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Biweekly 941 set up

I just recently switched over to biweekly deposits for my 941 taxes.  I set up the change to biweekly and everything is working great EXCEPT my pay periods.  Everyone of them are wrong and I cant figure out how to correct them.  They pay periods are correct on the payroll screen and on the paychecks and direct deposits. How do I change the pay period for my 941 bi weekly deposits to match payroll?  

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Best answer 12-10-2018

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"How do I change the pay period for my 941 bi weekly depo...

"How do I change the pay period for my 941 bi weekly deposits to match payroll?  "

It won't, because you are comparing the wrong two things.

The 941 is based on Pay Date, not Pay Period. Think about this fact: You owe Taxes because you issued Paychecks. That's why Pay Period is not "PERIOD" when you look at Liabilities.

Period, for Liabilities, is based on the Cycle of your due date, and then the Pay Date. Examples:

If you pay your Employees Bi-Weekly, and you pay 941 "Bi-Weekly" what you really as describing is "Semi-weekly" for IRS purposes, or "within 3 banking dates of the Pay date."

Monthly Depositor

Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month. Employers who deposit monthly should only report their deposits quarterly or annually by filing Form 941 or Form 944.

Semi-weekly Depositor

Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Report your deposits quarterly or annually only by filing Form 941 or Form 944.



Example: You pay every other Friday, so excluding weeks with Banking holidays, the Tax Payment is due by the next Wed (three banking dates = Monday, Tuesday and Wednesday). Note that the Liability PERIOD really is described as: "for payments made on Wednesday, Thursday, and/or Friday."

Monthly Example: I pay on the 5th for the previous Month. So, for the Pay Date of July 5th = Pay 941 by Aug 15. The Pay Period was for June.

The PERIOD can be July 5-July 5, or July 1-31. It is the Same thing = for all Paychecks dated in July, the 941 taxes must be paid by Aug 15.


Pay Period = the time being paid for

Work Week = typically needed to determine OT

Liability Period = because Funds are moving


I hope that helps.




6 Comments
Established Community Backer ***

"How do I change the pay period for my 941 bi weekly depo...

"How do I change the pay period for my 941 bi weekly deposits to match payroll?  "

It won't, because you are comparing the wrong two things.

The 941 is based on Pay Date, not Pay Period. Think about this fact: You owe Taxes because you issued Paychecks. That's why Pay Period is not "PERIOD" when you look at Liabilities.

Period, for Liabilities, is based on the Cycle of your due date, and then the Pay Date. Examples:

If you pay your Employees Bi-Weekly, and you pay 941 "Bi-Weekly" what you really as describing is "Semi-weekly" for IRS purposes, or "within 3 banking dates of the Pay date."

Monthly Depositor

Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month. Employers who deposit monthly should only report their deposits quarterly or annually by filing Form 941 or Form 944.

Semi-weekly Depositor

Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Report your deposits quarterly or annually only by filing Form 941 or Form 944.



Example: You pay every other Friday, so excluding weeks with Banking holidays, the Tax Payment is due by the next Wed (three banking dates = Monday, Tuesday and Wednesday). Note that the Liability PERIOD really is described as: "for payments made on Wednesday, Thursday, and/or Friday."

Monthly Example: I pay on the 5th for the previous Month. So, for the Pay Date of July 5th = Pay 941 by Aug 15. The Pay Period was for June.

The PERIOD can be July 5-July 5, or July 1-31. It is the Same thing = for all Paychecks dated in July, the 941 taxes must be paid by Aug 15.


Pay Period = the time being paid for

Work Week = typically needed to determine OT

Liability Period = because Funds are moving


I hope that helps.




Active Member

Thank you for providing such a detail response! This make...

Thank you for providing such a detail response! This makes perfect sense now.
Established Community Backer ***

That "Period" setting is also how the program determines...

That "Period" setting is also how the program determines what you paid For, for which Quarter. If you think you manually overrode anything, you will want to go back and double-check PERIOD, in liability checks.

Example: You thought Period was pay period, so you entered June 26-July 9 when you paid on July 15. That PERIOD overlaps a Quarter end, and that will confuse the program for purposes of the 2nd quarter and the 3rd quarter 941 forms.

Established Member

Re: Biweekly 941 set up

So if you pay paychecks every week and are a Semi weekly depositor are you basically paying deposits every week? 

QuickBooks Team

Re: Biweekly 941 set up

Reading on the thread above, I'd say yes, llong,

 

You'll have to deposit the taxes the following week and report them quarterly. Our Allstar's @qbteachmt reply provides you detailed information.

 

You can always swing by anytime if you have questions.

Established Community Backer ***

Re: Biweekly 941 set up

@ShiellaGraceA

 

Please learn from this input.

 

@llong

 

No, this is Not the case: "So if you pay paychecks every week and are a Semi weekly depositor are you basically paying deposits every week?"

 

Only When you pay, do you owe taxes. So, you only Pay Taxes based on when you issue Paychecks. If you issue paychecks Monthly, you only pay the taxes Monthly, under the "semi-weekly" cycle, because Semi-Weekly = By the Third Banking date, and the Fed have two different weekdays they use for their own Due Date cycle: Wed and Fri.

 

So, the "Wed or Fri" explains why the Feds named it Semi-Weekly.

 

Next, when you are assigned to that cycle, you figure out Which Fri or Which Wed applies to your tax deposit due day, based on your Paycheck Day.

 

Use this to figure it out:

 

If the Pay DAY is a Wednesday, Thursday, and/or Friday; your tax payment is Due By the following Wednesday.

 

If the Pay DAY is a Saturday, Sunday, Monday, and/or Tuesday; your tax payment is Due By the following Friday.

 

Under the Accelerated or Semi-Weekly Cycle, there are only the 2 Due Dates: a Wed or a Fri, depending on the Pay Day of the week you issued checks. Not How Many or How Often you pay or What is the pay period.

 

Taxes are owed because a Paycheck was issued = money happened. Look at that Calendar Week Day. That sets when the taxes are now due.

 

If you only pay your staff Quarterly, the Day of the Week is all that matters, for the Due Date of your tax payment.