941-X: 11. Taxable Social Security Tips, Form Instructions

941-X: 11. Taxable Social Security Tips, Form Instructions

The “Taxable Social Security Tips” section is listed as question #11 under Part 3 of Form 941-X, which is needed to claim the employee retention tax credit. Instructions are below for the  Taxable Social Security Tips section.

Form 941-X:

11. Taxable Social Security Tips

Part 3: Enter the corrections for this quarter. If any line doesn’t apply, leave it blank.

11. Taxable social security tips (Form 941 or 941-SS, line 5b, Column 1)

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

Part 3, “11. Taxable Social Security Tips“ from Form 941X published by the Department of the Treasury – Internal Revenue Service (IRS), OMB No. 1545-0029, revised in April 2022.

Instructions for Form 941-X:

11. Taxable Social Security Tips

If you’re correcting the taxable social security tips you reported on Form 941, line 5b, column 1, enter the total corrected amount in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2.

941x 11 image1

Multiply the amount in column 3 by 0.124 and report that result in column 4.

941x 11 image2

Note. If you checked the box on Form 941-X, line 4b or line 5c, because you’re correcting only the employer share of tax on a decrease to social security tips, use 0.062 (6.2%) when multiplying the amount shown in column 3. If you’re correcting both shares of tax for some employees and only the employer share for other employees, report the properly calculated amount in column 4. Be sure to show your calculations on line 43.

Example – Social security tips increased. 

Following Example – Wages, tips, and other compensation increased in the instructions for line 6, the tips that you overlooked were also taxable social security tips. To correct the error, figure the difference on Form 941-X as shown.

941x 11 image3

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

941x 11 image4

Be sure to explain the reasons for this correction on line 43. 

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

Instructions for Part 3, “11. Taxable Social Security Tips“ came from the IRS Instructions for Form 941-X published by the Internal Revenue Service (IRS) Department of the Treasury, revised in April 2022.

Conclusion and Summary on 941-X: 11. Taxable Social Security Tips, Form Instructions

The “Taxable Social Security Tips” section is just one of forty three detailed questions and calculations you must complete correctly on the 941X IRS Form. Listed as question #11 under Part 3 of the 941X, be sure to answer the Taxable Social Security Tips question #11 correctly. 

Help Completing / Filing IRS Form 941-X

Disaster Loan Advisors can assist your business in filing an amended Form 941 Employer’s Quarterly Federal Tax Return (for 2020 and 2021), which is IRS Form 941-X Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.

This tax form is required to be filled out correctly and filed for each qualifying quarter in 2020 and 2021 to ensure your business claims the maximum Employee Retention Credit (ERC) / Employee Retention Tax Credit (ERTC).

– Did you calculate your company’s maximum ERC Tax Credit correctly?
– Are you claiming all the ERC Credit for each qualifying quarter?
– Are you maximizing the total amount of ERC Credit your company qualifies for?
– Need a professional set of eyes to ensure you filled out your form 941X correctly?

Flexible and Professional ERC Consulting Services

There are several flexible options for you. We can review, prepare, and / or file your 941-X Forms for you, or with you.

– Do-It-Yourself (DIY) and have us review your work.
– Done-With-You (DWY) and let’s collaborate together.
– Done-For-You (DFY) and we handle it all for you, from start to finish.
– Or, Consult-With-You to customize to your exact needs. 

Our professional ERC fee and pricing structure is very reasonable in comparison.

We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 25% to 35% of your ERC refund! 

There is nothing wrong with charging %’s. Some company ERC calculations and filings are highly complicated and require a lot of work, however, there is no need for you to potentially pay excessive fees for the same quality work.

If you are looking for an ERC Company that believes in providing professional ERC Services and value for small business owners, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you. 

Form 941-X and the ERC program can be very confusing as it relates to your specific business situation. Our fee structure is fair and reasonable for the same or better level of ERC service.

Schedule Your Form 941-X Consultation to have peace of mind you are calculating the largest amount of employee retention tax credit your company may claim.

How to Claim the Employee Retention Tax Credit (ERC / ERTC) and Receive Up to a $26,000 Refund Per Employee

Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC) and Employee Retention Tax Credit (ERTC) program. 

Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Program is a valuable tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.

Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.

Cover Image Credit: Irs.gov / Form 941-X / Disaster Loan Advisors.

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