Comparing and Verifying the Taxes on a 941 Return with a Payroll Summary Report
This article provides instructions for verifying the taxes on a 941 return against what is in your QuickBooks Desktop.
You will be able to create the necessary reports to compare with Form 941.
You want to verify that the tax forms match the information in your QuickBooks Desktop file.
Create a Payroll Summary Report.
- Click Reports on the top menu bar, choose Employees & Payroll > Payroll Summary.
- Enter custom dates into the From and To fields for the quarter you are reviewing, click the Refresh button.
- Click Customize Report, uncheck the Hours and/or Rate boxes,
- Click the Columns drop-down arrow, select Total Only and click OK.
Print the 941.
- Go to Employees on the top menu bar and choose Payroll Center.
- Click the File Forms tab.
- Click View/Download Forms and W-2s in the bottom of the window.
- Enter your payroll PIN when prompted.
- Click Filed Forms at the top of the window.
- Click to select each form you want to print.
- Click Open/Save Selected.
- Click the print icon in Adobe Acrobat.
Enhanced & Standard Payroll:
- Click the Employees drop-down menu bar.
- Select Payroll Tax Forms and W-2s and then click Process Payroll Forms. The File Forms tab in the Payroll Center will open.
- Check the File History section to locate your saved form and double-click to open. If you cannot find the form, continue to the next step.
- Under File Forms select Quarterly Form 941/Sch.B-Employer's Quarterly Tax Return form and click File Form.
- Select the correct quarter and click OK.
- Complete the Interview for Form 941/Schedule B and click Next.
- Click Print for Your Records.
Compare Line 1 Number of employees.
Compare Line 2 Wages, tips, and other compensation:
- If you double-click on the total amount for Federal Withholding on the Payroll Summary report and scroll to the bottom, the amount in the Income Subject to Tax column should match.
For more information see Form 941 line 2 does not match adjusted gross wages in Payroll Summary report.
Compare Line 3, Income tax withheld for all wages, tips, and other compensation:
Compare Line 5a, Taxable social security wages, Line 5b, Taxable social security tips, Line 5c Taxable Medicare wages & tips, Line 5d - Taxable wages & tips subject to Additional Medicare Tax withholding:
- This is comprised of total gross pay plus any gross pay additions (i.e. tips), any company contributions that are taxable to withholding, (i.e. taxable GTLI, Company car), minus all pretax deductions (e.g., 125 plans), but not deferred compensation (e.g., 401(k) or SIMPLE IRA).
The total amount for Social Security or Medicare is either for the Employee or Company, depending on which item you click on the Payroll Summary Report.
Column 2: This is the total wages multiplied by the tax amount (listed between column 1 and 2).
- This should match the total amount of Social Security or Medicare tax withheld for both Employee and Company listed on the Payroll Summary.
Line 5b: Taxable social security tips. This line will only have amounts if tips are being tracked specifically with a payroll item set aside for tips.
Line 5c: Taxable Medicare wages and tips: This line will only have amounts if tips are being tracked specifically with a payroll item set aside for tips.
Line 5d: Taxable wages & tips subject to Additional Medicare Tax withholding. The line will only have amounts all wages, tips, sick pay, and taxable fringe benefits that are subject to Additional Medicare Tax withholding. See QuickBooks Desktop Payroll: Additional Medicare Tax for additional information.