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tu_ultimate
January 4, 2022
Question

number of employees is wrong on form 941

  • January 4, 2022
  • 1 reply
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Does anyone know what QBO payroll actually uses to compute the number of employees reported on Part 1, Line 1 of the quarterly 941 form?

 

For our organization, the QBO/payroll system populated that number as "3" employees, but when I pull the payroll report by employee, it shows that we paid 22 different people that quarter (which is correct).  The VALUES for total wages/tips/comp and federal income tax withheld are all correct, so there's no way that the actual values for those numbers could have been computed without including the wages from all 22 employees.  Anyone seen this before?

1 reply

MonicaM3
MonicaM3
January 4, 2022

Hi @tu_ultimate.

 

I completely understand how confusing that line of the 941 is. Believe me, we get this question frequently. Let me explain.

 

All of the wages for the Quarter are included on the 941, however, Page 1, Line 1 only includes any employees paid with a pay period that included the date of December 12 (for Q4) in accordance with the IRS instructions.

So, in your case, all 22 employees’ wages are included and reported on this form, but only those employees that have a paycheck with the specific pay period of Dec 12 are included in this particular line. It’s the same in every quarter, line 1 shows the number of employees that have a check with a pay period including the 12th day of the last month of the quarter.

 

 

For additional details on the 941 form, check out: How QuickBooks populates Form 941

 

 

Let me know if I can help clarify further, or if you have any additional questions. I’m a quick click away!

 

Have a good one.

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