Single-member LLC treated as a disregarded entity for federal income tax purposesThe owner of the LLC or a principal officer duly authorized to sign. Enter the corrected amount from column 1 on Worksheet 3, Step 2, line 2h. The Employee Retention Credit . 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 overreported an employment tax credit or the amount of social security tax deferred, treat it like you underreported a tax amount. Copy the amount in column 3 to column 4. Because both December 31, 2021, and December 31, 2022, are nonbusiness days, payments made on the next business day will be considered timely. For example, these instructions don't discuss who is eligible to claim the credit for qualified sick and family leave wages, the employee retention credit, or the COBRA premium assistance credit. Also use line 43 to describe corrections made on line 6 and lines 2840. In column 3, enter the difference between columns 1 and 2. If youre correcting the qualified sick leave wages you reported on Form 941, line 5a(i), column 1, enter the total corrected amount in column 1. Otherwise, the IRS may assess an averaged FTD penalty. The total wages paid to Sophie for 2021 were $220,000. Dont make any changes to your record of federal tax liability reported on Form 941, line 16, or Schedule B (Form 941) if your Form 941-X is filed timely. See Notice 2021-31 for more information.. Complete Form 941 using the Instructions for Form 941. Xavier Blacks wages exceeded the $200,000 withholding threshold for Additional Medicare Tax in November 2021. In the year that the period of limitations for the previously filed Form 941 expires, file Form 941-X at least 90 days before the expiration date.. Because Form 941-X may be used to file either an adjusted employment tax return or a claim for refund or abatement, you must check one box on either line 1 or line 2. Congress implemented the Employee Retention Credit as a way to help businesses that suffered during the COVID-19 pandemic, and as you can imagine, there was a lot of demand. 941x Instructions For The IRS Employee Retention Credit Step 2: For all quarters you qualify for, get your original 941, a blank 941-X, and payroll journals for each quarter. You must enter the date you discovered errors. In the fourth quarter of 2021, you withheld $1,000 of federal income tax from Xavier Black, $2,000 from Sophie Rose, and $6,000 from Leo Wood. Provide a summary on line 43 of the amount of the corrections both for the employees who provided written statements and for those who didnt. You can find Rev.