4-8. Gather your information about the social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments that you reported. When entering money amounts from your Forms 941 and W-2 (Copy A) on lines 4 -14, you may round to the nearest dollar. Do not show dollar signs but do use commas as appropriate. Show an amount (even if it is zero) for each column of a line.

In Column A, fill in the amount you reported to the IRS for the tax year for each of the items. Add the totals from all Forms 941, as corrected by any Forms 941c, and write your answers on the appropriate lines.

In Column B, fill in the amount you reported to SSA for each of the items. Add the totals from all Forms W-2 (Copy A), as corrected by any Forms W-2c (Copy A), and write your answers on the appropriate lines.

Calculate the differences between the entries in the columns:

Enter any negative result in parentheses, if possible. For example, if line 6, Column A is “-0-” and line 6, Column B is “6,000,” write “(6,000)” in line 6, Column C.

If no Forms W-2 (Copy A) were filed by you, write “-0-” in column B, “Amount you reported to SSA for the tax year.”

If you are filing for one transaction only, STOP here. If you are filing for more than one transaction, go to Part 3.

If you are filing only one Schedule D (Form 941) for the calendar year, leave this part blank.

When more than one statutory merger, consolidation, or acquisition occurs during a calendar year, file a separate Schedule D (Form 941) for each transaction. Complete Part 3 for each transaction. For instance, if you have 11 different transactions in a calendar year, you need to file 11 different Schedules D (Form 941). Part 2 would be the same for each schedule. Part 3 would show one of the 11 transactions. For example, the amount entered in Part 2 on line 4 for Column C should equal the total of all 11 entries in Part 3 on line 10 for Column C.

9. Show the number of schedules that you are filing for the year and identify which schedule this is. For example, if you had three different transactions in a calendar year and you are filing a Schedule D (Form 941) to describe the second transaction, fill in “2” and “3” so that the sentence reads: “This is schedule 2 of 3. ”

10-14. For purposes of Part 3, Columns A and B, the term “employees affected by the transaction reported on this Schedule D” means those employees who received wages that were reported on Forms 941 filed by one employer but whose wages were reported on Form W-2 (Copy A) filed by another employer as a result of this particular transaction. Report the totals for social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments.

In Column A, fill in the amount you reported to the IRS for the tax year for employees affected by the transaction reported on this Schedule D (Form 941) for each of the items. Add the totals from all your Forms 941, as corrected by any Forms 941c, and write your answers on the appropriate lines.

In Column B, fill in the amount you reported to SSA for the tax year for employees affected by the transaction reported on this Schedule D (Form 941) for each of the items. Add the totals from all Forms W-2 (Copy A), as corrected by any Forms W-2c (Copy A), and write your answers on the appropriate lines.

Calculate the differences between the entries in the columns:

Enter any negative result in parentheses, if possible. For example, if line 12, Column A is “-0-” and line 12, Column B is “6,000,” write “(6,000)” in line 12, Column C.

If no Forms W-2 (Copy A) were filed by you, write “-0-” in Column B, “Amount you reported to SSA for the tax year.”

We ask for the information on Schedule D (Form 941) to carry out the Internal Revenue laws of the United States. If you file this form, you are required to give us the information requested. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103 of the Internal Revenue Code.

The time needed to complete and file Schedule D (Form 941) will vary depending on individual circumstances. The estimated average time is: Recordkeeping, 11 hr., 43 min.; Learning about the law or the form, 18 min.; Preparing, copying, assembling, and sending the form to the IRS, 30 min. If you have comments concerning the accuracy of this time estimate or suggestions for making Schedule D (Form 941) simpler, we would be happy to hear from you. You can write to: Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406, Washington, DC 20224. Do not send Schedule D (Form 941) to this address. Instead, see Where Should You File? on page 2.