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February 3, 2024
Question

Need to file Form 941 x if box 2 reported incorrectly but amount of taxes paid is correct?

  • February 3, 2024
  • 1 reply
  • 0 views

I have an LLC taxed as an S Corp that I started in 2023. I filed form 941 for Q4 (first quarter where wages were paid) and I realized I made a mistake on line 2 "Wages, tips, and other compensation" by including employee tax deferred solo 401k contributions as part of this amount. However, the taxable social security and medicare wages I reported were correct. The federal witholding is also correct since I witheld a bit extra to cover my estimated federal income tax payments for the quarter. So, the amount I paid in taxes is correct.

 

Looking at form 941 x, would this fall under process 1 in Part 1 Adjusted Employment Tax Return?  I am only concerned because line 2 on my form 941 will not match Box 1 on my W2 (which I also had to correct due to the same issue), even though the correct taxes were paid.

 

Thank you for the help

1 reply

February 5, 2024

The Social Security Administration matches W2s and 941s and notes discrepancies.  If you don't file a 941X you will probably receive a letter asking for an explanation at which point you will have to file a 941X anyway so I would just get it out of the way and skip the letter.

 

@sethayo 

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