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 2021)

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.
The February 2021 revision of Form 943-X updates
TIP Form 943-X to allow it to be used to make corrections
to the coronavirus (COVID-19) related employment
tax credits and other tax relief. You may use this revision of
Form 943-X and its instructions to correct Form 943 for all
years for which the statute of limitations on corrections hasn't
expired; however, see COBRA premium assistance credit for
employees who were involuntarily terminated from
employment between September 1, 2008, and May 31,
2010, later.

What's New
Changes to Form 943-X for COVID-19 related employment tax credits and other tax relief. Form 943-X has
been significantly revised to allow for correcting COVID-19
related employment tax credits and other tax relief related to
COVID-19 reported on Form 943. You may now use Form
943-X to report corrections to the following items reported on
Form 943.
• Corrections to amounts reported on Form 943, lines 2a,
2b, 12b, 14d, 18, and 19, for the credit for qualified sick and
family leave wages are reported on Form 943-X, lines 7, 8,
14, 23, 26, and 27, respectively. For more information about
the credit for qualified sick and family leave wages, including
the dates for which the credit may be claimed, go to IRS.gov/
PLC.
• Corrections to amounts reported on Form 943, lines 12c,
14e, 20, and 21, for the employee retention credit are
reported on Form 943-X, lines 15, 24, 28, and 29,
respectively. For more information about the employee
retention credit for qualified wages paid after March 12,
2020, and before January 1, 2021, see Notice 2021-20,
2021-11 I.R.B. 922, available at IRS.gov/irb/
2021-11_IRB#NOT-2021-20.
• Corrections to the deferred amount of the employer share
of social security tax reported on Form 943, line 14b, are
reported on Form 943-X, line 21. For more information about
the deferral of employment tax deposits, including the dates
that deposits were allowed to be deferred and when they
must be paid, go to IRS.gov/ETD.
• Corrections to the deferred amount of the employee share
of social security tax reported on Form 943, line 14c, are
reported on Form 943-X, line 22. For more information about
the deferral of the employee share of social security tax,
including the dates that the taxes were allowed to be
deferred and when they must be paid, see Notice 2020-65,
2020-38 I.R.B. 567, available at IRS.gov/irb/
2020-38_IRB#NOT-2020-65, and Notice 2021-11, 2021-06

Mar 19, 2021

I.R.B. 827, available at IRS.gov/irb/
2021-06_IRB#NOT-2021-11.
Note. If a line on Form 943-X doesn't apply to you, leave it
blank. If you're correcting a year before 2020, you must leave
blank the new lines 7, 8, 14, 15, 21, 22, 23, 24, 26, 27, 28,
29, and 30.
If you claimed the credit for qualified sick and family
leave wages and/or the employee retention credit on
CAUTION your original 2020 Form 943, and you make any
corrections on Form 943-X for 2020 to amounts used to
figure these credits, you will need to refigure the amount of
these credits using Worksheet 1. You will also use this
worksheet to figure these credits if you're claiming them for
the first time on Form 943-X.

!

New payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of
the Taxpayer Certainty and Disaster Tax Relief Act of 2020
allows for a new payroll tax credit for certain tax-exempt
organizations affected by certain qualified disasters not
related to COVID-19. This new credit is claimed on new Form
5884-D. You will enter the credit claimed on Form 5884-D on
Worksheet 1 to figure your credit for qualified sick and family
leave wages and/or the employee retention credit. For more
information about this credit, go to IRS.gov/Form5884D.
COBRA premium assistance credit for employees who
were involuntarily terminated from employment between September 1, 2008, and May 31, 2010. The
COBRA premium assistance credit lines have been removed
from Form 943-X. The 2008–2010 COBRA premium
assistance credit was available to an employer for premiums
paid on behalf of employees who were involuntarily
terminated from employment between September 1, 2008,
and May 31, 2010; it isn't available for individuals who were
involuntarily terminated after May 31, 2010. The IRS
previously kept these lines available on Form 943-X
because, in rare circumstances, such as instances where
COBRA eligibility was delayed as a result of
employer-provided health insurance coverage following
termination, the credit was still available. It is extremely
unlikely that any employers would still be providing health
insurance coverage for an employee terminated between
September 1, 2008, and May 31, 2010. Therefore, the IRS is
no longer accepting claims for the 2008–2010 COBRA
premium assistance credit. However, if you need to correct a
previously claimed COBRA premium assistance credit for a
year in which the statute of limitations on corrections hasn't
expired, you can file the February 2018 revision of Form
943-X and make the corrections on lines 17a and 17b.

Reminders
Employee consents to support a claim for refund. Rev.
Proc. 2017-28, 2017-14 I.R.B. 1061, available at IRS.gov/irb/
2017-14_IRB#RP-2017-28, provides guidance to employers
on the requirements for employee consents used by an
employer to support a claim for refund of overcollected social

Cat. No. 20333Q

incorrectly calculated the amount of tax, you can’t correct the
federal income tax withholding. However, you must still make
any necessary corrections to the amount of wages you
reported on Form 943 and Form W-2, Wage and Tax
Statement, for a prior year by filing Form 943-X and Form
W-2c, Corrected Wage and Tax Statement.

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 employees’ behalf won’t include a claim for
overpaid Additional Medicare Tax.

The amount actually withheld is reflected on payroll

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

the employee to claim a credit for withholding for
individual income tax return purposes.

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 10. 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 10, 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
Additional Medicare Tax withholding, see the Instructions for
Form 943 or go to IRS.gov/ADMT.

Qualified small business payroll tax credit for increasing research activities. For tax years beginning after 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 share of social security tax. The
payroll tax credit election must be made on or before the due
date of the originally filed income tax return (including
extensions). Any election to take the payroll tax credit may be
revoked only with the consent of the IRS. The portion of the
credit used against the employer 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 election and determination of the credit amount
that will be used against the employer share of social security
tax are made on Form 6765, Credit for Increasing Research
Activities. The amount from Form 6765, line 44, must then be
reported on Form 8974, Qualified Small Business Payroll Tax
Credit for Increasing Research Activities. Form 8974 is used
to determine the amount of the credit that can be used in the
current quarter. The amount from Form 8974, line 12, is
reported on Form 943, line 12a (line 12 for years prior to
2020). Any corrections to Form 943, line 12a (line 12 for
years prior to 2020), are reported on Form 943-X, line 13. If
you make a correction on Form 943-X, line 13, you must
attach a corrected Form 8974. For more information about
the payroll tax credit, go to IRS.gov/ResearchPayrollTC.

You may need to attach Schedule R (Form 943) to your
Form 943-X. If you were required to file Schedule R (Form
943), Allocation Schedule for Aggregate Form 943 Filers,
when you filed Form 943, you 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. Schedule R (Form 943) is filed as an attachment to
Form 943-X.
Approved section 3504 agents and certified professional
employer organizations (CPEOs) must complete and file
Schedule R (Form 943) when filing an aggregate Form 943.
Aggregate Forms 943 are filed by agents approved by the
IRS under section 3504. To request approval to act as an
agent for an employer, the agent files Form 2678 with the
IRS. Aggregate Forms 943 are also filed by CPEOs approved
by the IRS under section 7705. To become a CPEO, the
organization must apply through the IRS Online Registration
System at IRS.gov/CPEO. CPEOs file Form 8973, Certified
Professional Employer Organization/Customer Reporting
Agreement, to notify the IRS that they started or ended a
service contract with a customer.
Other third-party payers that file aggregate Forms 943,
such as non-certified PEOs, must complete and file
Schedule R (Form 943) if they have clients that are claiming
the qualified small business payroll tax credit for increasing
research activities, the credit for qualified sick and family
leave wages, or the employee retention credit, or clients
deferring the employer or the employee share of social
security tax. If you're an other third-party payer that didn't file
Schedule R (Form 943) with Form 943 because you didn't
meet these requirements, but are now filing Form 943-X to
report these credits or the deferral of the employer or the
employee share of social security tax for your clients, then
you must now file Schedule R (Form 943) and attach it to
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 16–19, later.

!

CAUTION

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 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
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Instructions for Form 943-X (Rev. 2-2021)

Report the correction of underreported and overreported
tax 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 tax amounts, file one Form
943-X correcting the underreported tax amounts only and a
second Form 943-X correcting the overreported tax amounts.

General Instructions:
Understanding Form 943-X
What Is the Purpose of Form 943-X?
Use Form 943-X to correct errors on a previously filed Form
943. Use Form 943-X to correct:
• Wages subject to social security tax;
• Wages subject to Medicare tax;
• Wages subject to Additional Medicare Tax withholding;
• Federal income tax withheld from wages;
• Deferred amount of the employer share of social security
tax;
• Deferred amount of the employee share of social security
tax;
• Qualified small business payroll tax credit for increasing
research activities;
• Amounts reported on Form 943 for the credit for qualified
sick and family leave wages, including adjustments to Form
943, lines 2a, 2b, 12b, 14d, 18, and 19; and
• Amounts reported on Form 943 for the employee retention
credit, including adjustments to Form 943, lines 12c, 14e, 20,
and 21.

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
tax amounts during the last 90 days of a period of limitations.
You’ll use the claim process if you overreported employment
taxes and are requesting a refund or abatement of the
overreported tax amount. Follow the chart on page 5 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 33 for each correction that you show on
Form 943-X.
Continue to report current year adjustments for fractions of
cents, third-party sick pay, and group-term life insurance on
Form 943, line 10.

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.

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. For corrections of
overreported federal income tax, social security tax,
Medicare tax, or Additional Medicare Tax, you must make
any certifications that apply to your situation.

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#RR-2009-39.

Where Can You Get Help?

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 32, later.

For help filing Form 943-X or for questions about federal
employment taxes and tax corrections, you can:
• Go to IRS.gov/EmploymentTaxes and IRS.gov/
CorrectingEmploymentTaxes;
• See Pub. 51; or
• Call the IRS Business and Specialty Tax Line toll free at
800-829-4933 or 800-829-4059 (TDD/TTY for persons who
are deaf, hard of hearing, or have a speech disability),
Monday–Friday from 7:00 a.m. to 7:00 p.m. local time
(Alaska and Hawaii follow Pacific time).

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
workers as independent contractors or nonemployees and
are now reclassifying them as employees, see the
instructions for line 32, later.

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

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).

!

When Should You File Form 943-X?
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
Liability on Form 943 or on Form 943-A, see the Form 943-A
instructions.

Unless otherwise specified in these instructions, an
TIP underreported employment tax credit or social
security tax deferral should be treated like an
overreported tax amount. An overreported employment tax
credit or social security tax deferral should be treated like an
underreported tax amount. For more information, including
which process to select on lines 1 and 2, see Correcting an
employment tax credit or social security tax deferral, later.
Instructions for Form 943-X (Rev. 2-2021)

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limitations on the credit or refund for Form 943 expires. See
Is There a Deadline for Filing Form 943-X, 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 tax amounts, you
may choose to either make an interest-free adjustment or file
a claim for refund or abatement. If you’re correcting
overreported tax amounts, see Overreported
tax—Adjustment process 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. 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. See Pub. 51 for more information on legal
holidays. For more information about PDSs, see Where
Should You File Form 943-X, later.

!

CAUTION

Example—You want your credit applied to Form 943.
You filed your 2020 Form 943 on February 1, 2021, and
payments were timely made. On May 1, 2021, you discover
that you overreported tax on your 2020 Form 943. You file
Form 943-X on June 4, 2021, and check the box on line 1 to
indicate you want to use the adjustment process. The IRS
treats your credit as a tax deposit made on January 1, 2021.
When you file your 2021 Form 943, include the amount from
Form 943-X, line 25, on the “Total deposits” line of your 2021
Form 943.
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 tax amounts, you must file another
Form 943-X reporting only corrections to the underreported
tax amounts. See Is There a Deadline for Filing Form 943-X,
later.

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 25, 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.
See “Averaged” FTD penalty in section 7 of Pub. 51 for more
information about “averaged” FTD penalties. The total tax
reported on Form 943-A, line M, must match the corrected
tax (Form 943, line 13, combined with any correction
reported on Form 943-X, line 20) for the year, less any
previous abatements and interest-free tax assessments.

!

CAUTION

CAUTION

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?
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.

Example—You owe tax. On February 16, 2021, you
discovered that you underreported $1,000 of social security
and Medicare wages on your 2020 Form 943. File Form
943-X and pay the amount you owe by January 31, 2022,
because you discovered the error in 2021 and January 31,
2022, is the due date for that year. If you file Form 943-X
before January 31, 2022, pay the amount you owe when you
file.

!

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 filed your 2018 Form 943 on January 28,
2019, and payments were timely made. The IRS treats the
return as if it were filed on April 15, 2019. On January 20,
2022, you discovered that you overreported social security
and Medicare wages on that form by $350. To correct the
error, you must file Form 943-X by April 18, 2022, and use
the claim process.

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

If you file Form 943-X to correct overreported tax
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
tax amounts, you must file another Form 943-X to correct the
underreported tax amounts using the adjustment process
and pay any tax due.

!

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

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Instructions for Form 943-X (Rev. 2-2021)

Where Should You File Form 943-X?

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

Send your completed Form 943-X to the address shown
below.
IF you’re in . . .
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

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, 3, and 4, and on any attachments.

THEN use this address . . .

Enter the Date You Discovered Errors

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 33.

Must You Make an Entry on Each Line?

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.

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

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).

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

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.

PDSs can't deliver to P.O. boxes. You must use the U.S.
Postal Service to mail an item to a P.O. box address. Go to
IRS.gov/PDS for the current list of PDSs. If you file Form
943-X using a PDS, send it to the following address.

How Should You Make Entries on Form 943-X?

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 four pages and sign Form 943-X on page 4.
• Staple multiple sheets in the upper-left corner.

Ogden - Internal Revenue Submission Processing
Center
1973 Rulon White Blvd.
Ogden, UT 84201
Use this address even if your business is located in a state
that files in Cincinnati.

How Should You Complete Form
943-X?
Use a Separate Form 943-X for Each Year You’re
Correcting

What About Penalties and Interest?

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 25 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.

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 2019 and 2020, file one Form 943-X to correct the
2019 Form 943. File a second Form 943-X to correct the
2020 Form 943.

Employer Identification Number (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, 3, and
4, 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.

Instructions for Form 943-X (Rev. 2-2021)

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.
-5-

• You knowingly underreported your employment tax
liability.
• You received a notice and demand for payment.
• You received a notice of determination under section
7436.

you must check one box on either line 1 or line 2. Don’t
check both boxes.
Correcting an employment tax credit or social security
tax deferral. For lines 1 and 2, if you underreported an
employment tax credit or the amount of social security tax
deferred, treat it like you overreported a tax amount. If you
overreported an employment tax credit or the amount of
social security tax deferred, treat it like you underreported a
tax amount. If you're filing Form 943-X to adjust only an
employment tax credit and/or the amount of social security
tax deferred and you're not correcting any overreported taxes
on Form 943-X, lines 6–11, skip lines 4 and 5.

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.

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
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 25, later.

1. Adjusted Employment Tax Return

Check the box on line 1 if you’re correcting underreported tax
amounts or overreported tax amounts and you would like to
use the adjustment process to correct the errors.
If you’re correcting both underreported tax amounts and
overreported tax amounts on this form, you must check this
box. If you check this box, any negative amount shown on
line 25 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.

Example—You underreported employment taxes. On
June 21, 2021, you discovered an error that results in
additional tax on your 2020 Form 943. File Form 943-X by
January 31, 2022, 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 2021 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 25 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 25.

If you owe tax. Pay the amount shown on line 25 by the
time you file Form 943-X. Generally, you won’t be charged
interest if you file on time, pay on time, enter the date you
discovered the error, and explain the correction on line 33.
If you have a credit. You overreported employment taxes
(you have a negative amount on line 25) 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 25, 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.

To ensure that the IRS has enough time to process a

TIP credit for an overreporting tax adjustment in the

year during which you file Form 943-X, you’re
encouraged to file Form 943-X correcting the overreported
tax amount in the first 11 months of a year. For example, if
you discover an overreported tax 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.

Don’t check the box on line 1 if you’re correcting
overreported tax amounts and the period of
CAUTION limitations on credit or refund for Form 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.

!

2. Claim

Check the box on line 2 to use the claim process if you’re
correcting overreported tax amounts only and you’re
claiming a refund or abatement for the negative amount
(credit) shown on line 25. Don’t check this box if you’re
correcting any underreported tax amounts on this form.

Example—You want your overreported tax applied as
a credit to Form 943. On December 20, 2021, you discover
you overreported your tax on your 2020 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, 2022, and take the credit on your 2022
Form 943.

You must check the box on line 2 if you have a credit (a
negative amount on line 25) 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.

Specific Instructions:

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.

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,
-6-

Instructions for Form 943-X (Rev. 2-2021)

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.

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 25, plus any interest that applies.

!

CAUTION

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

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.

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 tax amounts, complete line 3 only; skip lines 4
and 5 and go to Part 3. If your corrections relate to
overreported tax amounts, other than corrections related to
underreported employment tax credits and social security tax
deferrals, you have a duty to ensure that your employees'
rights to recover overpaid employee social security and
Medicare taxes that you withheld are protected. The
certifications on lines 4 and 5 address the requirement to:
• Repay or reimburse your employees for the overcollection
of employee social security and Medicare taxes, or
• 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.

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.

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 33 of the amount of the corrections for the employees
who provided statements or consents and for those who
didn’t.

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

Check the box on line 3 to certify that you filed or will file
Forms W-2 or Forms W-2c, with the Social Security
Administration (SSA), as required, showing your employees'
correct wage and tax amounts. See the General Instructions
for Forms W-2 and W-3 for detailed information about filing
requirements. References to Form W-2 on Form 943-X and
in these instructions also apply to Forms W-2AS, W-2CM,
W-2GU, and W-2VI unless otherwise noted.

You may not file a refund claim to correct the
incorrect amount of federal income tax or Additional
CAUTION Medicare Tax actually 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.

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, which don't impact the amounts
reported on your employee's Forms W-2 (see the instructions
for line 12, later), check the box on line 3 to certify that you
already filed all required Forms W-2 and W-2c with the SSA.
In this situation, you're certifying that you don't need to file
Form W-2c because you already filed a correct Form W-2.

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.

!

4. Certifying Overreporting Adjustments

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;

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

!

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.

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
Instructions for Form 943-X (Rev. 2-2021)

-7-

• 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.

amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.
If you or the IRS previously corrected the amount reported
on Form 943, line 2, enter in column 2 the amount after any
previous corrections.
line 6 (column 1)
- line 6 (column 2)
line 6 (column 3)

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

Multiply the amount in column 3 by 0.124 (12.4% tax rate)
and enter that result in 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 33 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.

line 6 (column 3)
x 0.124
line 6 (column 4)

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

Note. If you checked the box on Form 943-X, line 4b or
line 5c, because you’re correcting only the employer share of
tax on a decrease to social security wages, use 0.062 (6.2%)
when multiplying the amount shown in column 3. If you’re
correcting both shares of tax for some employees and only
the employer share for other employees, enter the properly
calculated amount in column 4. Be sure to show your
calculations on line 33.

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

Example—Social security wages decreased. You
reported $9,000 as social security wages on your 2020 Form
943, line 2. In December of 2021, 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.

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
What Amounts Should You Report in Part 3?

On lines 6–11, columns 1 and 2, for each line you’re
correcting, show amounts for all of your employees, not just
for those employees whose amounts you’re correcting.

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

7,000.00
- 9,000.00

Column 3 (difference)

- 2,000.00

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

If a correction that you report in column 4 includes both
underreported and overreported amounts (see the
instructions for line 31, later), give us details for each error on
line 33.

- 2,000.00
x 0.124

Column 3 (difference)
Tax rate (12.4%)
Column 4 (tax correction)

Because special circumstances apply for lines 12–19, 21–
24, and 26–30, read the instructions for each line carefully
before entering amounts in the columns.

- 248.00

Be sure to explain the reasons for this correction on
line 33.

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

7. Qualified Sick Leave Wages

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.

Adjustments to the social security tax on qualified

!

TIP sick leave wages and qualified family leave wages

are reported on Form 943-X, lines 7 and 8,
respectively. Adjustments to the nonrefundable portion of the
credit for qualified sick and family leave wages are reported
on Form 943-X, line 14, and adjustments to the refundable
portion of the credit are reported on Form 943-X, line 23.
Adjustments to qualified health plan expenses allocable to
qualified sick leave wages and to qualified family leave

6. 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 for all employees in column 1. In column 2, enter the
-8-

Instructions for Form 943-X (Rev. 2-2021)

wages are reported on Form 943-X, lines 26 and 27,
respectively. For corrections to a 2020 Form 943, the credit
for qualified sick and family leave wages is only available for
wages paid with respect to leave taken after March 31, 2020,
and before January 1, 2021. Credit for any qualified sick and
family leave wages paid in 2021 will be claimed on your 2021
Form 943. If you're correcting a year before 2020, don't enter
any amounts on lines 7, 8, 14, 23, 26, and 27. If you claimed
the credit for qualified sick and family leave wages on your
original 2020 Form 943, and you make any corrections on
Form 943-X to amounts used to figure this credit, you will
need to refigure the amount of this credit using Worksheet 1.
You will also use this worksheet to figure this credit if you're
claiming the credit for the first time on Form 943-X. For more
information about the credit for qualified sick and family leave
wages, go to IRS.gov/PLC.

Column 3 (difference)
Tax rate (6.2%)
Column 4 (tax correction)

8. Qualified Family Leave Wages

For 2020, qualified family leave wages aren't subject to the
employer share of social security tax; therefore, the tax rate
on these wages is 6.2% (0.062). For more information about
qualified family leave wages, see Definition of qualified sick
and family leave wages, later, and go to IRS.gov/PLC. If
you're correcting the qualified family leave wages you
reported on Form 943, line 2b, 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)

line 7 (column 1)
- line 7 (column 2)

line 8 (column 3)
x 0.062
line 8 (column 4)

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

Example—Qualified family leave wages decreased.
You paid $1,000 of qualified family leave wages to only one
of your employees in 2020. In March 2021, you discover that
you erroneously reported $3,000 of qualified family leave
wages on your 2020 Form 943. To correct the error, figure
the difference on Form 943-X as shown.

Note. If you erroneously reported qualified sick leave wages
on Form 943, line 2, instead of on line 2a, you will need to
make a correction on Form 943-X, lines 6 and 7, and enter
the properly calculated amount in column 4 for each line.
Example—Qualified sick leave wages increased. You
paid $2,000 of qualified sick leave wages to only one of your
employees in 2020. In March 2021, you discover that you
only reported $1,000 of qualified sick leave wages on your
2020 Form 943. To correct the error, figure the difference on
Form 943-X as shown.

Column 3 (difference)

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

Note. If you erroneously reported qualified family leave
wages on Form 943, line 2, instead of on line 2b, you will
need to make a correction on Form 943-X, lines 6 and 8, and
enter the properly calculated amount in column 4 for each
line.

line 7 (column 3)
x 0.062

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

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

Multiply the amount in column 3 by 0.062 and enter that
result in column 4.

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

Multiply the amount in column 3 by 0.062 and enter that
result in column 4.

line 7 (column 4)

62.00

Be sure to explain the reasons for this correction on
line 33.

For 2020, qualified sick leave wages aren't subject to the
employer share of social security tax; therefore, the tax rate
on these wages is 6.2% (0.062). For more information about
qualified sick leave wages, see Definition of qualified sick
and family leave wages, later, and go to IRS.gov/PLC. If
you're correcting the qualified sick leave wages you reported
on Form 943, line 2a, 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 3)

1,000.00
x 0.062

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

1,000.00
- 3,000.00

Column 3 (difference)

- 2,000.00

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

2,000.00
- 1,000.00
1,000.00

Column 3 (difference)
Tax rate (6.2%)
Column 4 (tax correction)

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

- 2,000.00
x 0.062
- 124.00

Be sure to explain the reasons for this correction on
line 33.
Instructions for Form 943-X (Rev. 2-2021)

-9-

9. Wages Subject to Medicare Tax

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 16–19,
later.

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.

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

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

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

line 10 (column 1)
- line 10 (column 2)

line 9 (column 3)
x 0.029
line 9 (column 4)

line 10 (column 3)

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

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

Note. If you checked the box on Form 943-X, line 4b or
line 5c, because 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 33.

line 10 (column 3)
x 0.009
line 10 (column 4)

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

Column 4 (tax correction)

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 2020. The total wages paid to Nathan for 2020
were $230,000. You withheld $270 ($30,000 x 0.009) from
Nathan's wages. However, on your 2020 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, 2021. This is an example of an
administrative error that may be corrected in a later calendar
year because the amount actually withheld isn’t the amount
reported on your 2020 Form 943. Use Form 943-X, line 10, to
correct the error as shown below.

Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (2.9%)

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

- 2,000.00
x 0.029
- 58.00

Be sure to explain the reasons for this correction on
line 33.

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

30,000.00
- 3,000.00

Column 3 (difference)

27,000.00

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

10. Wages Subject to Additional Medicare Tax
Withholding

Column 3 (difference)
Tax rate (0.9%)

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.

27,000.00
x 0.009

Column 4 (tax correction)

243.00

Be sure to explain the reasons for this correction on
line 33.
Prior year nonadministrative errors. You may correct
only the taxable wages subject to Additional Medicare Tax
-10-

Instructions for Form 943-X (Rev. 2-2021)

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 10 (column 1)
- line 10 (column 2)
line 10 (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.

Difference related to administrative error
Tax rate (0.9%)

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 33.

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 2020.
The total wages paid to Leah for 2020 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 2020 Form 943. You discover the error on
March 16, 2021. File Form 943-X to correct the wages
subject to Additional Medicare Tax withholding for your 2020
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 2020.

27,000.00
x 0.009
243.00

Be sure to explain the reasons for these corrections on
line 33. 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.

11. 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 33 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 11 (column 1)
- line 11 (column 2)
line 11 (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
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 16–19, later.

!

Example—Combination of prior year administrative
and nonadministrative errors. Nathan Smith's wages
exceeded the $200,000 withholding threshold for Additional
Medicare Tax in November 2020. The total wages paid to
Nathan for 2020 were $230,000. You withheld $270 ($30,000
x 0.009) from Nathan's wages. However, on your 2020 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 2020.
The total wages paid to Leah for 2020 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 2020 Form 943.

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 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

You discover both errors on March 16, 2021. Use Form
943-X, line 10, to correct the errors as shown below.
Instructions for Form 943-X (Rev. 2-2021)

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

-11-

incorrectly calculated the amount of tax, you can't correct the
federal income tax withholding.

line 12 (column 1)
- line 12 (column 2)

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 2020 but you
withheld nothing. You discovered the error on March 19,
2021. You can’t file Form 943-X to correct federal income tax
withheld reported on your 2020 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 2020.

line 12 (column 3)

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
Form 943, line 10.
Copy the amount in column 3 to column 4. Include any
minus sign shown in column 3.

Example—Prior year administrative error (incorrectly
reported amount of federal income tax actually
withheld). You had three employees. In 2020, 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 2020 Form 943, line 8. You
discovered the error on March 19, 2021. 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 isn’t 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)

On line 33, 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 your 2020 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 2021. To
correct the error, figure the difference on Form 943-X as
shown.

9,000.00
- 6,000.00

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

3,000.00

Column 3 (difference)

Report the $3,000.00 as a tax correction in column 4.
Be sure to explain the reasons for this correction on
line 33.

-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

Example—Nonadministrative error reporting federal
income tax because of repayment of wages paid in
prior year. You prepaid Jack Brown $4,000 of wages for 2
months of work in September 2020. You withheld $400 of
federal income tax at the time you paid Jack. These amounts
were reported on your 2020 Form 943. Jack left employment
in October 2020 (after only 1 month of service). In February
2021, Jack repaid $2,000 to you for the 1 month he didn't
work. 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 income to Jack for
the prior year. These amounts were correctly reported on
Form 943.

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 2020 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 33.
Only use line 12 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.

!

12. Tax Adjustments
For purposes of these instructions, all references to

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

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

leave wages.”

Don’t enter an amount on line 12 unless you need to correct
any adjustments reported on Form 943, line 10. Amounts
reported on line 12 reflect corrections of amounts misstated
on Form 943, line 10. See Example—Adjustment for
third-party sick pay underreported, later.

If you're correcting the qualified small business payroll tax
credit for increasing research activities that you reported on
Form 943, line 12a (line 12 for years prior to 2020), enter the
total corrected amount in column 1. In column 2, enter the
amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.

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.

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
-12-

Instructions for Form 943-X (Rev. 2-2021)

December 27, 2020; therefore, Worksheet 1, in the 2020
Instructions for Form 943, didn't include lines to add the
wages that meet an exclusion under section 3121(b) when
figuring the credits for qualified sick and family leave wages.
If your Form 943 for 2020 didn't claim the correct amount of
the credit for qualified sick and family leave wages because
you paid qualified sick leave wages and/or qualified family
leave wages that meet an exclusion under section 3121(b),
you may file Form 943-X and complete Worksheet 1 to claim
the correct amount of the credit. You will also include on
Form 943-X, lines 26 and 27, and on Worksheet 1 any
qualified health plan expenses allocable to those wages.

column 4 or a negative number in column 3 as a positive
number in column 4.
You must attach a corrected Form 8974 and explain the
reasons for this correction on line 33.
The payroll tax credit election must be made on or
before the due date of the originally filed income tax
CAUTION return (including extensions). Any election to take the
payroll tax credit may be revoked only with the consent of the
IRS.

!

14. Nonrefundable Portion of Credit for
Qualified Sick and Family Leave Wages

Example—Nonrefundable portion of credit for
qualified sick and family leave wages increased. You
originally reported a $1,000 nonrefundable portion of credit
for qualified sick and family leave wages on Form 943,
line 12b, for 2020. In March 2021, you discover that you
made an error when figuring the credit. You use Worksheet 1
to refigure the nonrefundable portion of the credit for qualified
sick and family leave wages and you determine that the
credit is $2,000. To correct the error, figure the difference on
Form 943-X as shown.

Form 943-X and these instructions use the terms

TIP “nonrefundable” and “refundable” when discussing

credits. The term “nonrefundable” means the portion
of the credit which is limited by law to the amount of the
employer share of social security tax. The term “refundable”
means the portion of the credit which is in excess of the
employer share of social security tax.
If you’re correcting the nonrefundable portion of the credit for
qualified sick and family leave wages that you reported on
Form 943, line 12b, enter the total corrected amount from
Worksheet 1, Step 2, line 2j, in column 1. In column 2, enter
the amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and 2.
For more information about the credit for qualified sick and
family leave wages, go to IRS.gov/PLC.

Column 3 (difference)

1,000.00

To properly show the credit increase as a reduction to
your tax balance, enter the positive number in column 3 as a
negative number in column 4. Here is how you would enter
the numbers on Form 943-X, line 14.

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.

Column 1
(corrected
amount)
2,000.00

For corrections to a 2020 Form 943, the credit for qualified
sick and family leave wages is only available for wages paid
with respect to leave taken after March 31, 2020, and before
January 1, 2021. Credit for any qualified sick and family leave
wages paid in 2021 will be claimed on your 2021 Form 943. If
you're correcting a year before 2020, don't enter any amount
on line 14.

Column 2
Column 3
(Form 943, line 12b) (difference)

Column 4
(tax correction)

1,000.00

-1,000.00

1,000.00

Be sure to explain the reasons for this correction on
line 33.

15. Nonrefundable Portion of Employee
Retention Credit

Definition of qualified sick and family leave wages. For
purposes of the credit for qualified sick and family leave
wages, qualified sick and family leave wages are wages for
social security and Medicare tax purposes, determined
without regard to the exclusions from the definition of
employment under section 3121(b), that an employer pays
that otherwise meet the requirements of the Emergency Paid
Sick Leave Act (EPSLA) or the Emergency Family and
Medical Leave Expansion Act, as enacted under the FFCRA
and amended by the COVID-related Tax Relief Act of 2020.
However, don't include any wages otherwise excluded under
section 3121(b) when reporting qualified sick and family
leave wages on your employment tax return and when
figuring the credit on Worksheet 1, Step 2, lines 2a and 2a(i),
and on Step 2, lines 2e and 2e(i). Instead, include qualified
sick leave wages and qualified family leave wages excluded
from the definition of employment under section 3121(b)
separately in Step 2, lines 2a(iii) and/or line 2e(iii),
respectively, before you figure your total credit in Step 2,
line 2d (credit for qualified sick leave wages), or Step 2,
line 2h (credit for qualified family leave wages).
The 2020 Instructions for Form 943 were released before
the COVID-related Tax Relief Act of 2020 was enacted on
Instructions for Form 943-X (Rev. 2-2021)

2,000.00
- 1,000.00

Column 1 (corrected amount)
Column 2 (Form 943, line 12b)

Section 206(c) of the Taxpayer Certainty and

TIP Disaster Tax Relief Act of 2020 removed the

restriction on an employer who has received a Small
Business Interruption Loan under the Paycheck Protection
Program (PPP) from claiming the employee retention credit.
The eligible employer can claim the employee retention
credit on any qualified wages that aren't counted as payroll
costs in obtaining PPP loan forgiveness. Any wages that
could count toward eligibility for the employee retention credit
or PPP loan forgiveness can be applied to either of these two
programs, but not both. If your Form 943 for 2020 didn't claim
the correct amount for the employee retention credit because
you received a Small Business Interruption Loan under the
PPP, you may file Form 943-X and complete Worksheet 1 to
claim the correct amount of the credit. For more information,
see Notice 2021-20.
If you’re correcting the nonrefundable portion of the
employee retention credit that you reported on Form 943,
line 12c, enter the total corrected amount from Worksheet 1,
Step 3, line 3h, in column 1. In column 2, enter the amount
-13-

• 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.

you originally reported or as previously corrected. In column
3, enter the difference between columns 1 and 2. For more
information about the employee retention credit for qualified
wages paid after March 12, 2020, and before January 1,
2021, see Notice 2021-20.
Copy the amount in column 3 to column 4. However, to
properly show the amount as a credit or balance due item,
enter a positive number in column 3 as a negative number in
column 4 or a negative number in column 3 as a positive
number in column 4. For an example of how to report
amounts in columns 1–4 for an employment tax credit, see
the instructions for line 14, earlier.

If the employer didn’t issue the required information
returns, use the section 3509 rates as follows.
• For social security taxes, use the employer rate of 6.2%
plus 40% of the employee rate of 6.2%, for a total rate of
8.68% of wages.
• For Medicare taxes, use the employer rate of 1.45% plus
40% of the employee rate of 1.45%, for a total rate of 2.03%
of wages.
• For Additional Medicare Tax, 0.36% (40% of the employee
rate of 0.9%) of wages subject to Additional Medicare Tax.
• For federal income tax withholding, the rate is 3.0% of
wages.

Be sure to explain the reasons for this correction on
line 33.
Adjustments to the nonrefundable portion of the

TIP employee retention credit are reported on Form

943-X, line 15, and adjustments to the refundable
portion of the credit are reported on Form 943-X, line 24.
Adjustments to qualified wages for the employee retention
credit are reported on Form 943-X, line 28. Adjustments to
qualified health plan expenses allocable to the employee
retention credit are reported on Form 943-X, line 29. For
corrections to a 2020 Form 943, the employee retention
credit is only available for wages paid after March 12, 2020,
and before January 1, 2021. Credit for any employee
retention credit in 2021 will be claimed on your 2021 Form
943. If you're correcting a year before 2020, don't enter any
amounts on lines 15, 24, 28, and 29. If you claimed the
employee retention credit on your original 2020 Form 943,
and you make any corrections on Form 943-X for the year to
amounts used to figure this credit, you will need to refigure
the amount of the credit using Worksheet 1. You will also use
this worksheet to figure this credit if you're claiming the credit
for the first time on Form 943-X. For more information about
the employee retention credit for qualified wages paid after
March 12, 2020, and before January 1, 2021, see Notice
2021-20.

Unlike some 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 33. 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 32, later, for
more information.

20. Subtotal

Combine the amounts from column 4 on lines 6–19 and enter
the result on line 20.
Example. You entered “-500.00” in column 4 of line 6,
“-100.00” in column 4 of line 9, and “1,400.00” in column 4 of
line 11. Combine these amounts and enter “800.00” in
column 4 of line 20.

16–19. 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 9
Line 11

-500.00
-100.00
+ 1,400.00

Line 20

800.00

21. Deferred Amount of the Employer Share of
Social Security Tax

Use Form 943-X, line 21, if you need to correct the deferred
amount of the employer share of social security tax that you
reported on your 2020 Form 943, line 14b. Enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected by you or
the IRS. In column 3, enter the difference between columns 1
and 2.

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.
On lines 16–19, enter only corrections to wages resulting
from reclassifying certain workers as employees when
section 3509 rates are used to calculate the taxes.

Copy the amount in column 3 to column 4. However,
because an increase to the deferred amount of the employer
share of social security tax defers the payment due, to
properly show the amount as a deferral of payment, enter a
positive number in column 3 as a negative number in column
4. A decrease to the deferred amount of the employer share
of social security tax decreases the payment you can defer

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.
-14-

Instructions for Form 943-X (Rev. 2-2021)

4. A decrease to the deferred amount of the employee share
of social security tax decreases the payment you can defer
and must be shown as a balance due item; therefore, to
properly show the amount as a balance due item, enter a
negative number in column 3 as a positive number in column
4.

and must be shown as a balance due item; therefore, to
properly show the amount as a balance due item, enter a
negative number in column 3 as a positive number in column
4.
If you're filing Form 943-X to increase the amount of social
security wages paid on or after March 27, 2020, and before
January 1, 2021, so that there is an additional amount of
social security tax that hasn't yet been paid, and hasn't yet
been deferred, then you may use Form 943-X to increase the
amount of the deferred employer share of social security tax
originally reported on Form 943, line 14b. If you're filing Form
943-X to decrease the amount of social security wages paid
on or after March 27, 2020, and before January 1, 2021, so
that there is a decrease in the amount of social security tax
that is eligible for deferral, then you must use Form 943-X to
decrease the amount of the deferred employer share of
social security tax originally reported on Form 943, line 14b, if
the decrease in wages causes the amount you originally
deferred to exceed the amount that is now eligible for
deferral. Otherwise, you may only correct the amount of the
deferred employer share of social security tax if the amount
originally reported on Form 943, line 14b, isn't the amount
you actually deferred (for example, you incorrectly reported
the amount that you actually deferred). If you already paid the
correct amount of the employer share of social security tax
during the payroll tax deferral period, you may not
subsequently defer the payment by filing Form 943-X. See
IRS.gov/ETD for more information about the interaction of
credits and the deferral of employment tax deposits and
payments.

You may only correct the amount of the deferred
employee share of social security tax if the amount originally
reported on Form 943, line 14c, isn't the amount you actually
deferred (for example, you incorrectly reported the amount
that you actually deferred). If you already paid the correct
amount of the employee's share of social security tax, you
may not subsequently defer the payment by filing Form
943-X.
The deferred amount of the employee share of social
security tax was only available for social security wages of
less than $4,000 paid to an employee in any biweekly pay
period (or the equivalent threshold amount for other pay
periods) paid on a pay date during the period beginning on
September 1, 2020, and ending on December 31, 2020. The
due date for withholding and payment of the deferred
employee share of social security tax is postponed until the
period beginning on January 1, 2021, and ending on
December 31, 2021. The employer is liable to pay the
deferred employee share of social security tax to the IRS and
must do so before January 1, 2022, to avoid interest,
penalties, and additions to tax on those amounts. Because
January 1, 2022, is a nonbusiness day, payments made on
January 3, 2022, will be considered timely. For more
information about the deferral of the employee share of social
security tax, see Notice 2020-65 and Notice 2021-11.

The deferred amount of the employer share of social
security tax was only available for deposits and payments
due on or after March 27, 2020, and before January 1, 2021,
as well as deposits and payments due after January 1, 2021,
that are required for wages paid during the applicable period.
One-half of the deferred amount of the employer share of
social security tax is due by December 31, 2021, and the
remainder is due by December 31, 2022. Because both
December 31, 2021, and December 31, 2022, are
nonbusiness days, payments made on the next business day
will be considered timely. Any payments or deposits you
make before December 31, 2021, are first applied against
your payment due on December 31, 2021, and then applied
against your payment due on December 31, 2022. For more
information about the deferral of employment tax deposits,
go to IRS.gov/ETD and see the instructions for Form 943,
available at IRS.gov/Form943.

Be sure to explain the reasons for any corrections on
line 33.

23. Refundable Portion of Credit for Qualified
Sick and Family Leave Wages

If you're correcting the refundable portion of the credit for
qualified sick and family leave wages that you reported on
Form 943, line 14d, enter the total corrected amount from
Worksheet 1, Step 2, line 2k, in column 1. In column 2, enter
the amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and 2.
For more information about the credit for qualified sick and
family leave wages, go to IRS.gov/PLC.
Copy the amount in column 3 to column 4. However, to
properly show the amount as a credit or balance due item,
enter a positive number in column 3 as a negative number in
column 4 or a negative number in column 3 as a positive
number in column 4. For an example of how to report
amounts in columns 1–4 for an employment tax credit, see
the instructions for line 14, earlier.

Be sure to explain the reasons for any correction on
line 33.

22. Deferred Amount of the Employee Share of
Social Security Tax

Use Form 943-X, line 22, if you need to correct the deferred
amount of the employee share of social security tax that you
reported on your 2020 Form 943, line 14c. Enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected by you or
the IRS. In column 3, enter the difference between columns 1
and 2.

Be sure to explain the reasons for this correction on
line 33.

24. Refundable Portion of Employee Retention
Credit

If you're correcting the refundable portion of the employee
retention credit that you reported on Form 943, line 14e,
enter the total corrected amount from Worksheet 1, Step 3,
line 3i, in column 1. In column 2, enter the amount you
originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2. For more
information about the employee retention credit for qualified

Copy the amount in column 3 to column 4. However,
because an increase to the deferred amount of the employee
share of social security tax defers the payment due, to
properly show the amount as a deferral of payment, enter a
positive number in column 3 as a negative number in column
Instructions for Form 943-X (Rev. 2-2021)

-15-

line 13, combined with any correction reported on Form
943-X, line 20) for the year, less any previous abatements
and interest-free tax assessments.

wages paid after March 12, 2020, and before January 1,
2021, see Notice 2021-20.
Copy the amount in column 3 to column 4. However, to
properly show the amount as a credit or balance due item,
enter a positive number in column 3 as a negative number in
column 4 or a negative number in column 3 as a positive
number in column 4. For an example of how to report
amounts in columns 1–4 for an employment tax credit, see
the instructions for line 14, earlier.

Payment methods. You may pay the amount you owe on
line 25 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 800-555-4477 or 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.

Be sure to explain the reasons for this correction on
line 33.

Corrections to Form 943, Line 14g

Form 943-X doesn't include a line to correct amounts
reported on Form 943, line 14g, for the total advances
received from filing Form(s) 7200 for the year. If a
discrepancy exists between the amount reported on Form
943 and the amount of advance payments issued, the IRS
will generally correct the amount reported on Form 943,
line 14g, to match the amount of advance payments issued.
However, aggregate filers may need to correct the amount
reported on Form 943, line 14g, to reflect the correct advance
payments received by their clients or customers. If you're an
aggregate filer that needs to correct the amount reported on
Form 943, line 14g, include any increase or decrease to the
amount in the "Total" reported on Form 943-X, line 25; write
"Correction to line 14g" on the dotted line to the left of the
entry box on line 25; explain your correction on line 33; and
attach Schedule R (Form 943) to Form 943-X to show
corrections for your clients or customers.

Lines 26–30

For lines 26–30, you will only enter amounts in columns 1, 2,
and 3. These lines don't have an entry space for column 4
because these adjustments don't directly result in an
increase or decrease to your tax. The amounts entered on
lines 26–30, are amounts that you use on Worksheet 1 to
figure the credit for qualified sick and family leave wages and
the employee retention credit. If you reported an incorrect
amount on lines 18–22 on your original Form 943, then you
will use lines 26–30 of Form 943-X to report the correction.
Use Worksheet 1 to refigure the credit for qualified sick and
family leave wages and/or the employee retention credit
based on the corrected amounts reported in column 1. Be
sure to explain the reasons for your corrections to lines 26–
30 on line 33.

25. Total

Combine the amounts from column 4 on lines 20–24 and
enter the result on line 25.
Your credit. If the amount entered on line 25 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
record of federal tax liability reported on Form 943, line 17, or
Form 943-A, unless you were assessed an FTD penalty. For
more information, see the Form 943-A instructions.
• 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.

26. Qualified Health Plan Expenses Allocable to
Qualified Sick Leave Wages

If you're correcting the qualified health plan expenses
allocable to qualified sick leave wages that you reported on
Form 943, line 18, enter the total corrected amount for all
employees in column 1. In column 2, enter the amount you
originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2. Enter the
corrected amount from column 1 on Worksheet 1, Step 2,
line 2b.

Amount you owe. If the amount on line 25 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,

27. Qualified Health Plan Expenses Allocable to
Qualified Family Leave Wages

If you're correcting the qualified health plan expenses
allocable to qualified family leave wages that you reported on
Form 943, line 19, enter the total corrected amount for all
employees in column 1. In column 2, enter the amount you
originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2. Enter the
corrected amount from column 1 on Worksheet 1, Step 2,
line 2f.

28. Qualified Wages for the Employee Retention
Credit

If you're correcting the qualified wages for the employee
retention credit that you reported on Form 943, line 20, enter
the total corrected amount for all employees in column 1. In
-16-

Instructions for Form 943-X (Rev. 2-2021)

• Write “Misclassified Employees” in bold letters across
the top margin of page 1.
• Enter a zero on line 13.
• 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 16–19, column 1.
• Enter zeros on lines 16–19, column 2.
• Complete columns 3 and 4 as instructed in Part 3.
• Provide a detailed statement on line 33.
• Complete the signature area.

column 2, enter the amount you originally reported or as
previously corrected. In column 3, enter the difference
between columns 1 and 2. Enter the corrected amount from
column 1 on Worksheet 1, Step 3, line 3a.

29. Qualified Health Plan Expenses Allocable to
Wages Reported on Form 943, Line 20

If you're correcting the qualified health plan expenses
allocable to wages reported on Form 943, line 20, that you
reported on Form 943, line 21, enter the total corrected
amount for all employees in column 1. In column 2, enter the
amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.
Enter the corrected amount from column 1 on Worksheet 1,
Step 3, line 3b.

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 33.

!

30. Credit From Form 5884-C, Line 11, for the
Year

If you're correcting the credit from Form 5884-C, line 11, for
the year, that you reported on Form 943, line 22, enter the
total corrected amount in column 1. In column 2, enter the
amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2.
Enter the corrected amount from column 1 on Worksheet 1,
Step 1, line 1f. Entering an amount here is strictly for
purposes of figuring the credit for qualified sick and family
wages and/or the employee retention credit on Worksheet 1.
Reporting a correction on this line doesn't correct the credit
claimed on Form 5884-C.

33. Explain Your Corrections

Treasury regulations require you to explain in detail the
grounds and facts relied upon to support each correction. On
line 33, describe in detail each correction you entered in
column 4 on lines 6–19, and lines 21–24. Also use line 33 to
describe corrections made on lines 26–30. 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.

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

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.

Check the box on line 31 if any corrections you entered on
lines 6–24, or lines 26–30, column 3, reflect both
underreported and overreported amounts.
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 33, you must explain the reason for both the
$15,000 increase and the $5,000 decrease.

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).
• Cause of the error.

32. Did You Reclassify Any Workers?

Check the box on line 32 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 33, give us a detailed
reason why any worker was reclassified and, if you used
section 3509 rates on lines 16–19 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 9
was discovered on May 14, 2021, 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 16–19, 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.
Instructions for Form 943-X (Rev. 2-2021)

Part 5. Sign Here
You must complete all four pages of Form 943-X and sign it.
If you don’t sign it on page 4, processing of Form 943-X will
be delayed.
-17-

Paid Preparer Use Only

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 a limited liability company
(LLC) treated as a corporation)—The president, vice
president, or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization—A
responsible and duly authorized 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.

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.
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.
Generally, you’re not required to complete this section if
you’re filing the return as a reporting agent and have a valid
Form 8655 on file with the IRS. However, a reporting agent
must complete this section if the reporting agent offered legal
advice, for example, advising the client on determining
whether its workers are employees or independent
contractors for federal tax purposes.

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#RP-2005-39.

-18-

Instructions for Form 943-X (Rev. 2-2021)

Worksheet 1. Adjusted Credit for Qualified Sick and Family Leave
Wages and the Employee Retention Credit

Keep for Your Records

You must use this worksheet if you claimed the credit for qualified sick and family leave wages and/or the employee retention credit
on your original Form 943 for the year and you correct amounts used to figure these credits on Form 943-X. You will also use this
worksheet to figure these credits if you’re claiming them for the first time on Form 943-X.
Step 1.
1a
1b
1c
1d
1e
1f
1g
1h
1i
Step 2.

Determine the employer share of social security tax this year after it is reduced by any credit claimed on
Form 8974 and any credit from Form 5884-C, and/or Form 5884-D
Enter the amount of social security wages from Form 943, line 2, or, if
corrected, the amount from Form 943-X, line 6, column 1 . . . . . . . . . . . . . . . . . 1a
Multiply line 1a by 6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
Employer share of social security tax included on Form 943-X, line 17,
column 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
Employer share of social security tax. Add lines 1b and 1c . . . . . . . . . . . . .
1d
Enter the amount from Form 943, line 12a, or, if corrected, the amount from
Form 943-X, line 13, column 1 (credit from Form 8974) . . . . . . . . . . . . . . . . . . . 1e
Enter the amount from Form 943, line 22, or, if corrected, the amount from
Form 943-X, line 30, column 1 (credit from Form 5884-C) . . . . . . . . . . . . . . . . . 1f
Enter the amount from Form 5884-D, line 12, for the year . . . . . . . . . . . . . . . . . 1g
Total nonrefundable credits already used against the employer share
of social security tax. Add lines 1e, 1f, and 1g . . . . . . . . . . . . . . . . . . . . . . . . .
1h
Employer share of social security tax remaining. Subtract line 1h
from line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i

Figure the sick and family leave credit
Qualified sick leave wages reported on Form 943, line 2a, or, if corrected, the
amount from Form 943-X, line 7, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a(i) Qualified sick leave wages included on Form 943, line 4, or, if corrected, Form
943-X, line 9, column 1, but not included on Form 943, line 2a, or Form 943-X,
line 7, column 1, because the wages reported on that line were limited by the
social security wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a(ii) Total qualified sick leave wages. Add lines 2a and 2a(i) . . . . . . . . . . . . . . . . . . .
2a(iii) Qualified sick leave wages excluded from the definition of employment under
section 3121(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2b
Qualified health plan expenses allocable to qualified sick leave wages (Form
943, line 18, or, if corrected, Form 943-X, line 26, column 1) . . . . . . . . . . . . . . .
2c
Employer share of Medicare tax on qualified sick leave wages. Multiply
line 2a(ii) by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2d
Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b,
and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2e
Qualified family leave wages reported on Form 943, line 2b, or, if corrected,
the amount from Form 943-X, line 8, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . .
2e(i) Qualified family leave wages included on Form 943, line 4, or, if corrected,
Form 943-X, line 9, column 1, but not included on Form 943, line 2b, or Form
943-X, line 8, column 1, because the wages reported on that line were limited
by the social security wage base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2e(ii) Total qualified family leave wages. Add lines 2e and 2e(i) . . . . . . . . . . . . . . . . .
2e(iii) Qualified family leave wages excluded from the definition of employment
under section 3121(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2f
Qualified health plan expenses allocable to qualified family leave wages (Form
943, line 19, or, if corrected, Form 943-X, line 27, column 1) . . . . . . . . . . . . . . .
2g
Employer share of Medicare tax on qualified family leave wages. Multiply
line 2e(ii) by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2h
Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f,
and 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2i
Credit for qualified sick and family leave wages. Add lines 2d
and 2h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2j
Nonrefundable portion of credit for qualified sick and family leave
wages. Enter the smaller of line 1i or line 2i. Enter this amount on Form 943-X,
line 14, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2k
Refundable portion of credit for qualified sick and family leave wages.
Subtract line 2j from line 2i and enter this amount on Form 943-X, line 23,
column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a

Worksheet 1 continues on the next page.

Instructions for Form 943-X (Rev. 2-2021)

-19-

2a

2a(i)
2a(ii)
2a(iii)
2b
2c
2d
2e

2e(i)
2e(ii)
2e(iii)
2f
2g
2h
2i
2j
2k

Worksheet 1. Adjusted Credit for Qualified Sick and Family Leave Wages and the Employee Retention
Credit—(continued)
Step 3.
3a
3b
3c
3d
3e
3f
3g
3h
3i

Figure the employee retention credit
Qualified wages (excluding qualified health plan expenses) for the employee
retention credit (Form 943, line 20, or, if corrected, Form 943-X, line 28,
column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a
Qualified health plan expenses allocable to qualified wages for the employee
retention credit (Form 943, line 21, or, if corrected, Form 943-X, line 29,
column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b
Add lines 3a and 3b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c
Retention credit. Multiply line 3c by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount of the employer share of social security tax from Step 1,
line 1i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3e
Enter the amount of the nonrefundable portion of the credit for qualified sick
and family leave wages from Step 2, line 2j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3f
Subtract line 3f from line 3e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3g
Nonrefundable portion of employee retention credit. Enter the smaller of
line 3d or line 3g. Enter this amount on Form 943-X, line 15, column 1 . . . . . . .
Refundable portion of employee retention credit. Subtract line 3h from
line 3d and enter this amount on Form 943-X, line 24, column 1 . . . . . . . . . . . .

3d

3h
3i

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 view, download, or print most of the forms,
instructions, and publications you may need on
IRS.gov/Forms. Otherwise, you can go to IRS.gov/
OrderForms to place an order and have them mailed to you.
The IRS will process your order for forms and publications as
soon as possible. Don't resubmit requests you've already
sent us. You can get forms and publications faster online.

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

23 hr., 40 min.
52 min.
2 hr., 29 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 send
your comments 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.

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

-20-

Instructions for Form 943-X (Rev. 2-2021)