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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28095
Experience:  Taxes, Immigration, Labor Relations
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Lev, South Vermillion (public school) withheld social security

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Lev,
South Vermillion (public school) withheld social security taxes from a teacher who was a "foreign student" during the last 2 quarters of 2012 and quarters 1 and 2 in 2013. I just received a notice from the IRS that they have reimbursed the teacher the social security taxes withheld because we did not "reimburse" her. They request that I adjust our account on 941-X and complete a W-2c. No problem with the W-2c; however, how/where do I make an adjustment on each quarter 941-X for 2012 and 2013? Part 1 - do I check #1 or #2? Part 2 - IRS reimbursed the employee, how do I claim just the employer share? The wages reported should be fine - -- help! Thanks!!!!!

Lev :

Hi and welcome to Just Answer!
If your employment tax return for the second quarter need correction - you file form 941X for the second quarter as you suggested.
See on the form - http://www.irs.gov/pub/irs-pdf/f941x.pdf - Use a separate Form 941-X for each quarter that needs correction.

Lev :

Part 1 - check #1 because you you overreported amounts subject of FICA.

Lev :

Part 2 - check 4(b) - because the adjustments of social security tax and Medicare tax are for the employer’s share only.

Customer:

I understand that I need to do a separate 941-x for each quarter - that was not my question...I do not see where I am to make the actual "adjustments" on each quarter....I don't need to correct the wages - just the tax portion

Lev :

You do need to correct wages subject to FICA. That is done in Part 3 - line 8 and line 11.

Customer:

Okay - that is where my confusion is - I thought they would be considered "exempt wages".... that's why you are the expert!

Lev :

That is correct - exempt wages are excluded from wages subject to FICA.

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