Payroll - Third party withheld taxes we prepare W-2

Good day, @Julissa5. I'm here to answer your queries about the third-party sick pay on your employee's 941.

There is no general rule that specifies that you need to print and mail or e-file your 941 form because of the adjustment in line 8. However, there are special cases where it's recommended to print and mail your 941 form just like this scenario.

That said, you have to file an amended form for 941 to correct your filing process. To do this, you need to prepare Form 941-X. Here's how: 

1. Go to Employees and select Payroll Tax Forms & W-2s.
2. Click Process Payroll Forms.
3. In the File Forms section, select Quarterly Form 941-X - Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.
4. Click Create Form and select the Filing period you want to correct, then click OK.
5. Select the return you are correcting and the quarter. Then, enter the calendar year you are correcting.
6. Enter the date you discovered the errors. Follow the specified format.
7. Select the process for correcting your employment tax and click Next, then enter the date you discovered the errors.
8. Under Part 1: Select Only One Process, make sure that the process selected is the same as the Interview part of the form.
9. Under Part 2: Complete the certifications, check at least one box, or select all that apply. Then, select Next.
10. Under Part 3, Enter the corrections for the quarter. If any line does not apply, leave it blank. Click Next.
11. Under Part 4, describe in detail each correction you entered in Part 3.  You may explain in paragraph form and attach any notices from the IRS if necessary

You can also refer to IRS Instructions for Form 941-X, for detailed instructions on how to complete the form. After that, you can now print and mail to your tax agency.

With regard to your second question, it's up to your clients whether they want to mail or e-file the forms. Although, there are cases such as this one where it's suggested to mail the form instead of e-file.

In addition, there are payroll-related reports you can run in QuickBooks Desktop to gather data about your employee info, wages, taxes, deductions, and many more: Run payroll reports.

I've got you covered if you have other questions regarding your QuickBooks. I can also help you accomplish your tasks in the program. 

Hi, 

In the past I had to do an 941x and I know that I have to send the paper file for that one but if the third party sent me the reports and I know the employer taxes to pay them and the employee taxes were withheld by third party, at the time of filing the 941 if I have the information and I adjust the employee taxes by reducing them in line 8 since the third party withheld then is fine for me to e-file or should I do a paper file in that case?