Vision Payroll

April 26, 2014

IRS Releases Revised Form 941-X


IRS Releases Revised Form 941-X

IRS Releases Revised Form 941-X

The Internal Revenue Service (IRS) recently released a revised version of Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund.

COBRA Premium Assistance Credit May Only Be Claimed on Form 941-X

For tax periods beginning after 2013, the COBRA premium assistance credit may only be claimed on Form 941-X. Employers are longer able to claim the credit on either Form 941 or Form 941-SS. Employers are instructed to first file the Form 941 or Form 941-SS and then file the Form 941-X. Employers should not file the Form 941-X in advance of their regular filing.

Social Security Tax Rates May Differ

Depending on the period being amended, different social security tax rates may be in effect. For years other than 2011 and 2012, the employee and employer social security tax rates are 6.2% each or a total of 12.4%. For 2011 and 2012, the employee tax rate is 4.2% and the employer tax rate is 6.2% for a total of 10.4%. The correct rate should be used for the period being amended.

Contact Vision Payroll for Questions on Form 941-X

Contact Vision Payroll if you have further questions on Form 941-X.

June 22, 2012

Question of the Week: What Is the Additional Medicare Tax?

What Is the Additional Medicare Tax?
What Is the Additional Medicare Tax?
This week’s question comes from Savannah, a corporate controller.

Savannah asks:

Some of our employees are asking us about the Additional Medicare Tax and when we will start withholding it. What is the Additional Medicare Tax?

Answer: The Additional Medicare Tax was enacted as part of the Patient Protection and Affordable Care Act. The Additional Medicare Tax is effective for tax years beginning after December 31, 2012. The rate of the Additional Medicare Tax is 0.9% on wages subject to Medicare Tax that are in excess of an individual’s threshold based on the individual’s filing status for federal income taxes.

Railroad Retirement Tax Act (RRTA) Compensation Is Subject To Additional Medicare Tax

All RRTA compensation that is in excess of the applicable threshold for an individual’s filing status is subject to additional Medicare Tax if it is subject to Medicare Tax.

Individuals Liable for Additional Medicare Tax at Certain Thresholds

If an individual (or individual and spouse, if filing jointly) have qualified income in excess of the threshold for that individual’s filing status, the individual is labile for Additional Medicare Tax. Qualified income is wages, other compensation, and self-employment income.

Thresholds for Different Filing Statuses in 2013

The thresholds in 2013 are as follows:

Filing StatusThreshold
Married Filing Separately$125,000
Head of Household with Qualifying Person$200,000
Qualifying Widow or Widower with Dependent Child$200,000
Married Filing Jointly$250,000

More Information on the Additional Medicare Tax Will Be Forthcoming

Over the next few weeks, Vision Payroll will be providing more information on the Additional Medicare Tax. Be sure to check back regularly for further updates.

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