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Intuit

How QuickBooks Populates The 944

Learn how QuickBooks populates the form 944.

Federal Form 944 is used to report federal income tax withheld and employer and employee social security and Medicare taxes on wages paid to employees.

Lines on Page 1

See how QuickBooks populates each lines and an equivalent report from your payroll software.

Online Payroll: This number is pulled from the Company Federal Tax Information window.

To verify/change your EIN:

  1. Select the Gear icon then select Payroll Settings.
  2. Select Federal Taxes.  Under Federal Tax Setup, update your EIN.

Desktop Payroll: This number is pulled from the Company Information window.

To verify/change your EIN:

  1. Select on Company and then select My Company.
  2. Select the edit icon then select Company Information tab.
  3. Enter the correct EIN in the Federal Employer Identification Number field.
  4. Select OK.   You will have to create a new form once you've changed your company EIN.

Online:  This number is pulled from the Company Federal Tax Information window.

To verify/change this information:

  1. Select the Gear icon then select Payroll Settings.
  2. Select General Tax information.  Under Company General Tax Information update your Filing Name.

Desktop Payroll: This number is pulled from the Company Information window

To verify/change this information:

  1. Go to Company, select My Company.
  2. Select the edit icon and click the Legal Information tabs to make any necessary corrections.
  3. Select OK. You will have to create a new form once you've change your company address.

Online Payroll: QuickBooks Online pulls this information from the data provided in the Account and Settings window.

To verify/change this information:

  1. Select the Gear icon, then select Account and Settings.  
  2. Select the Edit icon next to Company name to your DBA name.

Desktop Payroll: QuickBooks Desktop pulls this information from data provided in the Company Information window.

To verify/change this information:

  1. Go to Company, then select My Company.
  2. Select the edit icon, then select the Contact Information.
  3. Select OK. You will have to create a new form once you've change your company address.

Online Payroll: QuickBooks Online pulls this information from the data provided in the Account and Settings window.

To verify/change this information:

  1. Select the Gear icon, the select Payroll Settings.
  2. General Tax information.  Under Company General Tax Information update your Filing Address.

 

Desktop Payroll: QuickBooks Desktop pulls this information from data provided in the Company Information window.

To verify/change this information:

  1. Go to Company, select My Company.
  2. Select the edit icon, then select Contact Information and Legal Information tabs to make any necessary correction to the address.
  3. Select OK. You will have to create a new form once you've change your company address.

QuickBooks calculates the total wages, tips, bonuses, overtime pay, etc., that are subject to federal income tax, and paid to the employee during the reporting year. Wages earned in the reporting year, but paid in the following year, are not included. Certain deductions that are not taxable to federal income tax such as 401(k), pre-tax medical, fringe benefits, etc., can affect this box. Click to learn about the Taxability of pay types and deductions how they affect this box.

Online Payroll: 

  1. Select Reports, then select Payroll Details report.
  2. Filter by the Quarter and include All Employees, then select Run Report.
  3. Scroll to the bottom of the report.
    1. Add up all of the pay types.
    2. Subtract any pre-tax items, such as 401(k), pre-tax medical, fringe benefits, etc.

Desktop Payroll

  1. Run the Payroll Item Listing Report.
  2. Filter the report and, in the Columns, clear everything but the Payroll Item and Tax Tracking type.
  3. Print the report. Put a check mark next to any item that has a tax tracking type of Compensation, Reported Tips, Dependent Care FSA, Section 457 Distribution, Non-qual. Plan Distr, Fringe Benefits, Other, Moving Expenses, 401(k), 403(b), 408(k)(6)SEP, Elective 457(b), Simple IRA, Taxable Grp Trm Life, Med Care Flex Spend, Premium Only/125, SCorp Pd Med Premium.
  4. Run a Payroll Summary report for the entire calendar year.
  5. Select Customize Report.
  6. Select the Filters tab.
  7. Under Current filter choices, select Payroll Item.
  8. In the drop-down line in the middle, pick Multiple Payroll Items.
  9. Check off all the payroll items you marked earlier.
  10. Run the report and add the amount for Adjusted Gross Pay to Total Employer Taxes and Contributions. The total should equal line 1 on Form 944.

To modify tax tracking for any payroll item:

  1. Go to the Payroll Item List.
  2. Double click the payroll item in question.
  3. Select Next until you get to Tax Tracking Type.
  4. Correct the tracking type, and select Next until you reach Finish. This will correct the form, but if the taxability changed, run a payroll check up to correct the taxable wage bases.

QuickBooks adds the total of the Federal Withholding (FIT) from the paychecks for the quarter.

Online Payroll: 

  1. Run a Payroll Details report. Look for the FIT amount and compare the numbers.

To prevent this from occurring in the future, obtain an updated W-4 from your employee:

  1. Select Workers or Payroll menu, then select Employees.
  2. Select the employee name to access their Employee details.
  3. Select Edit Employee to update the employee information.
  4. Scroll to Step 4, withholding and select the Edit icon.
  5. Update the withholding information as needed.
  6. For DIFY payroll, if there's a need for change contact payroll support and open up corrections and/or amendments case (additional fees may apply).

Desktop Payroll: 

  1. Run the Payroll Summary report for the calendar year. The total of the Federal Withholding will be line 2.
  • If you have Basic, Standard and Enhanced payroll: If an employee's federal withholding is incorrect, a liability adjustment for that employee will need to be entered. The amount of the adjustment may then need to be collected from or refunded to the employee.

To prevent this from occurring in the future, obtain an updated W-4:

  1. Go to the Employee Center, then select Employees tab.
  2. Double-click the employee's name.
  3. Select the Payroll Info tab.
  4. Select the Taxes button.
  5. Correct the filing status and allowances as necessary.

QuickBooks does not check this box for you.

QuickBooks pulls column 1 from the wage base of the Social Security payroll item minus the wage base tips. Column 2 is a calculated amount.

Online Payroll: 

  1. Select Reports, then select Payroll Details report.
  2. Next to Date Range select a quarter, then select Run Report.
  3. Under Total view the wage totals and subtract the tips totals. The result should match column 1 in Line 4a.

Desktop Payroll: 

  1. Go to Reports. Select Employees & Payroll, then select Payroll Summary.
  2. Select the Customize Report.
  3. Select the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Select the Filters tab.
  6. Select Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee.
  8. Clear any other selected items, and select OK.
  9. Select OK to return to the Payroll Summary report.
  10. Double-click the Social Security Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1, amount.

To correct line 4a, column 1: The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly.

Verify the setup of all payroll items used in the calendar year by selecting Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, select Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks Desktop will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

Report QuickBooks Desktop pulls column 1 from the wage base of the Social Security payroll item minus the wage base tips. Column 2 is a calculated amount.

QuickBooks pulls amounts for column 1 from the wage base tips of the Social Security payroll item. Column 2 is a calculated amount.

Online Payroll: 

  1. Select Reports, then select Payroll Details report.
  2. Next to Date Range select a quarter, then select Run Report.
  3. Under Total, view the tips totals.

Desktop Payroll:

  1. Go to Reports. Select Employees & Payroll, then select Payroll Summary.
  2. Select the Customize Report button.
  3. Selectthe Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Select the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee.
  8. Clear any other selected items and select OK.
  9. Select OK to return to the Payroll Summary report.
  10. Double-click the Social Security Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1 amount.

To correct, line 4b, column 1: 

Verify the setup of all payroll items used in the calendar year by selecting Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases. Select Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks Desktop will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

Report Run a payroll summary for the entire calendar year. Double-click either the total of Social Security Employee or Social Security Company.

QuickBooks supplies the number for column 1 from the wage base of the Medicare payroll item. Column 2 is a calculated amount.

Online Payroll: 

  1. Select Reports, then select Payroll Tax and Wage Summary.
  2. Next to Date Range select a quarter, then click Run Report.
  3. Under Federal Taxes (941/944), view the taxable wages for Medicare.

Desktop Payroll:

  1. Go to Reports. Select Employees & Payroll, then select Payroll Summary.
  2. Select the Customize Report button.
  3. Selectthe Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Select the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee.
  8. Clear any other selected items and select OK.
  9. Select OK to return to the Payroll Summary report.
  10. Double-click the Medicare Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1 amount.

To correct line 4c, column 1:

Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks Desktop will adjust Social Security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

QuickBooks supplies the number for column 1 from the wage base for the Medicare Employee Addl Tax payroll item. Column 2 is a calculated amount, but it should match the amount of tax withheld as calculated by QuickBooks Desktop (within a few cents rounding difference).

Online Payroll: 

  1. Select Reports, then select Payroll Tax and Wage Summary report.
  2. Next to Date Range select a quarter, then select Run Report.
  3. Under Federal Taxes (941/944), view the taxable wages for Medicare.

Desktop Payroll:

  1. Go to Reports. Select Employees & Payroll, then select Payroll Summary.
  2. Select the Customize Report.
  3. Select the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Select the Filters.
  6. Select Payroll Item in the Filter drop-down list, and then select Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, Medicare Company and Medicare Employee.
  8. Clear any other selected items and select OK.
  9. Select OK to return to the Payroll Summary report.
  10. Double-click the Medicare Employee Addl Tax Total amount to display the Transactions by Payroll Item report. The Wage Base column total should equal the line 4c, Column 1 amount.

To correct line 4d, column 1:

The wage base amount for Medicare Employee Addl Tax uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the year once the employee's wages exceed $200,000 as long as the payroll item was on the employee's record before the employee was paid $200,000. If the wage base amount is incorrect, your payroll item may be set up incorrectly, or you may not have had the Medicare Employee Addl Tax payroll item added to the employee's record before the employee was paid $200,000. Verify the setup of the Medicare Employee Addl Tax payroll item.

As long as you have at least one transaction with the Medicare Employee Addl Tax payroll item on the employee record, you can locate and fix any incorrect employee wage bases by selecting My Payroll Service then Run Payroll Checkup from the Employees menu. If any wage bases require correction, QuickBooks Desktop will post a liability adjustment to the employee if still in the same calendar year.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant.

If you didn't set up the Medicare Employee Addl Tax payroll item and didn't withhold this tax from employee's wages over $200,000, you'll need to report this to the IRS following the instructions here. (If you're a QuickBooks Desktop Payroll Assisted user, you need to contact Assisted Payroll support for assistance.)

QuickBooks adds column 2 of lines 4a, 4b, 4c, and 4d.

To verify your QuickBooks result: Use the verification steps for lines 4a, 4b, 4c, and 4d.

QuickBooks calculates the amount by adding lines 2 and 4e.

  • Online: QuickBooks automatically calculates fractions of cents.(Alternative) Fractions of cents are calculated automatically.
  • Desktop: You must manually enter the number to add any sick pay or adjustments to tips and group-term life insurance.

QuickBooks calculates this amount by adding lines 5 and 6.

Online: QuickBooks does not support this box.

Desktop: Check back for additional information soon.

Check back for additional information soon.

QuickBooks adds all the deposits for Federal Withholding, Medicare Employee, Medicare Employee Addl Tax, Medicare Company, Social Security Employee, and Social Security Company with a paid through date that falls within the year the 944 is reporting.

Online Payroll: 

  1. Select Reports and search for Payroll Tax Payments.
  2. Next to Date Range select the year, then click Run Report.
  3. View the tax payments made.  If line 13 does not match, then the payments need to be verified and updated.

Desktop Payroll:

  1. Run the Payroll Liability Balances report for the year the 944 is reporting.
  2. Select Customize Report.
  3. Change the Display columns by option to Total only.
  4. Select the Filters tab.
  5. Select Payroll Item under Current Filter Choices. In the middle, select the drop-down next to Payroll Item and pick Multiple Payroll Items. Check off only Federal Withholding, Medicare Employee, Medicare Employee Addl Tax, Medicare Company, Social Security Employee, and Social Security Company, and select OK.
  6. Select the Transaction Type under Choose Filter on the left. In the middle, select the drop-down next to Transaction type and choose Payroll Liability Check.
  7. Select OK.
  8. The total balance should equal the amount of line 8. This can be double-clicked to see the transactions that contribute to the total. Double check that all deposits have been recorded.

If you know you've made a deposit but don't see it, expand your date range to see if the deposit appears. If it does, double-click that deposit and change the Paid Through date so that it falls within the quarter it's supposed to.

If the number on line 8 doesn't match the report that was made, then a liability adjustment has been entered or a payment was entered incorrectly. To find a liability adjustment:

  1. Select Customize Report, then select Filters.
  2. Under Transaction Type, select Multiple Transaction Types and from the list that pops up pick Liability Adjustment. This will show you any liability adjustments made within the quarter in addition to your payments. Double check that the liability adjustment is actually needed. If you know you're recorded the deposit in your QuickBooks Desktop, find the deposit and check that the type is specifically LIAB CHK and not just CHK.

If the transaction has not been reconciled then you can delete it and record it as a payroll liability check.

QuickBooks takes the difference between line 8 and line 7. If line 7 is greater than line 8, the amount is entered on line 11.

QuickBooks takes the difference between line 8 and line 7. If line 8 is greater than line 7, the amount is entered on line 12.

Lines on Page 2

If the amount on line 7 is less than $2,500, QuickBooks checks the first box and does not list the liability amount.

Online Payroll: 

  1. Select Reports, then select Tax and Wage Summary Report.
  2. Filter by month and the employee, then select Run Report.
  3. Look for the totals under Federal Taxes (941/944).
  4. The totals should correspond the "Total Liability for quarter" of line 16.

Desktop Payroll:

  1. Go to Reports, select Employees & Payroll, then select Payroll Summary.
  2. Select Customize Report.
  3. Select the Display tab and then set the date range to the calendar year.
  4. In the Display columns by drop-down list, select Month, and clear the Hours and Rate checkboxes.
  5. Select the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee.
  8. Clear any other selected items and then select OK.
  9. Select OK to return to the Payroll Summary report.
  10. Ignoring any negative signs, add up each column's amounts for Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee taxes. The totals should correspond to the amounts in 13a through 13l. Any of the numbers on the report can be double-clicked to see what transactions contribute to their amounts.

QuickBooks Full Service Payroll, Core, Premium, and Elite: We will do this for you if you designate this during cancelation.  Additional fees may apply.  Service fees for QuickBooks Online Payroll.

Desktop Payroll: QuickBooks does not check this box for you. If this is your last or final return, you must manually check the box and enter a date.

QuickBooks does not check this box for you. This section must be filled in manually.

If you select No, continue on to Part 5. If you select Yes, fill in the designee's name and phone number and enter in a 5-digit number to be used by the designee as a personal identification number (PIN).

QuickBooks does not supply any of this information. You can manually fill in the fields for Print Name, Date, Phone, and Title.

QuickBooks does not supply any of this information. If the form is prepared by a third party, fill out the appropriate information in fields for Paid Preparer Name, Firm Name, Address, City, State, Zip code, Date, Preparer PTIN, and Firm EIN.

If you are using QuickBooks Desktop Premier Accountant Edition, this section can be automatically filled in using information located under the Company menu by clicking on My Company and clicking the Auto-fill Contact Info... button.

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