Hi @tu_ultimate.
I completely understand how confusing that line of the 941 is. Believe me, we get this question frequently. Let me explain.
All of the wages for the Quarter are included on the 941, however, Page 1, Line 1 only includes any employees paid with a pay period that included the date of December 12 (for Q4) in accordance with the IRS instructions.
So, in your case, all 22 employees’ wages are included and reported on this form, but only those employees that have a paycheck with the specific pay period of Dec 12 are included in this particular line. It’s the same in every quarter, line 1 shows the number of employees that have a check with a pay period including the 12th day of the last month of the quarter.
For additional details on the 941 form, check out: How QuickBooks populates Form 941
Let me know if I can help clarify further, or if you have any additional questions. I’m a quick click away!
Have a good one.
