PDF document

- 1 -

                          Userid: CPM                       Schema:          Leadpct: 100% Pt. size: 10  Draft  Ok to Print
                                                            instrx
AH XSL/XML                Fileid: … ns/i944x/202302/a/xml/cycle05/source                                (Init. & Date) _______

Page 1 of 30                                                                                            8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                        Department of the Treasury
                                                                                                        Internal Revenue Service
Instructions for Form 944-X

(Rev. February 2023)
Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund

Section references are to the Internal Revenue Code                          instructions don't repeat all of the information included in 
unless otherwise noted.                                                      the Instructions for Form 944. For example, these 
                                                                             instructions don't discuss who is eligible to claim the credit 
Contents                                                            Page
                                                                             for qualified sick and family leave wages, the employee 
Future Developments     . . . . . . . . . . . . . . . . . . . . . . . .   1
                                                                             retention credit, or the COBRA premium assistance credit. 
What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1  The current Instructions for Form 944 are available at 
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2  IRS.gov/Form944. If you need a prior revision of the 
General Instructions: Understanding Form 944-X                  . . . .   3  Instructions for Form 944, select the link for “All Revisions 
What Is the Purpose of Form 944-X?                  . . . . . . . . . .   3  for Form 944” under “Other Items You May Find Useful.”
Where Can You Get Help?               . . . . . . . . . . . . . . . . .   4
When Should You File Form 944-X?                    . . . . . . . . . .   4  What's New
Is There a Deadline for Filing Form 944-X? . . . . . .                    5  The COVID-19 related credit for qualified sick and 
Where Should You File Form 944-X? . . . . . . . . . .                     6  family leave wages is limited to leave taken after 
How Should You Complete Form 944-X? . . . . . . .                         6  March 31, 2020, and before October 1, 2021. The 
Overview of the Process           . . . . . . . . . . . . . . . . . . .   7  credit for qualified sick and family leave wages, as 
Specific Instructions: . . . . . . . . . . . . . . . . . . . . . . . . .  7  enacted under the Families First Coronavirus Response 
                                                                             Act (FFCRA) and amended and extended by the 
Part 1: Select ONLY One Process                 . . . . . . . . . . . .   7  COVID-related Tax Relief Act of 2020, is for leave taken 
Part 2: Complete the Certifications . . . . . . . . . . . .               8  after March 31, 2020, and before April 1, 2021, and the 
Part 3: Enter the Corrections for the Calendar                               credit for qualified sick and family leave wages under 
    Year You’re Correcting          . . . . . . . . . . . . . . . . . .   9  sections 3131, 3132, and 3133 of the Internal Revenue 
Part 4: Explain Your Corrections for the                                     Code, as enacted under the American Rescue Plan Act of 
    Calendar Year You’re Correcting . . . . . . . . . .                   24 2021 (the ARP), is for leave taken after March 31, 2021, 
Part 5: Sign Here       . . . . . . . . . . . . . . . . . . . . . . .     25 and before October 1, 2021. For more information about 
Worksheet 1. Adjusted Credit for Qualified Sick                              the credit for qualified sick and family leave wages, go to 
and Family Leave Wages for Leave Taken                                       IRS.gov/PLC.
After March 31, 2020, and Before April 1,                                    Corrections to amounts reported on Form 944, lines 
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      26 4a(i), 4a(ii), 8b, 10d, 15, and 16, for the credit for qualified 
Worksheet 2. Adjusted Employee Retention Credit                              sick and family leave wages for leave taken after March 
for Qualified Wages Paid After March 12, 2020,                               31, 2020, and before April 1, 2021, are reported on Form 
and Before January 1, 2021, for a 2020 Form                                  944-X, lines 9, 10, 16, 25, 28, and 29, respectively. 
944, or Qualified Wages Paid After December                                  Corrections to amounts reported on Form 944, lines 8d, 
31, 2020, and Before July 1, 2021, for a 2021                                10f, 19, 20, 21, 22, 23, and 24, for the credit for qualified 
Form 944 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        27 sick and family leave wages for leave taken after March 
Worksheet 3. Adjusted Credit for Qualified Sick                              31, 2021, and before October 1, 2021, are reported on 
and Family Leave Wages for Leave Taken                                       Form 944-X, lines 17b, 26b, 33, 34, 35, 36, 37, and 38, 
After March 31, 2021, and Before October 1,                                  respectively.
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      28 The COVID-19 related employee retention credit has 
Worksheet 4. Adjusted Employee Retention Credit                              expired. The employee retention credit enacted under 
for Qualified Wages Paid After June 30, 2021,                                the Coronavirus Aid, Relief, and Economic Security 
and Before January 1, 2022            . . . . . . . . . . . . . . . .     29 (CARES) Act and amended and extended by the 
Worksheet 5. Adjusted COBRA Premium                                          Taxpayer Certainty and Disaster Tax Relief Act of 2020 
Assistance Credit . . . . . . . . . . . . . . . . . . . . . . .           30 was limited to qualified wages paid after March 12, 2020, 
How Can You Get Forms, Instructions, and                                     and before July 1, 2021. The employee retention credit 
Publications From the IRS? . . . . . . . . . . . . . . . .                30 under section 3134 of the Internal Revenue Code, as 
                                                                             enacted by the ARP and amended by the Infrastructure 
Future Developments                                                          Investment and Jobs Act, was limited to qualified wages 
For the latest information about developments related to                     paid after June 30, 2021, and before October 1, 2021, 
Form 944-X and its instructions, such as legislation                         unless the employer was a recovery startup business. An 
enacted after they were published, go to IRS.gov/                            employer that was a recovery startup business could also 
Form944X.                                                                    claim the employee retention credit for qualified wages 
                                                                             paid after September 30, 2021, and before January 1, 
    Before you proceed with these instructions and                           2022. For more information about the employee retention 
TIP completing Form 944-X, you'll need a copy of the                         credit, including the dates for which the credit may be 
    Instructions for Form 944 because these                                  claimed, go to IRS.gov/ERC.

Jan 31, 2023                                                        Cat. No. 20334B

- 2 -

Page 2 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Corrections to amounts reported on Form 944, lines 8c, family leave wages for leave taken after March 31, 2021,
10e, 17, and 18, for the employee retention credit are and before October 1, 2021, and you make any
reported on Form 944-X, lines 17a, 26a, 30, and 31, corrections on Form 944 X to amounts used to figure this ‐
respectively. However, how you figure the employee credit, you'll need to refigure the amount of this credit
retention credit for qualified wages paid after March 12, using Worksheet 3. You'll also use this worksheet to figure
2020, and before July 1, 2021, is different from how you this credit if you’re claiming it for the first time on Form
figure the credit for qualified wages paid after June 30, 944-X. If you claimed the employee retention credit for
2021, and before January 1, 2022. For corrections to wages paid after March 12, 2020, and before July 1,
qualified wages paid after June 30, 2021, you may need 2021, and you make any corrections on Form 944 X to ‐
to complete line 39 to tell us if you're eligible for the amounts used to figure this credit, you'll need to refigure
employee retention credit solely because your business is the amount of this credit using Worksheet 2. You'll also
a recovery startup business. For corrections to qualified use this worksheet to figure this credit if you’re claiming it
wages paid after September 30, 2021, you may need to for the first time on Form 944-X. If you claimed the
complete line 40 to tell us if you’re eligible for the employee retention credit for wages paid after June 30,
employee retention credit solely because your business is 2021, and before January 1, 2022, and you make any
a recovery startup business. corrections on Form 944 X to amounts used to figure this ‐
credit, you'll need to refigure the amount of this credit
Credit for COBRA premium assistance payments is
using Worksheet 4. You'll also use this worksheet to figure
limited to periods of coverage beginning on or after
this credit if you’re claiming it for the first time on Form
April 1, 2021, through periods of coverage beginning
944-X. If you claimed the COBRA premium assistance
on or before September 30, 2021. Section 9501 of the
credit and you make any corrections on Form 944 X to
ARP provides for COBRA premium assistance in the form ‐
amounts used to figure this credit, you'll need to refigure
of a full reduction in the premium otherwise payable by
the amount of this credit using Worksheet 5. You'll also
certain individuals and their families who elect COBRA
continuation coverage due to a loss of coverage as the use this worksheet to figure this credit if you’re claiming it
for the first time on Form 944-X.
result of a reduction in hours or an involuntary termination
of employment (assistance eligible individuals). This
COBRA premium assistance is available for periods of Reminders
coverage beginning on or after April 1, 2021, through If a line on Form 944-X doesn't apply to you, leave
periods of coverage beginning on or before September TIP it blank. If you're correcting a year before 2020,
30, 2021. A premium payee is entitled to the COBRA you must leave blank lines 9, 10, 16, 17a, 23, 24,
premium assistance credit at the time an eligible individual 25, 26a, 28, 29, 30, 31, and 32. If you're correcting a year
elects coverage. Therefore, other than in rare before 2021, you must leave blank lines 17b, 17c, 17d,
circumstances, due to the COBRA notice and election 26b, 26c, 33, 34, 35, 36, 37, 38, 39, and 40. If you’re
period requirements (generally, employers have 60 days correcting a year after 2021, you must leave blank lines
to provide notice and assistance eligible individuals have 17a, 26a, 30, 31, 39, and 40.
60 days to elect coverage), January 2022 was generally
the end of the period in which an assistance eligible Payroll tax credit for certain tax-exempt organiza-
individual would have elected coverage. Under some rare tions affected by qualified disasters. Section 303(d) of
circumstances, it may be possible for a premium payee to the Taxpayer Certainty and Disaster Tax Relief Act of
become entitled to the COBRA premium assistance credit 2020 allows for a payroll tax credit for certain tax-exempt
after January 2022. In these rare instances, the credit was organizations affected by certain qualified disasters not
still claimed on Form 944 filed for 2022 and an related to COVID-19. This credit is claimed on Form
adjustment, if needed, can be made on Form 944-X for 5884-D. If applicable to the year that you're correcting,
2022. you'll enter the credit claimed on Form 5884-D on
For more information on COBRA premium assistance Worksheet 1 to figure your credit for qualified sick and
payments and the credit, see Notice 2021-31, 2021-23 family leave wages for leave taken before April 1, 2021, or
I.R.B. 1173, available at IRS.gov/irb/ Worksheet 2 to figure the employee retention credit for
2021-23_IRB#NOT-2021-31; and Notice 2021-46, wages paid after March 12, 2020, and before July 1,
2021-33 I.R.B. 303, available at IRS.gov/irb/ 2021. For more information about this credit, go to
2021-33_IRB#NOT-2021-46. IRS.gov/Form5884D.
Corrections to amounts reported on Form 944, lines 8e, Employee consents to support a claim for refund.
8f, and 10g, for the COBRA premium assistance credit Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at
are reported on Form 944-X, lines 17c, 17d, and 26c, IRS.gov/irb/2017-14_IRB#RP-2017-28, provides
respectively. guidance to employers on the requirements for employee
If you claimed the credit for qualified sick and consents used by an employer to support a claim for
refund of overcollected social security tax and Medicare
! family leave wages for leave taken after March 31, tax. The revenue procedure clarifies the basic
CAUTION 2020, and before April 1, 2021, and you make any
corrections on Form 944 X to amounts used to figure this ‐ requirements for both a request for employee consent and
credit, you'll need to refigure the amount of this credit for the employee consent, and permits a consent to be
using Worksheet 1. You'll also use this worksheet to figure requested, furnished, and retained in an electronic format
this credit if you’re claiming it for the first time on Form as an alternative to a paper format. The revenue
944-X. If you claimed the credit for qualified sick and procedure also contains guidance concerning when an

-2- Instructions for Form 944-X (Rev. 2-2023)

- 3 -

Page 3 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

employer may claim a refund of only the employer share withholding table or you didn't treat a payment correctly as
of overcollected social security tax and Medicare tax. The taxable or nontaxable. Similarly, if you paid federal
revenue procedure requires that any request for consent income tax in a prior year on behalf of your employee,
include an Additional Medicare Tax notice indicating that rather than deducting it from the employee's pay (which
any claim on the employees’ behalf won’t include a claim resulted in additional wages subject to tax), and in a
for overpaid Additional Medicare Tax. subsequent year you determine that you incorrectly
calculated the amount of tax, you can't correct the federal
Qualified small business payroll tax credit for in-
income tax withholding. However, you must still make any
creasing research activities. For tax years beginning
necessary corrections to the amount of wages you
after 2015 and before 2023, a qualified small business
reported on Form 944 and Form W-2, Wage and Tax
may elect to claim up to $250,000 of its credit for
Statement, for a prior year by filing Form 944-X and Form
increasing research activities as a payroll tax credit
W-2c, Corrected Wage and Tax Statement, respectively.
against the employer share of social security tax. The
You'll report the correct wages on Form 944-X, line 6,
payroll tax credit election must be made on or before the
column 1.
due date of the originally filed income tax return (including
extensions). Any election to take the payroll tax credit may The amount actually withheld is reflected on
be revoked only with the consent of the IRS. The portion TIP payroll information or on Form W-2 which can be
of the credit used against the employer share of social used by the employee to claim a credit for
security tax is allowed in the first calendar quarter withholding for individual income tax return purposes.
beginning after the date that the qualified small business
filed its income tax return. The election and determination Correcting Additional Medicare Tax withholding and
of the credit amount that will be used against the employer wages and tips subject to Additional Medicare Tax
share of social security tax are made on Form 6765, withholding. Wages and tips subject to Additional
Credit for Increasing Research Activities. The amount Medicare Tax withholding are reported on Form 944,
from Form 6765, line 44, must then be reported on Form line 4d. Certain errors discovered on a previously filed
8974, Qualified Small Business Payroll Tax Credit for Form 944 are corrected on Form 944-X, line 13. However,
Increasing Research Activities. Form 8974 is used to you can’t file a Form 944-X to correct the wrong amount of
determine the amount of the credit that can be used in the Additional Medicare Tax actually withheld from an
current quarter. The amount from Form 8974, line 12, is employee in a prior year, including any amount you paid
reported on Form 944, line 8a (line 8 for years prior to on behalf of your employee rather than deducting it from
2020). Any corrections to Form 944, line 8a (line 8 for the employee’s pay (which resulted in additional wages
years prior to 2020), are reported on Form 944-X, line 15. subject to tax). See the instructions for line 13, later, for
If you make a correction on Form 944-X, line 15, you must more information on the types of errors that can be
attach a corrected Form 8974. For more information about corrected and how the correction is reported on Form
the payroll tax credit, go to IRS.gov/ResearchPayrollTC. 944-X. For more information about Additional Medicare
The Inflation Reduction Act of 2022 (the IRA) makes Tax withholding, see the Instructions for Form 944 or go to
changes to the qualified small business payroll tax credit IRS.gov/ADMTfaqs.
for increasing research activities for tax years beginning
after December 31, 2022. The changes made under the General Instructions:
IRA will be discussed in the 2023 Instructions for Form
944 and in Pub. 15, Employer's Tax Guide. Understanding Form 944-X

Correcting federal income tax withheld. Generally, What Is the Purpose of Form 944-X?
you may only correct administrative errors to federal
income tax withholding (that is, errors in which the amount Use Form 944-X to correct errors on a previously filed
reported on Form 944, line 2, isn’t the amount you actually Form 944. Use Form 944-X to correct:
withheld from an employee’s wages) and errors for which • Wages, tips, and other compensation;
section 3509 rates apply. See section 13 of Pub. 15 for • Federal income tax withheld from wages, tips, and
more information about corrections during the calendar other compensation;
year and about administrative errors. See section 2 of • Taxable social security wages;
Pub. 15 for more information about section 3509. If • Taxable social security tips;
section 3509 rates apply, see the instructions for lines 18– • Taxable Medicare wages and tips;
21, later. • Taxable wages and tips subject to Additional Medicare
Tax withholding;
Only transposition or math errors involving the Deferred amount of the employer share of social
•
! inaccurate reporting of the amount actually security tax;
CAUTION withheld are “administrative errors.”
• Deferred amount of the employee share of social
You can't file a Form 944-X to correct federal income security tax;
tax withholding for prior years for nonadministrative errors. • Qualified small business payroll tax credit for increasing
In other words, you can't correct federal income tax research activities;
actually withheld from an employee in a prior year if you • Amounts reported on Form 944 for the credit for
discover that you didn't withhold the right amount. For qualified sick and family leave wages for leave taken after
example, you can't correct federal income tax withheld in March 31, 2020, and before April 1, 2021, including
a prior year because you used the wrong income tax

Instructions for Form 944-X (Rev. 2-2023) -3-

- 4 -

Page 4 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

adjustments to Form 944, lines 4a(i), 4a(ii), 8b, 10d, 15, abatement. If you’re requesting a refund or abatement and
and 16; you’re correcting both underreported and overreported tax
• Amounts reported on Form 944 for the credit for amounts, file one Form 944-X correcting the
qualified sick and family leave wages for leave taken after underreported tax amounts only and a second Form
March 31, 2021, and before October 1, 2021, including 944-X correcting the overreported tax amounts.
adjustments to Form 944, lines 8d, 10f, 19, 20, 21, 22, 23,
and 24; You’ll use the adjustment process if you underreported
• Amounts reported on Form 944 for the employee employment taxes and are making a payment, or if you
retention credit, including adjustments to Form 944, lines overreported employment taxes and will be applying the
8c, 10e, 17, 18, 25, and 26; and credit to Form 944 for the period during which you file
• Amounts reported on Form 944 for the COBRA Form 944-X. However, see the Caution under Is There a
premium assistance credit for periods of coverage Deadline for Filing Form 944-X, later, if you’re correcting
beginning on or after April 1, 2021, through periods of overreported tax amounts during the last 90 days of a
coverage beginning on or before September 30, 2021, period of limitations. You’ll use the claim process if you
including adjustments to Form 944, lines 8e, 8f, and 10g. overreported employment taxes and are requesting a
refund or abatement of the overreported tax amount.
Use Form 843, Claim for Refund and Request for Follow the chart on page 6 of Form 944-X for help in
Abatement, to request a refund or abatement of assessed choosing whether to use the adjustment process or the
interest or penalties. Don’t request a refund or abatement claim process. Be sure to give us a detailed explanation
of assessed interest or penalties on Form 944 or Form on line 43 for each correction that you show on Form
944-X. 944-X.
We use the terms “correct” and “corrections” on Continue to report current year adjustments for
TIP Form 944-X and in these instructions to include fractions of cents, third-party sick pay, tips, and
interest-free adjustments under sections 6205 and group-term life insurance on Form 944, line 6.
6413 and claims for refund and abatement under sections
6402, 6414, and 6404. See Rev. Rul. 2009-39 for You have additional requirements to complete when
examples of how the interest-free adjustment and claim filing Form 944-X, such as certifying that you filed (or will
for refund rules apply in 10 different situations. You can file) all applicable Forms W-2 and Forms W-2c. For
find Rev. Rul. 2009-39, 2009-52 I.R.B. 951, at IRS.gov/irb/ corrections of overreported federal income tax, social
2009-52_IRB#RR-2009-39. security tax, Medicare tax, or Additional Medicare Tax,
you must make any certifications that apply to your
When you discover an error on a previously filed Form situation.
944, you must: Don’t use Form 944-X to correct Form CT-1, 941,
• Correct that error using Form 944-X; ! 941-SS, 943, or 945. Instead, use the “X” form
• File a separate Form 944-X for each Form 944 that CAUTION that corresponds to those forms (Form CT-1 X,
you’re correcting; and 941-X, 943-X, or 945-X).
• Generally, file Form 944-X separately. Don’t file Form
944-X with Form 944. However, if you didn’t previously file
Form 944 because you mistakenly treated your Where Can You Get Help?
employees as nonemployees, you may have to file Form For help filing Form 944-X or for questions about federal
944-X with Form 944. See the instructions for line 42, employment taxes and tax corrections, you can:
later. • Go to IRS.gov/EmploymentTaxes and IRS.gov/
If you didn’t file a Form 944 for 1 or more years for CorrectingEmploymentTaxes;
which you should have filed Form 944, don’t use Form • See Pub. 15 or Pub. 80, Federal Tax Guide for
944-X. Instead, file Form 944 for each of those years. Employers in the U.S. Virgin Islands, Guam, American
Also, see When Should You File Form 944-X, later. Samoa, and the Commonwealth of the Northern Mariana
However, if you didn’t file Forms 944 because you Islands; or
improperly treated workers as independent contractors or • Call the IRS Business and Specialty Tax Line toll free at
nonemployees and are now reclassifying them as 800-829-4933 or 800-829-4059 (TDD/TTY for persons
employees, see the instructions for line 42, later. who are deaf, hard of hearing, or have a speech
disability), Monday–Friday from 7:00 a.m. to 7:00 p.m.
Unless otherwise specified in these instructions, local time (Alaska and Hawaii follow Pacific time).
TIP an underreported employment tax credit or social
security tax deferral should be treated like an See also How Can You Get Forms, Instructions, and
overreported tax amount. An overreported employment Publications From the IRS, later.
tax credit or social security tax deferral should be treated
like an underreported tax amount. For more information, When Should You File Form 944-X?
including which process to select on lines 1 and 2, see File Form 944-X when you discover an error on a
Correcting an employment tax credit or social security tax previously filed Form 944.
deferral, later.
However, if your only errors on Form 944 relate to
Report the correction of underreported and federal tax liabilities reported in Part 2 of Form 944 or on
overreported tax amounts for the same year on a single Form 945-A, Annual Record of Federal Tax Liability, don’t
Form 944-X, unless you’re requesting a refund or file Form 944-X. To correct federal tax liabilities reported

-4- Instructions for Form 944-X (Rev. 2-2023)

- 5 -

Page 5 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

in Part 2 of Form 944, file Form 945-A, but only enter the Overreported tax—Adjustment process. If you
monthly totals. The daily entries aren’t required. For more overreported tax and choose to apply the credit on Form
information about correcting federal tax liabilities reported 944 or Form 941, file an adjusted return on Form 944-X
on Form 945-A, see the Form 945-A instructions. soon after you discover the error but more than 90 days
Due dates. The due date for filing Form 944-X depends before the period of limitations on the credit or refund for
on when you discover an error and if you underreported or Form 944 expires. See Is There a Deadline for Filing Form
overreported tax. If you underreported tax, see 944-X, later.
Underreported tax next. For overreported tax amounts, Form 944-X can’t be used to correct overreported
you may choose to either make an interest-free ! amounts of Additional Medicare Tax unless the
adjustment or file a claim for refund or abatement. If you’re CAUTION amounts were not withheld from employee wages.
correcting overreported tax amounts, see Overreported
tax—Adjustment process and Overreported tax—Claim Example—You want your credit applied to Form
process, later. 944. You filed your 2022 Form 944 on January 31, 2023,
If any due date falls on a Saturday, Sunday, or legal and payments were timely made. On May 1, 2023, you
holiday, you may file Form 944-X on the next business discover that you overreported tax on your 2022 Form
day. If we receive Form 944-X after the due date, we will 944. You file Form 944-X on June 2, 2023, and check the
treat Form 944-X as filed on time if the envelope box on line 1 to indicate you want to use the adjustment
containing Form 944-X is properly addressed, contains process. The IRS treats your credit as a tax deposit made
sufficient postage, and is postmarked by the U.S. Postal on January 1, 2023. When you file your 2023 Form 944,
Service on or before the due date, or sent by an include the amount from Form 944-X, line 27, on the
IRS-designated private delivery service (PDS) on or “Total deposits” line of your 2023 Form 944.
before the due date. If you don’t follow these guidelines, Overreported tax—Claim process. If you overreported
we will consider Form 944-X filed when it is actually tax on Form 944, you may choose to file a claim for refund
received. See Pub. 15 or Pub. 80 for more information on or abatement on Form 944-X any time before the period of
legal holidays. For more information about PDSs, see limitations on credit or refund expires. If you also need to
Where Should You File Form 944-X, later. correct any underreported tax amounts, you must file
another Form 944-X reporting only corrections to the
Underreported tax. If you’re correcting underreported
underreported tax amounts. See Is There a Deadline for
tax, you must file Form 944-X by the due date of the return
Filing Form 944-X next.
for the return period in which you discovered the error
(January 31 of the following year) and pay the amount You may not file a refund claim to correct federal
you owe by the time you file. Doing so will generally ! income tax or Additional Medicare Tax actually
ensure that your correction is interest free and not subject CAUTION withheld from employees.
to failure-to-pay (FTP) or failure-to-deposit (FTD)
penalties. See What About Penalties and Interest, later. Is There a Deadline for Filing Form
For details on how to make a payment, see the
instructions for line 27, later. 944-X?
If Form 944-X is filed late (after the due date of the Generally, you may correct overreported taxes on a
return for the return period in which you discovered the previously filed Form 944 if you file Form 944-X within 3
error), you must attach an amended Form 945-A to Form years of the date Form 944 was filed or 2 years from the
944-X. Otherwise, the IRS may assess an “averaged” date you paid the tax reported on Form 944, whichever is
FTD penalty. See “Averaged” FTD penalty in section 11 of later. You may correct underreported taxes on a
Pub. 15 or section 8 of Pub. 80 for more information about previously filed Form 944 if you file Form 944-X within 3
“averaged” FTD penalties. The total tax reported on Form years of the date the Form 944 was filed. We call each of
945-A, line M, must match the corrected tax (Form 944, these time frames a period of limitations. For purposes of
line 9, combined with any correction entered on Form the period of limitations, Form 944 is considered filed on
944-X, line 22) for the year, less any previous abatements April 15 of the succeeding year if filed before that date.
and interest-free tax assessments.
Example. You filed your 2019 Form 944 on January
Example—You owe tax. On February 16, 2023, you 28, 2020, and payments were timely made. The IRS treats
discovered that you underreported $1,000 of social the return as if it were filed on April 15, 2020. On January
security and Medicare wages on your 2022 Form 944. File 18, 2023, you discovered that you overreported social
Form 944-X and pay the amount you owe by January 31, security and Medicare wages on that form by $350. To
2024, because you discovered the error in 2023 and correct the error, you must file Form 944-X by April 18,
January 31, 2024, is the due date for that year. If you file 2023, and use the claim process.
Form 944-X before January 31, 2024, pay the amount you
If you file Form 944-X to correct overreported tax
owe by the time you file.
amounts in the last 90 days of a period of
Form 944-X can’t be used to correct CAUTION! limitations, you must use the claim process. You
! underreported amounts of Additional Medicare can’t use the adjustment process. If you’re also correcting
CAUTION Tax unless the amounts were withheld from underreported tax amounts, you must file another Form
employee wages. 944-X to correct the underreported tax amounts using the
adjustment process and pay any tax due.

Instructions for Form 944-X (Rev. 2-2023) -5-

- 6 -

Page 6 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Where Should You File Form 944-X? Employer Identification Number (EIN), Name,
and Address
Send your completed Form 944-X to the address shown Enter your EIN, name, and address in the spaces
next. provided. Also enter your name and EIN on the tops of
pages 2, 3, 4, and 5, and on any attachments. If your
IF you’re in . . . THEN use this address . . . address has changed since you filed your Form 944, enter
Connecticut, Delaware, District of the corrected information and the IRS will update your
Columbia, Florida, Georgia, address of record. Be sure to write your name, EIN, “Form
Illinois, Indiana, Kentucky, Maine, 944-X,” and the calendar year you’re correcting on the top
Maryland, Massachusetts, of any attachments.
Department of the Treasury
Michigan, New Hampshire, New
Internal Revenue Service
Jersey, New York, North Carolina, Return You’re Correcting
Cincinnati, OH 45999-0044
Ohio, Pennsylvania, Rhode Enter the calendar year of the Form 944 you’re correcting
Island, South Carolina,
Tennessee, Vermont, Virginia, in the box at the top of page 1. Enter the same calendar
West Virginia, Wisconsin year on pages 2, 3, 4, and 5, and on any attachments.

Alabama, Alaska, Arizona, Enter the Date You Discovered Errors
Arkansas, California, Colorado,
Hawaii, Idaho, Iowa, Kansas, You must enter the date you discovered errors. You
Louisiana, Minnesota, Department of the Treasury discover an error when you have enough information to be
Mississippi, Missouri, Montana, Internal Revenue Service able to correct the error. If you’re reporting several errors
Nebraska, Nevada, New Mexico, Ogden, UT 84201-0044 you discovered at different times, enter the earliest date
North Dakota, Oklahoma, you discovered an error here. Report any subsequent
Oregon, South Dakota, Texas, dates and related errors on line 43.
Utah, Washington, Wyoming
No legal residence or principal Internal Revenue Service Must You Make an Entry on Each Line?
place of business in any state P.O. Box 409101 You must provide all of the information requested at the
Ogden, UT 84409 top of Form 944-X, page 1. You must check one box (but
Special filing address for not both) in Part 1. In Part 2, you must check the box on
exempt organizations; federal, line 3 and any applicable boxes on lines 4 and 5. In Part 3,
Department of the Treasury
state, and local governmental if any line doesn’t apply, leave it blank. Complete Parts 4
Internal Revenue Service
entities; and Indian tribal and 5 as instructed.
Ogden, UT 84201-0044
governmental entities, regardless
of location 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
PDSs can't deliver to P.O. boxes. You must use the (amounts you owe).
U.S. Postal Service to mail an item to a P.O. box address.
Go to IRS.gov/PDS for the current list of PDSs. If you file When reporting a negative amount in columns 3 and 4,
Form 944-X using a PDS, send it to the following address. use a minus sign instead of parentheses. For example,
enter “-10.59” instead of “(10.59).” However, if you’re
Ogden - Internal Revenue Submission Processing completing the return on your computer and your software
Center only allows you to use parentheses to report negative
1973 Rulon White Blvd. amounts, you may use them.
Ogden, UT 84201
How Should You Make Entries on Form 944-X?
Use this address even if your business is located in a You can help the IRS process Form 944-X timely and
state that files in Cincinnati. accurately if you follow these guidelines.
• Type or print your entries.
How Should You Complete Form Use Courier font (if possible) for all typed or
•
944-X? computer-generated entries.
• Omit dollar signs. You may use commas and decimal
Use a Separate Form 944-X for Each Year You’re points, if desired. Enter dollar amounts to the left of any
Correcting preprinted decimal point and cents to the right of it.
Use a separate Form 944-X for each Form 944 you’re • Always show an amount for cents, even if it is zero.
Don’t round entries to whole dollars.
correcting. For example, if you found errors on your Forms
944 for 2021 and 2022, file one Form 944-X to correct the • Complete all five pages and sign Form 944-X on
page 5.
2021 Form 944. File a second Form 944-X to correct the
2022 Form 944. • Staple multiple sheets in the upper-left corner.

What About Penalties and Interest?
Generally, your correction of an underreported tax amount
won’t be subject to an FTP penalty, FTD penalty, or
interest if you:

-6- Instructions for Form 944-X (Rev. 2-2023)

- 7 -

Page 7 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• File on time (by the due date of Form 944 for the year in If you currently file Form 941 instead of Form 944 and will
which you discover the error), claim a credit on Form 941, file Form 944-X in the first 2
• Pay the amount shown on line 27 by the time you file months of a quarter in any quarter before the expiration of
Form 944-X, the period of limitations on Form 944. In the year of the
• Enter the date you discovered the error, and expiration of the period of limitations on Form 944, file
• Explain in detail the grounds and facts relied on to Form 944-X at least 90 days before the expiration date.
support the correction. Example—You want your overreported tax applied
No correction will be eligible for interest-free treatment as a credit on Form 944. On December 20, 2023, you
if any of the following apply. discover you overreported your tax on your 2022 Form
• The amounts underreported relate to an issue that was 944 and want to choose the adjustment process. To allow
raised in an examination of a prior period. the IRS enough time to process the credit, you file Form
• You knowingly underreported your employment tax 944-X on January 4, 2024, and take the credit on your
liability. 2024 Form 944.
• You received a notice and demand for payment.
• You received a notice of determination under section
7436. Specific Instructions:

If you receive a notice about a penalty after you file this Part 1: Select ONLY One Process
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don’t Because Form 944-X may be used to file either an
attach an explanation when you file your return. adjusted employment tax return or a claim for refund or
abatement, you must check one box on either line 1 or
Overview of the Process line 2. Don’t check both boxes.
To correct a previously filed Form 944, use Form 944-X to Correcting an employment tax credit or social securi-
file either an adjusted employment tax return or a claim for ty tax deferral. For lines 1 and 2, if you underreported an
refund or abatement. The adjustment process and the employment tax credit or the amount of social security tax
claim process are outlined below. deferred, treat it like you overreported a tax amount. If you
overreported an employment tax credit or the amount of
If you underreported the tax. If you underreported
social security tax deferred, treat it like you underreported
the tax on a previously filed Form 944, check the box on
a tax amount. If you're filing Form 944-X to adjust only an
line 1 and pay any additional amount you owe by the
employment tax credit and/or the amount of social
time you file Form 944-X. For details on how to make a
security tax deferred and you're not correcting any
payment, see the instructions for line 27, later.
overreported taxes on Form 944-X, lines 6–13, skip lines 4
Example—You underreported employment taxes. and 5.
On June 21, 2023, you discovered an error that results in
additional tax on your 2022 Form 944. File Form 944-X by 1. Adjusted Employment Tax Return
January 31, 2024, and pay the amount you owe by the Check the box on line 1 if you’re correcting underreported
time you file. See When Should You File Form 944-X, tax amounts or overreported tax amounts and you would
earlier. Don’t attach Form 944-X to your 2023 Form 944. like to use the adjustment process to correct the errors.
If you overreported the tax. If you overreported the
tax on a previously filed Form 944, choose one of the If you’re correcting both underreported tax amounts
following options. and overreported tax amounts on this form, you must
• Use the adjustment process. Check the box on line 1 to check this box. If you check this box, any negative amount
apply any credit (negative amount) from line 27 to Form shown on line 27 will be applied as a credit (tax deposit) to
944 for the year during which you file Form 944-X. your Form 944 or Form 941 for the period in which you’re
• Use the claim process. Check the box on line 2 to file a filing this form. See Example—You want your
claim on Form 944-X requesting a refund or abatement of overreported tax applied as a credit on Form 944, earlier.
the amount shown on line 27. Form 944-X can’t be used to correct overreported
To ensure the IRS has enough time to process a ! amounts of Additional Medicare Tax unless the
TIP credit for an overreporting tax adjustment in CAUTION amounts were not withheld from employee wages.
the year in which you file Form 944-X, you’re
encouraged to file Form 944-X correcting the If you owe tax. Pay the amount shown on line 27 by the
overreported tax amount in the first 11 months of a year. time you file Form 944-X. Generally, you won’t be
For example, if you discover an overreported tax amount charged interest if you file on time, pay on time, enter the
in December, you may want to file Form 944-X during the date you discovered the error, and explain the correction
first 11 months of the next year. However, there must be on line 43.
90 days remaining on the period of limitations when you If you have a credit. You overreported employment
file Form 944-X. See the Caution under Is There a taxes (you have a negative amount on line 27) and want
Deadline for Filing Form 944-X, earlier. This should the IRS to apply the credit on Form 944 (or Form 941) for
ensure the IRS will have enough time to process the Form the period during which you filed Form 944-X. The IRS will
944-X so the credit will be posted before you file Form apply your credit on the first day of the Form 944 year (or
944, thus avoiding an erroneous balance due notice from Form 941 quarter) during which you filed Form 944-X.
the IRS. See the example below. However, the credit you show on Form 944-X, line 27,

Instructions for Form 944-X (Rev. 2-2023) -7-

- 8 -

Page 8 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

may not be fully available on your Form 944 (or Form 941) employees' correct wage and tax amounts. See the
if the IRS corrects it during processing or you owe other General Instructions for Forms W-2 and W-3 for detailed
taxes, penalties, or interest. The IRS will notify you if your information about filing requirements. References to Form
claimed credit changes or if the amount available as a W-2 on Form 944-X and in these instructions also apply to
credit on Form 944 or Form 941 was reduced because of Forms W-2AS, W-2CM, W-2GU, and W-2VI, unless
unpaid taxes, penalties, or interest. otherwise noted.
Don't check the box on line 1 if you're correcting You must check the box on line 3 to certify that you filed
! overreported tax amounts and the period of Forms W-2 or Forms W-2c even if your corrections on
CAUTION limitations on credit or refund for Form 944 will Form 944-X don’t change amounts shown on those forms.
expire within 90 days of the date you file Form 944-X. See For example, if your only correction to Form 944 involves
Is There a Deadline for Filing Form 944-X, earlier. misstated tax adjustments, which don't impact the
amounts reported on your employee's Form W-2 (see the
2. Claim instructions for line 14, later), check the box on line 3 to
Check the box on line 2 to use the claim process if you’re certify that you already filed all required Forms W-2 and
correcting overreported tax amounts only and you’re W-2c with the SSA. In this situation, you're certifying that
claiming a refund or abatement for the negative amount you don't need to file Form W-2c because you already
(credit) shown on line 27. Don’t check this box if you’re filed a correct Form W-2.

correcting any underreported tax amounts on this form. 4. Certifying Overreporting Adjustments
You must check the box on line 2 if you have a credit (a If you overreported federal income tax, social security tax,
negative amount on line 27) and the period of limitations Medicare tax, or Additional Medicare Tax and checked
on credit or refund for Form 944 will expire within 90 days the box on line 1, check the appropriate box on line 4. You
of the date you file Form 944-X. See Is There a Deadline may need to check more than one box. If you obtained
for Filing Form 944-X, earlier. written statements from some employees but you couldn’t
The IRS usually processes claims shortly after they are locate employees or secure the statements of the
filed. The IRS will notify you if your claim is denied, remaining employees, check all applicable boxes. Provide
accepted as filed, or selected to be examined. See Pub. a summary on line 43 of the amount of the corrections for
556, Examination of Returns, Appeal Rights, and Claims the employees who provided written statements and for
for Refund, for more information. those who didn’t.
Unless the IRS corrects Form 944-X during processing You may not use Form 944-X to correct
or you owe other taxes, penalties, or interest, the IRS will ! overreported amounts of Additional Medicare Tax
refund the amount shown on line 27, plus any interest that CAUTION unless the amounts weren’t withheld from
applies. employee wages.

You may not file a refund claim to correct federal 4a. Check the box on line 4a if your overreported amount
! income tax or Additional Medicare Tax actually includes each affected employee share of overcollected
CAUTION withheld from employees. taxes. You’re certifying that you repaid or reimbursed the
employee share of prior year taxes and you received
Part 2: Complete the Certifications written statements from the employees stating that they
didn’t and won’t receive a refund or credit for the prior
You must complete all certifications that apply by year taxes. Don’t send these statements to the IRS. Keep
checking the appropriate boxes. If all of your corrections them for your records. Generally, all employment tax
relate to underreported tax amounts, complete line 3 only; records must be kept for at least 4 years. Records related
skip lines 4 and 5 and go to Part 3. If your corrections to qualified sick leave wages and qualified family leave
relate to overreported tax amounts, other than corrections wages for leave taken after March 31, 2021, and before
related to underreported employment tax credits and October 1, 2021, and records related to qualified wages
social security tax deferrals, you have a duty to ensure for the employee retention credit paid after June 30, 2021,
that your employees' rights to recover overpaid employee should be kept for at least 6 years. Copies must be
social security and Medicare taxes that you withheld are submitted to the IRS if requested.
protected. The certifications on lines 4 and 5 address the
4b. Check the box on line 4b to certify that your
requirement to:
overreported amount is only for the employer share of
• Repay or reimburse your employees for the
taxes on those employees who you were unable to find or
overcollection of employee social security and Medicare
those who didn’t give you a statement described on
taxes, or
line 4a.
• Obtain consents from your employees to file a claim on
their behalf. See Rev. Proc. 2017-28 for guidance on the 4c. Check the box on line 4c to certify that your
requirements for both a request for employee consent and overreported amount is only for federal income tax, social
for the employee consent. security tax, Medicare tax, or Additional Medicare Tax that
you didn’t withhold from your employees.
3. Filing Forms W-2 or Forms W-2c
Check the box on line 3 to certify that you filed or will file 5. Certifying Claims
Forms W-2 or Forms W-2c, with the Social Security If you’re filing a claim for refund or abatement of
Administration (SSA), as required, showing your overreported federal income tax, social security tax,

-8- Instructions for Form 944-X (Rev. 2-2023)

- 9 -

Page 9 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Medicare tax, or Additional Medicare Tax and checked Don’t send these statements and consents to the IRS.
the box on line 2, check the appropriate box on line 5. You Keep them for your records. Generally, all employment
may need to check more than one box. If you obtained tax records must be kept for at least 4 years. Records
written statements or consents from some employees but related to qualified sick leave wages and qualified family
you couldn’t locate employees or secure the statements of leave wages for leave taken after March 31, 2021, and
the remaining employees, check all applicable boxes. before October 1, 2021, and records related to qualified
Provide a summary on line 43 of the amount of the wages for the employee retention credit paid after June
corrections for the employees who provided statements or 30, 2021, should be kept for at least 6 years. Copies must
consents and for those who didn’t. be submitted to the IRS if requested.
You may not file a refund claim to correct the In certain situations, you may not have repaid or
! incorrect amount of federal income tax or reimbursed your employees or obtained their consents
CAUTION Additional Medicare Tax actually withheld from before filing a claim, such as in cases where the period of
employees. If you request their consent to file a claim for limitations on credit or refund is about to expire. In those
social security tax or Medicare tax, you must tell your situations, file Form 944-X but don’t check a box on line 5.
employees that you can’t claim a refund of any Additional Tell us on line 43 that you haven’t repaid or reimbursed
Medicare Tax on their behalf. See Rev. Proc. 2017-28 for employees or obtained consents at the time you file the
sample language to use in your request. claim. However, you must repay or reimburse your
employees and certify that you have done so before the
5a. Check the box on line 5a if your overreported tax IRS can allow the claim.
includes each affected employee share of prior year
social security and Medicare tax. You’re certifying that you 5c. Check the box on line 5c to certify that your
repaid or reimbursed to the employees their share of prior overreported tax is only for the employer share of social
year social security and Medicare tax and you received security and Medicare tax. This applies when affected
written statements from those employees stating that they employees didn’t give you consent to file a claim for
didn’t and won’t receive a refund or credit for the prior refund for the employee share of social security and
year taxes. Don’t send these statements to the IRS. Keep Medicare tax, they couldn’t be found, or they didn’t give
them for your records. Generally, all employment tax you a statement described on line 5b.
records must be kept for at least 4 years. Records related 5d. Check the box on line 5d to certify that your
to qualified sick leave wages and qualified family leave overreported amount is only for federal income tax, social
wages for leave taken after March 31, 2021, and before security tax, Medicare tax, or Additional Medicare Tax that
October 1, 2021, and records related to qualified wages you didn’t withhold from your employees.
for the employee retention credit paid after June 30, 2021,
should be kept for at least 6 years. Copies must be Part 3: Enter the Corrections for the
submitted to the IRS if requested.
Calendar Year You’re Correcting
5b. Check the box on line 5b if your overreported tax
includes each affected employee share of prior year What Amounts Should You Report in Part 3?
social security and Medicare tax and you haven’t yet On lines 6–13, columns 1 and 2, for each line you’re
repaid or reimbursed the employee share of taxes. You’re correcting, show amounts for all of your employees, not
certifying that you received consent from each affected just for those employees whose amounts you’re
employee to file a claim on the employee share of those correcting.
taxes and you received written statements from those
employees stating that they didn’t and won’t receive a If a correction you report in column 4 includes both
refund or credit for the prior year taxes. underreported and overreported amounts (see the
An employee consent must: instructions for line 41, later), give us details for each error
• Contain the name, address, and social security number on line 43.
(or truncated taxpayer identification number, when Because special circumstances apply for lines 14–21,
appropriate) of the employee; 23–26c, and 28–40, read the instructions for each line
• Contain the name, address, and EIN of the employer; carefully before entering amounts in the columns.
• Contain the tax period(s), type of tax, and the amount of
tax for which the consent is provided; If any line doesn't apply to you, leave it blank.
• Affirmatively state that the employee authorizes the If you previously adjusted or amended Form 944
employer to claim a refund for the overpayment of the ! using Form 944-X or because of an IRS
employee share of tax; CAUTION examination change, show amounts in column 2
• Include the employee's written statement certifying that that include those previously reported corrections.
the employee hasn't made any previous claims (or the
claims were rejected) and won't make any future claims
for refund or credit of the amount of the overcollection; 6. Wages, Tips, and Other Compensation
• Identify the basis of the claim; and If you’re correcting the wages, tips, and other
• Be dated and contain the employee's signature under compensation you reported on Form 944, line 1, enter the
penalties of perjury. The penalties of perjury statement total corrected amount for all employees in column 1. In
should be located immediately above the required column 2, enter the amount you originally reported or as
signature. previously corrected. In column 3, enter the difference
between columns 1 and 2.

Instructions for Form 944-X (Rev. 2-2023) -9-

- 10 -

Page 10 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

If you or the IRS previously corrected the amount reported or as previously corrected. In column 3, enter the
reported on Form 944, line 1, enter in column 2 the difference between columns 1 and 2.
amount after any previous corrections.
line 7 (column 1)
line 6 (column 1) - line 7 (column 2)
- line 6 (column 2) line 7 (column 3) If the amount in column 2 is larger than the
line 6 (column 3) If the amount in column 2 is larger than the amount in column 1, use a minus sign in
amount in column 1, use a minus sign in column 3.
column 3.
Copy the amount in column 3 to column 4. Include any
Example—Wages, tips, and other compensation minus sign shown in column 3.
increased. You reported $900 as total wages, tips, and Generally, you may only correct administrative
other compensation on line 1 of your 2022 Form 944. In ! errors to federal income tax withholding (that is,
July of 2023, you discover that you had overlooked $100 CAUTION errors in which the amount reported on Form 944,
in tips for one of your part-time employees. To correct the line 2, isn't the amount you actually withheld from an
error, figure the difference on Form 944-X as shown. employee's wages) and errors for which section 3509
rates apply. Only transposition or math errors involving the
Column 1 (corrected amount) 1,000.00 inaccurate reporting of the amount withheld are
Column 2 (Form 944, line 1) - 900.00 "administrative errors." The administrative error
Column 3 (difference) 100.00 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
Example—Wages, tips, and other compensation section 3509. If section 3509 rates apply, see the
decreased. You reported $900 as wages, tips, and other instructions for lines 18–21, later.
compensation on line 1 of your 2022 Form 944. In
December of 2023, you discover that you included $200 in You can't file a Form 944-X to correct federal income
wages for one of your employees twice. To correct the tax withholding for prior years for nonadministrative errors.
error, figure the difference on Form 944-X as shown. 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
Column 1 (corrected amount) 700.00 example, you can't correct federal income tax withheld in
Column 2 (Form 944, line 1) - 900.00 a prior year because you used the wrong income tax
Column 3 (difference) -200.00 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
Example—Auto allowance; wages, tips, and other rather than deducting it from the employee's pay (which
compensation increased. You paid one of your resulted in additional wages subject to tax), and in a
employees a $50 monthly auto allowance from October– subsequent year you determine that you incorrectly
December 2022 and didn’t treat the payments as taxable calculated the amount of tax, you can't correct the federal
wages. In February 2023, you realized that the payments income tax withholding.
were wages because they weren't reimbursements of
Example—Prior year nonadministrative error
deductible business expenses that were substantiated
(failure to withhold federal income tax when
and paid under an accountable plan. You correct the error
required). You were required to withhold $400 of federal
by treating the auto allowance as wages subject to
income tax from an employee's bonus that was paid in
income, social security, and Medicare taxes. Report the
December of 2022 but you withheld nothing. You
additional $150 of wages on Form 944-X, lines 6, 8, 12,
discovered the error on March 17, 2023. You can’t file
and, if applicable, line 13.
Form 944-X to correct federal income tax withheld
Be sure to explain the reasons for the corrections on reported on your 2022 Form 944 because the error
line 43. involves a previous year and the amount previously
The amount on line 6, column 1, should be used reported for the employee represents the actual amount
TIP on your Forms W-2 or Forms W-2c. This amount withheld from the employee during 2022.
should also generally be used for any business Example—Prior year administrative error
expense deduction on your income tax return (or (incorrectly reported amount of federal income tax
amended return) for wages paid. actually withheld). You had three employees. In 2022,
you withheld $100 of federal income tax from Nathan
7. Federal Income Tax Withheld From Wages, Black, $200 from Leah Green, and $600 from Becky Lee.
Tips, and Other Compensation The total amount of federal income tax you withheld was
$900. You mistakenly reported $600 on line 2 of your
If you’re correcting the federal income tax withheld from
2022 Form 944. You discovered the error on March 17,
wages, tips, and other compensation you reported on
2023. This is an example of an administrative error that
Form 944, line 2, enter the total corrected amount in
may be corrected in a later calendar year because the
column 1. In column 2, enter the amount you originally
amount actually withheld from employees' wages isn’t the

-10- Instructions for Form 944-X (Rev. 2-2023)

- 11 -

Page 11 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

amount reported on Form 944. Use Form 944-X to correct column 3. If you’re correcting both shares of tax for some
the error. Enter $900 in column 1 and $600 in column 2. employees and only the employer share for other
Subtract the amount in column 2 from the amount in employees, enter the properly calculated amount in
column 1. column 4. Be sure to show your calculations on line 43.
Example—Social security wages decreased.
Column 1 (corrected amount) 900.00 Following Example—Wages, tips, and other
Column 2 (Form 944, line 2) - 600.00 compensation decreased in the instructions for line 6,
Column 3 (difference) 300.00 earlier, the wages that you counted twice were also
taxable social security wages. To correct the error, figure
the difference on Form 944-X as shown.
Report the $300.00 as a tax correction in column 4.
Be sure to explain the reasons for this correction on Column 1 (corrected amount) 700.00
line 43. Column 2 (Form 944, line 4a, column 1) - 900.00
Example—Nonadministrative error reporting Column 3 (difference) -200.00
income tax because of repayment of wages paid in
prior year. You prepaid Jack Brown $4,000 of wages for
2 months of work in September 2022. You withheld $400 Use the difference in column 3 to determine your tax
of federal income tax at the time you paid Jack. These correction.
amounts were reported on your 2022 Form 944. Jack left
employment in October 2022 (after only 1 month of Column 3 (difference) -200.00
service). In February 2023, Jack repaid $2,000 to you for Tax rate (12.4%) x 0.124
the 1 month Jack didn't work. You can't file Form 944-X to Column 4 (tax correction) -24.80
reduce the federal income tax withheld because you
actually withheld the federal income tax from wages. You
also can't file Form 944-X to reduce wages because the Be sure to explain the reasons for this correction on
wages were income to Jack for the prior year. These line 43.
amounts were correctly reported on Form 944.
9. Qualified Sick Leave Wages (For Leave Taken
8. Taxable Social Security Wages After March 31, 2020, and Before April 1, 2021)
Qualified sick leave wages and qualified family Adjustments to the social security tax on qualified
TIP leave wages for leave taken after March 31, 2021, TIP sick leave wages and qualified family leave wages
and before October 1, 2021, were included on for leave taken after March 31, 2020, and before
Form 944, line 4a, column 1, and can be adjusted only on April 1, 2021, are reported on Form 944 X, lines 9 and 10, ‐
Form 944-X, line 8. respectively. Adjustments to the nonrefundable portion of
If you’re correcting the taxable social security wages the credit for qualified sick and family leave wages for
you reported on Form 944, line 4a, column 1, enter the leave taken after March 31, 2020, and before April 1,
total corrected amount in column 1. In column 2, enter the 2021, are reported on Form 944 X, line 16, and ‐
amount you originally reported or as previously corrected. adjustments to the refundable portion of the credit are
In column 3, enter the difference between columns 1 and reported on Form 944 X, line 25. Adjustments to qualified ‐
2. health plan expenses allocable to qualified sick leave
wages and to qualified family leave wages for leave taken
line 8 (column 1) after March 31, 2020, and before April 1, 2021, are
- line 8 (column 2) reported on Form 944 X, lines 28 and 29, respectively. For ‐
corrections to a 2020 Form 944, the credit for qualified
line 8 (column 3) If the amount in column 2 is larger than the sick and family leave wages is only available for wages
amount in column 1, use a minus sign in
column 3. 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
Multiply the amount in column 3 by 0.124 (12.4% tax Form 944, and you make any corrections on Form 944 X ‐
rate) and enter the result in column 4. to amounts used to figure this credit, you’ll need to
refigure the amount of this credit using Worksheet 1. You’ll
line 8 (column 3) also use this worksheet to figure this credit if you're
x 0.124 claiming the credit for the first time on Form 944-X. For
line 8 (column 4) If the amount in column 3 used a minus sign, more information about the credit for qualified sick and
also use a minus sign in column 4. 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,
Note. If you checked the box on Form 944-X, line 4b or aren't subject to the employer share of social security tax;
line 5c, because you’re correcting only the employer therefore, the tax rate on these wages is 6.2% (0.062). For
share of tax on a decrease to social security wages, use more information about qualified sick leave wages, see
0.062 (6.2%) when multiplying the amount shown in

Instructions for Form 944-X (Rev. 2-2023) -11-

- 12 -

Page 12 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Definition of qualified sick and family leave wages for more information about qualified family leave wages, see
leave taken after March 31, 2020, and before April 1, Definition of qualified sick and family leave wages for
2021, later, and go to IRS.gov/PLC. If you're correcting leave taken after March 31, 2020, and before April 1,
the qualified sick leave wages you reported on Form 944, 2021, later, and go to IRS.gov/PLC. If you're correcting
line 4a(i), column 1, enter the total corrected amount in the qualified family leave wages you reported on Form
column 1. In column 2, enter the amount you originally 944, line 4a(ii), column 1, enter the total corrected amount
reported or as previously corrected. In column 3, enter the in column 1. In column 2, enter the amount you originally
difference between columns 1 and 2. reported or as previously corrected. In column 3, enter the
difference between columns 1 and 2.
line 9 (column 1)
- line 9 (column 2) line 10 (column 1)
line 9 (column 3) If the amount in column 2 is larger than the - line 10 (column 2)
amount in column 1, use a minus sign in line 10 (column 3) If the amount in column 2 is larger than the
column 3. amount in column 1, use a minus sign in
column 3.

Multiply the amount in column 3 by 0.062 and enter that
result in column 4. Multiply the amount in column 3 by 0.062 and enter that
result in column 4.
line 9 (column 3)
x 0.062 line 10 (column 3)
line 9 (column 4) If the amount in column 3 used a minus sign, x 0.062
also use a minus sign in column 4. line 10 (column 4) If the amount in column 3 used a minus sign,
also use a minus sign in column 4.

Note. If you erroneously reported qualified sick leave
wages for leave taken after March 31, 2020, and before Note. If you erroneously reported qualified family leave
April 1, 2021, on Form 944, line 4a, instead of on wages for leave taken after March 31, 2020, and before
line 4a(i), you’ll need to make a correction on Form 944-X, April 1, 2021, on Form 944, line 4a, instead of on
lines 8 and 9, and enter the properly calculated amount in line 4a(ii), you’ll need to make a correction on Form
column 4 for each line. 944-X, lines 8 and 10, and enter the properly calculated
Example—Qualified sick leave wages increased. amount in column 4 for each line.
You paid $2,000 of qualified sick leave wages to only one Example—Qualified family leave wages
of your employees in 2020. In March 2023, you discover decreased. You paid $1,000 of qualified family leave
that you only reported $1,000 of qualified sick leave wages to only one of your employees in 2020. In March
wages on your 2020 Form 944. To correct the error, figure 2023, you discover that you erroneously reported $3,000
the difference on Form 944 X as shown.‐ of qualified family leave wages on your 2020 Form 944.
To correct the error, figure the difference on Form 944 X ‐
Column 1 (corrected amount) 2,000.00 as shown.
Column 2 (Form 944, line 4a(i), column 1) - 1,000.00
Column 3 (difference) 1,000.00 Column 1 (corrected amount) 1,000.00
Column 2 (Form 944, line 4a(ii), column 1) - 3,000.00
Column 3 (difference) -2,000.00
Use the difference in column 3 to determine your tax
correction.
Use the difference in column 3 to determine your tax
Column 3 (difference) 1,000.00 correction.
Tax rate (6.2%) x 0.062
Column 4 (tax correction) 62.00 Column 3 (difference) -2,000.00
Tax rate (6.2%) x 0.062
Column 4 (tax correction) -124.00
Be sure to explain the reasons for this correction on
line 43.
10. Qualified Family Leave Wages (For Leave Be sure to explain the reasons for this correction on
line 43.
Taken After March 31, 2020, and Before April 1,
2021) 11. Taxable Social Security Tips
Qualified family leave wages paid with respect to leave If you’re correcting the taxable social security tips you
taken after March 31, 2020, and before April 1, 2021, reported on Form 944, line 4b, column 1, enter the total
aren't subject to the employer share of social security tax; corrected amount in column 1. In column 2, enter the
therefore, the tax rate on these wages is 6.2% (0.062). For amount you originally reported or as previously corrected.

-12- Instructions for Form 944-X (Rev. 2-2023)

- 13 -

Page 13 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

In column 3, enter the difference between columns 1 and line 12 (column 1)
2. - line 12 (column 2)
line 12 (column 3) If the amount in column 2 is larger than the
line 11 (column 1) amount in column 1, use a minus sign in
- line 11 (column 2) column 3.
line 11 (column 3) If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.
Multiply the amount in column 3 by 0.029 (2.9% tax
rate) and enter the result in column 4.
Multiply the amount in column 3 by 0.124 (12.4% tax
line 12 (column 3)
rate) and report the result in column 4.
x 0.029
line 11 (column 3) line 12 (column 4) If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
x 0.124
line 11 (column 4) If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
Note. If you checked the box on Form 944-X, line 4b or
line 5c, because you’re correcting only the employer
share of tax on a decrease to Medicare wages and tips,
Note. If you checked the box on Form 944-X, line 4b or use 0.0145 (1.45%) when multiplying the amount in
line 5c, because you’re correcting only the employer column 3. If you’re correcting both shares of tax for some
share of tax on a decrease to social security tips, use employees and only the employer share for other
0.062 (6.2%) when multiplying the amount shown in employees, enter the properly calculated amount in
column 3. If you’re correcting both shares of tax for some column 4. Be sure to explain your calculations on line 43.
employees and only the employer share for other
employees, report the properly calculated amount in Example—Medicare wages and tips decreased.
column 4. Be sure to show your calculations on line 43. Following Example—Wages, tips, and other
Example—Social security tips increased. Following compensation decreased in the instructions for line 6,
Example—Wages, tips, and other compensation earlier, the wages that you counted twice were also
increased in the instructions for line 6, earlier, the tips that taxable Medicare wages and tips. To correct the error,
you overlooked were also taxable social security tips. To figure the difference on Form 944-X as shown.
correct the error, figure the difference on Form 944-X as
shown. Column 1 (corrected amount) 700.00
Column 2 (Form 944, line 4c, column 1) - 900.00
Column 1 (corrected amount) 1,000.00 Column 3 (difference) -200.00
Column 2 (Form 944, line 4b, column 1) - 900.00
Column 3 (difference) 100.00
Use the difference in column 3 to determine your tax
correction.
Use the difference in column 3 to determine your tax
correction. Column 3 (difference) -200.00
Tax rate (2.9%) x 0.029
Column 3 (difference) 100.00 Column 4 (tax correction) -5.80
Tax rate (12.4%) x 0.124
Column 4 (tax correction) 12.40
Be sure to explain the reasons for this correction on
line 43.

Be sure to explain the reasons for this correction on 13. Taxable Wages & Tips Subject to Additional
line 43. Medicare Tax Withholding
12. Taxable Medicare Wages & Tips You may use Form 944-X to correct errors to Additional
Medicare Tax withholding for prior years if the amount
If you’re correcting the taxable Medicare wages and tips
reported on Form 944, line 4d, column 2, isn’t the amount
you reported on Form 944, line 4c, column 1, enter the
you actually withheld. This type of error is an
total corrected amount in column 1. In column 2, enter the
administrative error. The administrative error adjustment
amount you originally reported or as previously corrected.
corrects the amount reported on Form 944 to agree with
In column 3, enter the difference between columns 1 and
the amount actually withheld from employees.
2.
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.

Instructions for Form 944-X (Rev. 2-2023) -13-

- 14 -

Page 14 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

If a prior year error was a nonadministrative error, you Prior year nonadministrative errors. You may correct
may correct only the wages and tips subject to only the taxable wages and tips subject to Additional
Additional Medicare Tax withholding that were originally Medicare Tax withholding that you reported on Form 944,
reported on Form 944, line 4d, column 1, or previously line 4d, column 1. Enter the total corrected amount in
corrected on Form 944-X. You can’t correct the tax column 1. In column 2, enter the amount you originally
reported on Form 944, line 4d, column 2. reported or as previously corrected. In column 3, enter the
Prior year administrative errors. If you’re correcting difference between columns 1 and 2.
the taxable wages and tips subject to Additional Medicare
Tax withholding that you reported on Form 944, line 4d, line 13 (column 1)
column 1, enter the total corrected amount in column 1. In - line 13 (column 2)
column 2, enter the amount you originally reported or as line 13 (column 3) If the amount in column 2 is larger than the
previously corrected. In column 3, enter the difference amount in column 1, use a minus sign in
between columns 1 and 2. column 3.

line 13 (column 1)
- line 13 (column 2) Don’t multiply the amount in column 3 by 0.009 (0.9%
line 13 (column 3) If the amount in column 2 is larger than the tax rate). Leave column 4 blank and explain the reasons
amount in column 1, use a minus sign in for this correction on line 43.
column 3. Example—Prior year nonadministrative error
(failure to withhold Additional Medicare Tax when
required). Leah Green's wages exceeded the $200,000
withholding threshold for Additional Medicare Tax in
Multiply the amount in column 3 by 0.009 (0.9% tax December 2022. The total wages paid to Leah for 2022
rate) and enter that result in column 4. were $220,000. You were required to withhold $180
($20,000 x 0.009) but you withheld nothing and didn’t
line 13 (column 3) report an amount on line 4d of your 2022 Form 944. You
x 0.009 discover the error on March 15, 2023. File Form 944-X to
line 13 (column 4) If the amount in column 3 used a minus sign, correct wages and tips subject to Additional Medicare Tax
also use a minus sign in column 4. withholding for your 2022 Form 944, but you may not
correct the Additional Medicare Tax withheld (column 4)
because the error involves a previous year and the
amount previously reported for the employee represents
Example—Prior year administrative error
the actual amount withheld from the employee during
(incorrectly reported amount of Additional Medicare
2022.
Tax actually withheld). Nathan Black’s wages
exceeded the $200,000 withholding threshold for Combination of prior year administrative and nonad-
Additional Medicare Tax in November 2022. The total ministrative errors. If you’re reporting both
wages paid to Nathan for 2022 were $230,000. You administrative errors and nonadministrative errors for the
withheld $270 ($30,000 x 0.009) from Nathan’s wages. same prior year, enter the total corrected amount in
However, on your 2022 Form 944 you mistakenly reported column 1. In column 2, enter the amount you originally
$3,000 on line 4d, column 1, and Additional Medicare Tax reported or as previously corrected. In column 3, enter the
withheld of $27 on line 4d, column 2. You discover the difference between columns 1 and 2. However, multiply
error on March 15, 2023. This is an example of an only the amount of wages and tips reported in column 3
administrative error that may be corrected in a later that are related to administrative errors by 0.009 (0.9% tax
calendar year because the amount actually withheld isn’t rate). Don’t multiply any wages and tips reported in
the amount reported on your 2022 Form 944. Use Form column 3 that are related to nonadministrative errors by
944-X, line 13, to correct the error as shown below. 0.009 (0.9% tax rate). Use line 43 to explain in detail your
corrections. The explanation must include the reasons for
Column 1 (corrected amount) 30,000.00 the corrections and a breakdown of the amount reported
Column 2 (Form 944, line 4d, column 1) - 3,000.00 in column 3 into the amounts related to administrative
Column 3 (difference) 27,000.00 errors and nonadministrative errors.
Example—Combination of prior year administrative
and nonadministrative errors. Nathan Black’s wages
Use the difference in column 3 to determine your tax exceeded the $200,000 withholding threshold for
correction. Additional Medicare Tax in November 2022. The total
wages paid to Nathan for 2022 were $230,000. You
Column 3 (difference) 27,000.00 withheld $270 ($30,000 x 0.009) from Nathan's wages.
Tax rate (0.9%) x 0.009 However, on your 2022 Form 944 you mistakenly reported
$3,000 on line 4d, column 1, and Additional Medicare Tax
Column 4 (tax correction) 243.00 withheld of $27 on line 4d, column 2. The difference in
wages subject to Additional Medicare Tax related to this
administrative error is $27,000 ($30,000 - $3,000).
Be sure to explain the reasons for this correction on
line 43.

-14- Instructions for Form 944-X (Rev. 2-2023)

- 15 -

Page 15 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Leah Green's wages exceeded the $200,000 On line 43, describe what you misreported on Form
withholding threshold for Additional Medicare Tax in 944. Tell us if your adjustment is for fractions of cents,
December 2022. The total wages paid to Leah for 2022 third-party sick pay, tips, or group-term life insurance.
were $220,000. You were required to withhold $180 Example—Third-party sick pay underreported.
($20,000 x 0.009) but you withheld nothing and didn’t You reported $690 (shown as “-690.00”) as a third-party
report Leah’s $20,000 in wages subject to Additional sick pay adjustment (reduction to tax) on your 2022 Form
Medicare Tax withholding on line 4d of your 2022 Form 944, line 6. Your third-party sick pay adjustment should
944. have been $960 (shown as “-960.00”) because your
You discover both errors on March 15, 2023. Use Form third-party sick pay payer withheld that amount of social
944-X, line 13, to correct the errors as shown below. security and Medicare taxes from your employees. You
discover the error in April of 2023. To correct the error,
Column 1 (corrected amount) 50,000.00 figure the difference on Form 944-X as shown.
Column 2 (Form 944, line 4d, column 1) - 3,000.00
Column 3 (difference) 47,000.00 Column 1 (corrected amount) -960.00
Column 2 (Form 944, line 6) - (690.00)
Column 3 (difference) -270.00
Determine the portion of wages and tips reported in
column 3 that is related to the administrative error
($47,000 - $20,000 (nonadministrative error) = $27,000 Here is how you would enter the numbers on Form
(administrative error)). Multiply this portion of column 3 by 944-X.
0.009 (0.9% tax rate) to determine your tax correction.
Column 1 Column 2 Column 3
Difference related to administrative error 27,000.00 (corrected amount) (Form 944, line 6) (difference)
Tax rate (0.9%) x 0.009 -960.00 -690.00 -270.00
Column 4 (tax correction) 243.00

Report “-270.00” as your correction in column 4.
Be sure to explain the reasons for these corrections on In this example, you’re claiming a credit for $270 in
line 43. You must also report that $20,000 of the amount overreported tax for your 2022 Form 944. Always enter
shown in column 3 was related to the correction of a prior the same amount in column 4 (including any minus sign)
year nonadministrative error and $27,000 of the amount that you enter in column 3.
shown in column 3 was related to the correction of an
Be sure to explain the reasons for this correction on
administrative error.
line 43.
14. Tax Adjustments
15. Qualified Small Business Payroll Tax Credit
For purposes of these instructions, all references for Increasing Research Activities
TIP to "sick pay" mean ordinary sick pay, not "qualified
sick leave wages." The payroll tax credit election must be made on or
before the due date of the originally filed income
Don’t enter an amount on line 14 unless you need to CAUTION! tax return (including extensions). Any election to
correct any adjustments reported on Form 944, line 6. take the payroll tax credit may be revoked only with the
Amounts reported on line 14 reflect corrections of consent of the IRS.
amounts misstated on Form 944, line 6. See
Example—Third-party sick pay underreported, later. If you're correcting the qualified small business payroll
tax credit for increasing research activities that you
Enter in column 1 the total corrected amount for Form reported on Form 944, line 8a (line 8 for years prior to
944, line 6. Enter in column 2 the total originally reported 2020), enter the total corrected amount in column 1. In
or previously corrected amount from Form 944, line 6. In column 2, enter the amount you originally reported or as
column 3, enter the difference between columns 1 and 2. previously corrected. In column 3, enter the difference
between columns 1 and 2.
line 14 (column 1) Copy the amount in column 3 to column 4. However, to
-line 14 (column 2) properly show the amount as a credit or balance due item,
line 14 (column 3) 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 may need to report negative numbers in any
TIP column. Make sure that the difference you enter in You must attach a corrected Form 8974 and explain
column 3 accurately represents the change to the reasons for this correction on line 43.
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.

Instructions for Form 944-X (Rev. 2-2023) -15-

- 16 -

Page 16 of 30       Fileid: … ns/i944x/202302/a/xml/cycle05/source                            8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

16. Nonrefundable Portion of Credit for                        enacted on December 27, 2020; therefore, Worksheet 1, 
Qualified Sick and Family Leave Wages for                      in the 2020 Instructions for Form 944, didn't include lines 
Leave Taken After March 31, 2020, and Before                   to add the wages that meet an exclusion under sections 
                                                               3121(b)(1)–(22) when figuring the credit for qualified sick 
April 1, 2021                                                  and family leave wages. If your Form 944 for 2020 didn't 
         Form 944-X and these instructions use the terms       claim the correct amount of the credit for qualified sick 
TIP      “nonrefundable” and “refundable” when                 and family leave wages because you paid qualified sick 
         discussing credits. The term “nonrefundable”          leave wages and/or qualified family leave wages that meet 
means the portion of the credit which is limited by law to     an exclusion under sections 3121(b)(1)–(22), you may file 
certain taxes. The term “refundable” means the portion of      Form 944-X and complete Worksheet 1 to claim the 
the credit which is in excess of those taxes.                  correct amount of the credit. You’ll also include on Form 
                                                               944-X, lines 28 and 29, and on Worksheet 1 any qualified 
If you’re correcting the nonrefundable portion of the 
                                                               health plan expenses allocable to those wages. The 
credit for qualified sick and family leave wages for leave 
                                                               appropriate lines related to the exclusions under sections 
taken after March 31, 2020, and before April 1, 2021, that 
                                                               3121(b)(1)–(22) were added to Worksheet 1 in the 2021 
you reported on Form 944, line 8b, enter the total 
                                                               Instructions for Form 944.
corrected amount from Worksheet 1, Step 2, line 2j, in 
column 1. In column 2, enter the amount you originally           Example—Nonrefundable portion of credit for 
reported or as previously corrected. In column 3, enter the    qualified sick and family leave wages increased.          You 
difference between columns 1 and 2. For more                   originally reported a $1,000 nonrefundable portion of the 
information about the credit for qualified sick and family     credit for qualified sick and family leave wages on Form 
leave wages, go to IRS.gov/PLC.                                944, line 8b, for 2020. In March 2023, you discover that 
                                                               you made an error when figuring the credit. You use 
Copy the amount in column 3 to column 4. However, to 
                                                               Worksheet 1 to refigure the nonrefundable portion of the 
properly show the amount as a credit or balance due item, 
                                                               credit for qualified sick and family leave wages and you 
enter a positive number in column 3 as a negative number 
                                                               determine that the correct credit is $2,000. To correct the 
in column 4 or a negative number in column 3 as a 
                                                               error, figure the difference on Form 944 X as shown.
positive number in column 4.                                                                           ‐

For corrections to a 2020 Form 944, line 8b, the credit          Column 1 (corrected amount)                 2,000.00
for qualified sick and family leave wages is only available      Column 2 (Form 944, line 8b)                - 1,000.00
for wages paid with respect to leave taken after March 31, 
                                                                 Column 3 (difference)                       1,000.00
2020, and before January 1, 2021. For corrections to a 
2021 or 2022 Form 944, line 8b, the credit for qualified 
sick and family leave wages is only available for wages 
                                                                 To properly show the credit increase as a reduction to 
paid in 2021 or 2022 with respect to any leave taken after 
                                                               your tax balance, enter the positive number in column 3 as 
March 31, 2020, and before April 1, 2021. If you're 
                                                               a negative number in column 4. Here is how you would 
correcting a year before 2020, don't enter any amount on 
                                                               enter the numbers on Form 944 X, line 16.
line 16.                                                                                      ‐

Definition of qualified sick and family leave wages              Column 1   Column 2          Column 3       Column 4
for leave taken after March 31, 2020, and before April           (corrected (Form 944, line 8b) (difference) (tax correction)
1, 2021. For purposes of the credit for qualified sick and       amount)
family leave wages, qualified sick and family leave wages         2,000.00  1,000.00          1,000.00       -1,000.00
are wages for social security and Medicare tax purposes, 
determined without regard to the exclusions from the 
definition of employment under sections 3121(b)(1)–(22),         Be sure to explain the reasons for this correction on 
that an employer pays that otherwise meet the                  line 43.
requirements of the Emergency Paid Sick Leave Act 
(EPSLA) or the Emergency Family and Medical Leave              17a. Nonrefundable Portion of Employee 
Expansion Act (Expanded FMLA), as enacted under the            Retention Credit
FFCRA and amended by the COVID-related Tax Relief              Use line 17a only for corrections to a 2020 or 2021 Form 
Act of 2020. However, don't include any wages otherwise        944.
excluded under sections 3121(b)(1)–(22) when reporting 
qualified sick and family leave wages on your employment                Section 206(c) of the Taxpayer Certainty and 
tax return and when figuring the credit on Worksheet 1,          TIP    Disaster Tax Relief Act of 2020 removed the 
Step 2, lines 2a and 2a(i), and on Step 2, lines 2e and                 restriction on an employer who has received a 
2e(i). Instead, include qualified sick leave wages and         Small Business Interruption Loan under the Paycheck 
qualified family leave wages excluded from the definition      Protection Program (PPP) from claiming the employee 
of employment under sections 3121(b)(1)–(22) separately        retention credit. The eligible employer can claim the 
on Step 2, lines 2a(iii) and/or line 2e(iii), respectively,    employee retention credit on any qualified wages that 
before you figure your total credit on Step 2, line 2d (credit aren't counted as payroll costs in obtaining PPP loan 
for qualified sick leave wages), or Step 2, line 2h (credit    forgiveness. Any wages that could count toward eligibility 
for qualified family leave wages).                             for the employee retention credit or PPP loan forgiveness 
                                                               can be applied to either of these two programs, but not 
The 2020 Instructions for Form 944 were released 
                                                               both. If your Form 944 for 2020 didn't claim the correct 
before the COVID-related Tax Relief Act of 2020 was 

                                                            -16-            Instructions for Form 944-X (Rev. 2-2023)

- 17 -

Page 17 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

amount for the employee retention credit because you 944 or your original 2021 Form 944 for qualified wages
received a Small Business Interruption Loan under the paid before July 1, 2021, and you make any corrections
PPP, you may file Form 944-X and complete Worksheet 2 on Form 944-X for the year to amounts used to figure this
to claim the correct amount of the credit. For more credit, you’ll need to refigure the amount of the credit
information, see Notice 2021-20, 2021-11 I.R.B. 922, using Worksheet 2. You’ll also use this worksheet to figure
available at IRS.gov/irb/2021-11_IRB#NOT-2021-20; and the credit for qualified wages paid after March 12, 2020,
Rev. Proc. 2021-33, 2021-34 I.R.B. 327, available at and before July 1, 2021, if you're claiming the credit for
IRS.gov/irb/2021-34_IRB#REV-PROC-2021-33. the first time on Form 944-X.

Instructions for Qualified Wages Paid After March Instructions for Qualified Wages Paid After June
12, 2020, and Before July 1, 2021 30, 2021, and Before January 1, 2022
If you’re correcting the nonrefundable portion of the The Infrastructure Investment and Jobs Act
employee retention credit for qualified wages paid after ! amends section 3134 of the Internal Revenue
March 12, 2020, and before July 1, 2021, that you CAUTION Code, as enacted under the ARP, to limit the
reported on Form 944, line 8c, enter the total corrected availability of the employee retention credit in the fourth
amount from Worksheet 2, Step 2, line 2h, in column 1. In quarter of 2021 to employers that are recovery startup
column 2, enter the amount you originally reported or as businesses, as defined in section 3134(c)(5). Thus, for
previously corrected. In column 3, enter the difference wages paid after September 30, 2021, and before
between columns 1 and 2. January 1, 2022, only the wages paid by recovery startup
businesses can be qualified wages. See the 2021 revision
Copy the amount in column 3 to column 4. However, to of the Instructions for Form 944 for more information about
properly show the amount as a credit or balance due item, a recovery startup business.
enter a positive number in column 3 as a negative number
in column 4 or a negative number in column 3 as a If you're correcting the nonrefundable portion of the
positive number in column 4. For an example of how to employee retention credit for qualified wages paid after
report amounts in columns 1–4 for an employment tax June 30, 2021, and before January 1, 2022, that you
credit, see the instructions for line 16, earlier. reported on Form 944, line 8c, enter the total corrected
amount from Worksheet 4, Step 2, line 2h, in column 1. In
For more information about the employee retention column 2, enter the amount you originally reported or as
credit for qualified wages paid after March 12, 2020, and previously corrected. In column 3, enter the difference
before January 1, 2021, see Notice 2021-20. See Notice between columns 1 and 2.
2021-23, 2021-16 I.R.B. 1113, available at IRS.gov/irb/
2021-16_IRB#NOT-2021-23, for more information about Copy the amount in column 3 to column 4. However, to
the employee retention credit for qualified wages paid properly show the amount as a credit or balance due item,
after December 31, 2020, and before July 1, 2021. Also enter a positive number in column 3 as a negative number
see section IV of Notice 2021-49, 2021-34 I.R.B. 316, in column 4 or a negative number in column 3 as a
available at IRS.gov/irb/2021-34_IRB#NOT-2021-49; and positive number in column 4. For an example of how to
Rev. Proc. 2021-33. 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. For more information about the employee retention
For corrections to a 2020 Form 944, the employee credit for qualified wages paid after June 30, 2021, and
TIP retention credit is only available for qualified before January 1, 2022, see Notice 2021-49 and Rev.
wages paid after March 12, 2020, and before Proc. 2021-33. See Notice 2021-65, 2021-51 I.R.B. 880,
January 1, 2021. For corrections to a 2021 Form 944, the available at IRS.gov/irb/2021-51_IRB#NOT-2021-65, for
employee retention credit is only available for qualified modifications to Notice 2021-49.
wages paid after December 31, 2020, and before October
Be sure to explain the reasons for this correction on
1, 2021, unless the employer was a recovery startup
line 43.
business. An employer that was a recovery startup
business could also claim the employee retention credit For corrections to a 2021 Form 944, the employee
for wages paid after September 30, 2021, and before TIP retention credit is only available for qualified
January 1, 2022. Adjustments to the nonrefundable wages paid after December 31, 2020, and before
portion of the employee retention credit for qualified October 1, 2021, unless the employer was a recovery
wages paid after March 12, 2020, and before July 1, startup business. An employer that was a recovery startup
2021, are reported on Form 944-X, line 17a, and business could also claim the employee retention credit
adjustments to the refundable portion of the credit are for wages paid after September 30, 2021, and before
reported on Form 944-X, line 26a. Adjustments to January 1, 2022. Adjustments to the nonrefundable
qualified wages for the employee retention credit are portion of the employee retention credit for qualified
reported on Form 944-X, line 30. Adjustments to qualified wages paid after June 30, 2021, and before January 1,
health plan expenses allocable to the employee retention 2022, are reported on Form 944-X, line 17a, and
credit are reported on Form 944-X, line 31. If you claimed adjustments to the refundable portion of the credit are
the employee retention credit on your original 2020 Form reported on Form 944-X, line 26a. Adjustments to

Instructions for Form 944-X (Rev. 2-2023) -17-

- 18 -

Page 18 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

qualified wages for the employee retention credit are and can be adjusted only on Form 944-X, lines 33 and 36,
reported on Form 944-X, line 30. Adjustments to qualified respectively. Use Worksheet 3 to figure your credit.
health plan expenses allocable to the employee retention Be sure to explain the reasons for this correction on
credit are reported on Form 944-X, line 31. If you claimed line 43.
the employee retention credit on your original 2021 Form
944 and you make any corrections on Form 944-X to 17c. Nonrefundable Portion of COBRA Premium
amounts used to figure the credit for qualified wages paid Assistance Credit
after June 30, 2021, and before January 1, 2022, you'll
The COBRA premium assistance was available for
need to refigure the amount of the credit using Worksheet
periods of coverage beginning on or after April 1, 2021,
4. You'll also use this worksheet to figure this credit if
through periods of coverage beginning on or before
you’re claiming the credit for the first time on Form 944-X.
September 30, 2021. For more information, see Credit for
COBRA premium assistance payments is limited to
17b. Nonrefundable Portion of Credit for periods of coverage beginning on or after April 1, 2021,
Qualified Sick and Family Leave Wages for through periods of coverage beginning on or before
Leave Taken After March 31, 2021, and Before September 30, 2021, under What’s New, earlier. Use
October 1, 2021 line 17c only for corrections to a 2021 or 2022 Form 944.
If you’re correcting the nonrefundable portion of the credit Premium payees that receive an election from an
for qualified sick and family leave wages for leave taken TIP assistance eligible individual are entitled to the
after March 31, 2021, and before October 1, 2021, that COBRA premium assistance credit for premiums
you reported on Form 944, line 8d, enter the total not paid during the quarter in which the election is
corrected amount from Worksheet 3, Step 2, line 2r, in received. Premium payees don’t file a Form 944-X for
column 1. In column 2, enter the amount you originally premium assistance even if the coverage is retroactive to
reported or as previously corrected. In column 3, enter the a prior quarter. See Notice 2021-31 for more information.
difference between columns 1 and 2. For more
information about the credit for qualified sick and family If you’re correcting the nonrefundable portion of the
leave wages, go to IRS.gov/PLC. COBRA premium assistance credit that you reported on
Form 944, line 8e, enter the total corrected amount from
Copy the amount in column 3 to column 4. However, to Worksheet 5, Step 2, line 2g, in column 1. In column 2,
properly show the amount as a credit or balance due item, enter the amount you originally reported or as previously
enter a positive number in column 3 as a negative number corrected. In column 3, enter the difference between
in column 4 or a negative number in column 3 as a columns 1 and 2.
positive number in column 4. For an example of how to
report amounts in columns 1–4 for an employment tax Copy the amount in column 3 to column 4. However, to
credit, see the instructions for line 16, earlier. properly show the amount as a credit or balance due item,
enter a positive number in column 3 as a negative number
For corrections to 2021 or 2022 Form 944, line 8d, the
in column 4 or a negative number in column 3 as a
credit for qualified sick and family leave wages is only
positive number in column 4. For an example of how to
available for wages paid in 2021 or 2022 with respect to
report amounts in columns 1–4 for an employment tax
any leave taken after March 31, 2021, and before October
credit, see the instructions for line 16, earlier.
1, 2021. If you're correcting a year before 2021, don't
enter any amount on line 17b. Be sure to explain the reasons for this correction on
Definition of qualified sick and family leave wages line 43.

for leave taken after March 31, 2021, and before Oc- 17d. Number of Individuals Provided COBRA
tober 1, 2021. For purposes of this credit, qualified sick
leave wages and qualified family leave wages are wages Premium Assistance
for social security and Medicare tax purposes, determined Use line 17d only for corrections to a 2021 or 2022 Form
without regard to the exclusions from the definition of 944.
employment under sections 3121(b)(1)–(22), that an If you’re correcting the number of individuals provided
employer pays that otherwise meet the requirements of COBRA premium assistance that you reported on Form
the EPSLA or Expanded FMLA, as enacted under the 944, line 8f, enter the total corrected amount in column 1.
FFCRA and amended for purposes of the ARP. Taxable In column 2, enter the amount you originally reported or as
qualified sick leave wages and qualified family leave previously corrected. In column 3, enter the difference
wages for leave taken after March 31, 2021, and before between columns 1 and 2.
October 1, 2021, were included on Form 944, line 4a,
column 1, and can be adjusted only on Form 944-X, Be sure to explain the reasons for this correction on
line 8. Total qualified sick and family leave wages for line 43.
leave taken after March 31, 2021, and before October 1,
2021, including any qualified sick and family leave wages 18–21. Special Additions to Wages for Federal
that were above the social security wage base and any Income Tax, Social Security Taxes, Medicare
qualified sick and family leave wages excluded from the Taxes, and Additional Medicare Tax
definition of employment under sections 3121(b)(1)–(22), Section 3509 provides special rates for the employee
were included on Form 944, lines 19 and 22, respectively, share of social security tax, Medicare tax, Additional
Medicare Tax, and federal income tax withholding when

-18- Instructions for Form 944-X (Rev. 2-2023)

- 19 -

Page 19 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

workers are reclassified as employees in certain column 4 of line 12. Combine these amounts and enter
circumstances. The applicable rate depends on whether “800.00” in column 4 of line 22.
you filed required information returns. An employer can’t
recover any tax paid under this provision from the Line 7 (column 4) 1400.00
employees. The full employer share of social security tax Line 8 (column 4) -500.00
and Medicare tax is due for all reclassifications. Line 12 (column 4) -100.00
Line 22 (column 4) 800.00
Note. Section 3509 rates aren’t available if you
intentionally disregarded the requirements to withhold
taxes from the employee, or if you withheld federal income
tax but didn’t withhold social security and Medicare tax. 23. Deferred Amount of the Employer Share of
Section 3509 rates are also not available for certain Social Security Tax
statutory employees.
Use Form 944-X, line 23, if you need to correct the
On lines 18–21, enter only corrections to wages deferred amount of the employer share of social security
resulting from reclassifying certain workers as employees tax that you reported on your 2020 Form 944, line 10b.
when section 3509 rates are used to calculate the taxes. Enter the total corrected amount in column 1. In column 2,
If the employer issued the required information returns, enter the amount you originally reported or as previously
use the section 3509 rates as follows. corrected by you or the IRS. In column 3, enter the
• For social security taxes, use the employer rate of 6.2% difference between columns 1 and 2.
plus 20% of the employee rate of 6.2%, for a total rate of Copy the amount in column 3 to column 4. However,
7.44% of wages. because an increase to the deferred amount of the
• For Medicare taxes, use the employer rate of 1.45% employer share of social security tax defers the payment
plus 20% of the employee rate of 1.45%, for a total rate of due, to properly show the amount as a deferral of
1.74% of wages. payment, enter a positive number in column 3 as a
• For Additional Medicare Tax, 0.18% (20% of the negative number in column 4. A decrease to the deferred
employee rate of 0.9%) of wages subject to Additional amount of the employer share of social security tax
Medicare Tax. decreases the payment you can defer and must be shown
• For federal income tax withholding, the rate is 1.5% of as a balance due item; therefore, to properly show the
wages. amount as a balance due item, enter a negative number in
If the employer didn’t issue the required information column 3 as a positive number in column 4.
returns, use the section 3509 rates as follows. If you're filing Form 944-X to increase the amount of
• For social security taxes, use the employer rate of 6.2% social security wages paid on or after March 27, 2020,
plus 40% of the employee rate of 6.2%, for a total rate of and before January 1, 2021, so that there is an additional
8.68% of wages. amount of social security tax that hasn't yet been paid,
• For Medicare taxes, use the employer rate of 1.45% and hasn't yet been deferred, then you may use Form
plus 40% of the employee rate of 1.45%, for a total rate of 944-X to increase the amount of the deferred employer
2.03% of wages. share of social security tax originally reported on Form
• For Additional Medicare Tax, 0.36% (40% of the 944, line 10b. If you're filing Form 944-X to decrease the
employee rate of 0.9%) of wages subject to Additional amount of social security wages paid on or after March
Medicare Tax. 27, 2020, and before January 1, 2021, so that there is a
• For federal income tax withholding, the rate is 3.0% of decrease in the amount of social security tax that is
wages. eligible for deferral, then you must use Form 944-X to
Unlike some other lines on Form 944-X, enter in decrease the amount of the deferred employer share of
column 1 only the corrected wages for workers being social security tax originally reported on Form 944,
reclassified, not the amount paid to all employees. Enter line 10b, if the decrease in wages causes the amount you
in column 2 previously reported wages (if any) to originally deferred to exceed the amount that is now
reclassified employees. To get the amount for column 4, eligible for deferral. Otherwise, you may only correct the
use the applicable section 3509 rates. If you filed the amount of the deferred employer share of social security
required information returns for some employees but tax if the amount originally reported on Form 944, line 10b,
didn’t file them for other employees, be sure to use the isn't the amount you actually deferred (for example, you
applicable rates for each employee when calculating the incorrectly reported the amount that you actually
amounts in column 4 and show your calculations on deferred). If you already paid the correct amount of the
line 43. The tax correction in column 4 will be a positive employer share of social security tax during the payroll tax
number if you increased the amount of wages you deferral period, you may not subsequently defer the
previously reported. See the instructions for line 42, later, payment by filing Form 944-X. See IRS.gov/ETD for more
for more information. information about the interaction of credits and the
deferral of employment tax deposits and payments.
22. Subtotal
The deferred amount of the employer share of social
Combine the amounts on lines 7–21 of column 4 and security tax was only available for deposits and payments
enter the total on line 22. due on or after March 27, 2020, and before January 1,
Example. You entered “1,400.00” in column 4 of 2021, as well as deposits and payments due after January
line 7, “-500.00” in column 4 of line 8, and “-100.00” in 1, 2021, that were required for wages paid during the

Instructions for Form 944-X (Rev. 2-2023) -19-

- 20 -

Page 20 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

applicable period. One-half of the deferred amount of the social security tax, see Notice 2020-65, 2020-38 I.R.B.
employer share of social security tax was due by 567, available at IRS.gov/irb/2020-38_IRB#NOT-2020-65;
December 31, 2021, and the remainder was due by and Notice 2021-11, 2021-06 I.R.B. 827, available at
December 31, 2022. Because both December 31, 2021, IRS.gov/irb/2021-06_IRB#NOT-2021-11.
and December 31, 2022, were nonbusiness days, Be sure to explain the reasons for any corrections on
payments made on the next business day were line 43.
considered timely. Any payments or deposits you made
before December 31, 2021, were first applied against your 25. Refundable Portion of Credit for Qualified
payment due on December 31, 2021, and then applied Sick and Family Leave Wages for Leave Taken
against your payment due on December 31, 2022. For
After March 31, 2020, and Before April 1, 2021
more information about the deferral of employment tax
deposits, go to IRS.gov/ETD and see the Instructions for If you're correcting the refundable portion of the credit for
Form 944, available at IRS.gov/Form944. qualified sick and family leave wages for leave taken after
March 31, 2020, and before April 1, 2021, that you
Be sure to explain the reasons for any corrections on reported on Form 944, line 10d, enter the total corrected
line 43. amount from Worksheet 1, Step 2, line 2k, in column 1. In
column 2, enter the amount you originally reported or as
24. Deferred Amount of the Employee Share of previously corrected. In column 3, enter the difference
Social Security Tax between columns 1 and 2. For more information about the
Use Form 944-X, line 24, if you need to correct the credit for qualified sick and family leave wages, go to
deferred amount of the employee share of social security IRS.gov/PLC.
tax that you reported on your 2020 Form 944, line 10c. Copy the amount in column 3 to column 4. However, to
Enter the total corrected amount in column 1. In column 2, properly show the amount as a credit or balance due item,
enter the amount you originally reported or as previously enter a positive number in column 3 as a negative number
corrected by you or the IRS. In column 3, enter the in column 4 or a negative number in column 3 as a
difference between columns 1 and 2. positive number in column 4. For an example of how to
report amounts in columns 1–4 for an employment tax
Copy the amount in column 3 to column 4. However, credit, see the instructions for line 16, earlier.
because an increase to the deferred amount of the
employee share of social security tax defers the payment For corrections to a 2020 Form 944, line 10d, the credit
due, to properly show the amount as a deferral of for qualified sick and family leave wages is only available
payment, enter a positive number in column 3 as a for wages paid with respect to leave taken after March 31,
negative number in column 4. A decrease to the deferred 2020, and before January 1, 2021. For corrections to a
amount of the employee share of social security tax 2021 or 2022 Form 944, line 10d, the credit for qualified
decreases the payment you can defer and must be shown sick and family leave wages is only available for wages
as a balance due item; therefore, to properly show the paid in 2021 or 2022 with respect to any leave taken after
amount as a balance due item, enter a negative number in March 31, 2020, and before April 1, 2021. If you're
column 3 as a positive number in column 4. correcting a year before 2020, don't enter any amount on
line 25.
You may only correct the amount of the deferred Be sure to explain the reasons for this correction on
employee share of social security tax if the amount line 43.
originally reported on Form 944, line 10c, isn't the amount
you actually deferred (for example, you incorrectly 26a. Refundable Portion of Employee Retention
reported the amount that you actually deferred). If you Credit
already paid the correct amount of the employee's share
of social security tax, you may not subsequently defer the Use line 26a only for corrections to a 2020 or 2021 Form
payment by filing Form 944-X. 944.
For corrections to a 2020 Form 944, the employee
The deferred amount of the employee share of social TIP retention credit is only available for qualified
security tax was only available for social security wages of wages paid after March 12, 2020, and before
less than $4,000 paid to an employee in any biweekly pay January 1, 2021. For corrections to a 2021 Form 944, the
period (or the equivalent threshold amount for other pay employee retention credit is only available for qualified
periods) paid on a pay date during the period beginning wages paid after December 31, 2020, and before October
on September 1, 2020, and ending on December 31, 1, 2021, unless the employer was a recovery startup
2020. The due date for withholding and payment of the business. An employer that was a recovery startup
deferred employee share of social security tax was business could also claim the employee retention credit
postponed until the period beginning on January 1, 2021, for wages paid after September 30, 2021, and before
and ending on December 31, 2021. The employer was January 1, 2022.
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 Instructions for Qualified Wages Paid After March
additions to tax on those amounts. Because January 1, 12, 2020, and Before July 1, 2021
2022, was a nonbusiness day, payments made on
January 3, 2022, were considered timely. For more If you're correcting the refundable portion of the employee
information about the deferral of the employee share of retention credit that you reported on Form 944, line 10e,

-20- Instructions for Form 944-X (Rev. 2-2023)

- 21 -

Page 21 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

for qualified wages paid after March 12, 2020, and before between columns 1 and 2. For more information about the
July 1, 2021, enter the total corrected amount from credit for qualified sick and family leave wages, go to
Worksheet 2, Step 2, line 2i, in column 1. In column 2, IRS.gov/PLC.
enter the amount you originally reported or as previously Copy the amount in column 3 to column 4. However, to
corrected. In column 3, enter the difference between properly show the amount as a credit or balance due item,
columns 1 and 2. For more information about the enter a positive number in column 3 as a negative number
employee retention credit for qualified wages paid after in column 4 or a negative number in column 3 as a
March 12, 2020, and before January 1, 2021, see Notice positive number in column 4. For an example of how to
2021-20. See Notice 2021-23 for more information about report amounts in columns 1–4 for an employment tax
the employee retention credit for qualified wages paid credit, see the instructions for line 16, earlier.
after December 31, 2020, and before July 1, 2021. Also
see section IV of Notice 2021-49, and Rev. Proc. For corrections to 2021 or 2022 Form 944, line 10f, the
2021-33. credit for qualified sick and family leave wages is only
available for wages paid in 2021 or 2022 with respect to
Copy the amount in column 3 to column 4. However, to any leave taken after March 31, 2021, and before October
properly show the amount as a credit or balance due item, 1, 2021. If you're correcting a year before 2021, don't
enter a positive number in column 3 as a negative number enter any amount on line 26b.
in column 4 or a negative number in column 3 as a Be sure to explain the reasons for this correction on
positive number in column 4. For an example of how to line 43.
report amounts in columns 1–4 for an employment tax
credit, see the instructions for line 16, earlier. 26c. Refundable Portion of COBRA Premium
Assistance Credit
Be sure to explain the reasons for this correction on The COBRA premium assistance was available for
line 43. periods of coverage beginning on or after April 1, 2021,
through periods of coverage beginning on or before
Instructions for Qualified Wages Paid After June September 30, 2021. For more information, see Credit for
30, 2021, and Before January 1, 2022 COBRA premium assistance payments is limited to
periods of coverage beginning on or after April 1, 2021,
If you're correcting the refundable portion of the employee through periods of coverage beginning on or before
retention credit that you reported on Form 944, line 10e, September 30, 2021, under What’s New, earlier. Use
for qualified wages paid after June 30, 2021, and before line 26c only for corrections to a 2021 or 2022 Form 944.
January 1, 2022, enter the total corrected amount from
If you’re correcting the refundable portion of the
Worksheet 4, Step 2, line 2i, in column 1. In column 2,
COBRA premium assistance credit that you reported on
enter the amount you originally reported or as previously
Form 944, line 10g, enter the total corrected amount from
corrected. In column 3, enter the difference between
Worksheet 5, Step 2, line 2h, in column 1. In column 2,
columns 1 and 2. For more information about the
enter the amount you originally reported or as previously
employee retention credit for qualified wages paid after
corrected. In column 3, enter the difference between
June 30, 2021, and before January 1, 2022, see Notice
columns 1 and 2.
2021-49 and Rev. Proc. 2021-33. See Notice 2021-65 for
modifications to Notice 2021-49. Copy the amount in column 3 to column 4. However, to
properly show the amount as a credit or balance due item,
Copy the amount in column 3 to column 4. However, to enter a positive number in column 3 as a negative number
properly show the amount as a credit or balance due item, in column 4 or a negative number in column 3 as a
enter a positive number in column 3 as a negative number positive number in column 4. For an example of how to
in column 4 or a negative number in column 3 as a report amounts in columns 1–4 for an employment tax
positive number in column 4. For an example of how to credit, see the instructions for line 16, earlier.
report amounts in columns 1–4 for an employment tax Be sure to explain the reasons for this correction on
credit, see the instructions for line 16, earlier. line 43.

Be sure to explain the reasons for this correction on Corrections to Form 944, Line 10g (For 2020) or
line 43. Line 10i (For 2021)
26b. Refundable Portion of Credit for Qualified Form 944-X doesn't include a line to correct amounts
reported on Form 944, line 10g (10i), for the total
Sick and Family Leave Wages for Leave Taken
advances received from filing Form(s) 7200 for the year. If
After March 31, 2021, and Before October 1, a discrepancy exists between the amount reported on
2021 Form 944 and the amount of advance payments issued,
If you’re correcting the refundable portion of the credit for the IRS will generally correct the amount reported on
qualified sick and family leave wages for leave taken after Form 944, line 10g (10i), to match the amount of advance
March 31, 2021, and before October 1, 2021, that you payments issued.
reported on Form 944, line 10f, enter the total corrected
amount from Worksheet 3, Step 2, line 2s, in column 1. In 27. Total
column 2, enter the amount you originally reported or as Combine the amounts from column 4 on lines 22–26c and
previously corrected. In column 3, enter the difference enter the result on line 27.

Instructions for Form 944-X (Rev. 2-2023) -21-

- 22 -

Page 22 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Your credit. If the amount entered on line 27 is less than Lines 28–40
zero, for example, “-115.00,” you have a credit because For lines 28–40, you’ll only enter amounts in columns 1, 2,
you overreported your federal employment taxes. and 3. These lines don't have an entry space for column 4
• If you checked the box on line 1, include this amount on because these adjustments don't directly result in an
the “Total deposits” line of Form 944 for the year during increase or decrease to your tax. The amounts entered on
which you filed Form 944-X. If you currently file Form 941 lines 28–38 are amounts that you use in Worksheets 1–5,
or Form 941-SS because your filing requirement changed, as applicable, to figure your credits. If you reported an
include this amount on the “Total deposits” line of Form incorrect amount on lines 15–26 on your original Form
941 or Form 941-SS for the quarter during which you filed 944, then you’ll use lines 28–40 of Form 944 X to report ‐
Form 944-X. Don’t make any changes to your record of the correction. Use Worksheets 1–5, as applicable, to
federal tax liability reported on Form 944, line 13, or Form refigure your credits based on the corrected amounts
945-A, unless you were assessed an FTD penalty. For reported in column 1. Be sure to explain the reasons for
more information, see the Form 945-A instructions. your corrections to lines 28–40 on line 43.
• If you checked the box on line 2, you’re filing a claim for
refund or abatement of the amount shown. 28. Qualified Health Plan Expenses Allocable to
If your credit is less than $1, we will send a refund or Qualified Sick Leave Wages for Leave Taken
apply it to your next return only if you ask us in writing to After March 31, 2020, and Before April 1, 2021
do so. If you're correcting the qualified health plan expenses
Amount you owe. If the amount entered on line 27 is a allocable to qualified sick leave wages for leave taken
positive number, you must pay the amount you owe by after March 31, 2020, and before April 1, 2021, that you
the time you file Form 944-X. You may not use any reported on Form 944, line 15, enter the total corrected
credit that you show on another Form 944-X to pay the amount for all employees in column 1. In column 2, enter
amount you owe, even if you filed for the amount you owe the amount you originally reported or as previously
and the credit at the same time. corrected. In column 3, enter the difference between
columns 1 and 2. Enter the corrected amount from column
If you owe tax and are filing a timely Form 944-X, don’t
1 on Worksheet 1, Step 2, line 2b.
file an amended Form 945-A unless you were assessed
an FTD penalty caused by an incorrect, incomplete, or 29. Qualified Health Plan Expenses Allocable to
missing Form 945-A. Don’t include the tax increase
Qualified Family Leave Wages for Leave Taken
reported on Form 944-X on any amended Form 945-A you
file. After March 31, 2020, and Before April 1, 2021
If you owe tax and are filing a late Form 944-X, that is, If you're correcting the qualified health plan expenses
after the due date of Form 944 for the year in which you allocable to qualified family leave wages for leave taken
discovered the error, you must file an amended Form after March 31, 2020, and before April 1, 2021, that you
945-A with the Form 944-X. Otherwise, the IRS may reported on Form 944, line 16, enter the total corrected
assess an “averaged” FTD penalty. The total tax reported amount for all employees in column 1. In column 2, enter
on Form 945-A, line M, must match the corrected tax the amount you originally reported or as previously
(Form 944, line 9, combined with any correction reported corrected. In column 3, enter the difference between
on Form 944-X, line 22) for the year, less any previous columns 1 and 2. Enter the corrected amount from column
abatements and interest-free tax assessments. 1 on Worksheet 1, Step 2, line 2f.

Payment methods. You may pay the amount you owe 30. Qualified Wages for the Employee Retention
on line 27 electronically using the Electronic Federal Tax
Credit
Payment System (EFTPS), by credit or debit card, or by a
check or money order. Use line 30 only for corrections to a 2020 or 2021 Form
• The preferred method of payment is EFTPS. For more 944.
information, go to EFTPS.gov or call EFTPS Customer If you're correcting the qualified wages for the
Service at 800-555-4477. To contact EFTPS using employee retention credit that you reported on Form 944,
Telecommunications Relay Services (TRS) for people line 17, enter the total corrected amount for all employees
who are deaf, hard of hearing, or have a speech disability, in column 1. In column 2, enter the amount you originally
dial 711 and then provide the TRS assistant the reported or as previously corrected. In column 3, enter the
800-555-4477 number above or 800-733-4829. Additional difference between columns 1 and 2. Enter the corrected
information about EFTPS is also available in Pub. 966. amount from column 1 on Worksheet 2, Step 2, line 2a, for
• To pay by credit or debit card, go to IRS.gov/ qualified wages paid after March 12, 2020, and before
PayByCard. Your payment will be processed by a July 1, 2021. Enter the corrected amount from column 1
payment processor who will charge a processing fee. on Worksheet 4, Step 2, line 2a, for qualified wages paid
• If you pay by check or money order, make it payable to after June 30, 2021, and before January 1, 2022.
“United States Treasury.” On your check or money order,
be sure to write your EIN, “Form 944-X,” and the year 31. Qualified Health Plan Expenses for the
corrected. Employee Retention Credit
You don’t have to pay if the amount you owe is less than
Use line 31 only for corrections to a 2020 or 2021 Form
$1.
944.

-22- Instructions for Form 944-X (Rev. 2-2023)

- 23 -

Page 23 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

If you're correcting the qualified health plan expenses between columns 1 and 2. Enter the corrected amount
allocable to wages reported on Form 944, line 17, that you from column 1 on Worksheet 3, Step 2, line 2b.
reported on Form 944, line 18, enter the total corrected
Be sure to explain the reasons for this correction on
amount for all employees in column 1. In column 2, enter
line 43.
the amount you originally reported or as previously
corrected. In column 3, enter the difference between 35. Amounts Under Certain Collectively
columns 1 and 2. Enter the corrected amount from column
Bargained Agreements Allocable to Qualified
1 on Worksheet 2, Step 2, line 2b, for qualified health plan
expenses allocable to qualified wages paid after March Sick Leave Wages for Leave Taken After March
12, 2020, and before July 1, 2021. Enter the corrected 31, 2021, and Before October 1, 2021
amount from column 1 on Worksheet 4, Step 2, line 2b, for If you’re correcting the amounts under certain collectively
qualified health plan expenses allocable to qualified bargained agreements allocable to qualified sick leave
wages paid after June 30, 2021, and before January 1, wages for leave taken after March 31, 2021, and before
2022. October 1, 2021, that you reported on Form 944, line 21,
enter the total corrected amount for all employees in
32. Credit From Form 5884 C, Line 11, for the ‐ column 1. In column 2, enter the amount you originally
Year reported or as previously corrected. In column 3, enter the
Use line 32 only for corrections to a 2020 Form 944. difference between columns 1 and 2. Enter the corrected
amount from column 1 on Worksheet 3, Step 2, line 2c.
If you're correcting the credit from Form 5884 C, ‐
line 11, for the year, that you reported on 2020 Form 944, Be sure to explain the reasons for this correction on
line 19, enter the total corrected amount in column 1. In line 43.
column 2, enter the amount you originally reported or as
previously corrected. In column 3, enter the difference 36. Qualified Family Leave Wages for Leave
between columns 1 and 2. Enter the corrected amount Taken After March 31, 2021, and Before October
from column 1 on Worksheet 1, Step 1, line 1i. Entering an 1, 2021
amount here is strictly for purposes of figuring the credit If you’re correcting the qualified family leave wages for
for qualified sick and family wages for leave taken after leave taken after March 31, 2021, and before October 1,
March 31, 2020, and before April 1, 2021, on Worksheet 2021, that you reported on Form 944, line 22, enter the
1. For purposes of figuring the employee retention credit total corrected amount in column 1. In column 2, enter the
for qualified wages paid after March 12, 2020, and before amount you originally reported or as previously corrected.
July 1, 2021, enter the corrected amount from column 1 In column 3, enter the difference between columns 1 and
on Worksheet 2, Step 1, line 1j, unless you also 2. Enter the corrected amount from column 1 on
completed Worksheet 1 and you're bringing the amount Worksheet 3, Step 2, line 2g.
from Worksheet 1, Step 1, line 1l, forward to Worksheet 2,
Step 1, line 1a. Reporting a correction on this line doesn't Be sure to explain the reasons for this correction on
correct the credit claimed on Form 5884-C. line 43.

33. Qualified Sick Leave Wages for Leave Taken 37. Qualified Health Plan Expenses Allocable to
After March 31, 2021, and Before October 1, Qualified Family Leave Wages for Leave Taken
2021 After March 31, 2021, and Before October 1,
If you’re correcting the qualified sick leave wages for leave 2021
taken after March 31, 2021, and before October 1, 2021, If you’re correcting the qualified health plan expenses
that you reported on Form 944, line 19, enter the total allocable to qualified family leave wages for leave taken
corrected amount in column 1. In column 2, enter the after March 31, 2021, and before October 1, 2021, that
amount you originally reported or as previously corrected. you reported on Form 944, line 23, enter the total
In column 3, enter the difference between columns 1 and corrected amount for all employees in column 1. In
2. Enter the corrected amount from column 1 on column 2, enter the amount you originally reported or as
Worksheet 3, Step 2, line 2a. previously corrected. In column 3, enter the difference
between columns 1 and 2. Enter the corrected amount
Be sure to explain the reasons for this correction on
from column 1 on Worksheet 3, Step 2, line 2h.
line 43.
Be sure to explain the reasons for this correction on
34. Qualified Health Plan Expenses Allocable to line 43.
Qualified Sick Leave Wages for Leave Taken
After March 31, 2021, and Before October 1, 38. Amounts Under Certain Collectively
2021 Bargained Agreements Allocable to Qualified
If you’re correcting the qualified health plan expenses Family Leave Wages for Leave Taken After
allocable to qualified sick leave wages for leave taken March 31, 2021, and Before October 1, 2021
after March 31, 2021, and before October 1, 2021, that If you’re correcting the amounts under certain collectively
you reported on Form 944, line 20, enter the total bargained agreements allocable to qualified family leave
corrected amount for all employees in column 1. In wages for leave taken after March 31, 2021, and before
column 2, enter the amount you originally reported or as October 1, 2021, that you reported on Form 944, line 24,
previously corrected. In column 3, enter the difference enter the total corrected amount for all employees in

Instructions for Form 944-X (Rev. 2-2023) -23-

- 24 -

Page 24 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

column 1. In column 2, enter the amount you originally the employee retention credit in the fourth quarter of 2021
reported or as previously corrected. In column 3, enter the solely because your business is a recovery startup
difference between columns 1 and 2. Enter the corrected business depends on its applicability and whether you
amount from column 1 on Worksheet 3, Step 2, line 2i. originally reported an amount on your 2021 Form 944,
Be sure to explain the reasons for this correction on line 26.
line 43. • If you reported the total of any amounts included on
lines 8c and 10e on line 26 for the fourth quarter on your
Recovery startup businesses are limited to a originally filed 2021 Form 944 but that is no longer
! maximum employee retention credit of $50,000 accurate, explain in detail on line 43 why you no longer
CAUTION per quarter. Don’t enter more than $50,000 per think that you’re a recovery startup business and the
quarter in total on lines 17a and 26a. reasons that you still qualify for the employee retention
credit.
39. If You’re Eligible for the Employee Retention • If you didn’t report the total of any amounts included on
Credit in the Third Quarter of 2021 Solely lines 8c and 10e on line 26 for the fourth quarter on your
originally filed 2021 Form 944 and this still doesn’t apply,
Because Your Business Is a Recovery Startup
don’t complete line 40.
Business . . . • If you didn’t report the total of any amounts included on
Whether you complete line 39 to tell us if you're eligible for lines 8c and 10e for the fourth quarter on your originally
the employee retention credit in the third quarter of 2021 filed 2021 Form 944 but you’re now claiming the
solely because your business is a recovery startup employee retention credit as a recovery startup business,
business depends on its applicability and whether you complete line 40 with the total of the corrected amounts
originally reported an amount on your 2021 Form 944, included on Form 944-X, lines 17a and 26a.
line 25.
• If you reported the total of any amounts included on For the fourth quarter of 2021, a recovery startup
lines 8c and 10e on line 25 for the third quarter on your business is an employer that began carrying on a trade or
originally filed 2021 Form 944 but that is no longer business after February 15, 2020, and had average
accurate, explain in detail on line 43 why you no longer annual gross receipts of $1 million or less for the 3 tax
think that you’re a recovery startup business and the years ending with the tax year before the calendar quarter
reasons that you still qualify for the employee retention in which the employee retention credit is claimed.
credit.
Part 4: Explain Your Corrections for
• If you didn’t report the total of any amounts included on
lines 8c and 10e on line 25 for the third quarter on your the Calendar Year You’re Correcting
originally filed 2021 Form 944 and this still doesn’t apply,
don’t complete line 39. 41. Corrections of Both Underreported and
• If you didn’t report the total of any amounts included on Overreported Amounts
lines 8c and 10e for the third quarter on your originally Check the box on line 41 if any corrections you entered on
filed 2021 Form 944 but you’re now claiming the lines 7–21, lines 23–26c, or lines 28–40, in column 3
employee retention credit as a recovery startup business, reflect both underreported and overreported amounts.
complete line 39 with the total of the corrected amounts
included on Form 944-X, lines 17a and 26a. Example. If you had an increase to social security
wages of $1,500 for Nathan Black and a decrease to
Recovery startup business. For the third quarter of social security wages of $500 for Leah Green, you would
2021, a recovery startup business is an employer that: enter $1,000 on line 8, column 3. That $1,000 represents
• Began carrying on a trade or business after February the net change from offsetting corrections.
15, 2020;
On line 43, you must explain the reason for both the
• Had average annual gross receipts of $1 million or less
$1,500 increase and the $500 decrease.
for the 3 tax years ending with the tax year before the
calendar quarter in which the employee retention credit is 42. Did You Reclassify Any Workers?
claimed; and
• Isn't otherwise eligible for the employee retention credit Check the box on line 42 if you reclassified any workers to
because business operations aren't fully or partially be independent contractors or nonemployees. Also check
suspended due to a governmental order or because gross this box if the IRS or you determined that workers you
receipts (within the meaning of section 448(c) or, if you're treated as independent contractors or nonemployees
a tax-exempt organization, section 6033) aren't less than should be classified as employees. On line 43, give us a
80% of the gross receipts for the same calendar quarter in detailed reason why any worker was reclassified and, if
calendar year 2019. you used section 3509 rates on lines 18–21 for any worker
reclassified as an employee, explain why section 3509
40. If You’re Eligible for the Employee Retention rates apply and what rates you used.
Credit in the Fourth Quarter of 2021 Solely Return not filed because you didn’t treat any workers
Because Your Business Is a Recovery Startup as employees. If you didn't previously file Form 944
Business . . . because you mistakenly treated workers as independent
contractors or as nonemployees, file a Form 944 for each
For the fourth quarter of 2021, only a recovery startup
delinquent year.
business may claim the employee retention credit.
Whether you complete line 40 to tell us if you're eligible for

-24- Instructions for Form 944-X (Rev. 2-2023)

- 25 -

Page 25 of 30 Fileid: … ns/i944x/202302/a/xml/cycle05/source 8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

On each Form 944 for which you’re entitled to use For corrections shown on lines 18–21, explain why the
section 3509 rates, complete the following steps. correction was necessary and attach any notice you
• Write “Misclassified Employees” in bold letters received from the IRS.
across the top margin of page 1.
• Enter a zero on line 9. Part 5: Sign Here
• Complete the signature area.
You must complete all five pages of Form 944-X and sign
• Attach a completed Form 944-X (see instructions next).
it on page 5. If you don’t sign, processing of Form 944-X
On each Form 944-X, complete the following steps. will be delayed.
• Complete the top of Form 944-X, including the date you
discovered the error. Who must sign the Form 944-X? The following persons
• Enter the wage amounts on lines 18–21, column 1. are authorized to sign the return for each type of business
• Enter zeros on lines 18–21, column 2. entity.
• Complete columns 3 and 4 as instructed in Part 3. • Sole proprietorship—The individual who owns the
• Provide a detailed statement on line 43. business.
• Complete the signature area. • Corporation (including a limited liability company
(LLC) treated as a corporation)—The president, vice
If you can’t use section 3509 rates (for example, president, or other principal officer duly authorized to sign.
! because the workers you treated as • Partnership (including an LLC treated as a
CAUTION nonemployees were certain statutory employees), partnership) or unincorporated organization—A
file a Form 944 for each delinquent year. Write responsible and duly authorized member, partner, or
“Misclassified Employees” in bold letters across the officer having knowledge of its affairs.
top margin of page 1 of each Form 944. Complete Form • Single-member LLC treated as a disregarded entity
944 using the Instructions for Form 944. Attach a Form for federal income tax purposes—The owner of the
944-X to each Form 944. Complete the top of Form LLC or a principal officer duly authorized to sign.
944-X, including the date you discovered the error, and • Trust or estate—The fiduciary.
provide a detailed explanation on line 43.
Form 944-X may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney has been
43. Explain Your Corrections filed.
Treasury regulations require you to explain in detail the Alternative signature method. Corporate officers or
grounds and facts relied upon to support each correction. duly authorized agents may sign Form 944-X by rubber
On line 43, describe in detail each correction you entered stamp, mechanical device, or computer software
in column 4 on lines 7–21 and lines 23–26c. Also use program. For details and required documentation, see
line 43 to describe in detail corrections made on lines 28– Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at
40. If you need more space, attach additional sheets, but IRS.gov/irb/2005-28_IRB#RP-2005-39.
be sure to write your name, EIN, “Form 944-X,” and the
calendar year you’re correcting on the top of each sheet. Paid Preparer Use Only
You must describe the events that caused the A paid preparer must sign Form 944-X and provide the
underreported or overreported amounts. Explanations information in the Paid Preparer Use Only section of Part
such as “social security and Medicare wages were 5 if the preparer was paid to prepare Form 944-X and isn’t
overstated,” “administrative/payroll errors were an employee of the filing entity. Paid preparers must sign
discovered,” or “taxes were not withheld” are insufficient paper returns with a manual signature. The preparer must
and may delay processing your Form 944-X because the give you a copy of the return in addition to the copy to be
IRS may need to ask for a more complete explanation. filed with the IRS.
Provide the following information in your explanation of If you’re a paid preparer, enter your Preparer Tax
each correction. Identification Number (PTIN) in the space provided.
• Form 944-X line number(s) affected. Include your complete address. If you work for a firm,
• Date you discovered the error. enter the firm's name and the EIN of the firm. You can
• Amount of the error. apply for a PTIN online or by filing Form W-12. For more
• Cause of the error. information about applying for a PTIN online, go to
IRS.gov/PTIN. You can’t use your PTIN in place of the EIN
You may report the information in paragraph form. The of the tax preparation firm.
following paragraph is an example.
Generally, you’re not required to complete this section
“The $100 difference shown in column 3 of lines 6, 8, if you’re filing the return as a reporting agent and have a
and 12 was discovered on May 15, 2023, during an valid Form 8655 on file with the IRS. However, a reporting
internal payroll audit. We discovered that we included agent must complete this section if the reporting agent
$100 of wages for one of our employees twice. This offered legal advice, for example, advising the client on
correction removes the reported wages that were never determining whether its workers are employees or
paid.” independent contractors for federal tax purposes.

Instructions for Form 944-X (Rev. 2-2023) -25-

- 26 -

Page 26 of 30   Fileid: … ns/i944x/202302/a/xml/cycle05/source                                                                                       8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet 1. Adjusted Credit for Qualified Sick and Family Leave 
Wages for Leave Taken After March 31, 2020, and Before April 1, 
2021                                                                                                                                           Keep for Your Records
You must use this worksheet 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 correct any amounts used to figure the credit for qualified sick and family leave 
wages for leave taken after March 31, 2020, and before April 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it 
for the first time on Form 944-X.
Step 1.        Determine the corrected employer share of social security tax after it is reduced by any credit claimed on Form 
               8974 and any credit to be claimed on Form 5884-C and/or Form 5884-D
        1a     Enter the amount of social security wages from Form 944, Part 1, line 4a, column 
               1, or, if corrected, the amount from Form 944-X, line 8, column 1 . . . . . . . . . . . . . .                                1a       
        1b     Enter the amount of social security tips from Form 944, Part 1, line 4b, column 1, 
               or, if corrected, the amount from Form 944-X, line 11, column 1 . . . . . . . . . . . . . . .                                1b       
        1c     Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1c       
        1d     Multiply line 1c by 6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             1d       
        1e     If you're a third-party payer of sick pay that isn't an agent and you're claiming 
               credits for amounts paid to your employees, enter the employer share of social 
               security tax included on Form 944, Part 1, line 6, or, if corrected, the amount of the 
               employer share of social security tax on sick pay that you included on Form 944-X, 
               line 14, column 1 (enter as a negative number) . . . . . . . . . . . . . . . . . . . . . . . . . . .                         1e       
        1f     Employer share of social security tax included on Form 944-X, line 19, 
               column 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1f       
        1g     Employer share of social security tax. Combine lines 1d, 1e, and 1f . . . . . . . . .                                                 1g              
        1h     Enter the amount from Form 944, Part 1, line 8a, or, if corrected, the amount from 
               Form 944-X, line 15, column 1 (credit from Form 8974) . . . . . . . . . . . . . . . . . . . . . .                            1h       
        1i     Enter the amount from Form 5884-C, line 11, for this year (for 2020, this amount 
               was also included on Form 944, Part 3, line 19, or, if corrected, the amount from 
               Form 944-X, line 32, column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1i       
        1j     Enter the amount from Form 5884-D, line 12, for the year . . . . . . . . . . . . . . . . . . . .                             1j       
        1k     Total nonrefundable credits already used against the employer share of 
               social security tax. Add lines 1h, 1i, and 1j . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             1k  
        1l     Employer share of social security tax remaining. Subtract line 1k 
               from line 1g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            1l  

Step 2.        Figure the sick and family leave credit
        2a     Qualified sick leave wages reported on Form 944, Part 1, line 4a(i), column 1, or, if 
               corrected, the amount from Form 944-X, line 9, column 1 . . . . . . . . . . . . . . . . . . . .                              2a       
        2a(i)  Qualified sick leave wages included on Form 944, Part 1, line 4c, or, if corrected, 
               the amount from Form 944-X, line 12, column 1, but not included on Form 944, 
               Part 1, line 4a(i), column 1, or Form 944-X, line 9, column 1, because the wages 
               reported on that line were limited by the social security wage base . . . . . . . . . . . . .                                2a(i)    
        2a(ii)  Total qualified sick leave wages. Add lines 2a and 2a(i) . . . . . . . . . . . . . . . . . . . . .                          2a(ii)   
        2a(iii) Qualified sick leave wages excluded from the definition of employment under 
               sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2a(iii)  
        2b     Qualified health plan expenses allocable to qualified sick leave wages (Form 944, 
               Part 3, line 15, or, if corrected, Form 944-X, line 28, column 1) . . . . . . . . . . . . . . . .                            2b       
        2c     Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) 
               by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2c       
        2d     Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b, and 2c . . . . . .                                              2d  
        2e     Qualified family leave wages reported on Form 944, Part 1, line 4a(ii), column 1, or, 
               if corrected, the amount from Form 944-X, line 10, column 1 . . . . . . . . . . . . . . . . . .                              2e       
        2e(i)  Qualified family leave wages included on Form 944, Part 1, line 4c, or, if corrected, 
               the amount from Form 944-X, line 12, column 1, but not included on Form 944, 
               Part 1, line 4a(ii), column 1, or Form 944-X, line 10, column 1, because the wages 
               reported on that line were limited by the social security wage base . . . . . . . . . . . . .                                2e(i)    
        2e(ii) Total qualified family leave wages. Add lines 2e and 2e(i) . . . . . . . . . . . . . . . . . . . .                           2e(ii)   
        2e(iii) Qualified family leave wages excluded from the definition of employment under 
               sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2e(iii)  
        2f     Qualified health plan expenses allocable to qualified family leave wages (Form 
               944, Part 3, line 16, or, if corrected, Form 944-X, line 29, column 1) . . . . . . . . . . . .                               2f       
        2g     Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii) 
               by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2g       
        2h     Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f, 
               and 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2h  
        2i     Credit for qualified sick and family leave wages. Add lines 2d and 2h . . . . . . .                                                   2i  
        2j     Nonrefundable portion of credit for qualified sick and family leave wages 
               for leave taken after March 31, 2020, and before April 1, 2021. Enter the 
               smaller of line 1l or line 2i. Enter this amount on Form 944-X, line 16, 
               column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2j
        2k     Refundable portion of credit for qualified sick and family leave wages for 
               leave taken after March 31, 2020, and before April 1, 2021. Subtract line 2j 
               from line 2i and enter this amount on Form 944-X, line 25, column 1 . . . . . . . . . . . .                                           2k

                                                       -26-                             Instructions for Form 944-X (Rev. 2-2023)

- 27 -

Page 27 of 30      Fileid: … ns/i944x/202302/a/xml/cycle05/source                                                                            8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet 2. Adjusted Employee Retention Credit for Qualified 
Wages Paid After March 12, 2020, and Before January 1, 2021, for a 
2020 Form 944, or Qualified Wages Paid After December 31, 2020, 
and Before July 1, 2021, for a 2021 Form 944                                                                                                 Keep for Your Records
You must use this worksheet if you claimed the employee retention credit for qualified wages paid after March 12, 2020, and before 
January 1, 2021, on your original 2020 Form 944 or for qualified wages paid after December 31, 2020, and before July 1, 2021, on your 
original 2021 Form 944 and you correct any amounts used to figure the employee retention credit. You’ll also use this worksheet to figure 
this credit if you're claiming it for the first time on Form 944-X.
Step 1.    Determine the corrected employer share of social security tax after it is reduced by any credit claimed on Form 
           8974 and any credit to be claimed on Form 5884-C and/or Form 5884-D
        1a If you completed Worksheet 1 to claim a credit for qualified sick and family leave 
           wages for leave taken after March 31, 2020, and before April 1, 2021, enter the 
           amount from Worksheet 1, Step 1, line 1l, and go to Step 2. If you're not claiming a 
           credit for qualified sick and family leave wages for leave taken after March 31, 2020, 
           and before April 1, 2021, continue by completing lines 1b–1m below and then go to 
           Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1a                   
        1b Enter the amount of social security wages from Form 944, Part 1, line 4a, column 1, 
           or, if corrected, the amount from Form 944-X, line 8, column 1 . . . . . . . . . . . . . . . . .                               1b  
        1c Enter the amount of social security tips from Form 944, Part 1, line 4b, column 1, or, 
           if corrected, the amount from Form 944-X, line 11, column 1 . . . . . . . . . . . . . . . . . . .                              1c  
        1d Add lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        1d  
        1e Multiply line 1d by 6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             1e  
        1f If you're a third-party payer of sick pay that isn't an agent and you're claiming credits 
           for amounts paid to your employees, enter the employer share of social security tax 
           included on Form 944, Part 1, line 6, or, if corrected, the amount of the employer 
           social security tax on sick pay that you included on Form 944-X, line 14, column 1 
           (enter as a negative number) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1f  
        1g Employer share of social security tax included on Form 944-X, line 19, 
           column 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1g  
        1h Employer share of social security tax. Combine lines 1e, 1f, and 1g . . . . . . . . . .                                            1h                   
        1i Enter the amount from Form 944, Part 1, line 8a, or, if corrected, the amount from 
           Form 944-X, line 15, column 1 (credit from Form 8974) . . . . . . . . . . . . . . . . . . . . . . .                            1i  
        1j Enter the amount from Form 5884-C, line 11, for this year (for 2020, this amount was 
           also included on Form 944, Part 3, line 19, or, if corrected, the amount from Form 
           944-X, line 32, column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          1j  
        1k Enter the amount from Form 5884-D, line 12, for this year . . . . . . . . . . . . . . . . . . . . .                            1k  
        1l Total nonrefundable credits already used against the employer share of 
           social security tax. Add lines 1i, 1j, and 1k . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        1l  
        1m Employer share of social security tax remaining. Subtract line 1l 
           from line 1h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       1m  

Step 2.    Figure the employee retention credit for qualified wages paid after March 12, 2020, and before July 1, 2021
           Caution: For qualified wages paid before January 1, 2021, the cumulative total for 
           2020 that can be claimed on lines 2a and 2b can't exceed $10,000 per employee. 
           For qualified wages paid after December 31, 2020, and before July 1, 2021, the total 
           amount included on lines 2a and 2b is limited to a maximum of $10,000 per 
           employee in each of the first quarter and the second quarter of 2021 ($20,000 in 
           total for purposes of this worksheet).
        2a Qualified wages (excluding qualified health plan expenses) for the employee 
           retention credit for qualified wages paid after March 12, 2020, and before January 1, 
           2021, for a 2020 Form 944, or qualified wages paid after December 31, 2020, and 
           before July 1, 2021, for a 2021 Form 944 (these qualified wages are included in the 
           total reported on Form 944, Part 3, line 17, or, if corrected, Form 944-X, line 30, 
           column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2a  
        2b Qualified health plan expenses allocable to qualified wages for the employee 
           retention credit for qualified wages paid after March 12, 2020, and before January 1, 
           2021, for a 2020 Form 944, or qualified wages paid after December 31, 2020, and 
           before July 1, 2021, for a 2021 Form 944 (these qualified health plan expenses are 
           included in the total reported on Form 944, Part 3, line 18, or, if corrected, Form 
           944-X, line 31, column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2b  
        2c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2c  
        2d Retention credit. If you're correcting your 2020 Form 944, multiply line 2c by 50% 
           (0.50). If you're correcting your 2021 Form 944, multiply line 2c by 70% 
           (0.70) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2d  
        2e Enter the amount of the employer share of social security tax from Step 1, line 1a, 
           or, if applicable, Step 1, line 1m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2e  
        2f Enter the amount of 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 
           (this amount may come from Worksheet 1, Step 2, line 2j, in these instructions if 
           you're correcting that credit for the year or you may need to enter the credit claimed 
           on your original Form 944) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2f  
        2g Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2g  
        2h Nonrefundable portion of employee retention credit. Enter the smaller of 
           line 2d or line 2g. Enter this amount on Form 944-X, line 17a, column 1 . . . . . . . . . .                                        2h
        2i Refundable portion of employee retention credit. Subtract line 2h from line 2d 
           and enter this amount on Form 944-X, line 26a, column 1 . . . . . . . . . . . . . . . . . . . . .                                  2i

Instructions for Form 944-X (Rev. 2-2023)                          -27-

- 28 -

Page 28 of 30    Fileid: … ns/i944x/202302/a/xml/cycle05/source                                                                                           8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet 3. Adjusted Credit for Qualified Sick and Family Leave 
Wages for Leave Taken After March 31, 2021, and Before October 1, 
2021                                                                                                                                                 Keep for Your Records
You must use this worksheet if you claimed the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 
2021, on your original Form 944 and you correct any amounts used to figure the credit for qualified sick and family leave wages for leave taken after March 31, 
2021, and before October 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it for the first time on Form 944-X.
Step 1.         Determine the corrected employer share of Medicare tax
        1a      Enter the amount of Medicare wages from Form 944, Part 1, line 4c, column 1, or, if corrected, 
                the amount from Form 944-X, line 12, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   1a       
        1b      Multiply line 1a by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            1b       
        1c      If you're a third-party payer of sick pay that isn't an agent and you're claiming credits for 
                amounts paid to your employees, enter the employer share of Medicare tax included on Form 
                944, Part 1, line 6, or, if corrected, the amount of the employer share of Medicare tax on sick 
                pay that you included on Form 944-X, line 14, column 1 (enter as a negative number) . . . . . .                                   1c       
        1d      Employer share of Medicare tax included on Form 944-X, line 20, column 4   . . . . . . . . . . . . .                              1d       
        1e      Employer share of Medicare tax. Combine lines 1b, 1c, and 1d . . . . . . . . . . . . . . . . . . . .                                       1e              
Step 2.         Figure the sick and family leave credit
        2a      Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021, 
                reported on Form 944, Part 3, line 19, or, if corrected, the amount from Form 944-X, line 33, 
                column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2a       
        2a(i)   Qualified sick leave wages included on Form 944, Part 3, line 19, or, if corrected, the amount 
                from Form 944-X, line 33, column 1, that were not included as wages reported on Form 944, 
                Part 1, lines 4a and 4c, or, if corrected, the amount from Form 944-X, lines 8 and 12, column 1, 
                because the qualified sick leave wages were excluded from the definition of employment under 
                sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2a(i)    
        2a(ii)  Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2a(ii)   
        2a(iii) Qualified sick leave wages included on Form 944, Part 3, line 19, or, if corrected, the amount 
                from Form 944-X, line 33, column 1, that were not included as wages reported on Form 944, 
                Part 1, line 4a, or, if corrected, the amount from Form 944-X, line 8, column 1, because the 
                qualified sick leave wages were limited by the social security wage base . . . . . . . . . . . . . . .                            2a(iii)  
        2a(iv) Subtract line 2a(iii) from line 2a(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2a(iv)   
        2b      Qualified health plan expenses allocable to qualified sick leave wages for leave taken after 
                March 31, 2021, and before October 1, 2021, reported on Form 944, Part 3, line 20, or, if 
                corrected, the amount from Form 944-X, line 34, column 1 . . . . . . . . . . . . . . . . . . . . . . . . .                        2b       
        2c      Amounts under certain collectively bargained agreements allocable to qualified sick leave 
                wages for leave taken after March 31, 2021, and before October 1, 2021, reported on Form 
                944, Part 3, line 21, or, if corrected, the amount from Form 944-X, line 35, column 1 . . . . . . . .                             2c       
        2d      Employer share of social security tax on qualified sick leave wages. Multiply line 2a(iv) by 6.2% 
                (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d       
        2e      Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by 1.45% 
                (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2e       
        2f      Credit for qualified sick leave wages. Add lines 2a, 2b, 2c, 2d, and 2e . . . . . . . . . . . . . . .                                      2f  
        2g      Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, 
                reported on Form 944, Part 3, line 22, or, if corrected, the amount from Form 944-X, line 36, 
                column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2g       
        2g(i)   Qualified family leave wages included on Form 944, Part 3, line 22, or, if corrected, the amount 
                from Form 944-X, line 36, column 1, that were not included as wages reported on Form 944, 
                Part 1, lines 4a and 4c, or, if corrected, the amount from Form 944-X, lines 8 and 12, column 1, 
                because the qualified family leave wages were excluded from the definition of employment 
                under sections 3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2g(i)    
        2g(ii)  Subtract line 2g(i) from line 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2g(ii)   
        2g(iii) Qualified family leave wages included on Form 944, Part 3, line 22, or, if corrected, the amount 
                from Form 944-X, line 36, column 1, that were not included as wages reported on Form 944, 
                Part 1, line 4a, or, if corrected, the amount from Form 944-X, line 8, column 1, because the 
                qualified family leave wages were limited by the social security wage base . . . . . . . . . . . . . .                            2g(iii)  
        2g(iv) Subtract line 2g(iii) from line 2g(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2g(iv)   
        2h      Qualified health plan expenses allocable to qualified family leave wages for leave taken after 
                March 31, 2021, and before October 1, 2021, reported on Form 944, Part 3, line 23, or, if 
                corrected, the amount from Form 944-X, line 37, column 1 . . . . . . . . . . . . . . . . . . . . . . . . .                        2h       
        2i      Amounts under certain collectively bargained agreements allocable to qualified family leave 
                wages for leave taken after March 31, 2021, and before October 1, 2021, reported on Form 
                944, Part 3, line 24, or, if corrected, the amount from Form 944-X, line 38, column 1 . . . . . . . .                             2i       
        2j      Employer share of social security tax on qualified family leave wages. Multiply line 2g(iv) by 
                6.2% (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2j       
        2k      Employer share of Medicare tax on qualified family leave wages. Multiply line 2g(ii) by 1.45% 
                (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2k       
        2l      Credit for qualified family leave wages. Add lines 2g, 2h, 2i, 2j, and 2k . . . . . . . . . . . . . . .                                    2l  
        2m      Credit for qualified sick and family leave wages. Add lines 2f and 2l . . . . . . . . . . . . . . . .                                      2m  
        2n      Enter any employee retention credit claimed under section 2301 of the CARES Act with respect 
                to qualified wages paid after March 31, 2021, and before July 1, 2021, that were also taken into 
                account for the credit for qualified sick and family leave wages . . . . . . . . . . . . . . . . . . . . . .                      2n       
        2o      Enter any credit claimed under section 41 for increasing research activities with respect to any 
                wages taken into account for the credit for qualified sick and family leave wages . . . . . . . . . .                             2o       
        2p      Add lines 2n and 2o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       2p       
        2q      Credit for qualified sick and family leave wages after adjusting for other credits. 
                Subtract line 2p from line 2m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  2q  
        2r      Nonrefundable portion of credit for qualified sick and family leave wages for leave 
                taken after March 31, 2021, and before October 1, 2021. Enter the smaller of line 1e or 
                line 2q. Enter this amount on Form 944-X, line 17b, column 1     . . . . . . . . . . . . . . . . . . . . . . .                             2r
        2s      Refundable portion of credit for qualified sick and family leave wages for leave taken 
                after March 31, 2021, and before October 1, 2021. Subtract line 2r from line 2q and enter 
                this amount on Form 944-X, line 26b, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            2s

                                                                 -28-                                         Instructions for Form 944-X (Rev. 2-2023)

- 29 -

Page 29 of 30  Fileid: … ns/i944x/202302/a/xml/cycle05/source                                                                               8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet 4. Adjusted Employee Retention Credit for Qualified 
Wages Paid After June 30, 2021, and Before January 1, 2022                                                                                  Keep for Your Records
You must use this worksheet if you claimed the employee retention credit for qualified wages paid after June 30, 2021, and before January 
1, 2022, on your original 2021 Form 944 and you correct any amounts used to figure the employee retention credit for qualified wages paid 
after June 30, 2021, and before January 1, 2022. You'll also use this worksheet to figure this credit if you're claiming it for the first time on 
Form 944-X.
Step 1.    Determine the corrected employer share of Medicare tax
        1a If you completed Worksheet 3 to claim a credit for qualified sick and family leave 
           wages for leave taken after March 31, 2021, and before October 1, 2021, enter the 
           amount from Worksheet 3, Step 1, line 1e, and go to Step 2. If you're not claiming a 
           credit for qualified sick and family leave wages for leave taken after March 31, 2021, 
           and before October 1, 2021, continue by completing lines 1b–1f below and then go 
           to Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1a                   
        1b Enter the amount of Medicare wages from Form 944, Part 1, line 4c, column 1, or, if 
           corrected, the amount from Form 944-X, line 12, column 1 . . . . . . . . . . . . . . . . . . .                                1b  
        1c Multiply line 1b by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                1c  
        1d If you're a third-party payer of sick pay that isn't an agent and you're claiming credits 
           for amounts paid to your employees, enter the employer share of Medicare tax 
           included on Form 944, Part 1, line 6, or, if corrected, the amount of the employer 
           share of Medicare tax on sick pay that you included on Form 944-X, line 14, column 
           1 (enter as a negative number) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                1d  
        1e Employer share of Medicare tax included on Form 944-X, line 20, column 4 . . . . .                                            1e  
        1f Employer share of Medicare tax. Combine lines 1c, 1d, and 1e . . . . . . . . . . . . .                                            1f                   

Step 2.    Figure the employee retention credit for qualified wages paid after June 30, 2021, and before January 1, 2022
           Caution: You must be a recovery startup business to claim the employee retention 
           credit for qualified wages paid after September 30, 2021, and before January 1, 
           2022 (fourth quarter 2021). The total amount included on lines 2a and 2b is limited 
           to a maximum of $10,000 per employee in each of the third quarter and the fourth 
           quarter of 2021 ($20,000 in total for purposes of this worksheet).
        2a Qualified wages (excluding qualified health plan expenses) for the employee 
           retention credit for qualified wages paid after June 30, 2021, and before January 1, 
           2022 (these qualified wages are included in the total reported on Form 944, Part 3, 
           line 17, or, if corrected, Form 944-X, line 30, column 1) . . . . . . . . . . . . . . . . . . . . . .                         2a  
        2b Qualified health plan expenses allocable to qualified wages for the employee 
           retention credit for qualified wages paid after June 30, 2021, and before January 1, 
           2022 (these qualified health plan expenses are included in the total reported on 
           Form 944, Part 3, line 18, or, if corrected, Form 944-X, line 31, column 1) . . . . . . .                                     2b  
        2c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2c  
        2d Retention credit. Multiply line 2c by 70% (0.70). If you qualify for the employee 
           retention credit solely because your business is a recovery startup business, don't 
           enter more than $50,000 for each of the third quarter and the fourth quarter of 2021 
           ($100,000 in total for the year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2d  
        2e Enter the amount of the employer share of Medicare tax from Step 1, line 1a, or, if 
           applicable, Step 1, line 1f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2e  
        2f Enter the amount of 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 (this amount may come from Worksheet 3, Step 2, line 2r, in these instructions 
           if you're correcting that credit or you may need to enter the credit claimed on your 
           original Form 944) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2f  
        2g Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2g  
        2h Nonrefundable portion of employee retention credit. Enter the smaller of 
           line 2d or line 2g. Enter this amount on Form 944-X, line 17a, column 1 . . . . . . . . .                                         2h
        2i Refundable portion of employee retention credit. Subtract line 2h from line 2d 
           and enter this amount on Form 944-X, line 26a, column 1 . . . . . . . . . . . . . . . . . . . .                                   2i

Instructions for Form 944-X (Rev. 2-2023) -29-

- 30 -

Page 30 of 30      Fileid: … ns/i944x/202302/a/xml/cycle05/source                                                                            8:44 - 31-Jan-2023

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Worksheet 5. Adjusted COBRA Premium Assistance Credit                                                                                        Keep for Your Records
You must use this worksheet if you claimed the COBRA premium assistance credit on your original Form 944 and you correct any amounts used to figure the 
COBRA premium assistance credit. You'll also use this worksheet to figure this credit if you're claiming it for the first time on Form 944-X.
Step 1.    Determine the corrected employer share of Medicare tax
        1a If you completed Worksheet 3 or Worksheet 4, enter the amount listed on Worksheet 3, line 1e, 
           or Worksheet 4, line 1a or 1f (as applicable). If you're not claiming either of these credits this 
           year, continue by completing lines 1b–1f below and then go to Step 2 . . . . . . . . . . . . . . . . .                             1a                   
        1b Enter the amount of Medicare wages from Form 944, Part 1, line 4c, column 1, or, if corrected, 
           the amount from Form 944-X, line 12, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  1b  
        1c Multiply line 1b by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           1c  
        1d If you're a third-party payer of sick pay that isn't an agent and you're claiming credits for 
           amounts paid to your employees, enter the employer share of Medicare tax included on Form 
           944, Part 1, line 6, or, if corrected, the amount of the employer share of Medicare tax on sick 
           pay that you included on Form 944-X, line 14, column 1 (enter as a negative number) . . . . .                                  1d  
        1e Employer share of Medicare tax included on Form 944-X, line 20, column 4   . . . . . . . . . . . .                             1e  
        1f Employer share of Medicare tax. Combine lines 1c, 1d, and 1e . . . . . . . . . . . . . . . . . . .                                 1f                   
Step 2.    Figure the COBRA premium assistance credit
        2a Enter the COBRA premium assistance that you provided for periods of coverage beginning on 
           or after April 1, 2021, through periods of coverage beginning on or before September 30, 
           2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a  
        2b Enter the amount of the employer share of Medicare tax from Step 1, line 1a, or, if applicable, 
           Step 1, line 1f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2b  
        2c Enter the amount of 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 (this amount may 
           come from Worksheet 3, Step 2, line 2r, in these instructions if you're correcting that credit or 
           you may need to enter the credit claimed on your original Form 944) . . . . . . . . . . . . . . . . .                          2c  
        2d Enter the amount of the nonrefundable portion of the employee retention credit (this amount 
           may come from Worksheet 4, Step 2, line 2h, in these instructions if you're correcting that credit 
           or you may need to enter the credit claimed on your original Form 944) . . . . . . . . . . . . . . . .                         2d  
        2e Other nonrefundable credits used against the employer share of Medicare tax. Add 
           lines 2c and 2d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2e  
        2f Subtract line 2e from line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2f  
        2g Nonrefundable portion of the COBRA premium assistance credit. Enter the smaller of 
           line 2a or line 2f. Enter this amount on Form 944-X, line 17c, column 1 . . . . . . . . . . . . . . . .                            2g
        2h Refundable portion of the COBRA premium assistance credit. Subtract line 2g from 
           line 2a and enter this amount on Form 944-X, line 26c, column 1 . . . . . . . . . . . . . . . . . . . .                            2h

                                                                 Reduction Act unless the form displays a valid OMB 
How Can You Get Forms,                                           control number. Books and records relating to a form or 
                                                                 instructions must be retained as long as their contents 
Instructions, and Publications From                              may become material in the administration of any Internal 
the IRS?                                                         Revenue law.
        You can view, download, or print most of the                          The time needed to complete and file Form 944-X will 
        forms, instructions, and publications you may            vary depending on individual circumstances. The 
        need at IRS.gov/Forms. Otherwise, you can go to          estimated average time is:
IRS.gov/OrderForms to place an order and have them 
mailed to you. The IRS will process your order for forms         Recordkeeping. . . . . . . . . . . . . . . . . . . . . . .                      38 hr., 15 min.
and publications as soon as possible. Don't resubmit             Learning about the law or the form . . . . . . . . .                            1 hr., 25 min.
requests you've already sent us. You can get forms and           Preparing and sending the form to the IRS. . . .                                4 hr., 30 min.
publications faster online.

Paperwork Reduction Act Notice. We ask for the                                If you have comments concerning the accuracy of 
information on Form 944-X to carry out the Internal              these time estimates or suggestions for making Form 
Revenue laws of the United States. We need it to figure          944-X simpler, we would be happy to hear from you. You 
and collect the right amount of tax. Subtitle C,                 can send us comments from IRS.gov/FormComments. Or 
Employment Taxes, of the Internal Revenue Code                   you can send your comments to: Internal Revenue 
imposes employment taxes, including federal income tax           Service, Tax Forms and Publications Division, 1111 
withholding, on wages. This form is used to determine the        Constitution Ave. NW, IR-6526, Washington, DC 20224. 
amount of taxes you owe. Section 6011 requires you to            Don’t send Form 944-X to this address. Instead, see 
provide the requested information if the tax applies to you.     Where Should You File Form 944-X, earlier.
You’re not required to provide the information 
requested on a form that is subject to the Paperwork 

                                                          -30-                                           Instructions for Form 944-X (Rev. 2-2023)

PDF file checksum: 4185322426

(Plugin #1/9.12/13.0)