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

Instructions for Form 943-X

Department of the Treasury
Internal Revenue Service

(Rev. February 2018)

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.

Future Developments

For the latest information about developments related to
Form 943-X and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form943X.

What's New
New Schedule R (Form 943), Allocation Schedule for
Aggregate Form 943 Filers. For 2017 and subsequent
years, agents approved by the IRS under section 3504 and
certified professional employer organizations (CPEOs) must
complete and file a Schedule R (Form 943) each time they
file an aggregate Form 943. To request approval to act as an
agent for an employer under section 3504, the agent must file
Form 2678 with the IRS. Form 2678 must be previously filed
and approved by the IRS before filing Schedule R. To
become a CPEO, the organization must apply through the
IRS Online Registration System at IRS.gov/CPEO.
For 2017 and subsequent years, agents and CPEOs must
complete Schedule R (Form 943) when correcting an
aggregate Form 943. Schedule R (Form 943) is completed
only for those clients and customers who have corrections
reported on Form 943-X.
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/ar09.html, 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.
Qualified small business payroll tax credit for increasing research activities. For tax years beginning after
December 31, 2015, a qualified small business may elect to
claim up to $250,000 of its credit for increasing research
activities as a payroll tax credit against the employer's share
of social security tax. The portion of the credit used against
the employer's share of social security tax is allowed in the
first calendar quarter beginning after the date that the
qualified small business filed its income tax return. The first
Form 943 that you can claim this credit on is Form 943 filed
for calendar year 2017. The election and determination of the
credit amount that will be used against the employer's share
of social security tax are made on Form 6765, Credit for
Increasing Research Activities. The payroll tax credit must
Feb 26, 2018

generally be elected only on an original income tax return
that is timely filed (including extensions). The amount from
Form 6765, line 44, must then be reported on Form 8974,
Qualified Small Business Payroll Tax Credit for Increasing
Research Activities. Form 8974 is used to determine the
amount of the credit that can be used in the current year. The
amount from Form 8974, line 12, is reported on Form 943,
line 12. For 2017 and subsequent years, any correction to
Form 943, line 12, is reported on Form 943-X, line 11. If you
make a correction on Form 943-X, line 11, you must attach a
corrected Form 8974. For more information about the payroll
tax credit, see Notice 2017-23, 2017-16 I.R.B. 1100,
available at IRS.gov/irb/2017-16_IRB/ar07.html. Also see the
line 17 instructions in the Instructions for Form 943.
Period of limitations to make certain corrections expired. 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.
For purposes of the period of limitations, Form 943 is
considered filed on April 15 of the succeeding year if filed
before that date.
The period of limitations to correct social security tax for
2011 and 2012 expired on April 17, 2015, and April 15, 2016,
respectively, for most employers. These instructions no
longer discuss the reduced rate of employee social security
tax that applied in 2011 and 2012. The 2011 and 2012
employee social security tax rate was 4.2% and the employer
social security tax rate was 6.2% (10.4% total). If the period
of limitations for 2011 and 2012 is still open, you can file the
February 2018 revision of Form 943-X but make sure you use
the correct rate when reporting corrections on line 6.

Reminders
Retroactive increase in excludable transit benefits for
2014. The Tax Increase Prevention Act of 2014 increased
the monthly transit benefit exclusion from $130 per
participating employee to $250 per participating employee for
the period of January 1, 2014, through December 31, 2014.
Employers were provided instructions on how to correct the
social security and Medicare taxes on the excess transit
benefits in Notice 2015-2, 2015-4 I.R.B. 334, available at
IRS.gov/irb/2015-4_IRB/ar06.html.
Retroactive increase in excludable transit benefits for
2015. The Consolidated Appropriations Act, 2016,
increased the monthly transit benefit exclusion from $130 per
participating employee to $250 per participating employee for
the period of January 1, 2015, through December 31, 2015.
Employers were provided instructions on how to correct the
social security and Medicare taxes on the excess transit
benefits in Notice 2016-06, 2016-4 I.R.B. 287, available at
IRS.gov/irb/2016-04_IRB/ar07.html.
Claiming the COBRA premium assistance credit. The
COBRA premium assistance credit was available to an
employer for premiums paid on behalf of employees who
were involuntarily terminated from employment between

Cat. No. 20333Q

Additional Medicare Tax withholding, see the Instructions for
Form 943 or go to IRS.gov/ADMT.

September 1, 2008, and May 31, 2010. The COBRA
premium assistance credit isn’t available for individuals who
were involuntarily terminated after May 31, 2010. Therefore,
only in rare circumstances, such as instances where COBRA
eligibility was delayed as a result of employer provided health
insurance coverage following termination, will the credit be
available. If you’re eligible to claim the credit, use Form
943-X, lines 17a and 17b. Form 943-X should be filed after
filing your Form 943. Filing a Form 943-X before filing a Form
943 may result in errors or delays in processing your Form
943-X. For more information, go to IRS.gov/COBRACredit.

Correcting the COBRA premium assistance credit. For
tax periods ending before January 1, 2014, employers who
made COBRA premium assistance payments for
assistance-eligible individuals were allowed a credit directly
on their Form 943. Any errors discovered on a previously
filed Form 943 for this credit are corrected on Form 943-X,
lines 17a and 17b. Effective for tax periods beginning after
December 31, 2013, Form 943-X is used to both report the
total COBRA premium assistance credit an employer is
entitled to claim and correct any previously reported credit.
For more information, see the instructions for lines 17a and
17b, later.

If you’re entitled to claim the COBRA premium

TIP assistance credit, but aren’t otherwise required to file

Form 943, file a Form 943 with -0- entered on line 15
before filing a Form 943-X to claim the credit.

General Instructions:
Understanding Form 943-X

Correcting federal income tax withheld. Generally, you
may only correct administrative errors to federal income tax
withholding (that is, errors in which the amount reported on
Form 943, line 8, isn't the amount you actually withheld from
an employee’s wages) and errors for which section 3509
rates apply. See section 9 of Pub. 51, Agricultural Employer’s
Tax Guide, for more information about corrections during the
calendar year and about administrative errors. See section 2
of Pub. 15, Employer’s Tax Guide, for more information about
section 3509. If section 3509 rates apply, see the instructions
for lines 12–15, later.

!

CAUTION

What Is the Purpose of Form 943-X?
For tax periods beginning after December 31, 2013,
Form 943 will no longer be used to claim the credit
CAUTION for COBRA premium assistance payments. Instead,
use Form 943-X. For more information, see the instructions
for lines 17a and 17b, later.

!

Use Form 943-X to correct errors on a previously filed
Form 943. Use Form 943-X to correct:
Total wages subject to social security tax,
Total wages subject to Medicare tax,
Total wages subject to Additional Medicare Tax
withholding,
Federal income tax withheld from wages,
Qualified small business payroll tax credit for increasing
research activities, and
Credits for COBRA premium assistance payments.

Only transposition or math errors involving the
inaccurate reporting of the amount actually withheld
are “administrative errors.”

You can’t file a Form 943-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 in Pub. 51
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.

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 943 or Form 943-X.
We use the terms “correct” and “corrections” on Form

TIP 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. 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/
ar14.html.

The amount actually withheld is reflected on payroll

TIP information or on Form W-2, Wage and Tax

Statement, which can be used by the employee to
claim a credit for withholding for individual income tax return
purposes.
Correcting Additional Medicare Tax withholding and
wages subject to Additional Medicare Tax withholding.
Wages subject to Additional Medicare Tax withholding are
reported on Form 943, line 6, and the withholding is reported
on line 7. Certain errors discovered on a previously filed
Form 943 are corrected on Form 943-X, line 8. However, you
can't file a Form 943-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 8, later, for more information on the
types of errors that can be corrected and how the correction
is reported on Form 943-X. For more information about

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’re
correcting; and
Generally, file Form 943-X separately. Don’t file Form
943-X with Form 943. However, if you didn't previously file
Form 943 because you mistakenly treated your employees
as nonemployees, you may have to file Form 943-X with
Form 943. See the instructions for line 20, later.
If you didn’t file a Form 943 for 1 or more years, don’t use
Form 943-X. Instead, file Form 943 for each of those years.
See also When Should You File Form 943-X, later. However,
if you didn’t file Forms 943 because you improperly treated
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Instructions for Form 943-X (Rev. 2-2018)

Liability on Form 943 or on Form 943-A, see the Form 943-A
instructions.

workers as independent contractors or nonemployees and
are now reclassifying them as employees, see the
instructions for line 20, later.

Due dates. The due date for filing Form 943-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 amounts, you may
choose to either make an interest-free adjustment or file a
claim for refund or abatement. If you’re correcting
overreported amounts, see Overreported tax—adjustment
process and Overreported tax—claim process, later.
If any due date falls on a Saturday, Sunday, or legal
holiday, you may file Form 943-X on the next business day.
The term “legal holiday” means any legal holiday in the
District of Columbia. See Pub. 51 for the list of legal holidays.
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 (PDS) on or before the due date. If you don’t follow
these guidelines, we will consider Form 943-X filed when it is
actually received. Go to IRS.gov/PDS for the current list of
PDSs. For the IRS mailing address to use if you're using a
PDS, go to IRS.gov/PDSstreetAddresses.

Report the correction of underreported and overreported
amounts for the same year on a single Form 943-X, unless
you’re requesting a refund or abatement. If you’re requesting
a refund or abatement and you’re 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.
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 943 for the period during which you file Form
943-X. However, see the Caution under Is There a Deadline
for Filing Form 943-X, later, if you’re correcting overreported
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 amount. Follow the chart on the back of Form
943-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 21 for each correction that you show on
Form 943-X.

Underreported tax. If you’re 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 (January 31
of the following year) 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 18, later.
If Form 943-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 Form 943-A to Form 943-X.
Otherwise, the IRS may assess an “averaged” FTD penalty.
The total tax reported on Form 943-A, line M, must match the
corrected tax (Form 943, line 13 (line 11 for calendar years
2013–2016), combined with any correction reported on Form
943-X, line 16) for the year, less any previous abatements
and interest-free tax assessments.

Continue to report current year adjustments for fractions of
cents, third-party sick pay, and group-term life insurance on
Form 943, line 10.
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 and Forms W-2c, Corrected Wage
and Tax Statement. For corrections of overreported federal
income tax, social security tax, or Medicare tax, you must
make any certifications that apply to your situation.
Don’t use Form 943-X to correct Form CT-1, 941,
941-SS, 944, or 945. Instead, use the “X” form that
CAUTION corresponds to those forms (Form CT-1 X, 941-X,
944-X, or 945-X).

!

Where Can You Get Help?
For help filing Form 943-X or for questions about federal
employment taxes and tax corrections, you can:
Go to IRS.gov/EmploymentTaxes,
See Pub. 51, or
Call the IRS Business and Specialty Tax Line toll free at
1-800-829-4933 or 1-800-829-4059 (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).

Example—You owe tax. On February 13, 2018, you
discovered that you underreported $1,000 of social security
and Medicare wages on your 2017 Form 943. File Form
943-X and pay the amount you owe by January 31, 2019,
because you discovered the error in 2018 and January 31,
2019, is the due date for that year. If you file Form 943-X
before January 31, 2019, pay the amount you owe when you
file.

See also How Can You Get Forms, Instructions, and
Publications From the IRS, later.

!

When Should You File Form 943-X?

CAUTION

Overreported tax—adjustment process. If you
overreported tax and choose to apply the credit to Form 943,
file an adjusted return on Form 943-X soon after you discover
the error but more than 90 days before the period of
limitations on the credit or refund for Form 943 expires. See
Is There a Deadline for Filing Form 943-X, later.

File Form 943-X when you discover an error on a previously
filed Form 943.
However, if your only errors on Form 943 relate to the
number of employees (Form 943, line 1) or to federal tax
liabilities reported on your Monthly Summary of Federal Tax
Liability on Form 943 or on Form 943-A, Agricultural
Employer's Record of Federal Tax Liability, don’t file Form
943-X. For more information about correcting federal tax
liabilities reported on your Monthly Summary of Federal Tax
Instructions for Form 943-X (Rev. 2-2018)

Form 943-X can’t be used to correct underreported
amounts of Additional Medicare Tax unless the
amounts were withheld from employee wages.

!

CAUTION

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Form 943-X can’t be used to correct overreported
amounts of Additional Medicare Tax unless the
amounts weren’t withheld from employee wages.

Example—You want your credit applied to Form 943.
You filed your 2017 Form 943 on January 31, 2018, and
payments were timely made. On May 1, 2018, you discover
that you overreported tax on your 2017 Form 943. You file
Form 943-X on June 4, 2018. The IRS treats your credit as a
tax deposit made on January 1, 2018. When you file your
2018 Form 943, include the amount from Form 943-X,
line 18, on the “Total deposits” line of your 2018 Form 943.

IF you’re in . . .

If you reduced your deposits by the amount of the
COBRA premium assistance credit that will be
CAUTION reflected on your Form 943-X, don’t use the
adjustment process to claim the COBRA premium assistance
credit. Use the claim process. See the instructions for lines
17a and 17b, later.

!

Overreported tax—claim process. 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 the credit or refund expires. If you also 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,
later.

!

CAUTION

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

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

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 84201-0008

No legal residence or principal place
of business in any state
Special filing address for exempt
organizations; federal, state, and
local governmental entities; and
Indian tribal governmental entities;
regardless of location

You may not file a refund claim to correct federal
income tax or Additional Medicare Tax actually
withheld from employees.

Is There a Deadline for Filing Form
943-X?

THEN use this address . . .

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0008

How Should You Complete 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.

Use a Separate Form 943-X for Each Year You’re
Correcting
Use a separate Form 943-X for each Form 943 that you’re
correcting. For example, if you found errors on your Forms
943 for 2016 and 2017, file one Form 943-X to correct the
2016 Form 943. File a second Form 943-X to correct the
2017 Form 943.

Employer Identification Number (EIN), Name,
and Address

Example. You filed your 2014 Form 943 on January 26,
2015, and payments were timely made. The IRS treats the
return as if it were filed on April 15, 2015. On January 22,
2018, you discovered 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 17, 2018, and use
the claim process.

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. Be sure to write
your name, EIN, “Form 943-X,” and the calendar year you’re
correcting on the top of any attachments.

If you file Form 943-X to correct overreported
amounts in the last 90 days of a period of limitations,
CAUTION you must use the claim process. You can’t use the
adjustment process. If you’re 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.

!

Return You’re Correcting

Enter the calendar year of the Form 943 you’re correcting in
the box at the top of page 1. Enter the same calendar year on
pages 2 and 3, and on any attachments. Be sure to write your
name, EIN, “Form 943-X,” and the calendar year you’re
correcting on the top of any attachments.

Where Should You File Form 943-X?

Enter the Date You Discovered Errors

Send your completed Form 943-X to the address shown
below. For the IRS mailing address to use if you're using a
PDS, go to IRS.gov/PDSstreetAddresses.

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 21.
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Instructions for Form 943-X (Rev. 2-2018)

Must You Make an Entry on Each Line?

and pay any additional amount you owe by the time you
file Form 943-X. For details on how to make a payment, see
the instructions for line 18, later.

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. 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.

Example—You underreported employment taxes. On
June 20, 2017, you discovered an error that results in
additional tax on your 2016 Form 943. File Form 943-X by
January 31, 2018, and pay the amount you owe by the time
you file. See When Should You File Form 943-X, earlier.
Don’t attach Form 943-X to your 2017 Form 943.
If you overreported the tax. If you overreported the tax
on a previously filed Form 943, 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 18 to Form 943
for the year during which you file Form 943-X.
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 18.

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’re completing
the return on your computer and your software only allows
you to use parentheses to report negative amounts, you may
use them.

To ensure that the IRS has enough time to process a

How Should You Make Entries on Form 943-X?

TIP credit for an overreporting adjustment in the year

You can help the IRS process Form 943-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.
Complete all three pages and sign Form 943-X on page 3.
Staple multiple sheets in the upper-left corner.

during which you file Form 943-X, you’re encouraged
to file Form 943-X correcting the overreported amount in the
first 11 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 11 months of the next year. However,
there must be 90 days remaining on the period of limitations
when you file Form 943-X. See the Caution under Is There a
Deadline for Filing Form 943-X, earlier. This should ensure
that the IRS will have enough time to process Form 943-X so
the credit will be posted before you file Form 943, thus
avoiding an erroneous balance due notice from the IRS. See
the example below.

What About Penalties and Interest?

Example—You want your overreported tax applied as
a credit to Form 943. On December 18, 2018, you discover
you overreported your tax on your 2017 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 4, 2019, and take the credit on your 2019
Form 943.

Generally, your correction of an underreported amount won’t
be subject to an FTP penalty, FTD 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 18 by the time 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.

Specific Instructions:
Part 1: Select ONLY One Process

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.

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 on either line 1 or line 2. Don’t
check both boxes.

1. Adjusted Employment Tax Return

Check the box on line 1 if you’re correcting underreported
amounts or overreported amounts and you would like to use
the adjustment process to correct the 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 reasonable-cause criteria. Don’t attach
an explanation when you file your return.

If you’re 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 18
will be applied as a credit (tax deposit) to your Form 943 for
the year in which you’re filing this form. See Example—You
want your overreported tax applied as a credit to Form 943,
earlier.

Overview of the Process
To correct a previously filed Form 943, use Form 943-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 943, check the box on line 1
Instructions for Form 943-X (Rev. 2-2018)

If you owe tax. Pay the amount shown on line 18 by the
time you file Form 943-X. Generally, you won’t be charged
-5-

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

interest if you file on time, pay on time, enter the date you
discovered the error, and explain the correction on line 21.

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 General
Instructions for Forms W-2 and W-3 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.

If you have a credit. You overreported employment taxes
(you have a negative amount on line 18) 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 Form 943-X, line 18, 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.

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 don’t change amounts shown on those forms. For
example, if your only correction to Form 943 involves
misstated tax adjustments (see the instructions for line 10,
later), check the box on line 3 to certify that you already filed
all required Forms W-2 and W-2c with the Social Security
Administration (SSA).

Don’t check the box on line 1 if you’re either: (a)
correcting overreported amounts and the period of
CAUTION limitations on credit or refund for Form 943 will expire
within 90 days of the date you file Form 943-X, or (b) claiming
a credit for COBRA premium assistance payments and you
reduced your deposits in anticipation of the credit. Instead, in
either case, check the box on line 2 to file a Form 943-X
under the claim process. See Is There a Deadline for Filing
Form 943-X, earlier. See the instructions for lines 17a and
17b, later.

!

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 21 of the amount of the corrections for the employees
who provided written statements and for those who didn’t.

2. Claim

Check the box on line 2 to use the claim process if you’re
correcting overreported amounts only and you’re claiming
a refund or abatement for the negative amount (credit) shown
on line 18. Don’t check this box if you’re correcting any
underreported amounts on this form.

!

CAUTION

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, earlier.

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 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. 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. Copies must be submitted to the IRS if
requested.

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.
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 18, plus any interest that applies.

!

CAUTION

You may not use Form 943-X to correct overreported
amounts of Additional Medicare Tax unless the
amounts weren’t withheld from employee wages.

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.

You may not file a refund claim to correct federal
income tax or Additional Medicare Tax actually
withheld from employees.

4c. Check the box on line 4c 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 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.

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 of the remaining
employees, check all applicable boxes. Provide a summary
on line 21 of the amount of the corrections for the employees
who provided statements or consents and for those who
didn’t.

If your corrections relate to overreported amounts, 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
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.
-6-

Instructions for Form 943-X (Rev. 2-2018)

found, or they didn’t give you a statement described on
line 5b.

You may not file a refund claim to correct federal
income tax or Additional Medicare Tax actually
CAUTION withheld from employees. 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.

!

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 the
Calendar Year You’re Correcting

5a. Check the box on line 5a if your overreported tax
includes each affected employee share of prior year social
security and Medicare tax. You’re 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 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. Copies must be submitted to the IRS if
requested.

What Amounts Should You Report in Part 3?

On lines 6–9, columns 1 and 2, show amounts for all of your
employees, not just for those employees whose amounts
you’re correcting.
If a correction that you report in column 4 includes both
underreported and overreported amounts (see the
instructions for line 19, later), give us details for each error on
line 21.

5b. Check the box on line 5b if your overreported tax
includes each affected employee share of prior year social
security and Medicare tax 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), 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;
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. Copies must be
submitted to the IRS if requested.

Because special circumstances apply for lines 10–15,
17a, and 17b, read the instructions for each line carefully
before entering amounts in the columns.
If you previously adjusted or amended Form 943
using Form 943-X or because of an IRS examination
CAUTION change, show amounts in column 2 that include
those previously reported corrections.

!

6. Total Wages Subject to Social Security Tax

If you’re correcting the taxable social security wages you
reported on Form 943, line 2, 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 6 (column 1)
- line 6 (column 2)
line 6 (column 3)

Multiply the amount in column 3 by 0.124 (12.4% tax rate)
and enter that result in column 4.
line 6 (column 3)
x 0.124
line 6 (column 4)

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 don’t check a box on line 5.
Tell us on line 21 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 have done so before the IRS
can allow the claim.

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

Note. If 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 21.
Example—Social security wages decreased. You
reported $9,000 as social security wages on your 2017 Form
943, line 2. In December of 2018, you discover 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.

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. 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 tax, they couldn’t be
Instructions for Form 943-X (Rev. 2-2018)

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

-7-

Column 1 (corrected amount)
Column 2 (Form 943, line 2)

7,000.00
- 9,000.00

Column 3 (difference)
Tax rate (2.9%)

Column 3 (difference)

- 2,000.00

Column 4 (tax correction)

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

8. Total Wages Subject to Additional Medicare
Tax Withholding

You may use Form 943-X to correct errors to Additional
Medicare Tax withholding for prior years if the amount
reported on Form 943, line 7, isn’t the amount you actually
withheld. This type of error is an administrative error. The
administrative error adjustment corrects the amount reported
on Form 943 to agree with the amount actually withheld from
employees.

-248.00

Be sure to explain the reasons for this correction on
line 21.

7. Total Wages Subject to Medicare Tax

If you’re correcting the taxable Medicare wages you reported
on Form 943, line 4, 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.

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 12–15,
later.
If a prior year error was a nonadministrative error, you may
correct only the wages subject to Additional Medicare Tax
withholding that were originally reported on Form 943, line 6,
or previously corrected on Form 943-X. You can’t correct the
tax reported on Form 943, line 7.

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, also use a minus sign in
column 3.

Prior year administrative errors. If you’re correcting the
wages subject to Additional Medicare Tax withholding that
you reported on Form 943, line 6, 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.

Multiply the amount in column 3 by 0.029 (2.9% tax rate)
and enter that result in column 4.
line 7 (column 3)
x 0.029
line 7 (column 4)

-58.00

Be sure to explain the reasons for this correction on
line 21.

-2,000.00
x 0.124

Column 4 (tax correction)

-2,000.00
x 0.029

line 8 (column 1)
- line 8 (column 2)

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

line 8 (column 3)

Note. If you’re correcting only the employer share of tax on a
decrease to Medicare wages, 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 21.

Multiply the amount in column 3 by 0.009 (0.9% tax rate)
and enter that result in column 4.
line 8 (column 3)
x 0.009

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.
Column 1 (corrected amount)
Column 2 (Form 943, line 4)

7,000.00
- 9,000.00

Column 3 (difference)

- 2,000.00

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

line 8 (column 4)

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

Example—Prior year administrative error (incorrectly
reported amount of Additional Medicare Tax actually
withheld). Nathan Smith's wages exceeded the $200,000
withholding threshold for Additional Medicare Tax in
November 2017. The total wages paid to Nathan for 2017
were $230,000. You withheld $270 ($30,000 x 0.009) from
Nathan's wages. However, on your 2017 Form 943 you
mistakenly reported $3,000 on line 6, and Additional
Medicare Tax withheld of $27 on line 7. You discover the
error on March 16, 2018. This is an example of an
administrative error that may be corrected in a later calendar
year because the amount actually withheld differs from the
amount reported on your 2017 Form 943. Use Form 943-X,
line 8, to correct the error as shown below.

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

-8-

Instructions for Form 943-X (Rev. 2-2018)

Column 1 (corrected amount)
Column 2 (Form 943, line 6)

30,000.00
- 3,000.00

Column 3 (difference)

27,000.00

exceeded the $200,000 withholding threshold for Additional
Medicare Tax in November 2017. The total wages paid to
Nathan for 2017 were $230,000. You withheld $270 ($30,000
x 0.009) from Nathan's wages. However, on your 2017 Form
943 you mistakenly reported $3,000 on line 6, and Additional
Medicare Tax withheld of $27 on line 7. The difference in
wages subject to Additional Medicare Tax related to this
administrative error is $27,000 ($30,000 – $3,000).
Leah Green's wages exceeded the $200,000 withholding
threshold for Additional Medicare Tax in December 2017.
The total wages paid to Leah for 2017 were $220,000. You
were required to withhold $180 ($20,000 x 0.009) but you
withheld nothing and didn’t report Leah’s $20,000 in wages
subject to Additional Medicare Tax withholding on line 6 of
your 2017 Form 943.

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 21.

You discover both errors on March 16, 2018. Use Form
943-X, line 8, to correct the errors as shown below.

Prior year nonadministrative errors. You may correct
only the taxable wages subject to Additional Medicare Tax
withholding that you reported on Form 943, line 6. 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 8 (column 1)
- line 8 (column 2)
line 8 (column 3)

50,000.00
- 3,000.00

Column 3 (difference)

47,000.00

Determine the portion of wages 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.

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 21.

Difference related to administrative error
Tax rate (0.9%)
Column 4 (tax correction)

Example—Prior year nonadministrative error (failure
to withhold Additional Medicare Tax when required).
Leah Green's wages exceeded the $200,000 withholding
threshold for Additional Medicare Tax in December 2017.
The total wages paid to Leah for 2017 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 6 or
line 7 of your 2017 Form 943. You discover the error on
March 16, 2018. File Form 943-X to correct the wages
subject to Additional Medicare Tax withholding for your 2017
Form 943, but you may not correct the Additional Medicare
Tax withheld (column 4) because the error involves a
previous year and the amount previously reported for the
employee represents the actual amount withheld from the
employee during 2017.

27,000.00
x 0.009
243.00

Be sure to explain the reasons for these corrections on
line 21. You must also report that $20,000 of the amount
shown in column 3 was related to the correction of a prior
year nonadministrative error and $27,000 of the amount
shown in column 3 was related to the correction of an
administrative error.

9. Federal Income Tax Withheld

If you’re correcting the federal income tax withheld from
wages that you reported on Form 943, line 8, 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.

Combination of prior year administrative and nonadministrative errors. If you’re reporting both administrative
errors and nonadministrative errors for the same 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
reported in column 3 that are related to administrative errors
by 0.009 (0.9% tax rate). Don’t multiply any wages reported
in column 3 that are related to nonadministrative errors by
0.009 (0.9% tax rate). Use line 21 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.

line 9 (column 1)
- line 9 (column 2)
line 9 (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 only correct administrative errors
to federal income tax withholding (that is, errors in
CAUTION which the amount reported on Form 943 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.” The

!

Example—Combination of prior year administrative
and nonadministrative errors. Nathan Smith's wages
Instructions for Form 943-X (Rev. 2-2018)

Column 1 (corrected amount)
Column 2 (Form 943, line 6)

-9-

income to Jack for the prior year. These amounts were
correctly reported on Form 943.

administrative error adjustment corrects the amount reported
on Form 943 to agree with the amount actually withheld from
employees. See section 9 of Pub. 51 for more information
about corrections during the calendar year and about
administrative errors. If section 3509 rates apply, see the
instructions for lines 12–15, later.

10. Tax Adjustments

Don’t enter an amount on line 10 unless you need to correct
any adjustments reported on Form 943, line 10. Amounts
reported on line 10 reflect corrections of amounts misstated
on Form 943, line 10. See Example—Adjustment for
third-party sick pay underreported below.

You can't file a Form 943-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 in Pub. 51
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.

Enter the corrected amount for tax adjustments in column
1. Enter the originally reported or previously corrected
amount from Form 943, line 10, in column 2. In column 3,
enter the difference between columns 1 and 2.
line 10 (column 1)
- line 10 (column 2)
line 10 (column 3)

You may need to report negative numbers in any

TIP column. Make sure that the difference you enter in

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 bonus that was paid in December of 2017 but you
withheld nothing. You discovered the error on March 19,
2018. You can’t file Form 943-X to correct your 2017 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 2017.

column 3 accurately represents the change to
adjustments originally reported or previously corrected on
Form 943, line 10.
Copy the amount in column 3 to column 4. Include any
minus sign shown in column 3.

On line 21, 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—Prior year administrative error (incorrectly
reported amount of federal income tax actually
withheld). You had three employees. In 2017, you withheld
$1,000 of federal income tax from Nathan Smith, $2,000 from
Leah Green, and $6,000 from Becky Lee. The total amount of
federal income tax you withheld was $9,000. You mistakenly
reported $6,000 on your 2017 Form 943, line 8. You
discovered the error on March 19, 2018. 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.
Column 1 (corrected amount)
Column 2 (Form 943, line 8)
Column 3 (difference)

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 your 2017 Form 943, line 10. 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 2018. To
correct the error, figure the difference on Form 943-X as
shown.
Column 1 (corrected amount)
Column 2 (Form 943, line 10)
Column 3 (difference)

9,000.00
- 6,000.00
3,000.00

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

Here is how you would enter the numbers on Form 943-X.
Column 1
(corrected amount)
-9,600.00

Report the $3,000.00 as a tax correction in column 4.
Be sure to explain the reasons for this correction on
line 21.
Example—Nonadministrative error reporting federal
income tax due to repayment of wages paid in prior
year. You paid Jack Brown $4,000 of wages for 2 months of
work in September 2017. You withheld $400 of federal
income tax at the time you paid Jack. These amounts were
reported on your 2017 Form 943. Jack left employment in
October 2017 (after only 1 month of service). In February
2018, Jack repaid $2,000 to you. You can't file Form 943-X to
reduce the federal income tax withheld because you actually
withheld the federal income tax from wages. You also can't
file Form 943-X to reduce wages because the wages were

Column 2
(Form 943, line 10)
-6,900.00

Column 3
(difference)
-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 2017 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 21.

-10-

Instructions for Form 943-X (Rev. 2-2018)

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.

Only use line 10 to correct adjustments for fractions
of cents, third-party sick pay, or group-term life
CAUTION insurance previously reported. File a separate Form
943-X for each year being corrected.

!

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 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 21. 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 20, later, for
more information.

11. Qualified Small Business Payroll Tax Credit
for Increasing Research Activities

If you're correcting the qualified small business payroll tax
credit for increasing research activities that you reported on
Form 943, line 12, 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.
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.

16. Subtotal

Combine the amounts from column 4 on lines 6–15 and enter
the result on line 16.

You must attach a corrected Form 8974 and explain the
reasons for this correction on line 21.

Example. You entered “−500.00” in column 4 of line 6,
“−100.00” in column 4 of line 7, and “1,400.00” in column 4 of
line 10. Combine these amounts and enter “800.00” in
column 4 of line 16.

12–15. 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 social security tax, Medicare tax, Additional Medicare Tax,
and federal 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 can’t 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.

Line 6
Line 7
Line 10
Line 16

17a. Claiming or Correcting the COBRA
Premium Assistance Credit

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 tax. Section 3509 rates
are also not available for certain statutory employees.

The COBRA premium assistance credit was
available to an employer for premiums paid on behalf
CAUTION of employees who were involuntarily terminated from
employment between September 1, 2008, and May 31,
2010. The COBRA premium assistance credit isn’t available
for individuals who were involuntarily terminated after May
31, 2010. Therefore, only in rare circumstances, such as
instances where COBRA eligibility was delayed as a result of
employer provided health insurance coverage following
termination, will the credit be available.

!

On lines 12–15, 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.
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.

Enter 65% of the total COBRA premium assistance
payments for all assistance-eligible individuals in column 1.
Report the premium assistance payments 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 paid 35% of the COBRA premium. Don’t
include the assistance-eligible individual's 35% of the
premium in the amount entered on this line.
For tax periods ending before January 1, 2014, enter any
COBRA premium assistance payments previously claimed
on Form 943, line 13a, in column 2. For tax periods beginning
after December 31, 2013, enter -0- in column 2, unless you’re
correcting a COBRA premium assistance payment
previously reported on a Form 943-X. If you or the IRS
previously corrected the amount reported, the amount
entered in column 2 should take into account all previous
corrections.

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.
Instructions for Form 943-X (Rev. 2-2018)

−500.00
−100.00
+1,400.00
800.00

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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.

Enter the difference between column 1 and 2 in column 3.
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.

Amount you owe. If the amount on line 18 is a positive
number, you must pay the amount you owe by the time 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.
If you owe tax and are filing a timely Form 943-X, don’t file
an amended Form 943-A unless you were assessed an FTD
penalty caused by an incorrect, incomplete, or missing Form
943-A. Don’t include the tax increase reported on Form
943-X on any amended Form 943-A you file.
If you owe tax and are filing a late Form 943-X, that is,
after the due date for the return period in which you
discovered the error, you must file an amended Form 943-A
with the Form 943-X. Otherwise, the IRS may assess an
“averaged” FTD penalty. The total tax reported on Form
943-A, line M, must match the corrected tax (Form 943,
line 13 (line 11 for calendar years 2013–2016), combined
with any correction reported on Form 943-X, line 16) for the
year, less any previous abatements and interest-free tax
assessments.

The COBRA premium assistance credit is treated as
a credit on the first day of the return period (that is,
CAUTION January 1). However, because the credit is now
claimed on Form 943-X filed after submission of the Form
943, an employer that reduces its required deposits in
anticipation of the credit will receive a system-generated
notice reflecting a balance due and associated penalties and
interest, if applicable. The balance due, including any related
penalties and interest, resulting from the reduction in
deposits in anticipation of the credit will be abated when the
credit is applied. Such abatement will generally occur without
any further action from the employer. Alternatively, to prevent
triggering a system-generated balance due notice, the
employer can make its deposits without a reduction in
anticipation of the COBRA premium assistance credit and
follow these instructions for claiming the COBRA premium
assistance credit.

!

For more information on the COBRA premium subsidy, go
to IRS.gov/COBRACredit.

Payment methods. You may pay the amount you owe on
line 18 electronically using the Electronic Federal Tax
Payment System (EFTPS), by credit card 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 EFTPS Customer
Service at 1-800-555-4477 or 1-800-733-4829 (TDD) toll
free. 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 943-X,” and the year corrected.
You don’t have to pay if the amount you owe is less than
$1.
Previously assessed FTD penalty. If line 18 reflects
overreported tax and the IRS previously assessed an FTD
penalty, you may be able to reduce the penalty. For more
information, see the Form 943-A instructions.

17b. Number of Individuals Provided COBRA
Premium Assistance on Line 17a

Enter the total number of assistance-eligible individuals
provided COBRA premium assistance in column 1. Count
each assistance-eligible individual who paid a reduced
COBRA premium 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 17b for the premium
assistance entered on line 17a. Further, each individual is
reported only once. For example, an assistance-eligible
individual who made monthly premium payments would only
be reported as one individual on line 17b.
For tax periods ending before January 1, 2014, enter the
number of assistance-eligible individuals provided COBRA
premium assistance previously reported on Form 943,
line 13b, in column 2. For tax periods beginning after
December 31, 2013, enter -0- in column 2, unless you’re
correcting a previously filed Form 943-X. If you or the IRS
previously corrected the number of individuals reported, the
number entered in column 2 should take into account all
previous corrections.

Part 4: Explain Your Corrections for
the Calendar Year You’re Correcting
19. Correction of Both Underreported and
Overreported Amounts

18. Total

Combine lines 16 and column 4 of line 17a, and enter the
result on line 18.

Check the box on line 19 if any corrections you entered on
lines 6–15 and 17a in column 3 reflect both underreported
and overreported amounts.

Your credit. If the amount entered on line 18 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 943 for the year during
which you filed Form 943-X. Don’t make any changes to your
Monthly Summary of Federal Tax Liability on 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.

Example. If you had an increase to social security wages
of $15,000 for Nathan Smith and a decrease to social
security wages of $5,000 for Leah Green, you would enter
$10,000 on line 6, column 3. That $10,000 represents the net
change from corrections.
On line 21, you must explain the reason for both the
$15,000 increase and the $5,000 decrease.
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Instructions for Form 943-X (Rev. 2-2018)

20. Did You Reclassify Any Workers?

Cause of the error.

Check the box on line 20 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 21, give us a detailed
reason why any worker was reclassified and, if you used
section 3509 rates on lines 12–15 for any worker reclassified
as an employee, explain why section 3509 rates apply and
what rates you used.

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, 2017, 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.”
For corrections shown on lines 12–15, explain why the
correction was necessary and attach any notice you received
from the IRS.

Return not filed because you didn’t treat any workers as
employees. If you didn’t 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’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 13 (line 11 for calendar years 2013–
2016).
Complete the signature area.
Attach a completed Form 943-X (see instructions next).
On each attached Form 943-X, complete the following
steps.
Complete the top of Form 943-X, including the date you
discovered the error.
Enter the wage amounts on lines 12–15, column 1.
Enter zeros on lines 12–15, column 2.
Complete columns 3 and 4 as instructed in Part 3.
Provide a detailed statement on line 21.
Complete the signature area.

Part 5. Sign Here
You must complete all three pages of Form 943-X and sign it.
If you don’t sign it on page 3, processing of Form 943-X will
be delayed.
Who must sign the Form 943-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 limited liability company
(LLC) treated as a corporation)—The president, vice
president, or other principal officer duly authorized to sign.
Partnership (including LLC treated as a partnership)
or unincorporated organization—A responsible and duly
authorized partner, 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.
Form 943-X may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney has been
filed.

If you can’t 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
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 21.

!

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,
2005-28 I.R.B. 82, available at IRS.gov/irb/2005-28_IRB/
ar16.html.

21. Explain Your Corrections

Paid Preparer Use Only

Treasury regulations require you to explain in detail the
grounds and facts relied upon to support each correction. On
line 21, describe in detail each correction you entered in
column 4 on lines 6–15 and 17a. Also explain any correction
made on line 17b. If you need more space, attach additional
sheets, but be sure to write your name, EIN, “Form 943-X,”
and the calendar year you’re correcting on the top of each
sheet.

A paid preparer must sign Form 943-X and provide the
information in the Paid Preparer Use Only section of Part 5 if
the preparer was paid to prepare Form 943-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.

You must describe the events that caused the
underreported or overreported amounts. Explanations such
as “social security and Medicare wages were overstated,”
“administrative/payroll errors were discovered,” or “taxes
were not withheld” are insufficient and may delay processing
your Form 943-X because the IRS may need to ask for a
more complete explanation.

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 IRS.gov/PTIN. You can’t use
your PTIN in place of the EIN of the tax preparation firm.

Provide the following information in your explanation for
each correction.
Form 943-X line number(s) affected.
Date you discovered the error.
Difference (amount of the error).

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

Instructions for Form 943-X (Rev. 2-2018)

-13-

whether its workers are employees or independent
contractors for federal tax purposes.

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.

How Can You Get Forms,
Instructions, and Publications From
the IRS?

The time needed to complete and file Form 943-X will vary
depending on individual circumstances. The estimated
average time is:

You can download or print some of the forms and
publications you may need on IRS.gov/Forms.
Otherwise, you can go to IRS.gov/OrderForms to
place an order and have forms mailed to you.

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

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 collect the
right amount of tax. Subtitle C, Employment Taxes, of the
Internal Revenue Code imposes employment taxes,
including federal income tax withholding, on wages. 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.
You’re not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act

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

If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can send us
comments from IRS.gov/FormComments. Or you can write to
the Internal Revenue Service, Tax Forms and Publications
Division, 1111 Constitution Ave. NW, IR-6526, Washington,
DC 20224. Don’t send Form 943-X to this address. Instead,
see Where Should You File Form 943-X, earlier.

-14-

Instructions for Form 943-X (Rev. 2-2018)