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Level 1

form 940

QB Enterprise 2018 not computing the correct number for exempt payments - Part 2 Line 4.  Anyone else having this problem.  The company I am preparing the form has NO exempt payments yet there is some various number showing up.

4 Comments 4
Level 7

form 940

Does the company have any pre-tax payroll items such as health insurance?

Not applicable

form 940

Hi there, @Cindyj.


I'm here to help provide some information about why there are various numbers showing up on the Part 2 Line 4 of your 940. 


It could be one of your employees were exempted but at some point, their paycheck was not taxed. It's also possible that you have pre-tax payroll item mentioned by @QBsguru. You may refer to this article for more information about lines on the Form 940: How QuickBooks Populates The 940.


You can open your tax form worksheet at the bottom of the report to determine the possible reasons. Then you can make necessary adjustments on the income subject to tax.


Let me know how it goes. I'll be here to help if you have other questions. 



Level 1

form 940

I cannot find where to pose my question?

My total payroll is showing exempt on line 4 of the 940 form.

I did not have FUTA tax selected for each employee.

How do I correct the line 4 of the 940 form to reflect 3500.00 (7000.00 for each employee x5)

thank you

QuickBooks Team

form 940

Hi there, Gereauto.


I'll share steps to ensure that you're able to correct the 940 form.


I suggest going to the Payroll Taxes and Liabilities section to manually adjust the liability. This way QuickBooks will show the correct wage amount on the 940 forms.


Here's how:


  1. Go to the Employees menu.
  2. Select Payroll Taxes and Liabilities. Then, Adjust Payroll Liabilities.
  3. Make sure to select the correct date.
  4. Choose Employee from the drop-down list.
  5. Complete the Taxes and Liabilities fields.
  6. Select Accounts Affected and then OK.
  7. Repeat for other employees if you need to. Then, hit OK.



For additional information on how to finish the process, you can refer to this article: Adjust payroll liabilities in QuickBooks Desktop.


Please refer to this article to see different details on how to resolve FUTA-related errors when working on Form 940 in QuickBooks Desktop: Troubleshooting Form 940 with exempt FUTA wages.


Feel free to leave a comment below if there's anything else you need concerning payroll. I'm always around to help you out.

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