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Example — Tier I Employer Medicare compensation

10. Tier I Employee Medicare

decreased. Following Example — Tier I Employer

Tax—Compensation

compensation decreased in the instructions for line 6a, the

If you are correcting the compensation, including tips reported,

compensation that you counted twice was also Tier I Employer

for the Tier I Employee Medicare tax you reported on line 5 of

Medicare compensation. To correct the error, figure the

Form CT-1, enter the total corrected amount in column 1. In

difference on Form CT-1 X as shown.

column 2, enter the amount you originally reported or as

previously corrected. In column 3, enter the difference between

Column 1 (corrected amount)

7,000.00

columns 1 and 2.

Column 2 (from line 2 of Form CT-1)

- 9,000.00

Column 3 (difference)

- 2,000.00

line 10 (column 1)

Use the difference in column 3 to determine your tax

-line 10 (column 2)

correction.

line 10 (column 3)

If the amount in column 2 is larger than the

amount in column 1, use a minus sign in

Column 3 (difference)

-2,000.00

column 3.

Tax rate (1.45%)

x .0145

Multiply the amount in column 3 by .0145 (1.45% tax rate)

Column 4 (tax correction)

- 29.00

and enter that result in column 4.

Be sure to explain the reasons for this correction on line 21.

line 10 (column 3)

8. Tier II Employer Tax—Compensation

x .0145

line 10 (column 4)

If the amount in column 3 used a minus sign,

If you are correcting the compensation (other than tips) for the

also use a minus sign in column 4.

Tier II Employer tax you reported on line 3 of Form CT-1, enter

the total corrected amount in column 1. In column 2, enter the

Be sure to explain the reasons for this correction on line 21.

amount you originally reported or as previously corrected. In

column 3, enter the difference between columns 1 and 2.

11. Tier II Employee Tax—Compensation

If you are correcting the compensation, including tips reported,

line 8 (column 1)

for the Tier II Employee tax you reported on line 6 of Form

-line 8 (column 2)

CT-1, enter the total corrected amount in column 1. In column

line 8 (column 3)

If the amount in column 2 is larger

2, enter the amount you originally reported or as previously

than the amount in column 1, use a

corrected. In column 3, enter the difference between columns 1

minus sign in column 3.

and 2.

Multiply the amount in column 3 by the rate that applies to

the year you are correcting and enter that result in column 4.

line 11 (column 1)

If the amount in column 3 used a minus sign, also use a minus

-line 11 (column 2)

line 11 (column 3)

If the amount in column 2 is larger than the

Example — Tier II Employer compensation decreased.

amount in column 1, use a minus sign in

Following Example — Tier I Employer compensation decreased

column 3.

in the instructions for line 6a, the compensation that you

Multiply the amount in column 3 by the rate that applies to

counted twice was also Tier II Employer compensation.

the year you are correcting and enter that result in column 4.

Because you are correcting your 2010 Form CT-1 in this

If the amount in column 3 used a minus sign, also use a minus

example, use the rate from line 3 (12.1%) shown on that return.

To correct the error, figure the difference on Form CT-1 X as

Example — Tier II Employee compensation decreased.

shown.

Following Example — Tier I Employer compensation decreased

in the instructions for line 6a, the compensation that you

Column 1 (corrected amount)

7,000.00

counted twice was also Tier II Employee compensation.

Column 2 (from line 3 of Form CT-1)

- 9,000.00

Because you are correcting your 2010 Form CT-1 in this

Column 3 (difference)

- 2,000.00

example, use the rate for line 6 (3.9%) shown on that return. To

Use the difference in column 3 to determine your tax

correct the error, figure the difference on Form CT-1 X as

correction.

shown.

Column 3 (difference)

-2,000.00

Column 1 (corrected amount)

7,000.00

Tax rate (12.1%)

x .121

Column 2 (from line 6 of Form CT-1)

- 9,000.00

Column 4 (tax correction)

-242.00

Column 3 (difference)

- 2,000.00

Use the difference in column 3 to determine your tax

Be sure to explain the reasons for this correction on line 21.

correction.

9. Tier I Employee Tax—Compensation

Column 3 (difference)

-2,000.00

If you are correcting the compensation, including tips reported,

Tax rate (3.9%)

x .039

for the Tier I Employee tax you reported on line 4 of Form CT-1,

Column 4 (tax correction)

-78.00

enter the total corrected amount in column 1. In column 2, enter

the amount you originally reported or as previously corrected. In

Be sure to explain the reasons for this correction on line 21.

column 3, enter the difference between columns 1 and 2.

12a. Tier I Employer Tax—Sick Pay

line 9 (column 1)

12a. Tier I employer tax — sick pay. If you are correcting the

-line 9 (column 2)

line 9 (column 3)

If the amount in column 2 is larger than the amount

sick pay for the Tier I Employer tax you reported on line 7a of

in column 1, use a minus sign in column 3.

Form CT-1, enter the total corrected amount in column 1. In

column 2, enter the amount you originally reported or as

Multiply the amount in column 3 by .062 (6.2% tax rate) and

previously corrected. In column 3, enter the difference between

report that result in column 4.

columns 1 and 2.

line 9 (column 3)

x .062

line 12a (column 1)

-line 12a (column 2)

line 9 (column 4)

If the amount in column 3 used a minus sign,

line 12a (column 3)

If the amount in column 2 is larger than the

also use a minus sign in column 4.

amount in column 1, use a minus sign in

Be sure to explain the reasons for this correction on line 21.

column 3.

-6-

Instructions for Form CT-1 X (2011)

Instructions For Form Ct-1 X - Adjusted Employer'S Annual Railroad Retirement Tax Return Or Claim For Refund Page 7

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