Question

2020 Form 940 not calculating exempt payments correctly

Forum|Forum|5 years ago
January 6, 2021
5 replies
0 views

I am having trouble with my 2020 Form 940. On the Interview page, the amount that QuickBooks has determined my exempt payments to be (which gets entered on Line 4 of the return) is not equal to the total of all exempt payments listed in the "Classification" section. I ran a Payroll Summary Report for the year, and the itemized numbers in the "Classification" section are correct.

This is causing an error on my return, since the amount QuickBooks has calculated for Line 4 does not match the information in the Classification section of the Interview page. The amount being generated for Line 4 is off (less) by exactly the amount of our FFCRA/National Paid Leave wages, so I am assuming that has something to do with the problem. I used the default (QB-generated) tax settings for the National Paid Leave payroll item. Are FFCRA/National Paid Leave wages supposed to reduce the value of our FUTA exempt payments, or is this an error with the QuickBooks form?

QuickBooks Desktop Payroll

M

MadelynC

Thanks for alerting us, @walkupse.

Recently, we’ve received a report concerning form 940 that isn’t calculating exempt payments correctly. We are aware of this issue, and our engineers are now working on a fix.

I recommend contacting our Payroll Support team so they can add you to the list of affected users. That way, you’ll be able to receive updates once the resolution is implemented. Just make sure to connect with them between 6:00 AM prior to 6:00 PM pacific time so you’ll be assisted right away.

Here are the steps to connect with them:

Open your QuickBooks account.
Go to Help, then select QuickBooks Desktop Help.
Select Contact Us.
Enter form 940 that isn’t calculating exempt payments correctly” in the box, then press Search.
Click the Start a Message button.

You can present this investigation number INV-53409 to our support for quick navigation.

I've added this article, so you have a reference once the form 940 is ready to E-file in QuickBooks. It has the information you need to know about the requirements and steps for electronic filing.

Don't hesitate to get back if you have other form concerns. I’m always here to help. Keep safe.

C

chadmac

I am having the same issue but the steps you provided to be added to the list of affected users do not work as described. Please add me to the list of affected users.

C

Catherine_B

Hello there, chadmac.

Another way on how to get in touch with us is through this link: https://quickbooks.intuit.com/learn-support/en-us/contact. Just select the product and edition you have and then enter the investigation (INV) number. Click Continue and you'll be routed to the list you'll want to connect with us.

Thanks for your patience while we're working on a permanent fix to this issue. Always know the Community is available to assist you with anything else. Take care!

C

Charity w

I also found that QB determined a less amount of exempt payment than what it should be. I just did the override to correct the amount. That seemed to work for me. It doesn't make sense why QB is calculating this incorrectly however.

C

Carol Garner

It appears that the "National Paid Leave" is showing as a negative amount in the exempt payments screen and doesn't show in the Classification. I'll just override and correct the return, however it is disappointing to have to do that.

C

chadmac

For those of you who are manually overriding the negative amounts showing up in the exempt payments section due to the National Paid Leave wages that are incorrectly being listed there, it should be noted that you will also have to adjust line 3 (Total payments to all employees) and potentially line 5 (Total of payments made to each employee in excess of $7,000).

The fact that this issue still has not been resolved is unacceptable.

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MillyN

STILL AN ISSUE IN CALCULATING 940 ON 2022 FORMS!!

D

dso0216

Having the same issue in 2022 preparing the 2021 form 940. Amount calculating as "exempt" payment is incorrect.

L

LeizylM

Hi there,dso0216.

I'm here to help share information about your payroll form in QuickBooks Desktop

To start, let's make sure to keep your software up-to-date. This is to ensure you have the latest features and fixes.

Here's how:

Go to the Help menu and select Update QuickBooks Desktop.
Go to the Options tab. Select Mark All and then select Save.
Go to the Update Now tab and select the Reset Update checkbox.
When you're ready, select Get Updates.

Once done, let's update the tax table to its latest release. Here are the steps to follow on how to download the tax table:

Go to the Employees menu
Select Get Payroll Updates.
Select the Download Entire Update checkbox.
Select Download Latest Update.
A window appears when the download is complete.

You can also refer to this article for additional information: Latest payroll news and updates.

Once everything is in order, you can now file your Form 940. Then you can always check the statuses of your forms by going to Payroll Center. Check out this link for the complete steps: Check e-file or e-pay status in QBDT.

Don't hesitate to post again here if you have other questions or concerns with payroll forms. I'm always around happy to help. Take care and stay safe!

J

jaimeoparker

I am having the same issue trying to file form 940 for 2021 payroll. It says "QB has determined that you have 3189.48 in exempt payments (See Form 940; Part 2, line 4)." I really hate it when they respond with "Contact us to fix this - here is how". If I wanted to explain the problem to 4 different people over the span of 10 hours with no resolution, I would have already contacted you to do that. Everything is updated, rebooted, and I checked the payroll items to make sure they are setup correctly. We didn't have any fringe benefits, group term life insurance, retirement/pension, or dependent care payments. Does anyone know what payments actually qualify for an exempt payment? Like what kind of stuff should be put into that box?

R

Rea_M

This isn't the kind of experience we want you to have when filing your 2021 Form 940 in QuickBooks Desktop (QBDT) Payroll, @jaimeoparker. That's why I'm here to share details on the actions you need to help take care of this matter.

Exempt payments are wages you paid that are exempt from FUTA taxes. QuickBooks includes payroll items to track three categories of exempt payments (moving expenses, dependent care, and group term life).

If you have payroll items with the following tax tracking types and any that you've set to calculate before FUTA withholding, QuickBooks includes the amount for that payroll item in the Exempt Payments total on your Form 940.

Fringe benefits
Group term life insurance
Retirement/pension
Dependent care
Other

If you didn't have any of the above-mentioned payroll items but still received the error to troubleshoot Part 2 on Form 940, I'd recommend contacting our Payroll Care team. This is because the Community is a public forum, and we'll need to collect some personal information to pull up your account. They can create a case to trigger an investigation and get the issue fixed in no time. Here's how:

Go to Help, then select QuickBooks Desktop Help.
Select the Contact Us button.
Enter a brief description of your concern in the What can we help you with? field and click Continue.
Choose a way to connect (Chat or Callback).

Also, to further guide you in paying your federal taxes and filing the necessary payroll forms (i.e., 940) on time using QBDT Payroll, I'd recommend checking out this article: E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll.

We appreciate your patience regarding this matter. Please don't hesitate to comment below if you have other payroll concerns and questions about filing Form 940 in QBDT Payroll. I'm always around to help. Take care, and I wish you continued success, @jaimeoparker.

W

walt2883

I just go off the phone with QB and we determined that I should right click the amount that QB had determined in exempt payments on the interview page and override that number with the Classification Total number. Everything is matching now and I have filed my 940.

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