1i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1n

Figure the employee retention credit

Caution: For qualified wages paid before January 1, 2021, the cumulative total for

all quarters of 2020 that can be claimed on lines 2a, 2b, 2c, and 2d can't exceed

$10,000 per employee. For qualified wages paid after December 31, 2020, the total

amount included on lines 2a and 2b can't exceed $10,000 per employee each

quarter.

Qualified wages (excluding qualified health plan expenses) for the employee

retention credit (Form 941, Part 3, line 21, or, if corrected, Form 941-X, line 30,

column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a

Qualified health plan expenses allocable to qualified wages for the employee

retention credit (Form 941, Part 3, line 22, or, if corrected, Form 941-X, line 31a,

column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b

Qualified wages (excluding qualified health plan expenses) paid March 13, 2020,

through March 31, 2020, for the employee retention credit (Form 941, Part 3,

line 24, or, if corrected, Form 941-X, line 33a, column 1). Enter an amount here only

if filing a Form 941-X to correct the second quarter of 2020 . . . . . . . . . . . . . . . . . . . . 2c

Qualified health plan expenses allocable to qualified wages paid March 13, 2020,

through March 31, 2020, for the employee retention credit (Form 941, Part 3,

line 25, or, if corrected, Form 941-X, line 34, column 1). Enter an amount here only if

filing a Form 941-X to correct the second quarter of 2020 . . . . . . . . . . . . . . . . . . . . . 2d

Add lines 2a, 2b, 2c, and 2d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e

Retention credit. If you're correcting the second, third, or fourth quarter of 2020,

multiply line 2e by 50% (0.50). If you're correcting the first or second quarter of

2021, multiply line 2e by 70% (0.70) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the amount of the employer share of social security tax from Step 1, line 1a,

or, if applicable, Step 1, line 1n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g

Enter the amount of the nonrefundable portion of the credit for qualified sick and

family leave wages for leave taken after March 31, 2020, and before April 1, 2021

(this amount may come from Worksheet 1, Step 2, line 2j, in these instructions if

you're correcting that credit for the quarter or you may need to enter the credit

claimed on your original Form 941 for the quarter) . . . . . . . . . . . . . . . . . . . . . . . . . . 2h

Subtract line 2h from line 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2i

Nonrefundable portion of employee retention credit. Enter the smaller of line 2f

or line 2i. Enter this amount on Form 941-X, line 18a, column 1 . . . . . . . . . . . . . . . .

Refundable portion of employee retention credit. Subtract line 2j from line 2f

and enter this amount on Form 941-X, line 26a, column 1 . . . . . . . . . . . . . . . . . . . . .

-28-

2f

2j

2k

Instructions for Form 941-X (Rev. 4-2023)

Worksheet 3. Adjusted Credit for Qualified Sick and Family Leave

Wages for Leave Taken After March 31, 2021, and Before October 1,

2021

Keep for Your Records

You must use this worksheet if you claimed the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021, on

your original Form 941 and you correct any amounts used to figure the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before

October 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it for the first time on Form 941-X. If you're a third-party payer, you must complete

this worksheet for each client for which it is applicable, on a client-by-client basis.

Step 1.

1a

1b

1c

1d

1e

1f

1g

1h

Step 2.

2a

2a(i)

2a(ii)

2a(iii)

2a(iv)

2b

2c

2d

2e

2f

2g

2g(i)

2g(ii)

2g(iii)

2g(iv)

2h

2i

2j

2k

2l

2m

2n

2o

2p

2q

2r

2s

Determine the corrected employer share of Medicare tax

Enter the amount of Medicare wages from Form 941, Part 1, line 5c, column 1, or, if corrected, the

amount from Form 941-X, line 12, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Multiply line 1a by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you're a third-party payer of sick pay that isn't an agent and you're claiming credits for amounts

paid to your employees, enter the employer share of Medicare tax included on Form 941, Part 1,

line 8, or, if corrected, the amount of the employer share of Medicare tax on sick pay that you

included on Form 941-X, line 15, column 1 (enter as a negative number) . . . . . . . . . . . . . . . . . .

Employer share of Medicare tax included on Form 941-X, line 21, column 4 . . . . . . . . . . . . . . . .

If you received a Section 3121(q) Notice and Demand during the quarter, enter the amount of the

employer share of Medicare tax from the notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employer share of Medicare tax. Combine lines 1b, 1c, 1d, and 1e . . . . . . . . . . . . . . . . . . . .

For corrections to quarters beginning after December 31, 2022, only, enter the amount from Form

8974, line 16 (including any amended Form 8974 attached to Form 941-X) . . . . . . . . . . . . . . . . .

Employer share of Medicare tax remaining. Subtract line 1g from line 1f . . . . . . . . . . . . . . . .

1a

1b

1c

1d

1e

1f

1g

Figure the sick and family leave credit

Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021,

reported on Form 941, Part 3, line 23, or, if corrected, the amount from Form 941-X, line 35,

column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a

Qualified sick leave wages included on Form 941, Part 3, line 23, or, if corrected, the amount from

Form 941-X, line 35, column 1, that

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