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941 form manual payroll

How do you get your 941 form and payroll liabilities to match when you have fractions of cents differences?  Do you use general journal entries and then how will this affect your W2 forms?

 

I have a .24 cent differential from last calendar quarter on Medicare wages and I am concerned about how this will affect my W2's reports.

 

I do manual payroll..  Quickbooks Pro Desktop 2014

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Best answer 01-10-2019

Accepted Solutions
QuickBooks Team

Re: 941 form manual payroll

Hi there, compjones,

 

I'm here to help you fix your payroll liabilities in QuickBooks Desktop.

 

In addition to QBsguru's answer, we can create a liability adjustment to resolve these small cents differences on your Federal reports. Let me guide you on how to do that:

  1. Choose Employees.
  2. Select Payroll Taxes and Liabilities.
  3. Choose Adjust Payroll Liabilities.
  4. Select the correct Effective Date. It should be the same date as the last paycheck of the affected quarter or today's date if doing an adjustment that affects current quarter only.
  5. Select the Employee radio button if the adjustment affects the employee's YTD and Company if the adjustment is a company contribution.
  6. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item to adjust.
  7. Click Accounts Affected, choose Do not affect accounts or Affect liability and expense accounts.
  8. Click OK.

That should do it, compjones. You can check out this article to know more about creating liability adjustments in QuickBooks Desktop: Adjust payroll liabilities

 

Please let me know if you have any more questions about the process. I'm always around to get things done for you. Have a good one!

2 Comments
Established Community Backer *

Re: 941 form manual payroll

Run the reports for payroll reports from QuickBooks.  If manually preparing your 941 enter the 24 cents in the box for percentage of cents so that your liabilities equal your payments.  If you want you can adjust payroll tax expense by the 24 cents.  This will not affect your W2s.

QuickBooks Team

Re: 941 form manual payroll

Hi there, compjones,

 

I'm here to help you fix your payroll liabilities in QuickBooks Desktop.

 

In addition to QBsguru's answer, we can create a liability adjustment to resolve these small cents differences on your Federal reports. Let me guide you on how to do that:

  1. Choose Employees.
  2. Select Payroll Taxes and Liabilities.
  3. Choose Adjust Payroll Liabilities.
  4. Select the correct Effective Date. It should be the same date as the last paycheck of the affected quarter or today's date if doing an adjustment that affects current quarter only.
  5. Select the Employee radio button if the adjustment affects the employee's YTD and Company if the adjustment is a company contribution.
  6. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item to adjust.
  7. Click Accounts Affected, choose Do not affect accounts or Affect liability and expense accounts.
  8. Click OK.

That should do it, compjones. You can check out this article to know more about creating liability adjustments in QuickBooks Desktop: Adjust payroll liabilities

 

Please let me know if you have any more questions about the process. I'm always around to get things done for you. Have a good one!