941

My main goal is to ensure you can get past this error message while doing the 941 form, Alicia.

One possible reason you've encountered this error message when preparing the form is that the paychecks created were set up originally as non-taxable in QuickBooks Desktop. Then, when you enter an amount in the Taxable Medicare wages & tips (Line 5c) box, the system will detect that the field should be black or no tax.

If so, I have the troubleshooting steps to rectify the error message.

First, I recommend reviewing the Payroll Item List page to verify the taxable items are set up correctly. Then, edit the Medicare to ensure it's included in the list of taxes. Here's how:

1. Go to Lists, then select Payroll Item List.
2. Double-click the  Medicare item that's set up incorrectly.
3. Edit the payroll item name by adding Do Not Use to the end of the incorrect item's name, so that it won’t be used for future payroll.
4. Select Next until Finish appears, then select Finish.
5. Select the Payroll Item ▼ dropdown, then New.
6. Set up a new payroll item for wage, addition, deduction, or company contribution to replace the wrong one. Make sure to select the correct Tax Tracking Type and taxability.

Then, let's run a Payroll Checkup in the system. The diagnostic tool helps you verify your current setup by scanning your payroll data for missing info and potential errors. I'll show you how:

1. Create and save a backup of your company file. 
2. Go to Employees, then My Payroll Service.
3. Select Run Payroll Checkup. 
4. Select Data Review. If errors are found, fix them. You can’t proceed to the next step without fixing the errors. 
5. In the Review your payroll data window, select No to allow the Payroll Checkup to create wage base discrepancy adjustments.
6. Select Continue, then Finish.

After that, QuickBooks will automatically create a liability adjustment. Once done, I suggest reviewing the tax form again to verify if the error message has been resolved.

Moreover, I've added this article to help you find out which payroll taxes and forms QuickBooks Payroll pays and files for you: Understand the taxes and forms that QuickBooks payroll submits for you.

If you have additional inquiries regarding payroll tax forms, please don't hesitate to leave a comment below. My team and I are always ready to offer assistance and provide accurate answers to your questions.