Yearly 940 Report Errors

Hey there, marie20. Let me share some information regarding the limitation on QuickBooks Desktop (QBDT). 

In QuickBooks Desktop, processing large numbers, such as amounts exceeding $9,999,999.99 is unavailable. Therefore, you'll need to export and file this information manually outside of QuickBooks.

Regarding what reports to run to complete this form, you can pull up a Payroll Summary/Detail Report. This way, you can see all of the transactions including the wages, taxes, and other deductions for each of your employees. 

Here's how: 

1. Go to the Reports menu.
2. Choose the Employees & Payroll option. 
3. Click the Payroll Summary. 
   

In addition, you may visit this material to learn more about exporting your reports in QBDT: Export reports as Excel workbooks in QuickBooks Desktop. 

Furthermore, you can also customize reports in QuickBooks Desktop after pulling up the said report. 

If you have further inquiries, please hit the reply button. We're always here to guide you. 

Thank you, but I wish it was that easy.  Part 2 line 5 is what I am looking for a calculation for.

The payroll summary will give me total payroll, but I need 'Total of payments made to each employee in excess of $7000.' and this report does not calculate that.

Was hoping for a 940 report that calculates this.

There is no report that explicitly does that, but you could finesse one fairly easily.

You would need to export a payroll summary for the entire year to Excel and insert a line underneath the line containing the relevant wages for the employees.

In that line, you would want to enter an Excel formula for the proper calculations in the cell underneath the first employee's relevant wages. The exact form of that formula would change based on how many lines are involved in your payroll summary, but in general, it would look like this:

=IF(E7-7000>0,E7-7000,0)

This formula would effectively be subtracting 7,000 from the employee's relevant wage and checking if the result is greater than 0. If it is greater than 0, the result is returned to the cell containing the formula. If it is not greater than 0, 0 is returned to the cell containing the formula. It's important to structure it like this so that the excess wages per employee do not come back as a negative dollar amount in the case of people who earned less than $7,000.00.

After you create that formula, you can 'drag' the formula to the right, all the way to the column right before the Total column.

Under the Total column at the far right of the Excel sheet, you would want to use a SUM formula on, in the case of my example, A8:AG8, or =SUM(A8:AG8). As before, the exact columns and row numbers involved would depend on the scale of your payroll summary. As with all the other formulae, this would be typed into the cell underneath the relevant Total Wages.

This SUM formula would return the total wages paid to all employees in excess of $7,000.00 for the year to the cell containing the SUM formula.

As a final note, I am sadly not surprised that Quickbooks couldn't find it in their hearts to conjure up something as simple as another decimal place.

Well, this is embarrassing. I seem to have been incorrect about the lack of reports for this.

I do not know if it is in the Enterprise Suite, but at least in Quickbooks Accountant Desktop 2021, there is a report called Tax Form Worksheets.

To find it, you go to:

>Reports

>Employees and Payroll

>More Payroll Reports in Excel

>Tax Form Worksheets

You'll want to make sure to only have one instance of QuickBooks open, and probably no other Excel files, but it will generate the report you want for the 940, among other things.

Thank you!  All of this info is very helpful!

well unfortunately, in true quickbooks fashion, the 940 report under 'tax form worksheets' is also not calculating properly.  It seems to maybe only be pulling a few months....

Time to switch to a new payroll system honestly.

Well, that does sound like QuickBooks.

The only explanation that occurs to me at the moment is that the date range wasn't adjusted to contain the entire year. Even though it should do that automatically, it probably doesn't always do that.

A switchover would likely be wise, yeah. It's obvious they're crippling Desktop and the hardier versions of QuickBooks on purpose lately in an attempt to create parity with Online without... well, improving Online.