Payroll Support

Separate Form 940 and 941 custom liability payments

Article ID: 1000090
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Overview

QuickBooks combines liability payments into one payment only if the same vendor has been set up for the payroll items included. This article explains how to separate your Form 940 and 941 custom liability payments.

Assumptions

You understand the IRS requirements and have discussed this with your accountant or tax advisor.

Expected Outcome

You will make liability payments to different vendors.

Details

To ensure that payments can be made to different vendors, create unique vendor names for them (for example, IRS 940 and IRS 941).

To assign a vendor to the liability:

Choose Lists > Payroll Item List.

Double-click the liability item and click Next. The Agency for employee-paid liability, Agency for company-paid liability, or Liability Agency window opens.

Click the Enter name of agency to which liability is paid drop-down arrow and select the vendor you created. For example, if the liability is Federal Unemployment, you would select the IRS 940 vendor you just created.

Click Next until you reach click Finish.

If you create checks for these payments, type whatever name is required for the payee (such as IRS) in the Print on Check as field in the vendor setup. Although IRS will show on the liability check payee line, the 940 and 941 amounts will be separated into the correct amounts.

To pay your 940 and 941 liability payments as custom liability payments:

QuickBooks Pro and Premier

  1. Choose Employees > Payroll Taxes and Liabilities > Create Custom Liability Payments.
  2. Enter the correct date range for your liabilities and click OK.
  3. If applicable, select which payroll liabilities you want to pay, such as Federal Unemployment for your 940, or Federal Withholding, Social Security, and Medicare for your 941.
  4. Click Create.

QuickBooks Simple Start

  1. Click Payroll on the top tool bar to enter the Payroll Center.
  2. In the Pay Scheduled Liabilitiessection, click Related Payment Activities.
  3. Select Create Custom Liability Payments.
  4. Specify your date range and click OK.
  5. If applicable, select which payroll liabilities you want to pay, such as Federal Unemployment for your 940, or Federal Withholding, Social Security, and Medicare for your 941.
  6. Click Create.

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941 line 14 amount does not match my liability schedule payment

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