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941 Overpayment

I received a notice from the IRS that we have overpaid by almost $2000.00 for the first quarter.  Quickbooks does not show this.  What do I do to correct this?  Is Quickbooks miscalculating our tax liability?  How do I fix that?

1 Comment
QuickBooks Team

Re: 941 Overpayment

I can share some insights on how taxes are accumulated and help you record the overpayment amount in QBO, @Mattwelters.


The calculation of the 941 tax amount is determined by your employees' W-4 data like the pay frequency, number of allowances, filing status, and gross amount.


If you wish to correct the upcoming tax calculations, we'll have to run through your employees' profile to update their data:

  1. From the left menu, click Workers.
  2. Under the Employees tab, select the name of the employee.
  3. Select the edit (pencil) icon beside Pay.
  4. Update your employee's personal info, withholding, pay type and schedule, and deductions.
  5. Select Done to save.

That should correct the future tax calculation, @Mattwelters


Meanwhile, you have to contact our QBO Payroll Team to update the first quarter tax data. They'll ask your company details to pull up your account and use their tools for making the adjustments.


For additional reference, I'm also adding the QuickBooks Online Payroll Enhanced resource center.


Please update me on how it goes by leaving a comment below. I'm still here to offer more help about payroll. Just click the "Reply" button or mention my name. Wishing you and your business continued success!

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