Form 943-X -Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund

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Instructions for Form 943-X

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13:55 - 12-MAR-2010

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Instructions for Form 943-X

Department of the Treasury
Internal Revenue Service

(Rev. March 2010)
Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or
Claim for Refund
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New?
COBRA premium assistance payments credit. Employers
who make COBRA premium assistance payments for
assistance eligible individuals are allowed a credit for the
payments on Form 943. Any errors discovered on previously
filed Forms 943 for this credit or for the number of individuals
provided COBRA premium assistance are corrected on Form
943-X. See instructions for lines 15a and 15b on page 7.
New form. The Internal Revenue Service (IRS) has developed
Form 943-X, Adjusted Employer’s Annual Federal Tax Return
for Agricultural Employees or Claim for Refund, to replace Form
941c, Supporting Statement to Correct Information. Use Form
943-X to make corrections to previously filed Forms 943. Do
not attach Form 943-X to your Form 943; file Form 943-X
separately.
Form 943-X replaces Form 843, Claim for Refund or
Request for Abatement, for employers to request a refund or
abatement of overreported employment taxes. Continue to use
Form 843 when requesting a refund or abatement of assessed
interest or penalties.
We believe you will find Form 943-X and its instructions
easier to understand and fill out than Form 941c. At the same
time, the new form will enable the IRS to make corrections to
employment taxes more accurately and efficiently. Please read
both the form and these instructions carefully to become
familiar with the many changes.
Background. Treasury Decision 9405 changed the process
for making interest-free adjustments to employment taxes
reported on Form 943, Employer’s Annual Federal Tax Return
for Agricultural Employees, and for filing a claim for refund of
employment taxes. Treasury Decision 9405, 2008-32 I.R.B.
293, is available at www.irs.gov/irb/2008-32_irb/ar13.html. You
will use the revised 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 the Form 943 year during which you file Form 943-X.
(However, see the CAUTION on page 2.) You will use the claim
process if you overreported employment taxes and are
requesting a refund or abatement of the overreported amount.
We use the terms “correct” and “corrections” on Form 943-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.
If you have comments or suggestions for improving Form
943-X or these instructions, we would be happy to hear from
you. Write to the address shown in the Privacy Act and
Paperwork Reduction Act Notice at the end of these
Instructions.
New process for correcting employment taxes. After
December 31, 2008, when you discover an error on a
previously filed Form 943, you must:
• Correct that error using Form 943-X,
• File a separate Form 943-X for each Form 943 that you are
correcting, and
• File Form 943-X separately. Do not file Form 943-X with
Form 943.
Beginning with 2009, you will no longer be able to correct
prior year errors using line 8 on Form 943. However, continue

using line 8 on Form 943 to report current year adjustments for
fractions of cents, third-party sick pay, and group-term life
insurance.
Report the correction of underreported and overreported
amounts for the same year on a single Form 943-X, unless you
are requesting a refund or abatement. If you are requesting a
refund or abatement and are correcting both underreported and
overreported amounts, file one Form 943-X correcting the
underreported amounts only and a second Form 943-X
correcting the overreported amounts.
Follow the chart on the back of Form 943-X for help in
choosing whether to use the adjustment process or the claim
process.
Do not use Form 943-X to correct Form CT-1, 941, 944,
or Form 945. Instead, use the “X” form that corresponds
CAUTION to those returns (Form CT-1 X, 941-X, 944-X, or Form
945-X).

!

General Instructions:
Understanding Form 943-X
What Is the Purpose of Form 943-X?
Use Form 943-X to correct errors on a Form 943 that you
previously filed. Use Form 943-X to correct:
• Income tax withheld from wages,
• Taxable social security wages,
• Taxable Medicare wages,
• Advance earned income credit (EIC) payments made to
employees, and
• Credits for COBRA premium assistance payments.
If you did not file a Form 943 for one or more years, do not
use Form 943-X. Instead, file Form 943 for each of those years.
See also When Should You File Form 943-X? on page 2.
However, if you did not file Forms 943 because you
improperly treated workers as independent contractors or
nonemployees and are now reclassifying them as employees,
see the instructions for line 18 on page 7.
You have additional requirements to complete when filing
Form 943-X, such as certifying that you filed (or will file) all
applicable Forms W-2, Wage and Tax Statement, and Forms
W-2c, Corrected Wage and Tax Statement. For corrections of
overreported federal income tax, social security or Medicare
tax, you must make any certifications that apply to your
situation.
Be sure to give us a detailed explanation on line 19 for each
correction that you show on Form 943-X.

Where Can You Get Help?
For help filing Form 943-X or for questions about federal
employment taxes and tax corrections, you can:
• Call the IRS toll-free at 1-800-829-4933 (TTY/TDD for the
hearing impaired at 1-800-829-4059),
• Visit the IRS website at www.irs.gov/businesses and click on
“Employment Taxes,” or
• Get Pub. 51 (Circular A), Agricultural Employer’s Tax Guide.
See also How Can You Order Forms and Publications from
the IRS? on page 9.

Cat. No. 20333Q

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Instructions for Form 943-X

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If you discovered an error on or before December 31,

When Should You File Form 943-X?

TIP 2008 but did not report it as a line adjustment on Form

File Form 943-X when you discover an error on a previously
filed Form 943.

943 for any year ended before 2009 and did not file a
claim (Form 843), you may use Form 943-X to correct the error.
File Form 943-X for the year in which you made the error.

However, if your only errors on Form 943 relate to federal
tax liabilities reported on your Monthly Summary of Federal Tax
Liability in Form 943 or on Form 943-A, Agricultural Employer’s
Record of Federal Tax Liability, do not file Form 943-X. For
more information about correcting federal tax liabilities reported
on your Monthly Summary of Federal Tax Liability in Form 943
or on Form 943-A, see the instructions for Form 943-A.

Is There a Deadline for Filing Form
943-X?
Generally, you may correct overreported taxes on a previously
filed Form 943 if you file Form 943 – X within 3 years of the date
Form 943 was filed or 2 years from the date you paid the tax
reported on Form 943, whichever is later. You may correct
underreported taxes on a previously filed Form 943 if you file
Form 943-X within 3 years of the date the Form 943 was filed.
We call each of these time frames a “period of limitations.” For
purposes of the period of limitations, Form 943 is considered
filed on April 15 of the succeeding calendar year if filed before
that date.

Due dates. The due date for filing Form 943-X to qualify for
interest-free adjustments for underpayments or overpayments
depends on when you discover an error and if you
underreported or overreported tax. If you underreported tax,
see Underreported tax below. For overreported amounts, you
may choose to either make an interest-free adjustment or file a
claim for refund or abatement. If you are correcting
overreported amounts, see Overreported tax — credit and
Overreported tax — claim below.

Example: You filed your 2008 Form 943 on January 27,
2009 and payments were timely made. (The IRS treats the
return as if it were filed on April 15, 2009.) On January 20,
2012, you discover that you overreported social security and
Medicare wages on that form by $10,000. To correct the error,
you must file Form 943-X by April 15, 2012, which is the end of
the period of limitations, and use the claim process.

If any due date falls on a Saturday, Sunday, or legal holiday,
you may file Form 943-X on the next business day. If we
receive Form 943-X after the due date, we will treat Form 943-X
as filed on time if the envelope containing Form 943-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 on
or before the due date. If you do not follow these guidelines, we
will consider Form 943-X filed when it is actually received. See
Pub. 51 (Circular A) for more information on IRS-designated
private delivery services.

If you file Form 943-X to correct overreported amounts
in the last 90 days of a period of limitations (after
CAUTION January 15, 2012, in the example above), you must use
the claim process. You cannot use the adjustment process. If
you are also correcting underreported amounts, you must file
another Form 943-X to correct the underreported amounts
using the adjustment process and pay any tax due.

!

Underreported tax. If you are correcting underreported tax,
you must file Form 943-X by the due date of the return for the
return period in which you discovered the error. When you
discover that you underreported tax on a previously filed Form
943, file Form 943-X no later than January 31 of the following
year. Pay the amount you owe when you file. Filing and paying
on time will generally ensure that your correction is interest free
and not subject to failure-to-pay or failure-to-deposit penalties.
See What About Penalties and Interest? on page 3. For details
on how to make a payment, see the instructions for line 16 on
page 7.

Where Should You File Form 943-X?
Send your completed Form 943-X to the Internal Revenue
Service Center shown below.
IF you are in . . . . . . .

Example — You owe tax: On February 11, 2010, you
discover that you underreported $1,000 of social security and
Medicare wages on your 2009 Form 943. File Form 943-X and
pay the amount you owe by January 31, 2011 because you
discovered the error in 2010 and January 31, 2011 is the due
date for that year. If you file Form 943-X before January 31,
2011, pay the amount you owe when you file.
Overreported tax — credit. If you overreported tax on Form
943 and choose to apply the credit to Form 943, file Form
943-X soon after you discovered the error but more than 90
days before the period of limitations on credit or refund for Form
943 expires. See Is There a Deadline for Filing Form 943-X?
below.
Example — You want your credit applied to Form 943:
You filed and paid your 2009 Form 943 on January 30, 2010.
On May 1, 2010, you discover that you overreported tax on your
2009 Form 943. You file Form 943-X on June 1, 2010. IRS
treats your credit as a tax deposit made on January 1, 2010.
When you file your 2010 Form 943, include the amount from
line 16 of Form 943-X on line 12 “Total deposits” of your 2010
Form 943.
Overreported tax — claim. If you overreported tax on Form
943, you may choose to file a claim for refund or abatement on
Form 943-X any time before the period of limitations on credit or
refund expires. (If you need to correct any underreported
amounts, you must file another Form 943-X reporting only
corrections to the underreported amounts.) See Is There a
Deadline for Filing Form 943-X? below.

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THEN use this address . . .

Special filing addresses for
exempt organizations; federal,
state, and local governmental
entities; and Indian tribal
governmental entities; regardless
of location

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0008

Connecticut, Delaware, District of
Columbia, 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

Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0008

Alabama, Alaska, Arizona,
Arkansas, California, Colorado,
Florida, 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 84201-0008

No legal residence or principal
place of business in any state

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

Page 3 of 9

Instructions for Form 943-X

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No correction will be eligible for interest-free treatment if (a)
the amounts underreported relate to an issue that was raised in
an examination of a prior period, (b) you knowingly
underreported your employment tax liability, (c) you received a
notice and demand for payment after assessment, or (d) you
received a Notice of Determination of Worker Classification.

How Should You Complete Form 943-X?
Use a Separate Form 943-X for Each Year You
Are Correcting
Use a separate Form 943-X for each Form 943 that you are
correcting. For example, if you found errors on your Forms 943
for 2008 and 2009, file one Form 943-X to correct the 2008
Form 943. File a second Form 943-X to correct the 2009 Form
943.

Overview of the New Process
The new process for adjusting Form 943 or filing a claim is
outlined below.
If you underreported the tax. If you underreported the tax
on a previously filed Form 943, check the box on line 1 and pay
any additional amount you owe when you file Form 943-X. For
details on how to make a payment, see the instructions for line
16 on page 7.
Example — You underreported employment taxes: On
June 20, 2010, you discover an error that results in additional
tax on your 2009 Form 943. File Form 943-X by January 31,
2011, and pay the amount you owe when you file. See When
Should You File Form 943-X? on page 2. Do not attach Form
943-X to your 2010 Form 943.
If you overreported the tax. If you overreported the tax on
a previously filed Form 943, you may choose to:
• use the adjustment process. Check the box on line 1 to apply
any credit (negative amount) from line 16 to Form 943 for the
year during which you file Form 943-X, or
• use the claim process. Check the box on line 2 to file a claim
on Form 943-X requesting a refund or abatement of the amount
shown on line 16.

EIN, Name, and Address
Enter your EIN, name, and address in the spaces provided.
Also enter your name and EIN on the top of pages 2 and 3, and
on any attachments. If your address has changed since you
filed your Form 943, enter the corrected information and the
IRS will update your address of record.

Return You Are Correcting
Enter the calendar year of the Form 943 you are correcting in
the box at the top of page 1. Enter the calendar year on pages
2 and 3, and on any attachments.

Enter the Date You Discovered Errors
You must enter the date you discovered errors. If you are
reporting several errors that you discovered at different times,
enter the earliest date you discovered them here. You discover
an error when you have enough information to be able to
correct it. On line 19, report any subsequent dates and related
errors.

Must You Make an Entry on Each Line?

To ensure that the IRS has enough time to process a

TIP credit for an overreporting adjustment in the year

You must provide all of the information requested at the top of
page 1 of Form 943-X. You must check one box (but not both)
in Part 1. You must check the box on line 3 and any boxes that
apply on lines 4 and 5. In Part 3, if any line does not apply,
leave it blank. Complete Parts 4 and 5 as instructed.

during which you file Form 943-X, you are encouraged
to file Form 943-X correcting the overreported amount in the
first eleven months of a year. For example, if you discover an
overreported amount in December, you may want to file Form
943-X during the first eleven months of the next year. This
should ensure that the IRS will have enough time to process the
Form 943-X so that the credit will be posted before you file
Form 943, thus avoiding an erroneous balance due notice from
the IRS. See the example below.
Example — You want your overreported tax applied as a
credit to Form 943: On December 22, 2010, you discover you
overreported your tax on your 2009 Form 943 and want to
make a correction using the adjustment process. To allow the
IRS enough time to process the credit, you file Form 943-X on
January 6, 2011, and take the credit on your 2011 Form 943 .

How Should You Report Negative Amounts?
Form 943-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 are 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 943-X?

Specific Instructions:

You can help the IRS process Form 943-X timely and
accurately if you:
• 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. Do not round entries to
whole dollars,
• Complete all three pages and sign Form 943-X on page 3,
and
• Staple multiple sheets in the upper-left corner.

Part 1: Select ONLY One Process
Because Form 943-X may be used to file either an adjusted
employment tax return or a claim for refund or abatement, you
must check one box in either line 1 or line 2. Do not check both
boxes.

1. Adjusted Employment Tax Return
Check the box on line 1 if you are correcting underreported
amounts or overreported amounts and you would like to use the
adjustment process to correct the errors.
If you are correcting both underreported amounts and
overreported amounts on this form, you must check this box. If
you check this box, any negative amount shown on line 16 will
be applied as a credit (tax deposit) to your Form 943 for the
year in which you are filing this form. See Example — You want
your overreported tax applied as a credit to Form 943 above.
If you owe tax. Pay the amount shown on line 16 when you
file Form 943-X. Generally, you will not be charged interest if
you file on time, pay on time, enter the date you discovered the
error, and explain the correction on line 19.

What About Penalties and Interest?
Generally, your correction of an underreported amount will not
be subject to a failure-to-pay penalty, failure-to-deposit penalty,
or interest if you:
• File on time (by the due date of Form 943 for the year in
which you discover the error),
• Pay the amount shown on line 16 when you file Form 943-X,
• Enter the date you discovered the error, and
• Explain in detail the grounds and facts relied on to support
the correction.

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Instructions for Form 943-X

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If you have a credit. You overreported employment taxes
(you have a negative amount on line 16) and want the IRS to
apply the credit to Form 943 for the period during which you
filed Form 943-X. The IRS will apply your credit on the first day
of the Form 943 year during which you filed Form 943-X.
However, the credit you show on line 16 of Form 943-X may not
be fully available on your Form 943 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 943 was reduced
because of unpaid taxes, penalties, or interest.

If you obtained written statements from some employees
but you could not locate or secure the cooperation of the
remaining employees, check all applicable boxes. Provide a
summary in line 19 of the amount of the corrections for both the
employees who provided written statements and for those who
did not.
4a. Check the box on line 4a if your overreported amount
includes each affected employee’s share of overcollected taxes.
You are certifying that you repaid or reimbursed the employee’s
share of prior year taxes and you received written statements
from the employees stating that they did not and will not receive
a refund or credit for the prior year taxes.
Example. The following is an example of the written
statement that is required from employees.
Employee name
Employer name
I have received a repayment of $_________ as
overcollected social security and Medicare taxes for 20___. I
have not claimed a refund of or credit for the overcollected
taxes from the IRS, or if I did, that claim has been rejected;
and I will not claim a refund or a credit of the amount.
Employee signature
Date

Do not check the box on line 1 if you are correcting
overreported amounts and the period of limitations on
CAUTION credit or refund for Form 943 will expire within 90 days
of the date you file Form 943-X. Instead, check the box on line
2. See Is There a Deadline for Filing Form 943-X? on page 2.

!

2. Claim
Check the box on line 2 to use the claim process if you are
correcting overreported amounts only and you are claiming a
refund or abatement for the negative amount (credit) shown on
line 16. Do not check this box if you are correcting ANY
underreported amounts on this form.
You must check the box on line 2 if you have a credit and
the period of limitations on credit or refund for Form 943 will
expire within 90 days of the date you file Form 943-X. See Is
There a Deadline for Filing Form 943-X? on page 2.
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. Get Publication 556, Examination
of Returns, Appeal Rights, and Claims for Refund, for more
information.
Unless the IRS corrects Form 943-X during processing or
you owe other taxes, penalties, or interest, the IRS will refund
the amount shown on line 16, plus any interest that applies.

Do not send these statements to the IRS. Keep them for
your records.
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 would not
(or could not) 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 security tax, and
Medicare tax that you did not withhold from your employees.

5. Certifying Claims
If you are filing a claim for refund or abatement of overreported
federal income tax, social security tax, or 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
could not locate or secure the cooperation of the remaining
employees, check all applicable boxes. Provide a summary in
line 19 of the amount of the corrections for both the employees
who provided statements or consents and for those who did
not. You may not file a refund claim to correct federal income
tax withheld from employees.
5a. Check the box on line 5a if your overreported tax includes
each affected employee’s share of prior year social security and
Medicare tax. You are certifying that you repaid or reimbursed
to the employees their share of prior year social security and
Medicare tax and you received written statements from those
employees stating that they did not and will not receive a refund
or credit for the prior year taxes.
5b. Check the box on line 5b if your overreported tax includes
each affected employee’s share of prior year social security and
Medicare tax and you have not yet repaid or reimbursed the
employee share of taxes. You are 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 did not and
will not receive a refund or credit for the prior year taxes.
Example. The following is an example of the consent and
written statement that is required from employees when you are
filing a claim for refund and have not yet repaid or reimbursed
the employee share of taxes.
Employee name
Employer name
I give my consent to have my employer (named above) file a
claim on my behalf with the IRS requesting $_________ in
overcollected social security and Medicare taxes for 20___. I
have not claimed a refund of or credit for the overcollected
taxes from the IRS, or if I did, that claim has been rejected;
and I will not claim a refund or a credit of the amount.

Part 2: Complete the Certifications
You must complete all certifications that apply by checking the
appropriate boxes. If all of your corrections relate to
underreported amounts, complete line 3 only; skip lines 4 and 5
and go to Part 3.
If your corrections relate to overreported amounts, you have
a duty to assure 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 (a) repay or reimburse your employees for the
overcollection of employee social security and Medicare taxes
or (b) obtain consents from your employees to file a claim on
their behalf.

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, as required, showing your employees’
correct wage and tax amounts. See the Instructions for Forms
W-2 and W-3 and the Instructions for Forms W-2c and W-3c for
detailed information about filing requirements. References to
Form W-2 on Form 943-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
943-X do not change amounts shown on those forms. For
example, if your only correction to Form 943 involves misstated
tax adjustments (see the instructions for line 9), check the box
on line 3 to certify that you already filed all required Forms W-2
and W-2c.

4. Certifying Overreporting Adjustments
If you overreported federal income tax, social security tax, or
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.

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Instructions for Form 943-X

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Employee signature
Date

Example — Social security wages decreased: You
reported $9,000 as social security wages on line 2 of your 2008
Form 943. In December of 2009, you discovered that you
included $2,000 in social security wages for one of your
employees twice. To correct the error, figure the difference on
Form 943-X as shown.

Do not send these statements to the IRS. Keep them for
your records.
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 943-X,
but do not check a box on line 5. Tell us on line 19 that you
‘‘have not repaid or reimbursed employees or obtained
consents.’’ However, you must certify that you have repaid or
reimbursed your employees or obtained consents before the
IRS can grant 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 tax. Affected employees did not give you consent to
file a claim for refund for the employee share of social security
and Medicare tax, they could not be found, or would not (or
could not) 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, and
Medicare tax that you did not withhold from your employees.

Column 1 (corrected amount)
Column 2 (from line 2 of Form 943)
Column 3 (difference)

7,000.00
- 9,000.00
- 2,000.00

Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (12.4%)
Column 4 (tax correction)

-2,000.00
x .124
-248.00

Be sure to explain the reasons for this correction on line 19.

7. Total Wages Subject to Medicare Tax
If you are correcting the taxable Medicare wages you reported
on line 4 of Form 943, 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 7 (column 1)
-line 7 (column 2)
line 7 (column 3)

Part 3: Enter the Corrections for This
Year
What Amounts Should You Report in Part 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 .029 (2.9% tax rate) and
enter that result in column 4.

In columns 1 and 2 of lines 6 through 8, show amounts for all of
your employees, not just for those employees whose amounts
you are correcting.

line 7 (column 3)
x .029
line 7 (column 4)

If a correction that you report in column 4 includes both
underreported and overreported amounts (see the instructions
for line 17), give us details for each error on line 19.

If the amount in column 3 used a minus sign,
also use a minus sign in column 4.

Note. If you are correcting only the employer share of tax on a
decrease to Medicare wages, use .0145 (1.45%) when
multiplying the amount in column 3. If you are 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 19.
Example — Medicare wages decreased: Following
Example — Social security wages decreased in the instructions
for line 6, the wages that you counted twice were also taxable
Medicare wages. To correct the error, figure the difference on
Form 943-X as shown.

Because special circumstances apply for lines 9 through 12
and 14, read the instructions for each line carefully before
entering amounts in the columns.
If you previously adjusted or amended Form 943 using
Form 941c, Form 943-X, Form 843, an “amended” Form
CAUTION 943, by filing a “supplemental” Form 943, or because of
an IRS examination change, show amounts in column 2 that
include those previously reported corrections.

!

6. Taxable Wages Subject to Social Security
Tax:

Column 1 (corrected amount)
Column 2 (from line 4 of Form 943)
Column 3 (difference)

7,000.00
- 9,000.00
- 2,000.00

If you are correcting the taxable social security wages you
reported on line 2 of Form 943, 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.

Use the difference in column 3 to determine your tax
correction.

line 6 (column 1)
-line 6 (column 2)
line 6 (column 3)

Column 3 (difference)
Tax rate (2.9%)
Column 4 (tax correction)

If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.

Be sure to explain the reasons for this correction on line 19.

8. Federal Income Tax Withheld

Multiply the amount in column 3 by .124 (12.4% tax rate) and
enter that result in column 4.
line 6 (column 3)
x .124
line 6 (column 4)

-2,000.00
x .029
-58.00

If you are correcting the federal income tax withheld from
wages, 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.

If the amount in column 3 used a minus sign,
also use a minus sign in column 4.

Note. If you are correcting only the employer share of tax on a
decrease to social security wages, use .062 (6.2%) when
multiplying the amount shown in column 3. If you are 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
19.

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.

Copy the amount in column 3 to column 4. Include any
minus sign shown in column 3.

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You may correct federal income tax withholding errors
for prior years if the amounts shown on Form 943 do not
CAUTION agree with the amounts you actually withheld, that is, an
administrative error. See section 9 of Pub. 51 (Circular A) for
more information about administrative errors.
Example — Failure to withhold income tax when
required: You were required to withhold $400 of federal
income tax from an employee bonus that was paid in December
of 2009 but you withheld nothing. You discovered the error on
March 15, 2010. You cannot file Form 943-X to correct your
2009 Form 943 because the error involves a previous year and
the amount previously reported for the employee represents the
actual amount withheld from the employee during 2009.
Example — Administrative error reporting income tax:
You had three employees. In 2009, you withheld $1,000 of
federal income tax from employee A, $2,000 from employee B,
and $6,000 from employee C. The total amount of federal
income tax you withheld was $9,000. You mistakenly reported
$6,000 on line 6 of your 2009 Form 943. You discovered the
error on February 17, 2010. This is an example of an
administrative error that may be corrected in a later calendar
year because the amount actually withheld from employees’
wages differs from the amount reported on Form 943. Use
Form 943-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.

Here is how you would enter the numbers on Form 943-X.

!

Column 1 (corrected amount)
Column 2 (from line 6 of Form 943)
Column 3 (difference)

Column 1
(corrected amount)
-9,600.00

In this example, you are claiming a credit for $2,700 in
overreported tax for your 2008 Form 943. 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 19.
Only use line 9 to correct adjustments for fractions of
cents, third-party sick pay, or group-term life insurance
CAUTION previously reported. File a separate Form 943-X for
each year being corrected.

!

10–12. Special Additions to Wages for Federal
Income Tax, Social Security Tax, and Medicare
Tax
Section 3509 provides special rates for the employee share of
social security and Medicare taxes and income tax withholding
when workers are reclassified as employees in certain
circumstances. The applicable rate depends on whether you
filed required information returns. An employer cannot recover
any tax paid under this provision from the employees. The full
employer share of social security and Medicare tax is due for all
reclassifications.

9,000.00
- 6,000.00
3,000.00

Note. Section 3509 rates are not available if you intentionally
disregarded the requirements to withhold taxes from the
employee, or if you withheld income tax but did not withhold
social security and Medicare tax. Section 3509 rates are also
not available for certain statutory employees.

Be sure to explain the reasons for this correction on line 19.

9. Tax Adjustments
Do not enter an amount on line 9 unless you need to correct
any adjustments reported on line 8 of a previously filed Form
943. Amounts reported on line 9 reflect corrections of amounts
misstated on line 8 of Form 943. See Example — Adjustment
for third-party sick pay underreported below.

On lines 10, 11, and 12 enter only corrections to wages
resulting from reclassifying certain workers as employees when
section 3509 rates are used to calculate the taxes.
Unlike other lines on Form 943-X, enter in column 1 only the
corrected wages for workers being reclassified, not the amount
paid to ALL employees. Enter previously reported wages to
reclassified employees (if any) in column 2. To get the amount
for column 4, use the applicable section 3509 rates. 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 18 for more information.

Enter the corrected amount for tax adjustments in column 1.
Enter the originally reported or previously corrected amount
from line 8 of Form 943 in column 2. In column 3, enter the
difference between columns 1 and 2.

If you misreported the taxes from worker reclassification

If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.

TIP on line 8 on a pre-2009 Form 943, you may adjust the
taxes using lines 10 through 12 of Form 943-X. Be sure
to complete all of the columns and provide a detailed
explanation on line 19.

You may need to report negative numbers in any
TIP column. Make sure that the difference you enter in
column 3 accurately represents the change to
adjustments originally reported or previously corrected on line 8
of Form 943.
Copy the amount in column 3 to column 4. Include any
minus sign shown in column 3.
On line 19, describe what you misreported on Form 943. Tell
us if your adjustment is for fractions of cents, third-party sick
pay, or group-term life insurance.
Example — Adjustment for 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 2009 Form 943. Your third-party sick pay adjustment
should have 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 2010. To correct the error, figure
the difference on Form 943-X as shown.
Column 1 (corrected amount)
Column 2 (from line 8 of Form 943)
Column 3 (difference)

Column 3
(difference)
-2,700.00

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

Report the 3,000.00 as a tax correction in column 4.

line 9 (column 1)
-line 9 (column 2)
line 9 (column 3)

Column 2
(from line 8, Form 943)
-6,900.00

13. Subtotal
Combine the amounts on lines 6 through 12 of column 4.
Example: You entered “-500” in column 4 of line 6,
“-100.00” in column 4 of line 7, and “1,400.00” in column 4 of
line 9. Combine these amounts and enter “800.00” in column 4
of line 13.
Line 6
Line 7
Line 9
Line 13

-500.00
-100.00
+1,400.00
800.00

14. Advance Earned Income Credit (EIC)
Payments Made to Employees
If you are correcting the advance earned income credit (EIC)
payments made to your employees that you reported on line 10
of Form 943, 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.

-9,600.00
- (6,900.00)
-2,700.00

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Instructions for Form 943-X

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line 14 (column 1)
-line 14 (column 2)
line 14 (column 3)

reported only once per quarter. For example, an assistance
eligible individual who made monthly payments during the
quarter would only be reported as one individual.

If the amount in column 2 is larger than
the amount in column 1, use a minus sign
in column 3.

16. Total
Combine lines 13, 14, and 15a and enter the result on line 16.
Your credit. If the amount entered on line 16 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 line
12 (“Total deposits”) of Form 943 for the year during which you
filed Form 943-X. Do not make any changes to your Monthly
Summary of Federal Tax Liability in Form 943 or on Form
943-A. The amounts reported in your Monthly Summary of
Federal Tax Liability or on Form 943-A should reflect your
actual tax liability for the period.
• If you checked the box on line 2, you are 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. You must pay the amount you owe when
you file Form 943-X. You may not use any credit that you show
on another Form 943-X to pay the amount you owe, even if you
filed for the amount you owe and the credit at the same time.
You may pay the amount you owe on line 16 electronically
using the Electronic Federal Tax Payment System (EFTPS), by
credit card, debit card, or by a check or money order.
• The preferred method of payment is EFTPS. For more
information, visit www.eftps.gov, call EFTPS Customer Service
at 1-800-555-4477 toll free, or get Pub. 966, The Secure Way to
Pay Your Federal Taxes.
• To pay by credit or debit card, visit the IRS website at www.
irs.gov and click on the electronic IRS link.
• 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 943-X,” and the year corrected.

Copy the amount in column 3 to column 4. However, to
properly show the correction as a credit or balance due
CAUTION 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. Remember, negative amounts in
column 4 represent credits and positive amounts in column 4
represent additional tax.
Examples: If line 14, column 3 shows “560.00,” enter
“-560.00” in column 4.
If line 14, column 3 shows “-990.00,” enter “990.00” in
column 4.
Example — Advance EIC payments increased: You filed
your 2008 Form 943 reporting zero (line left blank) on line 10.
On February 17, 2010, you discovered that you forgot to report
the $1,000 in advance EIC payments you made on behalf of
John Smith, one of your employees. You made no other EIC
payments for your other employees. This is an example of an
administrative error. To correct the error, file Form 943-X
showing the following.

!

Column 1 (corrected amount)
Column 2 (from Form 943, line 10)
Column 3 (difference)

-

1,000.00
0.00
1,000.00

Reverse the mathematical sign of the amount in column 3
and enter your correction in column 4.
Column 4 (tax correction)

-1,000.00

Be sure to explain the reasons for this correction on line 19.
See section 9 of Pub. 51 (Circular A) for more
information about administrative errors. The same rules
CAUTION that apply to withheld federal income taxes also apply to
advance earned income credit (EIC) payments made to
employees.

!

!

Do not use a federal tax deposit coupon (Form 8109 or
Form 8109-B) to make a payment with Form 943-X.

CAUTION

15a. COBRA premium assistance payments

You do not have to pay if the amount you owe is less than
$1.
Previously assessed FTD penalty. If line 16 reflects
overreported tax and the IRS previously assessed a
failure-to-deposit (FTD) penalty, you may be able to reduce the
penalty. For more information, see the instructions for Form
943-A.

If you are correcting the total COBRA premium assistance
payments reported on line 13a of Form 943, report on this line
the corrected amount of the 65% of the COBRA premiums for
assistance eligible individuals. Report the premium assistance
credit on this line only after the assistance eligible individual’s
35% share of the premium has been paid. For COBRA
coverage provided under a self-insured plan, COBRA premium
assistance is treated as having been made for each assistance
eligible individual who pays 35% of the COBRA premium.
Do not include the assistance eligible individual’s 35% share
of the premium in the amount entered on this line. For more
information on the COBRA premium subsidy, visit the IRS
website at www.irs.govand enter the keyword “COBRA”.
Copy the amount in column 3 to column 4. However, to
properly show the correction 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. This is the same procedure as the
Advance Earned Income Credit on line 14.

Part 4: Explain Your Corrections for This
Year
17. Correction of Both Underreported and
Overreported Amounts
Check the box on line 17 if any corrections you entered on lines
6 through 12, and 14 and 15a in column 3 reflect both
underreported and overreported amounts.
Example: If you had an increase to social security wages of
$15,000 for employee A and a decrease to social security
wages of $5,000 for employee B, you would enter $10,000 on
line 6, column 3. That $10,000 represents the net change from
corrections.
On line 19, you must explain the reason for both the $15,000
increase and the $5,000 decrease.

15b. Number of individuals provided COBRA
premium assistance on line 15a
Enter the total number of assistance eligible individuals
provided COBRA premium assistance as corrected on line 15a.
Count each assistance eligible individual who paid a reduced
COBRA premium in the quarter as one individual, whether or
not the reduced premium was for insurance that covered more
than one assistance eligible individual. For example, if the
reduced COBRA premium was for coverage for a former
employee, spouse, and two children, you would include one
individual in the number entered on line 15b for the premium
assistance reported on line 15a. Further, each individual is

18. Did You Reclassify Any Workers?
Check the box on line 18 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 19, give us a detailed reason why any
worker was reclassified and, if you used section 3509 rates on

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Instructions for Form 943-X

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lines 10 through 12 for any worker reclassified as an employee,
explain why section 3509 rates apply and what rates you used.
Return not filed because you did not treat any workers as
employees. If you did not previously file Form 943 because
you mistakenly treated all workers as independent contractors
or as nonemployees, file a Form 943 for each delinquent year.
On each Form 943 for which you are entitled to use section
3509 rates:
• Write “Misclassified Employees” in dark, bold letters across
the top margin of page 1,
• Enter a zero on line 11 (“Net taxes”),
• Complete the signature area, and
• Attach a completed Form 943-X (see instructions below).
On each attached Form 943-X:
• Complete the top of Form 943-X, including the date you
discovered the error,
• Enter the wage amounts in column 1 of lines 10 through 12,
• Enter zeros in column 2 of lines 10 through 12,
• Complete columns 3 and 4 as instructed in Part 3,
• Provide a detailed statement on line 19, and
• Complete the signature area.

For corrections shown on lines 10 through 12, explain why
the correction was necessary and attach any notice you
received from the IRS.

Part 5. Sign Here
You must complete all three pages of Form 943-X and sign it on
page 3. If you do not sign, processing of Form 943-X will be
delayed.
Who must sign the Form 943-X? Form 943-X must be
signed by one of the following:
• Sole proprietorship — The individual who owns the
business.
• Corporation (including 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 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.

If you cannot use section 3509 rates (for example,
because the workers you treated as nonemployees
CAUTION were certain statutory employees), file a Form 943 for
each delinquent year. Write “Misclassified Employees” in dark,
bold letters across the top margin of page 1 of each Form 943.
Complete Form 943 using the Instructions for Form 943. Attach
a Form 943-X to each Form 943. Complete the top of Form
943-X, including the date you discovered the error, and provide
a detailed explanation on line 19.

!

Form 943-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 943-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 on page 82 of Internal Revenue
Bulletin 2005-28 at www.irs.gov/pub/irs-irbs/irb05-28.pdf.

19. Explain Your Corrections.
Treasury regulations require you to explain in detail the grounds
and facts relied upon to support each correction. On line 19,
describe in detail each correction you entered in column 4 on
lines 6 through 12 and lines 14, 15a, and 15b. If you need more
space, attach additional sheets, but be sure to write your name,
EIN, and calendar year 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” are insufficient and may delay
processing your Form 943-X because the IRS may need to ask
for a more complete explanation.
The following is the information we need in your explanation
for each error you are correcting:
• Form 943-X line number(s) affected,
• Date you discovered the error,
• Difference (amount of the error), and
• 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 of lines 6 and 7
was discovered on May 15, 2010 during an internal audit. We
discovered that we included $1,000 of wages for one of the
employees twice. This correction removes the reported wages
that were never paid.”

Paid Preparer’s Use Only
A paid preparer must sign Form 943-X and provide the
information in the Paid preparer’s use only section of Part 5 if
the preparer was paid to prepare Form 943-X and is not 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 are a paid preparer, write your SSN or your Preparer
Tax Identification Number (PTIN) in the space provided. Include
your complete address. If you work for a firm, write the firm’s
name and the EIN of the firm. You can apply for a PTIN using
Form W-7P, Application for Preparer Tax Identification Number.
You cannot use your PTIN in place of the EIN of the tax
preparation firm.
Generally, you are not required to complete this section if
you are filing the return as a reporting agent and have a valid
Form 8655, Reporting Agent Authorization, 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.

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Instructions for Form 943-X

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collect the right amount of tax. Subtitle C, Employment Taxes,
of the Internal Revenue Code imposes employment taxes on
wages, including income tax withholding. This form is used to
determine the amount of taxes you owe. Section 6011 requires
you to provide the requested information if the tax applies to
you. Section 6109 requires filers and paid preparers to provide
their identifying numbers. If you fail to provide this information in
a timely manner, you may be subject to penalties and interest.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless
the form displays a valid OMB control number. Books and
records relating to a form or its instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law.
Generally, tax returns and return information are
confidential, as required by section 6103. However, section
6103 allows or requires the IRS to disclose or give the
information shown on your tax return to others as described in
the Code. For example, we may disclose your information to the
Department of Justice for civil and criminal litigation, and to
cities, states, the District of Columbia, and U.S.
commonwealths and possessions for use in administering their
tax laws. We may also disclose this information to other
countries under a tax treaty, to federal and state agencies to
enforce federal nontax criminal laws, and to federal law
enforcement and intelligence agencies to combat terrorism.
The time needed to complete and file Form 943-X will vary
depending on individual circumstances. The estimated average
time is:

How Can You Order Forms and
Publications from the IRS?
Call the IRS at 1-800-829-3676.

Visit the IRS website at www.irs.gov.

Additional Information
You may find the following products helpful when using Form
943-X.
• Form W-2, Wage and Tax Statement
• Form W-3, Transmittal of Wage and Tax Statements
• Instructions for Forms W-2 and W-3
• Form W-2AS, American Samoa Wage and Tax Statement
• Form W-2CM, Wage and Tax Statement (Northern Mariana
Islands)
• Form W-2GU, Guam Wage and Tax Statement
• Form W-2VI, U.S. Virgin Islands Wage and Tax Statement
• Form W-3SS, Transmittal of Wage and Tax Statements
• Instructions for Forms W-2AS, W-2GU, W-2VI, and Form
W-3SS
• Form W-2c, Corrected Wage and Tax Statement
• Form W-3c, Transmittal of Corrected Wage and Tax
Statements
• Form 943-A, Agricultural Employer’s Record of Federal Tax
Liability
• Instructions for Forms W-2c and W-3c
• Instructions for Form 843
• Instructions for Form 943
• Pub. 15 (Circular E), Employer’s Tax Guide
• Pub. 51 (Circular A), Agricultural Employer’s Tax Guide
• Pub. 80 (Circular SS), Federal Tax Guide for Employers in
the U.S. Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands
• Pub. 966, The Secure Way to Pay Your Federal Taxes

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . . . . . . .
Preparing and sending the form to the IRS . . . . . . . .

14 hr., 6 min.
52 min.
2 hr., 20 min.

If you have comments concerning the accuracy of this time
estimate or suggestions for making this form simpler, we would
be happy to hear from you. You can write to: Internal Revenue
Service, Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send Form 943-X to this
address. Instead, see Where Should You File? on page 2.

Privacy Act and Paperwork Reduction Act Notice. We ask
for the information on Form 943-X to carry out the Internal
Revenue laws of the United States. We need it to figure and

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