Missed reporting wages paid from March 13 to 31 and employee retention credit for Form 941 quarter 2?
1.0k views | Last modified 10/8/2020 10:59:07 AM EST | Added by ExpressEfile Team

Applicable To
Form 941 Form 1099 / W-2 Form 2290

You can claim the credit by filing Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund. 

While filing your Form 941, you would have come across Worksheet 1, Credit for Qualified Sick and Family Leave Wages and Employee Retention Credit, to determine the credit amount. The qualified wages and qualified health plan expenses paid in March with respect to the employee retention credit are used in Step 3 of Form 941 Worksheet 1. These amounts would be combined with the second quarter employee retention credit qualified wages and health plan expenses to determine the amounts of the refundable and nonrefundable credits the employer could claim for the second quarter.

Since there’s a limit of $10,000 per employee on qualifying wages for employee retention credit, the addition of the March wages may affect the amount of qualified wages for the second quarter. 

If you have missed reporting the wages paid from March 13 to 31 and the employee retention credit, you have to correct these by filing Form 941-X. While doing so, there will be corrections in lines 26, 27, 30, 31, 33, and 34 of Form 941-X.

Enter the corrected amounts and originally reported amounts in Columns 1 and 2, respectively. Enter the difference of Columns 1 and 2 in Column 3. Enter the tax correction amount in Column 4; that is, if the difference amount you got in Column 3 is negative, enter the same amount in positive and vice versa.

If you get a balance due, you should file Form 941-X before the due date of Form 941 for the quarter that you discovered the error; in case if it's an overpayment, you must file the return within the 90 days of a period of limitations to claim an adjustment.

You may also choose to complete Form 941-X easily using ExpressEfile. Please note that if you have filed your Form 941 with ExpressEfile, you may complete and download Form 941-X for FREE.

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