Use a Separate Form 944-X for Each Year You’re Correcting

Use a separate Form 944-X for each Form 944 you’re correcting. For example, if you found errors on your Forms 944 for 2022 and 2023, file one Form 944-X to correct the 2022 Form 944. File a second Form 944-X to correct the 2023 Form 944.

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 tops of pages 2, 3, 4, and 5, and on any attachments. If your address has changed since you filed your Form 944, enter the corrected information and the IRS will update your address of record. Be sure to write your name, EIN, “Form 944-X,” and the calendar year you’re correcting on the top of any attachments.

Return You’re Correcting

Enter the calendar year of the Form 944 you’re correcting in the box at the top of page 1. Enter the same calendar year on pages 2, 3, 4, and 5, and on any attachments.

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 the error. If you’re reporting several errors you discovered at different times, enter the earliest date you discovered an error here. Report any subsequent dates and related errors on line 43.

Must You Make an Entry on Each Line?

You must provide all of the information requested at the top of Form 944-X, page 1. 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.

How Should You Report Negative Amounts?

Form 944-X uses negative numbers to show reductions in tax (credits) and positive numbers to show additional tax (amounts you owe).

When reporting a negative amount in columns 3 and 4, use a minus sign instead of parentheses. For example, enter “-10.59” instead of “(10.59).” However, if you’re completing the return on your computer and your software only allows you to use parentheses to report negative amounts, you may use them.

How Should You Make Entries on Form 944-X?

You can help the IRS process Form 944-X timely and accurately if you follow these guidelines.

What About Penalties and Interest?

Generally, your correction of an underreported tax amount won’t be subject to an FTP penalty, an FTD penalty, or interest if you:

No correction will be eligible for interest-free treatment if any of the following apply.

If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Don’t attach an explanation when you file your return.

If you underreported the tax.

If you underreported the tax on a previously filed Form 944, check the box on line 1 and pay any additional amount you owe by the time you file Form 944-X. For details on how to make a payment, see the instructions for line 27, later.

If you overreported the tax.

If you overreported the tax on a previously filed Form 944, choose one of the following options.

To ensure the IRS has enough time to process a credit for an overreporting tax adjustment in the year in which you file Form 944-X, you’re encouraged to file Form 944-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 944-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 944-X. See the Caution under Is There a Deadline for Filing Form 944-X, earlier. This should ensure the IRS will have enough time to process the Form 944-X so the credit will be posted before you file Form 944, thus avoiding an erroneous balance due notice from the IRS. See the example below.

If you currently file Form 941 instead of Form 944 and will claim a credit on Form 941, file Form 944-X in the first 2 months of a quarter in any quarter before the expiration of the period of limitations on Form 944. In the year of the expiration of the period of limitations on Form 944, file Form 944-X at least 90 days before the expiration date.

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 27 will be applied as a credit (tax deposit) to your Form 944 or Form 941 for the period in which you’re filing this form. See Example—You want your overreported tax applied as a credit on Form 944, earlier.

Form 944-X can’t be used to correct overreported amounts of Additional Medicare Tax unless the amounts were not withheld from employee wages.

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 27. Don’t check this box if you’re correcting any underreported tax amounts on this form.

You must check the box on line 2 if you have a credit (a negative amount on line 27) and the period of limitations on credit or refund for Form 944 will expire within 90 days of the date you file Form 944-X. See Is There a Deadline for Filing Form 944-X, earlier.

The IRS usually processes claims shortly after they are filed. The IRS will notify you if your claim is denied, accepted as filed, or selected to be examined. See Pub. 556, Examination of Returns, Appeal Rights, and Claims for Refund, for more information.

Unless the IRS corrects Form 944-X during processing or you owe other taxes, penalties, or interest, the IRS will refund the amount shown on line 27, plus any interest that applies.

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. Unless otherwise noted, references on Form 944-X and throughout these instructions to Form W-2 include Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/W-2PR; references to Form W-2c include Form 499R-2c/W-2cPR; references to Form W-3 include Form W-3SS and Form W-3PR; and references to Form W-3c include Form W-3C (PR).

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 944-X don’t change amounts shown on those forms. For example, if your only correction to Form 944 involves misstated tax adjustments, which don't impact the amounts reported on your employee's Form W-2 (see the instructions for line 14, 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.

4. Certifying Overreporting Adjustments

If you overreported federal income tax, social security tax, Medicare tax, or Additional Medicare Tax and checked the box on line 1, check the appropriate box on line 4. You may need to check more than one box. If you obtained written statements from some employees but you couldn’t locate employees or secure the statements of the remaining employees, check all applicable boxes. Provide a summary on line 43 of the amount of the corrections for the employees who provided written statements and for those who didn’t.

You may not use Form 944-X to correct overreported amounts of Additional Medicare Tax unless the amounts weren’t withheld from employee wages.

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

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

In certain situations, you may not have repaid or reimbursed your employees or obtained their consents before 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 944-X but don’t check a box on line 5. Tell us on line 43 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.

What Amounts Should You Report in Part 3?

On lines 6–13, 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.

If a correction you report in column 4 includes both underreported and overreported amounts (see the instructions for line 41, later), give us details for each error on line 43.

Because special circumstances apply for lines 14–21, 23–26c, and 28–40, read the instructions for each line carefully before entering amounts in the columns.

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

If you previously adjusted or amended Form 944 using Form 944-X or because of an IRS examination change, show amounts in column 2 that include those previously reported corrections.

6. Wages, Tips, and Other Compensation

If you’re correcting the wages, tips, and other compensation you reported on Form 944, line 1, 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.

If you or the IRS previously corrected the amount reported on Form 944, line 1, enter in column 2 the amount after any previous corrections.

The amount on line 6, column 1, should be used on your Forms W-2 or Forms W-2c. This amount should also generally be used for any business expense deduction on your income tax return (or amended return) for wages paid.

7. Federal Income Tax Withheld From Wages, Tips, and Other Compensation

If you’re correcting the federal income tax withheld from wages, tips, and other compensation you reported on Form 944, line 2, enter the total corrected amount in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2.

Generally, you may only correct administrative errors to federal income tax withholding (that is, errors in which the amount reported on Form 944, line 2, 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 944 to agree with the amount actually withheld from employees. See section 2 of Pub. 15 for more information about section 3509. If section 3509 rates apply, see the instructions for lines 18–21, later.

You can't file a Form 944-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 incorrectly calculated the amount of tax, you can't correct the federal income tax withholding.

8. Taxable Social Security Wages

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 944, line 4a, column 1, and can be adjusted only on Form 944-X, line 8.

If you’re correcting the taxable social security wages you reported on Form 944, line 4a, 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.

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

9. Qualified Sick Leave Wages (For Leave Taken After March 31, 2020, and Before April 1, 2021)

Adjustments to the social security tax on qualified sick leave wages and qualified family leave wages for leave taken after March 31, 2020, and before April 1, 2021, are reported on Form 944‐X, lines 9 and 10, respectively. Adjustments to the nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021, are reported on Form 944‐X, line 16, and adjustments to the refundable portion of the credit are reported on Form 944‐X, line 25. Adjustments to qualified health plan expenses allocable to qualified sick leave wages and to qualified family leave wages for leave taken after March 31, 2020, and before April 1, 2021, are reported on Form 944‐X, lines 28 and 29, respectively. For corrections to a 2020 Form 944, 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. If you claimed the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021, on your original Form 944, and you make any corrections on Form 944‐X to amounts used to figure this credit, you’ll need to refigure the amount of this credit using Worksheet 1. You’ll also use this worksheet to figure this credit if you're claiming the credit for the first time on Form 944-X. For more information about the credit for qualified sick and family leave wages, go to IRS.gov/PLC.

Qualified sick leave wages paid with respect to leave taken after March 31, 2020, and before April 1, 2021, 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 for leave taken after March 31, 2020, and before April 1, 2021 , later, and go to IRS.gov/PLC. If you're correcting the qualified sick leave wages you reported on Form 944, line 4a(i), 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.

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

10. Qualified Family Leave Wages (For Leave Taken After March 31, 2020, and Before April 1, 2021)

Qualified family leave wages paid with respect to leave taken after March 31, 2020, and before April 1, 2021, 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 for leave taken after March 31, 2020, and before April 1, 2021 , later, and go to IRS.gov/PLC. If you're correcting the qualified family leave wages you reported on Form 944, line 4a(ii), 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.

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

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

11. Taxable Social Security Tips

If you’re correcting the taxable social security tips you reported on Form 944, line 4b, 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.

Multiply the amount in column 3 by 0.124 (12.4% tax rate) and report the result in column 4.

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

12. Taxable Medicare Wages & Tips

If you’re correcting the taxable Medicare wages and tips you reported on Form 944, line 4c, 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.

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

13. Taxable Wages & Tips Subject to Additional Medicare Tax Withholding

You may use Form 944-X to correct errors to Additional Medicare Tax withholding for prior years if the amount reported on Form 944, line 4d, column 2, 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 944 to agree with the amount actually withheld from employees.

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 18–21, later.

If a prior year error was a nonadministrative error, you may correct only the wages and tips subject to Additional Medicare Tax withholding that were originally reported on Form 944, line 4d, column 1, or previously corrected on Form 944-X. You can’t correct the tax reported on Form 944, line 4d, column 2.

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

14. Tax Adjustments

For purposes of these instructions, all references to "sick pay" mean ordinary sick pay, not "qualified sick leave wages."

Don’t enter an amount on line 14 unless you need to correct any adjustments reported on Form 944, line 6. Amounts reported on line 14 reflect corrections of amounts misstated on Form 944, line 6. See Example—Third-party sick pay underreported , later.

Enter in column 1 the total corrected amount for Form 944, line 6. Enter in column 2 the total originally reported or previously corrected amount from Form 944, line 6. In column 3, enter the difference between columns 1 and 2.

You may need to report negative numbers in any column. Make sure that the difference you enter in column 3 accurately represents the change to adjustments originally reported or previously corrected on Form 944, line 6.

Copy the amount in column 3 to column 4. Include any minus sign shown in column 3.

On line 43, describe what you misreported on Form 944. Tell us if your adjustment is for fractions of cents, third-party sick pay, tips, or group-term life insurance.

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

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.

If you're correcting the qualified small business payroll tax credit for increasing research activities that you reported on Form 944, line 8a (line 8 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.

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.

You must attach a corrected Form 8974 and explain the reasons for this correction on line 43.

16. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021

Form 944-X and these instructions use the terms “nonrefundable” and “refundable” when discussing credits. The term “nonrefundable” means the portion of the credit which is limited by law to certain taxes. The term “refundable” means the portion of the credit which is in excess of those taxes.

If you’re correcting the nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021, that you reported on Form 944, line 8b, 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.

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 corrections to 2020 Form 944, line 8b, 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. For corrections to 2021, 2022, or 2023 Form 944, line 8b, the credit for qualified sick and family leave wages is only available for wages paid in 2021, 2022, or 2023 with respect to any leave taken after March 31, 2020, and before April 1, 2021. If you're correcting a year before 2020, don't enter any amount on line 16.

17a. Nonrefundable Portion of Employee Retention Credit

Use line 17a only for corrections to a 2020 or 2021 Form 944.

Section 206(c) of the Taxpayer Certainty and 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 944 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 944-X and complete Worksheet 2 to claim the correct amount of the credit. For more information, see Notice 2021-20, 2021-11 I.R.B. 922, available at IRS.gov/irb/2021-11_IRB#NOT-2021-20; and Rev. Proc. 2021-33, 2021-34 I.R.B. 327, available at IRS.gov/irb/2021-34_IRB#REV-PROC-2021-33.

For corrections to a 2020 Form 944, the employee retention credit is only available for qualified wages paid after March 12, 2020, and before January 1, 2021. For corrections to a 2021 Form 944, the employee retention credit is only available for qualified wages paid after December 31, 2020, and before October 1, 2021, unless the employer was a recovery startup business. An employer that was a recovery startup business could also claim the employee retention credit for wages paid after September 30, 2021, and before January 1, 2022. Adjustments to the nonrefundable portion of the employee retention credit for qualified wages paid after March 12, 2020, and before July 1, 2021, are reported on Form 944-X, line 17a, and adjustments to the refundable portion of the credit are reported on Form 944-X, line 26a. Adjustments to qualified wages for the employee retention credit are reported on Form 944-X, line 30. Adjustments to qualified health plan expenses allocable to the employee retention credit are reported on Form 944-X, line 31. If you claimed the employee retention credit on your original 2020 Form 944 or your original 2021 Form 944 for qualified wages paid before July 1, 2021, and you make any corrections on Form 944-X for the year to amounts used to figure this credit, you’ll need to refigure the amount of the credit using Worksheet 2. You’ll also use this worksheet to figure the credit for qualified wages paid after March 12, 2020, and before July 1, 2021, if you're claiming the credit for the first time on Form 944-X.

17b. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, line 8d, enter the total corrected amount from Worksheet 3, Step 2, line 2r, 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 16, earlier.

For corrections to 2021, 2022, or 2023 Form 944, line 8d, the credit for qualified sick and family leave wages is only available for wages paid in 2021, 2022, or 2023 with respect to any leave taken after March 31, 2021, and before October 1, 2021. If you're correcting a year before 2021, don't enter any amount on line 17b.

17c. Nonrefundable Portion of COBRA Premium Assistance Credit

COBRA premium assistance was available for periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021. For more information, see Credit for COBRA premium assistance payments is limited to periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021 , under Reminders, earlier.

Premium payees that receive an election from an assistance eligible individual are entitled to the COBRA premium assistance credit for premiums not paid during the quarter in which the election is received. See Notice 2021-31 for more information.

If you’re correcting the nonrefundable portion of the COBRA premium assistance credit that you reported on Form 944, line 8e, enter the total corrected amount from Worksheet 5, Step 2, line 2g, in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2.

Copy the amount in column 3 to column 4. However, to properly show the amount as a credit or balance due item, enter a positive number in column 3 as a negative number in column 4 or a negative number in column 3 as a positive number in column 4. For an example of how to report amounts in columns 1–4 for an employment tax credit, see the instructions for line 16, earlier.

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

17d. Number of Individuals Provided COBRA Premium Assistance

If you’re correcting the number of individuals provided COBRA premium assistance that you reported on Form 944, line 8f, 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.

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

18–21. 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 tax and Medicare tax is due for all reclassifications.

On lines 18–21, enter only corrections to wages resulting from reclassifying certain workers as employees when section 3509 rates are used to calculate the taxes.

If the employer issued the required information returns, use the section 3509 rates as follows.

If the employer didn’t issue the required information returns, use the section 3509 rates as follows.

Unlike some other lines on Form 944-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 43. 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 42, later, for more information.

22. Subtotal

Combine the amounts on lines 7–21 of column 4 and enter the total on line 22.

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

Use Form 944-X, line 23, if you need to correct the deferred amount of the employer share of social security tax that you reported on your 2020 Form 944, line 10b. 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 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 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 944-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 944-X to increase the amount of the deferred employer share of social security tax originally reported on Form 944, line 10b. If you're filing Form 944-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 944-X to decrease the amount of the deferred employer share of social security tax originally reported on Form 944, line 10b, 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 944, line 10b, 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 944-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 applicable period. One-half of the deferred amount of the employer share of social security tax was due by December 31, 2021, and the remainder was due by December 31, 2022. Because both December 31, 2021, and December 31, 2022, were nonbusiness days, payments made on the next business day were 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 944, available at IRS.gov/Form944.

Be sure to explain the reasons for any corrections on line 43.

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

Use Form 944-X, line 24, if you need to correct the deferred amount of the employee share of social security tax that you reported on your 2020 Form 944, line 10c. 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 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 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.

You may only correct the amount of the deferred employee share of social security tax if the amount originally reported on Form 944, line 10c, 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 944-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.

Be sure to explain the reasons for any corrections on line 43.

25. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021

If you're correcting the refundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021, that you reported on Form 944, line 10d, 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 16, earlier.

For corrections to 2020 Form 944, line 10d, 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. For corrections to 2021, 2022, or 2023 Form 944, line 10d, the credit for qualified sick and family leave wages is only available for wages paid in 2021, 2022, or 2023 with respect to any leave taken after March 31, 2020, and before April 1, 2021. If you're correcting a year before 2020, don't enter any amount on line 25.

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

26a. Refundable Portion of Employee Retention Credit

Use line 26a only for corrections to a 2020 or 2021 Form 944.

For corrections to a 2020 Form 944, the employee retention credit is only available for qualified wages paid after March 12, 2020, and before January 1, 2021. For corrections to a 2021 Form 944, the employee retention credit is only available for qualified wages paid after December 31, 2020, and before October 1, 2021, unless the employer was a recovery startup business. An employer that was a recovery startup business could also claim the employee retention credit for wages paid after September 30, 2021, and before January 1, 2022.

26b. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the refundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, line 10f, enter the total corrected amount from Worksheet 3, Step 2, line 2s, 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 16, earlier.

For corrections to 2021, 2022, or 2023 Form 944, line 10f, the credit for qualified sick and family leave wages is only available for wages paid in 2021, 2022, or 2023 with respect to any leave taken after March 31, 2021, and before October 1, 2021. If you're correcting a year before 2021, don't enter any amount on line 26b.

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

26c. Refundable Portion of COBRA Premium Assistance Credit

COBRA premium assistance was available for periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021. For more information, see Credit for COBRA premium assistance payments is limited to periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021 , under Reminders, earlier.

If you’re correcting the refundable portion of the COBRA premium assistance credit that you reported on Form 944, line 10g, enter the total corrected amount from Worksheet 5, Step 2, line 2h, in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2.

Copy the amount in column 3 to column 4. However, to properly show the amount as a credit or balance due item, enter a positive number in column 3 as a negative number in column 4 or a negative number in column 3 as a positive number in column 4. For an example of how to report amounts in columns 1–4 for an employment tax credit, see the instructions for line 16, earlier.

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

Corrections to Form 944, Line 10g (For 2020) or Line 10i (For 2021)

Form 944-X doesn't include a line to correct amounts reported on Form 944, line 10g (10i), for the total advances received from filing Form(s) 7200 for the year. If a discrepancy exists between the amount reported on Form 944 and the amount of advance payments issued, the IRS will generally correct the amount reported on Form 944, line 10g (10i), to match the amount of advance payments issued.

27. Total

Combine the amounts from column 4 on lines 22–26c and enter the result on line 27.

Lines 28–40

For lines 28–40, you’ll 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 28–38 are amounts that you use in Worksheets 1–5, as applicable, to figure your credits. If you reported an incorrect amount on lines 15–26 on your original Form 944, then you’ll use lines 28–40 of Form 944‐X to report the correction. Use Worksheets 1–5, as applicable, to refigure your credits based on the corrected amounts reported in column 1. Be sure to explain the reasons for your corrections to lines 28–40 on line 43.

28. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021

If you're correcting the qualified health plan expenses allocable to qualified sick leave wages for leave taken after March 31, 2020, and before April 1, 2021, that you reported on Form 944, line 15, 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.

29. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021

If you're correcting the qualified health plan expenses allocable to qualified family leave wages for leave taken after March 31, 2020, and before April 1, 2021, that you reported on Form 944, line 16, 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.

30. Qualified Wages for the Employee Retention Credit

Use line 30 only for corrections to a 2020 or 2021 Form 944.

If you're correcting the qualified wages for the employee retention credit that you reported on Form 944, line 17, 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 2, Step 2, line 2a, for qualified wages paid after March 12, 2020, and before July 1, 2021. Enter the corrected amount from column 1 on Worksheet 4, Step 2, line 2a, for qualified wages paid after June 30, 2021, and before January 1, 2022.

31. Qualified Health Plan Expenses for the Employee Retention Credit

Use line 31 only for corrections to a 2020 or 2021 Form 944.

If you're correcting the qualified health plan expenses allocable to wages reported on Form 944, line 17, that you reported on Form 944, 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 2, Step 2, line 2b, for qualified health plan expenses allocable to qualified wages paid after March 12, 2020, and before July 1, 2021. Enter the corrected amount from column 1 on Worksheet 4, Step 2, line 2b, for qualified health plan expenses allocable to qualified wages paid after June 30, 2021, and before January 1, 2022.

32. Credit From Form 5884‐C, Line 11, for the Year

Use line 32 only for corrections to a 2020 Form 944.

If you're correcting the credit from Form 5884‐C, line 11, for the year, that you reported on 2020 Form 944, line 19, 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 1i. Entering an amount here is strictly for purposes of figuring the credit for qualified sick and family wages for leave taken after March 31, 2020, and before April 1, 2021, on Worksheet 1. For purposes of figuring the employee retention credit for qualified wages paid after March 12, 2020, and before July 1, 2021, enter the corrected amount from column 1 on Worksheet 2, Step 1, line 1j, unless you also completed Worksheet 1 and you're bringing the amount from Worksheet 1, Step 1, line 1l, forward to Worksheet 2, Step 1, line 1a. Reporting a correction on this line doesn't correct the credit claimed on Form 5884-C.

33. Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, line 19, 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 3, Step 2, line 2a.

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

34. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the qualified health plan expenses allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, line 20, 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 3, Step 2, line 2b.

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

35. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the amounts under certain collectively bargained agreements allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, 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 3, Step 2, line 2c.

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

36. Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, 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 3, Step 2, line 2g.

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

37. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the qualified health plan expenses allocable to qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, line 23, 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 3, Step 2, line 2h.

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

38. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

If you’re correcting the amounts under certain collectively bargained agreements allocable to qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, that you reported on Form 944, line 24, 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 3, Step 2, line 2i.

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

39. If You’re Eligible for the Employee Retention Credit in the Third Quarter of 2021 Solely Because Your Business Is a Recovery Startup Business . . .

Whether you complete line 39 to tell us if you're eligible for the employee retention credit in the third quarter of 2021 solely because your business is a recovery startup business depends on its applicability and whether you originally reported an amount on your 2021 Form 944, line 25.

40. If You’re Eligible for the Employee Retention Credit in the Fourth Quarter of 2021 Solely Because Your Business Is a Recovery Startup Business . . .

For the fourth quarter of 2021, only a recovery startup business may claim the employee retention credit. Whether you complete line 40 to tell us if you're eligible for the employee retention credit in the fourth quarter of 2021 solely because your business is a recovery startup business depends on its applicability and whether you originally reported an amount on your 2021 Form 944, line 26.

For the fourth quarter of 2021, a recovery startup business is an employer that began carrying on a trade or business after February 15, 2020, and had average annual gross receipts of $1 million or less for the 3 tax years ending with the tax year before the calendar quarter in which the employee retention credit is claimed.

41. Corrections of Both Underreported and Overreported Amounts

Check the box on line 41 if any corrections you entered on lines 7–21, lines 23–26c, or lines 28–40, in column 3 reflect both underreported and overreported amounts.

42. Did You Reclassify Any Workers?

Check the box on line 42 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 43, give us a detailed reason why any worker was reclassified and, if you used section 3509 rates on lines 18–21 for any worker reclassified as an employee, explain why section 3509 rates apply and what rates you used.

43. Explain Your Corrections

Treasury regulations require you to explain in detail the grounds and facts relied upon to support each correction. On line 43, describe in detail each correction you entered in column 4 on lines 7–21 and lines 23–26c. Also use line 43 to describe in detail corrections made on lines 28–40. If you need more space, attach additional sheets, but be sure to write your name, EIN, “Form 944-X,” and the calendar year you’re correcting on the top of each sheet.

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 944-X because the IRS may need to ask for a more complete explanation.

Provide the following information in your explanation of each correction.

You may report the information in paragraph form. The following paragraph is an example.

“The $100 difference shown in column 3 of lines 6, 8, and 12 was discovered on May 15, 2024, during an internal payroll audit. We discovered that we included $100 of wages for one of our employees twice. This correction removes the reported wages that were never paid.”

For corrections shown on lines 18–21, explain why the correction was necessary and attach any notice you received from the IRS.

Paid Preparer Use Only

A paid preparer must sign Form 944-X and provide the information in the Paid Preparer Use Only section of Part 5 if the preparer was paid to prepare Form 944-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.