941-X: 8. Taxable Social Security Wages, Form Instructions (revised 2024)

941-X: 8. Taxable Social Security Wages, Form Instructions

The “Taxable Social Security Wages” section is listed as question #8 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 Wages section.

Key 941-X Tax Form Takeaways:

  • Correcting Social Security Wages: Learn the precise steps for adjusting taxable social security wages on Form 941-X, ensuring corrections reflect the actual wages paid.
  • Calculation of Adjusted Tax: Understand how to calculate the adjusted tax based on the corrected social security wages by multiplying the wage adjustment by the appropriate tax rate.
  • Error Correction Explanation: It’s crucial to properly document the reason for each correction made on Form 941-X to ensure compliance and avoid future discrepancies.

See Important 2024 Employee Retention Tax Credit Deadline Information at the Bottom of This Article.

Form 941-X:

8. Taxable Social Security Wages

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

8. Taxable social security wages (Form 941 or 941-SS, line 5a, Column 1)

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

Part 3, “8. Taxable Social Security Wages“ 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:

8. Taxable Social Security Wages

TIP: Qualified sick leave wages and qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, were included on Form 941, line 5a, column 1, and can be adjusted only on Form 941-X, line 8. 

If you’re correcting the taxable social security wages you reported on Form 941, line 5a, 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 8 image1

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

941x 8 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 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 43.

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

941x 8 image3

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

941x 8 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, “8. Taxable Social Security Wages“ 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: 8. Taxable Social Security Wages, Form Instructions

The “Taxable Social Security Wages” section is just one of forty three detailed questions and calculations you must complete correctly on the 941X IRS Form. Listed as question #8 under Part 3 of the 941X, be sure to answer the Taxable Social Security Wages question #8 correctly. 

How To Fill Out Form 941-X For the Employee Retention Tax Credit?

Watch this 941-X video to learn more about how to fill out the IRS 941-X Form properly.

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.

Mark Monroe

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