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SRMII
Level 1

Quarterly 941 Error Help

All,

 

I am trying to file our q1 941 report (my first time) and we overpaid SS/Medicare. The overpayment shows the correct amount we over paid but we keep getting a (seemingly) counter-intuitive error that will not let us proceed and submit.

 

Basically the error says "Total taxes after adjustments and credits does not equal the total quarter liability on schedule b. You must make the necessary adjustments to reconcile accounts". Isn't the adjustment line 15?

 

So I cannot change line 12 (what we should have paid) and I cannot change what the report shows we should have paid to SS/Medicare (federal withholding is correct). The only input I can change is line 13 but if I do that, the overpayment credit goes away.

 

I have checked EFTPS website and we did overpay by the exact amount I am trying to recover but I cannot get past this error.

 

In addition, one payroll was done in error and I believe it to be the culprit. Essentially our server was updated and I did not know so I did not update my computer QB before running that payroll. Zero taxes were taken out and to "fix" the issue we voided each check and re-ran the payroll but instead of taking out the right amount, a larger (maybe double) deduction was taken.

3 Comments 3
Rasa-LilaM
QuickBooks Team

Quarterly 941 Error Help

Hello there SRMII.


Thanks for being detailed about your concern. We have options available for you to move past the error.

You can create a liability adjustment to correct the wages, apply to the next return, or send a refund.


To enter a liability adjustment:

 

  1. Go to the Employees menu and choose Payroll Taxes and Liabilities to select Adjust Payroll Liabilities.
  2. This will open the Liability Adjustment window.
  3. Key in the correct Effective Date.
  4. Mark the radio button for Employee Adjustment and then pick the affected employee from the drop-down list.
  5. In the Taxes and Liabilities section, click the Item Name column to choose the payroll or tax item you want to adjust.
  6. Enter the amount of the adjustment in the corresponding column (negative to decrease, positive to increase)
  7. Use the Memo column to note the reason for the adjustment.
  8. Click Accounts Affected.
  9. Select Do not affect accounts or Affect liability and expense accounts.
  10. Press OK to keep the changes.

After performing these steps, you can process the 941 forms seamlessly. For additional resources, I’m adding articles to help resolve issues on the tax form.

 

Additionally, the Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (YTD) link outlines the detailed instructions on how to fix the wage base in the company file.

 

Keep me posted if you have any clarifications or questions. I’ll jump right back in to answer them for you. Have a great rest of the day.

SRMII
Level 1

Quarterly 941 Error Help

Thank you so much for your help. I am still confused. I am not sure which employee is affected or how many. Is there another report I can run to find that out?

 

Essentially our payroll summary report does not match EFTPS/941 etc.

 

Thanks,

 

SRMII

Mark_R
QuickBooks Team

Quarterly 941 Error Help

I appreciate you getting back to us, @SRMII.

 

The Payroll Summary report should match your 941 data. Since there are some discrepancies with your payroll data, I suggest running a payroll checkup to identify the tax amount discrepancies.

 

Here's how:

 

  1. In your QuickBooks Desktop, go to the Employees menu.
  2. Select My Payroll Service, then Run Payroll Checkup.
  3. Follow the onscreen instruction and select Continue to go through several steps.

Once done, go ahead and try to check the Payroll Summary report again to identify the source of the discrepancy.

 

Here's an article you can read for more details: Run payroll checkup.

 

After identifying the source of the discrepancy, you can make tax adjustments to correct the employee's quarter total. For more guidance, feel free to check out this article: Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (ytd) tota....

 

Just in case you need further assistance with adjusting the tax amount, you can contact our Phone Support Team. This way, they can further help you with adjusting the tax amount and share additional information about it.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

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