Payroll Liability 940

We appreciate you for raising your concern here, @robins1962.

Let me help you locate the difference of your 940 between your payroll window and the actual form QuickBooks created, then fix it.

First, run a Payroll Summary report to view the history of liability payments and adjustments to verify if you recorded it accurately. If you notice some discrepancies, we can perform a payroll liability adjustment, to fix the difference in your 940 payroll form. Here's how:

1. Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
2. Use these tips to help complete the fields.
   • Use the same date as the last paycheck of the affected quarter. Use today's date if you’re working on the current quarter.
   • The Effective Date is used to calculate amounts on your 940 and 941 forms as well as the Payroll Liability Balances Report.
   • Select Employee Adjustment if the item you're adjusting is company-paid. It updates the YTD info reported on the employee W-2 form.
   • Select Company Adjustment if you want the balance to be removed from the Payroll Liability Balances Report.
3. Select the employee.
4. Complete the Taxes and Liabilities fields.
   • Select the Item Name you want to adjust.
   • Enter the Amount of the adjustment. Use a positive number to increase or a negative to decrease the amount.
   • Wage Base is rarely needed, even when you override a tax amount on a paycheck.
   • You only use Income Subject to Tax when making a wage-based adjustment.
   • You can use the Memo field to enter a note about the adjustment for future reference.
5. Select Accounts Affected and then OK.
6. Repeat for other employees if you need to, and select OK.

You can see additional detail in this article: Adjust payroll liabilities in QuickBooks Desktop Payroll.

Also, we suggest you work with an accountant while making the adjustments. It helps ensure that your books will be accurate and error-free.

Check out this article if you want to verify your current setup by scanning your payroll date for missing info and any potential errors: Run Payroll Checkup in QuickBooks Desktop Payroll.

Feel free to come back for additional questions about your 940 payroll form. I'll be willing to lend a hand. Keep safe and have a good one.