941 error - Total taxes after adjustments does not equal the total quarter liability on page 2

It's good to see you here, McMillan.

Let me help you fix your concern with the 941 error in QuickBooks Desktop (QBDT).

The error aforementioned above is caused by the unequal amount of taxes calculated on Line 12 to the amount of taxes you’ve paid on Line 16. It usually happens if you have set up your payroll item incorrectly. You also want to check below for more details:

• Line 12: Total amount of taxes computed based on your employee's wages, and any nonrefundable shares of Employee Retention Credit (COVID), COBRA, or qualified sick leave
• Line 16: Total amount of taxes you paid

To rectify this, you can follow the steps outlined below:

1. Close your 941 forms and navigate to the Reports menu to open a Payroll Summary report. Then, select the date for the appropriate quarter.
2. In the Additions or Deductions sections on the report, note any payroll items.
3. Select the Lists menu, then go to the Payroll Item List.
4. Select the tax tracking type to fix payroll items.
5. Once done, run a Payroll Check-up to correct your wage amounts. Then, go back to your 941 form and select Check for errors.
6. Please take note that if you owe any additional taxes, be sure to pay the amount due. Then, if you are due a refund, you can request it from the IRS after you file the 941.

I also added this article for more details: Troubleshoot Form 941 in QuickBooks Desktop Payroll

Moreover, regarding your tax calculation concerns, I recommend you get in touch with your Pro Tax Advisor. This is to ensure that everything is calculated properly.

Furthermore, browse this resource to learn more about e-filing your federal tax forms and e-pay federal taxes: E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll Enhanced

Please don’t hesitate to comment if you have more concerns about the 941 form. The Community always has your back. Have a good one!

Hi. I'm not certain if I'm using the same account to post this reply, but I'm the OP. I have gone through the payroll checkup (it was a mess!) and it added even more taxes due! The previous clerk was marking people as being exempt from FICA! Anyway, on the run payroll checkup link it said I needed to enter wage base and tax adjustments and I do not understand this. The 941 shows that I owe $504 in taxes, why can't I just submit that 941, pay the $504 in taxes and be on my way? 

This situation happened earlier in the quarter and it rectified itself during the next pay period, all the required taxes were withheld at that time. I'm confident all these problems will rectify themselves after the next payroll.

Can you help me with this wage base and tax adjustments? I've attached a redacted print-off from the payroll check-up where there were discrepancies. It's my interpretation that QB wants me to increase the recorded withheld amount, but I don't think I should be doing that becase it hasn't actually been withheld yet. 

I really need help and would like to be able to file my 941 prior to the quickly approaching deadline. 

Good to have you back, McMillanClerk.

Fixing the tax amounts on the 941 can be a bit tricky, so I'd like to extend a helping hand and point us to the right direction to ensure we can fix the discrepancies. 

Submitting that $504 amount might cause more discrepancies on the next period. So, if you've confirmed that the payroll checkup reports the discrepancies correctly, then we would need to fix that to avoid more adjustments (and hefty penalties) on the next tax period. 

We're on the right path in correcting the amounts in your 941 form. We would just need to use the Adjust Payroll Liabilities, then select the Affect liability and expense accounts option to adjust the amounts on the payroll items or accounts with the discrepancies (as outlined in your PDF). 

To summarize the steps from the article: 

1. Go to the Employees menu, then hover on Payroll Taxes and Liabilities.
2. Choose Adjust Payroll Liabilities.
3. Select the Effective Date (for the current tax period for the 941). 
4. Click Employee Adjustment.
5. Select the affected employee from the drop down list.
6. Under the Taxes and Liabilities section, click the Item Name column. Then, choose the payroll or tax item (we can follow the PDF to look for the accounts affected). 
7. Enter the amount of the adjustment in the corresponding column. Negative to decrease and positive to increase. Enter a Memo if needed. 
8. Click Accounts Affected, then select Affect liability and expense accounts.
9. Click Next Adjustment button at the top if you want to adjust another employee. When you're done, click OK to save your changes.

However if you still need help with the tax adjustments, our agents can assist you in managing the amounts and ensure they are correct. They can use their tools to guide you through the process of adjusting the amounts. Here's how to reach them: 

1. Press the F1 key to bring up the Help window. 
2. Click the Contact Us button. 
3. In the text box, enter something like "adjust 941 amounts", then proceed with Continue.
4. Choose how you want to reach us (phone or chat channel). 

The year-end tax season is just two months away. To make sure you're prepared for it, I'll share this guide in case you need help in the coming future: Year-end guide for QuickBooks Desktop (includes bank reconciliation). 

You're more than welcome to post here again if you have more questions about your tax forms and payments. Do you have any other concerns regarding your sales or expense entries? Or would you like some assistance in running reports? Let me know and I'll help you out. 

Hello there, McMillanClerk.

Thank you for being detailed about your concern, especially the screenshots. The information you provided sheds more light on what happened with your taxes.

Your tax calculations are correct based on the details. To correct the discrepancy, you must enter a positive adjustment for each employee. This step will also correct the liability amounts in the Pay Tax & Other Liabilities screen.

You can open any of the following reports to see if the liabilities are up to date:

• Payroll Summary report to verify if everything is correct.
• Payroll Liability balances report to check if the amounts to be paid are correct.

When you're ready to pay taxes, navigate to the Pay Taxes & Other Liabilities screen and choose the tax or other liability from the list. Go to the Pay your scheduled liabilities section of this article: Pay your non-tax liabilities in QuickBooks Desktop Payroll. It also explains how to make a custom payment.

These resources will walk you through the process of manually or electronically processing payroll tax payments and forms in QuickBooks Desktop (QBDT):

• Pay and file payroll taxes and forms manually in QuickBooks Desktop Payroll
• E-file and e-pay state forms and taxes in QuickBooks Desktop Payroll Enhanced

You can bookmark the link to our payroll hub for future use. It covers topics such as dealing with tax notices, processing payroll, managing employee information, and preparing tax forms.

If you require further assistance adjusting your taxes or other payroll concerns, drop a comment below and tag my name. I'll get back to help you. Enjoy your weekend.

I'm back for more help! I made the adjustments and the liabilities are greater than the difference on my 941!

I added up all the discrepancies listed on the redacted attachment from before and they equal the $646.45 shown here. I haven't paid it yet though. 

I calculated the 941 again after entering the adjustments and I'm still getting the original error I was getting (that lines 12 and 16 aren't matching) and it still shows that I need to pay $540. So I don't think what I've just done has helped my situation. I feel like the situation has gone from bad to worse and I really need your continued guidance. 

Hello, McMillanClerk.

I appreciate your time in working with us in the Community. We'd like to dig a little bit deeper on the 941 issue.

On your screenshot, I see that you're getting the "A tax payment is missing below" message. This might be what's causing the discrepancy on your 941, and why the lines 12 and 16 aren't matching.

This happens if there are any changes to the tax schedule, or if a tax item has no scheduled payment frequency selected. The previous clerk might've also made some changes to this, which threw off the amounts on the form. 

Let's take a look at this by clearing out the message. We'll want to click on the Go to Schedule Payments link, then select the frequency from there. 

If the discrepancy still appears, we'd like to investigate this further. Since we've already run the reports and made some adjustments, we'll want to contact our support regarding this matter. They'll use their tools to figure out what's causing the discrepancy down to the last cent. 

We can follow the steps I've outlined in my previous reply. Though for convenience, I'll reiterate the steps below: 

1. Press the F1 key to bring up the Help window.
2. Click the Contact Us button.
3. In the text box, enter something like "adjust 941 amounts", then proceed with Continue.
4. Choose how you want to reach us (phone or chat channel).

Aside from the year-end guide I've posted above, I'll also add the payroll-specific guide for the year-end tax season. Check it out if you need help in the near future: Year-end checklist for QuickBooks Desktop Payroll. 

Let me know if you have concerns regarding your 941 and other tax forms. Should you have any other concerns about your entries like sales, expenses, and other reports, lay down the details below. Always here to help. 

I am receiving the same error, but my line 10 is equal line 12. Line 13 is slightly higher with a overpayment listed in line 15.

What is there to correct? I've tried rebuilding and verifying my data. I cannot proceed with filing the 941 due to the "error"

I have some information to share regarding the overpayment you have in QuickBooks Desktop (QBDT), RK898. 

When the there's an overpayment in Line 13 and Line 15, it's best to run a Payroll Detail Review report to confirm that these payroll items have the same amounts and also to view full employee details, including the four federal payroll taxes, and to identify any missing information.

Here's how: 

1. Go to the Reports menu, choose Payroll Detail Review report. 
2. From the Dates dropdown, select Last Calendar Quarter or according to your preference. 
3. Click the Customize Report, then go to Filters tab. 
4. From the Search Filters, enter Name, click the Name dropdown, then select All employees. 
5. In the Search Filters, enter Payroll Item, click the Payroll item dropdown, then choose Multiple Payroll items. 
6. Within the Select Payroll Item window, tick Medicare Company, Medicare Employee, Social Security Employee, Social Security Company, then click OK. 
7. Hit OK.
8. Compare the details if it contains the correct information by multiplying the Payroll Tax Rate to the Wage Base. The result should be the same with the Amount column. 

If there's an empty information within the report, you can adjust the payroll liabilities to correct employee's year-to-date (YTD) or quarter-to-date (QTD) payroll info. On the other hand, if you already performed the steps above yet the issue persists, it's best to contact our payroll support so they can investigate this further. 

Additionally, you can browse this resource to learn more about e-filing your federal tax forms and e-pay federal taxes: E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll Enhanced. 

Feel free to let us know if you have additional information as you followed the steps above, RK8981. We'll be around to help you.