bill-deja[at]weacca.com wrote:
- quote -

income tax withheld and continue to march.

ChEAr$,
Harlan Lunsford, EA n LA

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I am the sole owner and also the sole employee of an S-corp. I live
and work in a state with no income tax, so only Federal employment
taxes are an issue. The corpoartion is required to make employment
tax deposits on a monthly schedule. In January 2009, I somehow
miscalculated the amount of social security tax to withold, and
witheld about $4 too much (from a ~1600 paycheck). Medicare and
Income tax witholding were correct, and the corresponding tax deposit
was for twice the actual SS witholding plus twice the actual Medicaid
witholding, plus the income tax witholding. I discovered the error
while trying to complete the 1st quarter f941, and discovered that
total first quarter social security witholding was about $4 too
high.

How should I proceed? Should I arrange for the corporation to refund
me the excess witholding immediately, do appropriate record keeping,
and file the 941 as if the overwitholding never happened [except
perhaps (on f941, line 17) to increase the corporation's January tax
liability, and decrease itsMarch liability, each by an amount equal to
the amount of overwitholding]? Or do I need to file the 941 to
reflect the overpayment, and then amend it? In the latter case, how
do I get the excess witholding into the corporation's total tax due
(on line 8)? Fraction of cents adjustment, even though the amount is
clearly too large for any possible rounding error? Does the answer
depend on whether the refund occurs before the due date of the
corporation's last tax deposit for the quarter [April 15]?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >