Mapping payroll items to 941 lines

sakcpa · ‎April 16, 2020

QuickBooks Online Payroll produced and filed an incorrect Form 941 for my client for 1Q2020, and we have not been able to get it resolved by calling support. The specific problem is that the Gratuity pay was not broken out on line 5b of the 941. Although not in the restaurant business, my client pays a significant portion of employee compensation as gratuity, so it makes a big difference in his work comp. After several calls to support, we've been told "we don't do that until it reaches at least $137,000 per year" (that's a new one on me), and a couple of other lame excuses, and NO ONE has offered a solution. In fact most of the people we've talked to seemed baffled that we were even asking the question. How do small restaurants use QB Online Payroll to report their tips? Is there a way for me to map these items without wasting more hours on hold with people that don't have a clue? FYI - when we originally set up the payroll in February we called and specifically asked if the gratuity pay was mapped to line 5b and the answer was "yes". Seriously, this can't be that hard.

ReymondO · ‎April 16, 2020

I'll help you set up your gratuity pay in QuickBooks Online (QBO), @sakcpa.

We can use cash tips or paycheck tips to record the gratuity pay so that it will be mapped in 941 boxes 2, 5b and 5c. Here's how:

Go to the Workers menu and select Employees.
Click the name of the employee, then select the Pencil icon beside Pay.
In the How much do you pay New? section, click the Pencil icon to add additional pay types.
Select either the Cash tips box or Paycheck Tips box.
Click Done.

Once done, create a paycheck that only includes the cash or paycheck tips. Make sure that the date belongs to the first quarter of this year.

You can also run payroll reports to check the amounts in your payroll transactions.

Feel free to go back to this thread if you need anything else. I'll be more than happy to provide you further assistance.

View solution in original post

ReymondO · ‎April 16, 2020

I'll help you set up your gratuity pay in QuickBooks Online (QBO), @sakcpa.

We can use cash tips or paycheck tips to record the gratuity pay so that it will be mapped in 941 boxes 2, 5b and 5c. Here's how:

Go to the Workers menu and select Employees.
Click the name of the employee, then select the Pencil icon beside Pay.
In the How much do you pay New? section, click the Pencil icon to add additional pay types.
Select either the Cash tips box or Paycheck Tips box.
Click Done.

Once done, create a paycheck that only includes the cash or paycheck tips. Make sure that the date belongs to the first quarter of this year.

You can also run payroll reports to check the amounts in your payroll transactions.

Feel free to go back to this thread if you need anything else. I'll be more than happy to provide you further assistance.

binks · ‎October 14, 2020

Did you ever find out anything on your problem? I seem to be having the same situation.

JonpriL · ‎October 14, 2020

Hello @binks,

The initial post has been marked by the customer as solved and accepted the solution. Can you tell me more of your concern saying you're in the same situation?

By doing so, I can share with you the steps to resolve it tailored with the help you need.

Hope to hear from you soon. Stay safe!

binks · ‎October 14, 2020

I have no trouble with the correct calculation of taxes on the tips. My situation is the tips are not feeding to line 5b of the 941. I have the line item setup correctly. The interesting thing to note is that I have probably 50+ companies that I run payroll for. All setup the same way. Some are feeding to the 941 line 5b correctly and some are not. This has been going on all year and I have been adjusting the form myself. My fear is that W-2's are going to be an issue since they wont feed the 941 correctly.

Adrian_A · ‎October 14, 2020

Hello there, binks.

For us to properly determine why line 5b in the W2 forms is not syncing, I recommend reaching out to our Phone Support team. We have designated agents that can take a look at your account and guide you step by step.

Here's how you can contact us:

From the Gear icon, click Contact Us.
Enter, a brief description of your concern.
Click Let's talk.
From there, choose how you'll want to get in touch with one of our Phone Support agents.

Let me know if you need help. Keep safe!

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Mapping payroll items to 941 lines