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IntDoesntCare
January 6, 2023
Question

941 does not agree to W3

  • January 6, 2023
  • 1 reply
  • 0 views

I am trying to reconcile my 941 filings from 2022 with the W3.

I am trying to match:

1) form 941 line 2 (Wages, tips and other Compensation) to form W-3 line 1 (Wages, tips, other compensation)

2) form 941 line 5a column 1 (taxable social security wages) to form W-3 line 3 (social security wages)

3) form 941 line 5c column 1(Taxable Medicare wages & tips) to form W-3 line 5 (Medicare wages & tips)

 

1) matches but 2) and 3) do not match. The 941 is $5,000 higher for 1) and 2) compared to the W-3. This tells me that $5,000 is probably missing from the W-3 and W-2. What would cause this difference? How can I correct it?

1 reply

JessT
JessT
January 6, 2023

Hi there,

 

Possible reasons for not having the same values are changes in the payroll records or a data issue. Let's check to find out.

 

Let's run the Verify and Rebuild data utilities to check if this scenario is caused by a data issue. Consider backing up your company file for doing anything.

 

If the utilities don't identify issues, you can run the 941 forms for quarters 1 to 3 and compare them with the submitted forms. If one quarter is not matching, you can check the records within that period for any possible adjustments, deleted checks, etc. using the Payroll Summary report.

 

I'm adding this article for your additional reference: How to reconcile payroll: A step-by-step process.

 

Let us know if you need help as you compare your forms. We'll continue to help.

I
IntDoesntCareAuthor
January 9, 2023

I ran through the recommended steps (verify/rebuild) and the problem is still not corrected.

 

I found that the Q3 941 overstated Social Security and Medicare wages by $5,000. So I tried re-running the 941 from Q3 and ended up with the same incorrect Social Security and Medicare Wages. Are there any other steps that I can run to get a correct Q3 941 so I can file a 941X?

MariaSoledadG
MariaSoledadG
January 9, 2023

Let me guide you on how to correct your Social Security and Medical wages, IntDoesntCare.
 

In general, QuickBooks will automatically correct the calculation on the next pay period. You can correct the deduction items by adjusting payroll liabilities. To do so, you can follow the steps below:

 

  1. Go to Employees, then Payroll Taxes and Liabilities.
  2. Select Adjust Payroll Liabilities.
  3. In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
  4. In the Adjustment is for: section, select Employee Adjustment to correct your employee’s YTD info. Then select the employee's name. Do this even if the item being adjusted is a company-paid item.
  5. Under the Item Name column, select the payroll item you want to adjust.
  6. Enter the Amount of the adjustment.
  7. Enter the amount under the Income Subject to Tax column if you need to make a wage base adjustment.
  8. Under Memo, enter a note about the adjustment for reference.
  9. Select Accounts Affected, then OK.
  10. Select OK to close the Affect Accounts window. Then, select Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, select OK to save the changes.

To check on what payroll reports to run and if the liabilities are updated. you can go through this article for additional information: Adjust Payroll Liabilities In QuickBooks Desktop Payroll.
 

At the same time. paying your federal taxes and filing the necessary payroll forms on time is an essential task, learn from these articles for more details:

Fill me in and keep in touch if you have any questions about 941. Remember, the Community is always here to further assist you always.

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