The “Deferred Amount of Social Security Tax” section is listed as question #24 under Part 3 of Form 941-X, which is needed to claim the employee retention tax credit. Instructions are below for the Deferred Amount of Social Security Tax section.
Key 941-X Tax Form Takeaways:
- Purpose of Form 941-X: It is used for correcting previously reported deferred Social Security taxes.
- Line 24 Details: This specific line allows you to adjust the deferred amounts of Social Security tax for both employer and employee shares from prior filings.
- Adjustment Instructions: It includes entering corrected amounts, previously reported totals, and calculating the difference to ensure accurate tax reporting and compliance.
See Important 2024 Employee Retention Tax Credit Deadline Information at the Bottom of This Article.
Form 941-X:
24. Deferred Amount of Social Security Tax
Part 3: Enter the corrections for this quarter. If any line doesn’t apply, leave it blank. (continued)
24. Deferred amount of social security tax* (Form 941 or 941-SS, line 13b)
Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund
Part 3, “24. Deferred Amount of Social Security Tax“ 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:
24. Deferred Amount of Social Security Tax
Use Form 941-X, line 24, if you need to correct the deferred amount of the employer share of social security tax for the second, third, or fourth quarter of 2020, and/or the deferred amount of the employee share of social security tax for the third or fourth quarter of 2020, that you reported on Form 941, line 13b. Enter the total corrected amount in column 1. In column 2, enter the amount you originally reported or as previously corrected by you or the IRS. In column 3, enter the difference between columns 1 and 2.
Copy the amount in column 3 to column 4. However, because an increase to the deferred amount of the employer and/or the employee share of social security tax defers the payment due, to properly show the amount as a deferral of payment, enter a positive number in column 3 as a negative number in column 4. A decrease to the deferred amount of the employer and/or the employee share of social security tax decreases the payment you can defer and must be shown as a balance due item; therefore, to properly show the amount as a balance due item, enter a negative number in column 3 as a positive number in column 4. If you make any corrections to the deferred amount of the employee share of social security tax on Form 941-X, line 24, you may also need to make a correction on Form 941-X, line 33b.
Be sure to explain the reasons for any corrections on line 43.
Deferred amount of the employer share of social se-curity tax. If you’re filing Form 941-X to increase the amount of social security wages paid on or after March 27, 2020, and before January 1, 2021, so that there is an additional amount of social security tax that hasn’t yet been paid, and hasn’t yet been deferred, then you may use Form 941-X to increase the amount of the deferred employer share of social security tax originally reported on Form 941, line 13b. If you’re filing Form 941-X to decrease the amount of social security wages paid on or after March 27, 2020, and before January 1, 2021, so that there is a decrease in the amount of social security tax that is eligible for deferral, then you must use Form 941-X to decrease the amount of the deferred employer share of social security tax originally reported on Form 941, line 13b, if the decrease in wages causes the amount you originally deferred to exceed the amount that is now eligible for deferral.
Otherwise, you may only correct the amount of the deferred employer share of social security tax if the amount originally reported on Form 941, line 13b, isn’t the amount you actually deferred (for example, you incorrectly reported the amount that you actually deferred). If you already paid the correct amount of the employer’s share of social security tax for a calendar quarter during the payroll tax deferral period, you may not subsequently defer the payment by filing Form 941-X. See IRS.gov/ETD for more information about the interaction of credits and the deferral of employment tax deposits and payments.
The deferred amount of the employer share of social security tax was only available for deposits and payments due on or after March 27, 2020, and before January 1, 2021, as well as deposits and payments due after January 1, 2021, that were required for wages paid during the quarter ending on December 31, 2020. One-half of the deferred amount of the employer share of social security tax was due by December 31, 2021, and the remainder 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 made before December 31, 2021, were first applied against your payment due on December 31, 2021, and then applied against your payment due on December 31, 2022. For more information about the deferral of employment tax deposits, go to IRS.gov/ETD and see the Instructions for Form 941, available at IRS.gov/Form941.
Deferred amount of the employee share of social se-curity tax. You may only correct the amount of the deferred employee share of social security tax if the amount originally reported on Form 941, line 13b, isn’t the amount you actually deferred (for example, you incorrectly reported the amount that you actually deferred). If you already paid the correct amount of the employee’s share of social security tax, you may not subsequently defer the payment by filing Form 941-X.
The deferred amount of the employee share of social security tax was only available for social security wages of less than $4,000 paid to an employee in any biweekly pay period (or the equivalent threshold amount for other pay periods) paid on a pay date during the period beginning on September 1, 2020, and ending on December 31, 2020. The due date for withholding and payment of the deferred employee share of social security tax was postponed until the period beginning on January 1, 2021, and ending on December 31, 2021.
The employer was liable to pay the deferred employee share of social security tax to the IRS and was required to do so before January 1, 2022, to avoid interest, penalties, and additions to tax on those amounts. Because January 1, 2022, was a nonbusiness day, payments made on January 3, 2022, were considered timely. For more information about the deferral of the employee share of social security tax, see Notice 2020-65, 2020-38 I.R.B. 567, available at IRS.gov/irb/2020-38_IRB#NOT-2020-65; and Notice 2021-11, 2021-06 I.R.B. 827, available at IRS.gov/irb/2021-06_IRB#NOT-2021-11.
Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund
Instructions for Part 3, “24. Deferred Amount of Social Security Tax“ 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: 24. Deferred Amount of Social Security Tax, Form Instructions
The “Deferred Amount of Social Security Tax” section is just one of forty three detailed questions and calculations you must complete correctly on the 941X IRS Form. Listed as question #24 under Part 3 of the 941X, be sure to answer the Deferred Amount of Social Security Tax question #24 correctly.
How To Fill Out Form 941-X For the Employee Retention Tax Credit?
Need 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 Tax 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!
If you are looking for an ERC Company that believes in providing professional ERC Tax Services and value for small business owners, in exchange for a fair, reasonable, and ethical flat-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 making sure your company actually qualifies, AND you are calculating the employee retention tax credit properly.
Deadlines to File IRS Form 941-X in 2024 and 2025
The 2020 ERC Credit Tax Year deadline of 4/15/24 has already passed. Good news? The opportunity to retroactively claim your business Employee Retention Credit for the prior 2021 Tax Year is still available, with a next year April 15, 2025 deadline.
This really is your FINAL chance at any potential ERC tax credit refund!
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 if your company qualifies for the employee retention tax credit.
Cover Image Credit: Irs.gov / Form 941-X / Disaster Loan Advisors.
As a leading dedicated member of the Tax and Accounting Team at Disaster Loan Advisors™, Mark focuses on unlocking the ERC Tax Credit's potential for eligible firms that qualify, providing strategic advice, and detailed guidance to ensure substantial financial recovery and growth. His methodical approach to client engagement includes comprehensive deep-dive analysis, customized consultation and guidance, and a commitment to achieving tangible results for each business served.
Disaster Loan Advisors™ (DLA) offers a comprehensive suite of services designed to navigate the complexities of the Employee Retention Tax Credit (ERC) program, ensuring that qualified businesses leverage the maximum possible benefit with minimum hassle. Unlike some firms that charge exorbitant contingency or percentage-based fees (often between 10% to 30% of your ERC refund), DLA operates on a fair and reasonable, transparent flat-fee structure that aligns with the IRS's guidelines.
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. STAY SAFE. STAY COMPLIANT. KEEP MORE OF YOUR REFUND.™
- 941-X: 29. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages, Form Instructions (updated 2024) - May 16, 2024
- 941-X: 28. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages, Form Instructions (2024 updates) - May 15, 2024
- 941-X: 27. Total, Form Instructions (revised 2024) - May 14, 2024