Form 941

Thanks for reaching out to the Community, SheaH.

QuickBooks populates Form 941's Line 2 - Wages, tips, and other compensation by calculating your total wages, tips, bonuses, overtime pay, etc., that are subject to federal income tax and paid to the employee during your reporting year. Wages earned in the reporting year, but paid in your following year, won't be included. Certain deductions that aren't taxable to federal income tax such as 401(k), pre-tax medical, fringe benefits, etc., can affect this box.

For Line 3 - Income tax withheld, QuickBooks adds the total of your Federal Withholding (FIT) from the paychecks for your quarter.

Here's how to do Line 3:
 

1. Run a Payroll Summary report for the quarter. Your total of Federal Withholding should equal what's shown in Line 3.
2. If you have a Basic, Standard, or Enhanced Payroll subscription, enter a liability adjustment for the employee. Your amount of the adjustment may then need to be collected from or refunded to your worker.

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

1. Go to Employee Center, then access the Employees tab.
2. Double-click your employee's name.
3. Open the Payroll Info section and click Taxes.
4. Correct their filing status and allowances as necessary.

You can refer to our How QuickBooks populates Form 941 article for more information on working with Form 941 and what each line includes.

If you're unsure what you should be entering in your books for Form 941, I'd recommend working with an accounting professional. In the event you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I've also included a detailed resource about working with federal forms which may come in handy moving forward: Understand federal forms and tax payments for 941, 944, 943, & 940

Please don't hesitate to send a reply if there's any additional questions. Have a great Friday!