I am a professional accountant. I have noticed this quarter (2nd Quarter 2020) 941 reports do not match the amounts for payroll liability.
For example: I have a small business who only pays for their payroll on a quarterly basis. The 941 report says he only owes $176.73. The payroll liability says he owes $310.14. I have been doing this for years I know these amounts need to equal.
I figured out the issue with the 941 quarterly forms. It is not calculating Social Security wages on the form. I have the current Accountant Desktop version 2020. I purchased it last month. There is a bug in the calculations. I'm irritated because the price of accountant desktop went up and then I am having to do these forms by hand.
Thanks for getting back to us and sharing how you're able to determine the cause of the issue, @DKilpack.
I want to inform you that he investigation related to Form 941 is already closed and resolved. (
Let me also share with you the steps on how to get the recent update that will fix the zero amount for Social Security in Form 941.
First, let's reset update QuickBooks Desktop (QBDT) to clear all previous update downloads. Then, update your payroll to its latest release to make sure that the Social Security amount will reflect on the form.
Here's how to update QBDT:
Go to the Help menu and select Update QuickBooks Desktop.
In the Update Now tab, click the Reset Update checkbox to clear all previous update downloads.
Select Get Updates to start the download.
When the download finishes, restart QuickBooks.
Accept the option to install the new release when prompted.
Once done, you can follow these steps to download the latest payroll update:
In the Employees menu, select Get Payroll Updates.
Click Download Latest Update.
Then, open the tax form and check if the Social Security wages already showing up. If the amounts are already correct, you can now file this form to the IRS.
Yes, the issue is that the 941 form requires a QuickBooks program patch/update, but nowhere is that mentioned in the payroll updates nor are you notified when you run the form that the data sent from QB to the form is in an old format that is no longer sufficient for the form.
Both of these things, to tell customers to update QuickBooks, and to warn them if they don't, could have been implemented by Intuit - the mechanisms exist and they've done it before - but they didn't this time.
To make the form work, patch QuickBooks to the latest release.