Instructions For Form 941-Ss - Employer'S Quarterly Federal Tax Returnamerican Samoa, Guam, The Commonwealth Of The Northern Mariana Islands, And The U.s. Virgin Islands - 2010 Page 6
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9941-SS and claim the Work Opportunity Credit for the same
line 5a (column 1)
x
.124
employee. For more information, see Form 5884, Work
line 5a (column 2)
Opportunity Credit.
For more information about the employer’s social security
Do not reduce the amount reported on line 5a by any
tax exemption, visit IRS.gov and enter the keywords HIRE
!
amount paid to qualified new employees. The social
Act in the search box.
security tax exemption on wages/tips will be figured
CAUTION
6a. Number of qualified employees first paid exempt
on lines 6c and 6d and will reduce the tax on line 6e.
wages/tips this quarter. Enter on line 6a the number of
5b. Taxable social security tips. Enter all tips your
qualified employees first paid wages/tips to which you
employees reported to you during the quarter until the total
applied the social security tax exemption in this quarter. Do
of the tips and wages for an employee reach $106,800 in
not include on line 6a qualified employees that are included
2010. Include all tips your employees reported to you even if
on line 12c.
you were unable to withhold the employee tax of 6.2%.
A qualified employee is an employee who:
An employee must report cash tips to you, including tips
•
Begins employment with you after February 3, 2010, and
you paid the employee for charge customers, totaling $20 or
before January 1, 2011;
more in a month by the 10th of the next month. Employees
•
Certifies by signed affidavit (Form W-11, Hiring Incentives
may use Form 4070, Employee’s Report of Tips to Employer
to Restore Employment (HIRE) Act Employee Affidavit, or
(available only in Pub. 1244, Employee’s Daily Record of
similar statement) under penalties of perjury, that he or she
Tips and Report to Employer), or submit a written statement
has not been employed for more than 40 hours during the
or electronic tip record.
60-day period (including 2009) ending on the date the
Do not include allocated tips on this line. Instead, report
employee begins employment with you;
•
them on Form 8027, Employer’s Annual Information Return
Is not employed by you to replace another employee
of Tip Income and Allocated Tips. Allocated tips are not
unless the other employee separated from employment
reportable on Form 941-SS and are not subject to social
voluntarily or for cause (including downsizing); and
•
security or Medicare taxes.
Is not related to you. An employee is related to you if he
or she is your child or a descendant of your child, your
line 5b (column 1)
sibling or stepsibling, your parent or ancestor of your parent,
x
.124
your stepparent, your niece or nephew, your aunt or uncle,
line 5b (column 2)
or your in-law. An employee is also related to you if he or
she is related to anyone who owns more than 50% of your
Do not reduce the amount reported on line 5b by
outstanding stock or capital and profits interest or is your
!
any amount paid to qualified new employees. The
dependent or a dependent of anyone who owns more than
social security tax exemption on wages/tips will be
CAUTION
50% of your outstanding stock or capital and profits interest.
figured on lines 6c and 6d and will reduce the tax on line 6e.
If you are an estate or trust, see section 51(i)(1) and section
5c. Taxable Medicare wages and tips. Report all
152(d)(2) for more details.
wages, tips, sick pay, and taxable fringe benefits that are
Exempt wages/tips are the wages/tips paid to qualified
subject to Medicare tax. Unlike social security wages, there
employees for which the employer is exempt from paying
is no limit on the amount of wages subject to Medicare tax.
the employer’s 6.2% share of social security tax.
Include all tips your employees reported during the
6b. Number of qualified employees paid exempt
quarter, even if you were unable to withhold the employee
wages/tips this quarter. Enter on line 6b the total number
tax of 1.45%.
of qualified employees paid exempt wages/tips to which you
applied the social security tax exemption in this quarter.
line 5c (column 1)
x
.029
Qualified employees included on line 6a will also be
line 5c (column 2)
included on line 6b. For the second quarter of 2010,
qualified employees on line 12c may also be included on
For more information, see sections 4, 5, and 7 of Pub. 80
line 6b. See the instructions for line 6a for the definition of
(Circular SS).
qualified employee.
Do not reduce the amount reported on line 5c by any
6c. Exempt wages/tips paid to qualified employees
!
amount paid to qualified new employees. The tax
this quarter. Enter the amount of exempt wages/tips paid
exemption does not apply to Medicare tax.
this quarter to all qualified employees reported on line 6b.
CAUTION
See the instructions for line 6a for the definition of exempt
5d. Total social security and Medicare taxes. Add the
wages/tips.
social security tax (line 5a), social security tips tax (line 5b),
and Medicare tax (line 5c) and enter the result
6d. Social security tax exemption. Multiply the amount
on line 5d.
of exempt wages/tips reported on line 6c by .062 and enter
the result on line 6d. See the instructions for line 17 for
6. Employer’s social security tax exemption
details about applying this exemption to your tax liability.
Complete lines 6a – 6d to figure the payroll tax exemption
6e. Total taxes before adjustments. Subtract the
for the employer’s share (6.2%) of social security tax on
qualified employer’s social security tax exemption (line 6d)
wages/tips paid to one or more qualified employees.
from the total social security and Medicare taxes before
An employer must be a qualified employer to be eligible
adjustments (line 5d). Enter the result on line 6e.
for the employer’s social security tax exemption. A qualified
7. Tax Adjustments
employer is any employer other than Federal, State, and
any related government entities. All public institutions of
Enter tax amounts on lines 7a through 7c that result from
higher education and Indian tribal governments are also
current quarter adjustments. Use a minus sign (if possible)
qualified employers.
to show an adjustment that decreases the total taxes shown
on line 6e, instead of parentheses. Doing so enhances the
An employer may elect not to apply the social security tax
accuracy of our scanning software. For example, report
exemption with respect to a qualified employee. The election
‘‘-10.59’’ instead of ‘‘(10.59).’’ However, if your software only
is made by not including that employee or that employee’s
allows for parentheses in reporting negative amounts, you
wages on lines 6a – 6d and lines 12c – 12e. An election not to
may use them.
apply the social security tax exemption to a qualified
employee may allow a qualified employer to claim the Work
Current quarter’s adjustments. In certain cases, you
Opportunity Credit for that employee. A qualified employer
must adjust the amounts you reported as social security and
cannot apply both the social security tax exemption on Form
Medicare taxes in column 2 of lines 5a, 5b, and 5c to figure
-5-
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