We appreciate you for raising your concern here, @robins1962.
Let me help you locate the difference of your 940 between your payroll window and the actual form QuickBooks created, then fix it.
First, run a Payroll Summary report to view the history of liability payments and adjustments to verify if you recorded it accurately. If you notice some discrepancies, we can perform a payroll liability adjustment, to fix the difference in your 940 payroll form. Here's how:
- Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
- Use these tips to help complete the fields.
- Use the same date as the last paycheck of the affected quarter. Use today's date if you’re working on the current quarter.
- The Effective Date is used to calculate amounts on your 940 and 941 forms as well as the Payroll Liability Balances Report.
- Select Employee Adjustment if the item you're adjusting is company-paid. It updates the YTD info reported on the employee W-2 form.
- Select Company Adjustment if you want the balance to be removed from the Payroll Liability Balances Report.
- Select the employee.
- Complete the Taxes and Liabilities fields.
- Select the Item Name you want to adjust.
- Enter the Amount of the adjustment. Use a positive number to increase or a negative to decrease the amount.
- Wage Base is rarely needed, even when you override a tax amount on a paycheck.
- You only use Income Subject to Tax when making a wage-based adjustment.
- You can use the Memo field to enter a note about the adjustment for future reference.
- Select Accounts Affected and then OK.
- Repeat for other employees if you need to, and select OK.
You can see additional detail in this article: Adjust payroll liabilities in QuickBooks Desktop Payroll.
Also, we suggest you work with an accountant while making the adjustments. It helps ensure that your books will be accurate and error-free.
Check out this article if you want to verify your current setup by scanning your payroll date for missing info and any potential errors: Run Payroll Checkup in QuickBooks Desktop Payroll.
Feel free to come back for additional questions about your 940 payroll form. I'll be willing to lend a hand. Keep safe and have a good one.
