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walkupse
Level 2

2020 Form 940 not calculating exempt payments correctly

I am having trouble with my 2020 Form 940.  On the Interview page, the amount that QuickBooks has determined my exempt payments to be (which gets entered on Line 4 of the return) is not equal to the total of all exempt payments listed in the "Classification" section.   I ran a Payroll Summary Report for the year, and the itemized numbers in the "Classification" section are correct.   

 

This is causing an error on my return, since the amount QuickBooks has calculated for Line 4 does not match the information in the Classification section of the Interview page.  The amount being generated for Line 4 is off (less) by exactly the amount of our FFCRA/National Paid Leave wages, so I am assuming that has something to do with the problem.  I used the default (QB-generated) tax settings for the National Paid Leave payroll item.  Are FFCRA/National Paid Leave wages supposed to reduce the value of our FUTA exempt payments, or is this an error with the QuickBooks form?

25 Comments 25
MadelynC
Moderator

2020 Form 940 not calculating exempt payments correctly

Thanks for alerting us, @walkupse.


Recently, we’ve received a report concerning form 940 that isn’t calculating exempt payments correctly. We are aware of this issue, and our engineers are now working on a fix.


I recommend contacting our Payroll Support team so they can add you to the list of affected users. That way, you’ll be able to receive updates once the resolution is implemented. Just make sure to connect with them between 6:00 AM prior to 6:00 PM pacific time so you’ll be assisted right away.  


Here are the steps to connect with them:

 

  1. Open your QuickBooks account.
  2. Go to Help, then select QuickBooks Desktop Help.
  3. Select Contact Us.
  4. Enter form 940 that isn’t calculating exempt payments correctly” in the box, then press Search.
  5. Click the Start a Message button.

You can present this investigation number INV-53409 to our support for quick navigation.


I've added this article, so you have a reference once the form 940 is ready to E-file in QuickBooks. It has the information you need to know about the requirements and steps for electronic filing.


Don't hesitate to get back if you have other form concerns. I’m always here to help. Keep safe.

chadmac
Level 3

2020 Form 940 not calculating exempt payments correctly

I am having the same issue but the steps you provided to be added to the list of affected users do not work as described.  Please add me to the list of affected users.

Catherine_B
QuickBooks Team

2020 Form 940 not calculating exempt payments correctly

Hello there, chadmac.

 

Another way on how to get in touch with us is through this link: https://quickbooks.intuit.com/learn-support/en-us/contact. Just select the product and edition you have and then enter the investigation (INV) number. Click Continue and you'll be routed to the list you'll want to connect with us. 

 

Thanks for your patience while we're working on a permanent fix to this issue. Always know the Community is available to assist you with anything else. Take care!

chadmac
Level 3

2020 Form 940 not calculating exempt payments correctly

I tried connecting with support via the link provided and unfortunately I was connected to one idiot after another.  The following is the transcript from my chat session.  I am absolutely incensed with the customer service I have received.

 
 
Info
 at 9:03, Jan 8:
Please wait while we connect you.
 
Peter Jude Q
 at 9:03, Jan 8:
Hi! Thank you for messaging Intuit QuickBooks Pro Premier. My name is Peter. I hope you are doing well today. I'll be happy to assist you today.
 
You
 at 9:06, Jan 8:
Great, thanks. Did my initial message go through? I simply want to be added to the list of affected users for the Form 940 issue so I can be contacted when the issue is fixed. The investigation number is INV-53409. Read
 
Peter Jude Q
 at 9:06, Jan 8:
Don’t worry I got you covered, I will need to clarify a few things so I can give you the best recommendation and get you back to business as soon as possible.
 
Peter Jude Q
 at 9:06, Jan 8:
First, I need to review your payroll account. May I have your Federal EIN please? And for security purposes, please place it on the Secure Form that I'll be sending and select Other.
 
Peter Jude Q
 at 9:07, Jan 8:
Peter Jude Q has sent you a Secure Form: Care Information
 
You
 at 9:07, Jan 8:
I process payroll for many company files. Should I provide one of my client's EIN's or my firm's EIN? Read
 
Peter Jude Q
 at 9:08, Jan 8:
The one you have concern with today.
 
You
 at 9:09, Jan 8:
The concern applies to all of my clients since your software is once again messed up. Read
 
You
 at 9:10, Jan 8:
It is not properly calculating Form 940. Your online support forums instructed users with the same issue to contact you and provide you with the investigation number so we could be added to the list of affected users. Read
 
You
 at 9:10, Jan 8:
It is not an individual issue. Read
 
Peter Jude Q
 at 9:13, Jan 8:
First, I need to review your payroll account. May I have your Federal EIN please? And for security purposes, please place it on the Secure Form that I'll be sending and select Other.
 
Peter Jude Q
 at 9:13, Jan 8:
Peter Jude Q has sent you a Secure Form: Care Information
 
Peter Jude Q
 at 9:13, Jan 8:
The following Secure Form has been submitted: Care Information
 
You
 at 9:14, Jan 8:
That is the EIN for one of my payroll clients Read
 
Peter Jude Q
 at 9:15, Jan 8:
Thank you for that information.
 
Peter Jude Q
 at 9:15, Jan 8:
How was your experience contacting us?
 
You
 at 9:16, Jan 8:
So far, not great since you don't seem to be following along very well. Are we done or something? Read
 
Peter Jude Q
 at 9:17, Jan 8:
We appreciate your patience as we work to maintain the safety of our experts. At this time, we are not offering phone support options due to staffing. We apologize for any inconvenience and are doing our best to solve all critical issues for you.

Anyhow, thank you for the feedback. Please take note of this direct link so you can reach support easily next time; http://intuit.me/qbdt
 
Peter Jude Q
 at 9:18, Jan 8:
We are still in the process of verifying your account.
 
You
 at 9:19, Jan 8:
Then why would you ask, "How was your experience contacting us?" which implies you are concluding the chat? Your customer service is terrible and lately your product has been terrible as well considering the issues with the CA SDI rate which took you a long time to finally correct. This is unacceptable. Read
 
Peter Jude Q
 at 9:22, Jan 8:
Customer like you makes our service really terrible. Why can you just have patience? I mean we don't have control to any errors inside QuickBooks.
 
You
 at 9:24, Jan 8:
How are your reading comprehension skills (or lack thereof) my fault? You don't seem to be capable of following a simple chain of text and understanding what I am saying. Blaming me for your incompetence is absolutely ridiculous. Read
 
Peter Jude Q
 at 9:30, Jan 8:
Oh.
 
Peter Jude Q
 at 9:34, Jan 8:
I don't mean to rush you, are you still with me?
 
You
 at 9:34, Jan 8:
Yes, I'm waiting on you, remember? Read
 
Peter Jude Q
 at 9:34, Jan 8:
May I have your company name and email address, please?
 
You
 at 9:35, Jan 8:
 
I am from [company removed]. The EIN I provided you with is for [company removed]. My email address is [email address removed] Read
 
Peter Jude Q
 at 9:37, Jan 8:
Thank you for the information. Let me check on your account.
 
Peter Jude Q
 at 9:37, Jan 8:
While checking, kindly answer the following questions:
How many company files are you working on?
How many employees do you have?
How convenient it is for you to be able to access your files anywhere or working from home?
 
You
 at 9:39, Jan 8:
How does any of that have anything to do with my current issue? Read
 
Peter Jude Q
 at 9:43, Jan 8:
As much as I would like to assist you on this but our department only handles QuickBooks Desktop issues. Any issues relating to Intuit QuickBooks Accountant will be handled by our dedicated team of experts dealing with this kind of concern.  I will be transferring you over to Intuit QuickBooks Accountant.

Shall we proceed?
 
You
 at 9:45, Jan 8:
All I need is to be added to the affected users list for investigation number INV-53409. If that isn't something you can do, please transfer me to someone who can. Read
 
Peter Jude Q
 at 9:47, Jan 8:
As much as I would like to assist you on this but our department only handles QuickBooks Desktop issues. And upon checking here in my end you have Intuit QuickBooks Accountant.
 
Peter Jude Q
 at 9:47, Jan 8:
One moment here.
 
Info
 at 9:49, Jan 8:
We’re transferring you to someone else who can assist you.
 
Info
 at 9:49, Jan 8:
Allison P joined the conversation.
 
Allison P
 at 9:49, Jan 8:
Thank you for contacting your QuickBooks Online Advanced team! My name is Allie.

What can I resolve for you today?

You
 at 9:50, Jan 8:
All I need is to be added to the affected users list for investigation number INV-53409. The last representative wasted more than 45 minutes of my time so I'm hoping you will be better. Read
 
Allison P
 at 9:51, Jan 8:
Can you provide more details to the issue please?
 
You
 at 9:52, Jan 8:
It is an ongoing issue relating to the form 940 not calculating exempt payments correctly. Per your online support forums, users experiencing this issue were instructed to reach out to you to be added to the affected users list so we can be contacted once the issue has been fixed. Read
 
Allison P
 at 9:53, Jan 8:
I understand. Are you using QuickBooks Desktop or Online?
 
You
 at 9:54, Jan 8:
QuickBooks Desktop Premier Accountant edition. The last representative said he couldn't help because he only handles QuickBooks Desktop issues which doesn't make sense because I am using a version of QuickBooks Desktop. Read
 
Allison P
 at 9:55, Jan 8:
If you use strictly desktop payroll, I'm only trained in payroll for online.
 
You
 at 9:56, Jan 8:
Then why did he transfer me to you?!?!?!?! Read
 
Allison P
 at 9:56, Jan 8:
Not sure. Let me get you back to them.
 
You
 at 9:56, Jan 8:
That last representative was by far the worst I have ever had to deal with. He didn't seem to be capable of understanding anything I typed! Read
 
You
 at 9:56, Jan 8:
This is not complicated! All I want is to be added to an already existing case!!! Read
 
Allison P
 at 9:57, Jan 8:
In order for us to do that, we still need to go through the proper troubleshooting to determine if you apply to be added. It's not always black and white.
 
You
 at 9:59, Jan 8:
This situation most certainly is black and white. I explained everything to the last representative who looked up my account and said I needed to be transferred to you. This is absolutely terrible customer service. I have a business to run and your software is not working the way it is supposed to! It most definitely is not user error, it is an established issue affecting all Desktop users. Read
 
Allison P
 at 10:00, Jan 8:
Please stay with me while I transfer you to desktop.
 
Info
 at 10:01, Jan 8:
We’re transferring you to someone else who can assist you.
 
Info
 at 10:01, Jan 8:
Aiko N joined the conversation.
 
Aiko N
 at 10:03, Jan 8:
Hi! Thank you for messaging Intuit QuickBooks Pro and Premier Desktop Support. Pleased to meet you online. My name is Aiko. I greatly appreciate your patience for waiting. Rest assured that we will do our best to resolve your concern right away.
 
Aiko N
 at 10:04, Jan 8:
I'm sorry to know that you have been transferred, don't worry I will do my best to help you.
 
You
 at 10:04, Jan 8:
So far I have been transferred twice and I am extremely pissed off because my issue is not complicated so I really hope you are better than the last two people I have had to deal with. All I need is to be added to the affected users list for investigation number INV-53409. This is pertaining to a known and ongoing issue relating to the form 940 not calculating exempt payments correctly. Per your online support forums, users experiencing this issue were instructed to reach out to you to be added to the affected users list so we can be contacted once the issue has been fixed. Sent
 
Aiko N
 at 10:06, Jan 8:
I'm sorry for what happened, we will make sure to do what we can to fix it.
 
You
 at 10:06, Jan 8:
Are you going to be able to simple add me to the affected users list? Sent
 
You
 at 10:06, Jan 8:
simply* Sent
 
You
 at 10:06, Jan 8:
If not, I'm done wasting my time. Sent
 
Aiko N
 at 10:08, Jan 8:
I tried to review your concern here. However as much as I'd love to help you resolving your concern, we have a separate department who is trained regarding this issue.
 
You
 at 10:09, Jan 8:
All I want is to be added to the affected users list for investigation number INV-53409! It really cannot be this difficult! This is unbelievable... Sent
 
Aiko N
 at 10:10, Jan 8:
I understand your frustration, but I am not trained for this issue. I really apologize about that.
 
Aiko N
 at 10:11, Jan 8:
Don't worry, this time I'll make sure that I'll be transferring you to the correct department for them to better assist you.
 
 
 

I feel like I'm in the twilight zone.  This is absolutely insane.  After being transferred again, I finally ended up with someone who could actually do something and after about another 15 minutes, I was told that I am now (supposedly) on the list and should receive updates.  I am still extremely disappointed with the service I have received.

SashaMC
Moderator

2020 Form 940 not calculating exempt payments correctly

Hey chadmac,

I will be reaching out to you personally in a private message to guide you in getting this matter resolved. Until then, take care and be safe.

Charity w
Level 1

2020 Form 940 not calculating exempt payments correctly

I also found that QB determined a less amount of exempt payment than what it should be.  I just did the override to correct the amount.   That seemed to work for me.   It doesn't make sense why QB is calculating this incorrectly however. 

Carol Garner
Level 3

2020 Form 940 not calculating exempt payments correctly

It appears that the "National Paid Leave" is showing as a negative amount in the exempt payments screen and doesn't show in the Classification. I'll just override and correct the return, however it is disappointing to have to do that. 

chadmac
Level 3

2020 Form 940 not calculating exempt payments correctly

For those of you who are manually overriding the negative amounts showing up in the exempt payments section due to the National Paid Leave wages that are incorrectly being listed there, it should be noted that you will also have to adjust line 3 (Total payments to all employees) and potentially line 5 (Total of payments made to each employee in excess of $7,000).

 

The fact that this issue still has not been resolved is unacceptable.

jlarocque
Level 2

2020 Form 940 not calculating exempt payments correctly

I also have the same issue - I was on the phone for 5 1/2 hrs today with "support" - no resolution. Escalated the case -

 

Is this issue resolved for anyone?

MaryLandT
Moderator

2020 Form 940 not calculating exempt payments correctly

Let me make it up to you and ensure 940 forms will have accurate amounts, jlarocque.

 

I can share an update about the issue. Our Product Team had already fix this and it's recommended to update the tax table to its current release.

 

The latest Payroll Update is 22104, released on January 28, 2021. Here are the steps to follow on how to download the tax table:

 

  1. Go to the Employees menu
  2. Select Get Payroll Updates.
  3. Select the Download Entire Update checkbox.
  4. Select Download Latest Update.
  5. A window appears when the download is complete.

You can also refer to this article for additional information: Latest payroll news and updates.

 

After upgrading the tax table, you can start filing 940 forms.

 

If the issue persists, I recommend contacting our QuickBooks Desktop Payroll Team. They can create a case to investigate again the issue.

 

Keep me posted if there's anything else I can help you with payroll. I'll be around whenever you need additional information about the 940 that isn't calculating exempt payments.

jlarocque
Level 2

2020 Form 940 not calculating exempt payments correctly

I have the latest payroll update 22104 - and it is still not correct.

 

I have updated a second time, I have closed QB and restarted my computer ... it still does not work.

 

The chat "help" is not helping resolve the issue - 

 

This is ridiculous that the chat and phone "help" do not understand that this is a known issue 


@MaryLandT wrote:

Let me make it up to you and ensure 940 forms will have accurate amounts, jlarocque.

 

I can share an update about the issue. Our Product Team had already fix this and it's recommended to update the tax table to its current release.

 

The latest Payroll Update is 22104, released on January 28, 2021. Here are the steps to follow on how to download the tax table:

 

  1. Go to the Employees menu
  2. Select Get Payroll Updates.
  3. Select the Download Entire Update checkbox.
  4. Select Download Latest Update.
  5. A window appears when the download is complete.

You can also refer to this article for additional information: Latest payroll news and updates.

 

After upgrading the tax table, you can start filing 940 forms.

 

If the issue persists, I recommend contacting our QuickBooks Desktop Payroll Team. They can create a case to investigate again the issue.

 

Keep me posted if there's anything else I can help you with payroll. I'll be around whenever you need additional information.


 

jlarocque
Level 2

2020 Form 940 not calculating exempt payments correctly

Still unresolved and cannot get support

 

I need someone knowledgeable with this issue to contact me.

 

dso0216
Level 6

2020 Form 940 not calculating exempt payments correctly

Having the same issue in 2022 preparing the 2021 form 940.  Amount calculating as "exempt" payment is incorrect.

LeizylM
QuickBooks Team

2020 Form 940 not calculating exempt payments correctly

Hi there,dso0216.

 

I'm here to help share information about your payroll form in QuickBooks Desktop

 

To start, let's make sure to keep your software up-to-date. This is to ensure you have the latest features and fixes. 

 

Here's how:

 

  1.  Go to the Help menu and select Update QuickBooks Desktop.
  2. Go to the Options tab. Select Mark All and then select Save.
  3. Go to the Update Now tab and select the Reset Update checkbox.
  4. When you're ready, select Get Updates.

 

Once done, let's update the tax table to its latest release. Here are the steps to follow on how to download the tax table:

 

  1. Go to the Employees menu
  2. Select Get Payroll Updates.
  3. Select the Download Entire Update checkbox.
  4. Select Download Latest Update.
  5. A window appears when the download is complete.

 

You can also refer to this article for additional information: Latest payroll news and updates.

 

Once everything is in order, you can now file your Form 940. Then you can always check the statuses of your forms by going to Payroll Center. Check out this link for the complete steps: Check e-file or e-pay status in QBDT.

 

Don't hesitate to post again here if you have other questions or concerns with payroll forms. I'm always around happy to help. Take care and stay safe!

mtace6012
Level 1

2020 Form 940 not calculating exempt payments correctly

I am having the same issue, the 2021 940 says Error - "Total of this column does not equal the exempt payments total. The difference is $248. You must make the necessary adjustments to reconcile the amounts."  see attached picture for reference... 

 

I have updated payroll and quickbooks so please no suggestions of doing that, it is already done. 

 

I am not sure where quickbooks is calculating the fringe benefits from, is there a way to see what is going into that number on the 940 line 4?

Adrian_A
Moderator

2020 Form 940 not calculating exempt payments correctly

I appreciate the steps you've done to resolve this issue, mtace6012.

 

Since your tax table and QuickBooks are both updated, I'd suggest reaching out to our Phone Support team so we can investigate this further.

 

You can contact them through the Help menu.

 

When you're ready to file the form, you can check this reference:  Check e-file or e-pay status in QBDT.

 

Keep me posted whenever help is needed. Stay safe!

jaimeoparker
Level 2

2020 Form 940 not calculating exempt payments correctly

I am having the same issue trying to file form 940 for 2021 payroll.  It says "QB has determined that you have 3189.48 in exempt payments (See Form 940; Part 2, line 4)."  I really hate it when they respond with "Contact us to fix this - here is how".  If I wanted to explain the problem to 4 different people over the span of 10 hours with no resolution, I would have already contacted you to do that.  Everything is updated, rebooted, and I checked the payroll items to make sure they are setup correctly.  We didn't have any fringe benefits, group term life insurance, retirement/pension, or dependent care payments.  Does anyone know what payments actually qualify for an exempt payment?  Like what kind of stuff should be put into that box?

Rea_M
Moderator

2020 Form 940 not calculating exempt payments correctly

This isn't the kind of experience we want you to have when filing your 2021 Form 940 in QuickBooks Desktop (QBDT) Payroll, @jaimeoparker. That's why I'm here to share details on the actions you need to help take care of this matter.

 

Exempt payments are wages you paid that are exempt from FUTA taxes. QuickBooks includes payroll items to track three categories of exempt payments (moving expenses, dependent care, and group term life).

 

If you have payroll items with the following tax tracking types and any that you've set to calculate before FUTA withholding, QuickBooks includes the amount for that payroll item in the Exempt Payments total on your Form 940.

  • Fringe benefits

  • Group term life insurance

  • Retirement/pension

  • Dependent care

  • Other

 

If you didn't have any of the above-mentioned payroll items but still received the error to troubleshoot Part 2 on Form 940, I'd recommend contacting our Payroll Care team. This is because the Community is a public forum, and we'll need to collect some personal information to pull up your account. They can create a case to trigger an investigation and get the issue fixed in no time. Here's how:

 

  1. Go to Help, then select QuickBooks Desktop Help.
  2. Select the Contact Us button.
  3. Enter a brief description of your concern in the What can we help you with? field and click Continue.
  4. Choose a way to connect (Chat or Callback). 

 

Also, to further guide you in paying your federal taxes and filing the necessary payroll forms (i.e., 940) on time using QBDT Payroll, I'd recommend checking out this article: E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll.

 

We appreciate your patience regarding this matter. Please don't hesitate to comment below if you have other payroll concerns and questions about filing Form 940 in QBDT Payroll. I'm always around to help. Take care, and I wish you continued success, @jaimeoparker.

walt2883
Level 1

2020 Form 940 not calculating exempt payments correctly

I just go off the phone with QB and we determined that I should right click the amount that QB had determined in exempt payments on the interview page and override that number with the Classification Total number. Everything is matching now and I have filed my 940.  

dso0216
Level 6

2020 Form 940 not calculating exempt payments correctly

Still an issue this year.  Not sure why the exempt payments are off for some clients and not others.  Going to simply override to correct and move on.  Intuit really needs to look at why this happens, I don't like to override but here we are....

MillyN
Level 2

2020 Form 940 not calculating exempt payments correctly

STILL AN ISSUE IN CALCULATING 940 ON 2022 FORMS!!

Archie_B
QuickBooks Team

2020 Form 940 not calculating exempt payments correctly

Hi there, dso0216 and MillyN

 

Allow me to share and make sure that you're able to file the form with the correct amounts in QuickBooks Desktop Payroll.

 

The amounts shown on Line 4 (exempt payments) are usually for payroll items that were not taxed for Federal Unemployment Insurance. Fringe benefits, Group Term Life Insurance, Retirement plans, Dependent care, and other exempt payments are all included.

 

To ensure that the exempt payment is calculated on your 940 forms, we must first correct the payroll items. We'll start by fixing the tax tracking type or Federal Unemployment (FUTA) tax on the payroll item that should be exempt from FUTA.

 

Here's how:

 

  1. Go to Lists menu, then Payroll Item List.
  2. Right-click the payroll item and hit Edit Payroll Item.
  3. Click on Next until you get to Tax Tracking Type.
  4. Make sure the tax tracking type selected matches the payroll item used. Don’t use tax tracking type Other.
    • If the tax tracking type is correct, go to Step 5.
    • If the tax tracking type is incorrect, select the correct one, then select Next twice, then Finish. 
  5. Tap Next.
  6. From the Taxes window, review the Federal Unemployment tax.
    • If Federal Unemployment is unchecked, check it
    • If Federal Unemployment is checked, uncheck it
  7. Select Next, then Finish.

 

Once done, you can proceed to the next step (Step 3: Fix your employee wages) outlined in this link: Troubleshoot Part 2 on Form 940 in QuickBooks Desktop Payroll Enhanced.

 

I've also added this article as a reference if you need to make an adjustment: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

Get back to us if you need further assistance with payroll. I'd be glad to help you out. Take care and have a reat day!

MillyN
Level 2

2020 Form 940 not calculating exempt payments correctly

I double checked, it is set up correctly. I might add; the amount withheld is incorrect as well. I've verified the payroll summary by tax tracking report is also incorrect.   Line 3 of the 940 has an amount that is none of the amounts on the tax tracking type (subject income column). Line 4 of the 940 has a number that does not match to what was payroll deducted. It appears none of the numbers are correctly pulling from the payroll module.

Carneil_C
QuickBooks Team

2020 Form 940 not calculating exempt payments correctly

I know this hasn't been an easy process for you, @MillyN.

 

Beforehand, I appreciate your efforts in finding a fix to your query. Please know that this isn't the impression we want you to have. I'll route you in the right direction of support to help you sort this out.

 

Since the amounts of your 940 form are set up correctly upon double-checking, I recommend contacting our QuickBooks Desktop Payroll Support team. They have the tools to investigate this matter safely and find possible fixes to ensure you can file your form with the correct amounts.

 

Here's how:

 

  1. Go to Help, then select QuickBooks Desktop Help.
  2. Click Contact Us.
  3. Give a brief description of your issue, then select Continue.
  4. Choose a way to connect.

 

Please check our available hours so your concerns will be handled promptly.

 

Feel free to visit again in the Community if you have any other questions about payroll forms or QBDT Payroll-related concerns. I'm determined to help you succeed. Keep safe always.

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