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Julissa5
October 24, 2023
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Payroll - Third party withheld taxes we prepare W-2

  • October 24, 2023
  • 1 reply
  • 0 views

Hi,

I got this link about third party sick pay:

https://quickbooks.intuit.com/learn-support/en-us/help-article/liability-schedules/track-submit-taxable-third-party-sick-pay/L8YON2cdu_US_en_US?uid=lo4rwry0

My cleint is int he scenario 2: third party withholds taxes you file W-2.

At the end it says that the 941 has to be paper file because or the adjustment in line 8, i e-file and it says accepted, should i worry? how can i know if the client has to send a paper file or not and that i dont duplicate the 941. Is that comment something that changed and now you can e-file?

 

Thank you!

Best answer by LeizylM

I understand the importance of making sure that third-party sick pay is properly recorded on your W2 form in QuickBooks Desktop (QBDT) Payroll, Julissa. I'm here to provide guidance on this matter.

 

In this case, since you are using a third party for withholding taxes and adjustments of your employee, you'll want to print and mail your 941 form. Doing so ensures that the necessary adjustments and information are accurately reflected on the form.

 

For more information, we can use Scenario 2: Third-party withholds taxes, you file the W-2 on the article track and report third-party sick pay in QuickBooks Desktop Payroll.

 

I've added this article if you need help preparing for wrapping out this year's payroll: Year-end checklist for QuickBooks Desktop Payroll.

 

Keep your posts coming if you need more assistance about the third-party sick pay on your employee's 941, Julissa. I'm always here to help. Have a great day. 

1 reply

R
ReymondO
October 24, 2023

Good day, @Julissa5. I'm here to answer your queries about the third-party sick pay on your employee's 941.

 

There is no general rule that specifies that you need to print and mail or e-file your 941 form because of the adjustment in line 8. However, there are special cases where it's recommended to print and mail your 941 form just like this scenario.

 

That said, you have to file an amended form for 941 to correct your filing process. To do this, you need to prepare Form 941-X. Here's how: 

 

  1. Go to Employees and select Payroll Tax Forms & W-2s.
  2. Click Process Payroll Forms.
  3. In the File Forms section, select Quarterly Form 941-X - Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.
  4. Click Create Form and select the Filing period you want to correct, then click OK.
  5. Select the return you are correcting and the quarter. Then, enter the calendar year you are correcting.
  6. Enter the date you discovered the errors. Follow the specified format.
  7. Select the process for correcting your employment tax and click Next, then enter the date you discovered the errors.
  8. Under Part 1: Select Only One Process, make sure that the process selected is the same as the Interview part of the form.
  9. Under Part 2: Complete the certifications, check at least one box, or select all that apply. Then, select Next.
  10. Under Part 3, Enter the corrections for the quarter. If any line does not apply, leave it blank. Click Next.
  11. Under Part 4, describe in detail each correction you entered in Part 3.  You may explain in paragraph form and attach any notices from the IRS if necessary

 

You can also refer to IRS Instructions for Form 941-X, for detailed instructions on how to complete the form. After that, you can now print and mail to your tax agency.

 

With regard to your second question, it's up to your clients whether they want to mail or e-file the forms. Although, there are cases such as this one where it's suggested to mail the form instead of e-file.

 

In addition, there are payroll-related reports you can run in QuickBooks Desktop to gather data about your employee info, wages, taxes, deductions, and many more: Run payroll reports.

 

I've got you covered if you have other questions regarding your QuickBooks. I can also help you accomplish your tasks in the program. 

    J
    Julissa5Author
    October 24, 2023

    Hi, 

    In the past I had to do an 941x and I know that I have to send the paper file for that one but if the third party sent me the reports and I know the employer taxes to pay them and the employee taxes were withheld by third party, at the time of filing the 941 if I have the information and I adjust the employee taxes by reducing them in line 8 since the third party withheld then is fine for me to e-file or should I do a paper file in that case?

    L
    LeizylMAnswer
    October 25, 2023

    I understand the importance of making sure that third-party sick pay is properly recorded on your W2 form in QuickBooks Desktop (QBDT) Payroll, Julissa. I'm here to provide guidance on this matter.

     

    In this case, since you are using a third party for withholding taxes and adjustments of your employee, you'll want to print and mail your 941 form. Doing so ensures that the necessary adjustments and information are accurately reflected on the form.

     

    For more information, we can use Scenario 2: Third-party withholds taxes, you file the W-2 on the article track and report third-party sick pay in QuickBooks Desktop Payroll.

     

    I've added this article if you need help preparing for wrapping out this year's payroll: Year-end checklist for QuickBooks Desktop Payroll.

     

    Keep your posts coming if you need more assistance about the third-party sick pay on your employee's 941, Julissa. I'm always here to help. Have a great day. 

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