IRS directions

If you are not using a preprinted Form 941, type or print your EIN, name, and address in the spaces provided. Also enter your name and EIN on the top of page 2. Do not use your social security number (SSN) or individual taxpayer identification number (ITIN). Generally, enter the business (legal) name you used when you applied for your EIN on Form SS-4, Application for Employer Identification Number. For example, if you are a sole proprietor, enter “Haleigh Smith” on the “Name” line and “Haleigh’s Cycles” on the “Trade name” line. Leave the “Trade name” line blank if it is the same as your “Name.”

Employer identification number (EIN). To make sure that businesses comply with federal tax laws, the IRS monitors tax filings and payments by using a numerical system to identify taxpayers. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports.

Your business should have only one EIN. If you have more than one and are not sure which one to use, write to the IRS office where you file your returns or call the IRS at 1-800-829-4933.

If you do not have an EIN, you may apply for one online. Go to www.irs.gov and click on the Apply for an EIN Online link under Tools. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If you have not received your EIN by the due date of Form 941, write "Applied For" and the date you applied in this entry space.

Caution: If you are filing your tax return electronically, a valid EIN is required at the time the return is filed. If a valid EIN is not provided, the return will not be accepted. This may result in penalties.

Tip: Always be sure the EIN on the form you file exactly matches the EIN the IRS assigned to your business. Do not use your SSN or ITIN on forms that ask for an EIN. Filing a Form 941 with an incorrect EIN or using another business's EIN may result in penalties and delays in processing your return.

QuickBooks behavior

QuickBooks pulls the information for the “Name” of the company from the “Legal Name” in the Company information. The “Trade Name” is the name given your company in the “Name” section of the company information.

How to verify your QuickBooks result

To change the information in this section, choose Company Information from the Company menu. Make the necessary changes, and click OK.

IRS directions

Under “Report for this Quarter of 2014” at the top of Form 941, check the appropriate box of the quarter for which you are filing. Make sure the quarter checked is the same as shown on any attached Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors.

QuickBooks behavior

QuickBooks uses the quarter end date that has most recently passed unless you specify a different date.

IRS directions

Enter the number of employees on your payroll for the pay period including March 12, June 12, September 12, or December 12, for the quarter indicated at the top of Form 941. Do not include:

• Household employees,
• Employees in nonpay status for the pay period,
• Farm employees,
• Pensioners, or
• Active members of the Armed Forces.

QuickBooks behavior

If you had any employees with a pay period that included the date of March 12 (for Q1), June 12 (for Q2), September 12 (for Q3), or December 12 (for Q4), 2014, they are counted here.

How to verify your QuickBooks result

It is not unusual to see a number that is less than the total number of employees who were paid this year if some of your employees were not paid in the period that included March 12 (for Q1), June 12 (for Q2), September 12 (for Q3), or December 12 (for Q4), 2014.

It is also possible that the pay period on the check was entered incorrectly. If this is the case:

1. Make a note of the net amount of the check.
2. Double click the check in question, and click Paycheck Details.
3. Change the pay period. If you get a message asking you if you want to get time data for that period, click No.
4. Make sure that the net of the check did not change, and click Save and Close.

IRS directions

Enter amounts on line 2 that would also be included in box 1 of your employees’ Forms W-2. Include sick pay paid by a third party if you were given timely notice of the payments and the third party transferred liability for the employer’s taxes to you.

If you are a third-party payer of sick pay, do not include sick pay that you paid to policyholders’ employees here if you gave the policyholders timely notice of the payments.

QuickBooks behavior

QuickBooks totals, for the quarter, all the payroll items with a tax-tracking type that affects line 2.

How to verify your QuickBooks result

1. Run the Payroll Item Listing report.
2. Filter the report, and in the Columns, uncheck everything but the Payroll Item and Tax Tracking Type.
3. Print the report.
4. Put a checkmark next to any item that has a tax-tracking type of:
   Compensation
   Reported Tips
   Dependent Care FSA
   Section 457 Distribution
   Non-qual. Plan Distr
   Fringe Benefits
   Other Moving Expenses
   401(k)
   403(b)
   408(k)(6)SEP
   Elective 457(b)
   Simple IRA
   Taxable Grp Trm Life
   Med Care Flex Spend
   Premium Only/125
   SCorp Pd Med Premium
   HSA Co. (Taxable)
   HSA Emp. (Pretax)
5. Now run a Payroll Summary report for the quarter.
6. Click Modify (or Customize) Report.
7. Click the Filters tab.
8. Under Current filter choices, click Payroll Item. In the drop-down box in the middle, pick Multiple Payroll Items.
9. Check off all the payroll items you marked earlier. Line 2 is equal to the total of the Adjusted Gross Pay and Total Employer Taxes and Contributions.

If any of them should not track the way they are, then modify the payroll item:

1. Go to the Payroll Item List.
2. Double click the payroll item in question.
3. Click Next until you get to Tax Tracking Type.
4. Correct the tax-tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, a Payroll Checkup should be run to correct the taxable wage bases.

IRS directions

Enter the federal income tax you withheld (or were required to withhold) from your employees on this quarter’s wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits. Do not include any income tax withheld by a third-party payer of sick pay even if you reported it on Form W-2. You will reconcile this difference on Form W-3. Also include here any excise taxes you were required to withhold on golden parachute payments (section 4999).

If you are a third-party payer of sick pay, enter the federal income tax you withheld (or were required to withhold) on third-party sick pay here.

QuickBooks behavior

QuickBooks adds the total of the Federal Withholding from the paychecks for the quarter.

How to verify your QuickBooks result

Run a Payroll Summary for the quarter. The total of the Federal Withholding should equal line 3.

If an employee’s federal withholding is incorrect, enter a liability adjustment for that employee. The amount of the adjustment may then need to be collected from or refunded to the employee.

To prevent this from occurring in the future:

1. Go to the Employee Center, and click the Employees Tab.
2. Double click the employee’s name.
3. Change tabs to Payroll and Compensation Info.
4. Click Taxes.
5. Correct the filing status and allowances as necessary.

IRS directions

If no wages, tips, and other compensation on line 2 are subject to social security or Medicare tax, check the box on line 4. If this question does not apply to you, leave the box blank. For more information about exempt wages, see section 15 of Pub. 15 (Circular E) and section 4 of Pub. 15-A, Employer's Supplemental Tax Guide.

Caution: If you are a government employer, wages you pay are not automatically exempt from social security and Medicare taxes. Your employees may be covered by law or by a voluntary Section 218 Agreement with the SSA.

QuickBooks behavior

QuickBooks does not check this box for you.

IRS directions

Enter the total wages, sick pay, and fringe benefits subject to social security taxes you paid to your employees during the quarter. For this purpose, sick pay includes payments made by an insurance company to your employees for which you received timely notice from the insurance company.

Enter the amount before deductions. Do not include tips on this line. For information on types of wages subject to social security taxes, see section 5 of Pub. 15 (Circular E).

For 2014, the rate of social security tax on taxable wages is 6.2% (.062) each for the employer and employee or 12.4% (.124) for both. Stop paying social security tax on and reporting an employee's wages on line 5a when the employee's taxable wages (including tips) reach $117,000 for the year. However, continue to withhold income and Medicare taxes for the whole year on wages and tips even when the social security wage base of $117,000 has been reached.

          line 5a (column 1)
        x   .124
        ---------
          line 5a (column 2)

QuickBooks behavior

QuickBooks supplies Column 1 from the wage base for Social Security minus the wage base tips. Column 2 is a calculated amount.

How to verify your QuickBooks result

1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
2. Click the Modify (or Customize) Report button.
3. Click the Display tab and select Last Calendar Quarter from the Dates drop-down list.
4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
5. Click the Filters tab.
6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. Clear any other selected items, and click OK.
8. Click OK to return to the Payroll Summary report.
9. Double-click the "Social Security Employee Total" amount to display the Transactions by Payroll Item report.
   The Wage Base column total minus the Wage Base (Tips) column total should equal line 5a, Column 1.

Correcting line 5a, Column 1:
The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the QuickBooks Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. If any wage bases for the employees are fixed, QuickBooks will adjust Social Security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended Forms 941 need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

IRS directions

Enter all tips your employees reported to you during the quarter until the total of the tips and wages for an employee reaches $117,000 for the year. Include all tips your employees reported to you even if you were unable to withhold the employee tax of 6.2%.

Your employee must report cash tips to you by the 10th day of the month after the month the tips were received. The report should include charged tips (for example, credit and debit card charges) you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Both directly and indirectly tipped employees must report tips to you. No report is required for months when tips are less than $20. Employees may use Form 4070, Employee's Report of Tips to Employer, or submit a written statement or electronic tip record.

Do not include allocated tips on this line. Instead, report them on Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips. Allocated tips are not reportable on Form 941 and are not subject to withholding of federal income, social security, or Medicare taxes.

          line 5b (column 1)
        x   .124
        ---------
          line 5b (column 2)

QuickBooks behavior

QuickBooks supplies Column 1 from the wage base tips for Social Security. Column 2 is a calculated amount.

How to verify your QuickBooks result

1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
2. Click the Modify (or Customize) Report button.
3. Click the Display tab and then select Last Calendar Quarter from the Dates drop-down list.
4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
5. Click the Filters tab.
6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. Clear any other selected items and click OK.
8. Click OK to return to the Payroll Summary report.
9. Double-click the "Social Security Employee Total" amount to display the Transactions by Payroll Item report. The Wage Base (Tips) column total should equal line 5b, Column 1.

Correcting line 5b, Column 1:
The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the QuickBooks Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. If any wage bases require correction, review all 941 forms filed for the year to date. Once the wage bases for the employees are fixed, QuickBooks will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 941 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

IRS directions

Report all wages, tips, sick pay, and taxable fringe benefits that are subject to Medicare tax. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax.

The rate of Medicare tax is 1.45% (.0145) each for the employer and employee or 2.9% (.029) for both. Include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 1.45%.

          line 5c (column 1)
        x   .029
        ---------
          line 5c (column 2)

QuickBooks behavior

QuickBooks supplies the number for Column 1 from the wage base for Medicare. Column 2 is a calculated amount.

How to verify your QuickBooks result

1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
2. Click the Modify (or Customize) Report button.
3. Click the Display tab and then select Last Calendar Quarter from the Dates drop-down list.
4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
5. Click the Filters tab.
6. Choose Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Item drop-down list.
7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. Clear any other selected items, and click OK.
8. Click OK to return to the Payroll Summary report.
9. Double-click the "Medicare Employee Total" amount to display the Transactions by Payroll Item report. The Wage Base column total should equal line 5c, Column 1.

Correcting line 5c, Column 1:
The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the QuickBooks Lists menu, and then double-click each payroll item to review or correct it.

To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. If any wage bases require correction, review all 941 forms filed for the year to date. Once the wage bases for the employees are fixed, QuickBooks will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 941 forms need to be filed, contact your accountant.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

IRS directions

Enter all wages, tips, sick pay, and taxable fringe benefits that are subject to Additional Medicare Tax withholding. You are required to being withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.

For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Pub 15 (Circular E). For more information on Additional Medicare Tax, visit www.irs.gov and enter "Additional Medicare Tax" in the search box.

Once wages and tips exceed the $200,000 withholding threshold, include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 0.9%.

          line 5d (column 1)
        x   .009
        ---------
          line 5d (column 2)

QuickBooks behavior

QuickBooks supplies the number for Column 1 from the wage base for Medicare Employee Addl Tax. Column 2 is a calculated amount, but it should match the amount of tax withheld as calculated by QuickBooks (within a few cents rounding difference).

How to verify your QuickBooks result

1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
2. Click the Modify (or Customize) Report button.
3. Click the Display tab and then select Last Calendar Quarter from the Dates drop-down list.
4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
5. Click the Filters tab.
6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
7. In the Payroll Item window, select Medicare Employee Addl Tax. Clear any other selected items, and click OK.
8. Click OK to return to the Payroll Summary report.
9. Double-click the "Medicare Employee Addl Tax Total" amount to display the Transactions by Payroll Item report. The Wage Base column total should equal line 5d, column 1. The Amount column total should equal line 5d, column 2 (within a few cents rounding difference).

Correcting line 5d, Column 1:
The wage base amount for Medicare Employee Addl Tax uses each paycheck and year-to-date adjustment entered into QuickBooks for the quarter once the employee's wages exceed $200,000 as long as the payroll item was on the employee' record before the employee was paid $200,000. If the wage base amount is incorrect, your payroll items may be set up incorrectly or you may not have had the Medicare Employee Addl Tax payroll item added to the employee's record before the employee was paid $200,000. Verify the setup of the Medicare Employee Addl Tax payroll item.

As long as you have at least one transaction with the Medicare Employee Addl Tax on the employee record, you can locate and fix any incorrect employee wage bases by choosing My Payroll Service > Run Payroll Checkup from the Employees menu. If any wage bases require correction, QuickBooks will post a liability adjustment to the employee.

Enter in any tax liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. If the calendar year has passed or amended 941 forms need to be filed, contact your accountant.

IRS directions

Add the column 2 amounts on lines 5a-5d. Enter the result on line 5e.

QuickBooks behavior

QuickBooks adds together lines 5a, 5b, 5c, and 5d (column 2).

How to verify your QuickBooks result

Use the troubleshooting steps for lines 5a, 5b, 5c, and 5d.

IRS directions

Enter the tax due from a Section 3121(q) Notice and Demand on line 5f. The IRS issues a Section 3121(q) Notice and Demand to advise an employer of the amount of tips received by employees who failed to report or underreported tips to the employer. An employer is not liable for the employer share of the social security and Medicare taxes on unreported tips until notice and demand for the taxes is made to the employer by the IRS in a Section 3121(q) Notice and Demand. The tax due may have been determined from tips reported to the IRS on employees’ Form 4137, Social Security and Medicare Tax on Unreported Tip Income, or other tips that were not reported to their employer as determined by the IRS during an examination. For additional information, see Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, available at www.irs.gov/irb/2012-26_IRB/ar07.html.

Deposit the tax within the time period required under your deposit schedule to avoid any possible deposit penalty. The tax is treated as accumulated by the employer on the "Date of Notice and Demand" as printed on the Section 3121(q) Notice and Demand. The employer must include this amount on the appropriate line of the record of federal tax liability (Part 2 of Form 941 fro a monthly schedule depositor or Schedule B (Form 941) for a semiweekly schedule depositor).

QuickBooks behavior

QuickBooks does not supply this number.

IRS directions

Add the total federal income tax withheld from wages, tips, and other compensation (line 3) and the total social security and Medicare taxes before adjustments (line 5e), and any tax due under Section 3121(q) Notice and Demand (line 5f). Enter the result on line 6.

QuickBooks behavior

QuickBooks calculates this amount by adding line 3, line 5d, and line 5e.

IRS directions

Enter adjustments for fractions of cents (due to rounding) relating to the employee share of social security and Medicare taxes withheld. The employee share of amounts shown in column 2 of lines 5a-5d may differ slightly from amounts actually withheld from employee’s paychecks due to rounding of social security and Medicare taxes based on statutory rates.

Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 6 instead of parentheses. Doing so enhances the accuracy of IRS scanning software. For example, enter "-10.59" instead of "(10.59)." However, if your software only allows for parentheses in reporting negative amounts, you may use them.

Prior quarter's adjustments. If you need to adjust any amount reported on a previously filed Form 941, complete and file Form 941-X. Form 941-X is an adjusted return or claim for refund and is filed separately from Form 941.

QuickBooks behavior

QuickBooks automatically calculates the fractions of cents (within one dollar) of difference between the net taxes amount and the quarter's liability amount.

IRS directions

Enter the adjustment for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer with regard to sick pay paid by the third-party. These wages should be included on lines 5a, 5c, and, if the withholding threshold is met, line 5d. If you are the third-party sick pay payer, enter the adjustment for any employer share of these taxes required to be paid by the employer.

Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 6 instead of parentheses. Doing so enhances the accuracy of IRS scanning software. For example, enter "-10.59" instead of "(10.59)." However, if your software only allows for parentheses in reporting negative amounts, you may use them.

Prior quarter’s adjustments. If you need to adjust any amount reported on a previously filed Form 941, complete and file Form 941-X. Form 941-X is an adjusted return or claim for refund and is filed separately from Form 941.

QuickBooks behavior

QuickBooks does not supply this number.

IRS directions

Enter adjustments for:

• Any uncollected employee share of social security and Medicare taxes on tips, and
• The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees.

Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 6 instead of parentheses. Doing so enhances the accuracy of IRS scanning software. For example, enter "-10.59" instead of "(10.59)." However, if your software only allows for parentheses in reporting negative amounts, you may use them.

Prior quarter’s adjustments. If you need to adjust any amount reported on a previously filed Form 941, complete and file Form 941-X. Form 941-X is an adjusted return or claim for refund and is filed separately from Form 941.

QuickBooks behavior

QuickBooks does not supply this number.

IRS directions

Combine the amounts shown on lines 6-9 and enter the result on line 10.

• If line 10 is less than $2,500 or line 10 on the preceding quarterly return was less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter. You may pay the amount with Form 941 or you may deposit the amount. To avoid a penalty, you must pay the amount in full with a timely filed return or you must deposit the amount timely. For more information on paying with a timely filed return, see the instructions for line 12 below.
• If line 10 is $2,500 or more and line 10 on the preceding quarterly return was $2,500 or more, or if you incurred a $100,000 next-day deposit obligation during the current quarter. You must make deposits according to your deposit schedule. The amount shown on line 10 must equal the "Total liability for quarter" shown on line 14 or the "Total liability for the quarter" shown on Schedule B (Form 941).

Caution: If you are a semiweekly depositor, you must complete Schedule B (Form 941). If you fail to complete and submit Schedule B (Form 941), the IRS will assert deposit penalties based on available information.

QuickBooks behavior

QuickBooks calculates this by adding lines 6, 7, 8, and 9.

How to verify your QuickBooks result

Make sure that all entries for lines 6 through 9 are entered correctly.

IRS directions

Enter your deposits for this quarter, including any overpayment from a prior quarter. Also include in the amount shown any overpayment that you applied from filing Form 941-X or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund, in the current quarter.

QuickBooks behavior

QuickBooks adds all the deposits for Federal Withholding, Medicare Employee, Medicare Company, Social Security Employee, and Social Security Company with a paid-through date that falls within the quarter. If you need to include a prior quarter’s overpayment, right click and override the amount listed to add the overpayment.

How to verify your QuickBooks result

1. Run the Payroll Liabilities Balances report for the quarter.
2. Click Modify (or Customize) Report.
3. Change the Display columns to Total only.
4. Click the Filters tab
5. Click Payroll Item under Current Filter Choices. In the middle, click the drop-down next to Payroll Item, and select Multiple Payroll Items.
6. Check off only Federal Withholding, Medicare Employee, Medicare Company, Social Security Employee, and Social Security Company, and click OK.
7. Click the Transaction Type under Choose Filter on the left. In the middle, click the drop-down next to Transaction type, and choose Payroll Liability Check. Click OK.
8. The total balance should equal the amount of line 11. You can double-click this amount to see the transactions that contribute to the total. Double check that all deposits have been recorded.

If you know you've made a deposit but don't see it, expand your date range to see if the deposit appears. If it does, double-click that deposit and change the Paid Through date so that it falls within the quarter it's supposed to.

If the number on line 11 doesn't match the report, then a liability adjustment has been entered or a payment was entered incorrectly. To find a liability adjustment:

1. Click Modify (or Customize) Report and Filters.
2. Under Transaction Type, click Multiple Transaction Types, and from the list that pops up, click Liability Adjustment. This will show you any liability adjustments made within the quarter in addition to your payments. Double check that the liability adjustment is actually needed.

If you know you've recorded the deposit in QuickBooks, find the deposit and check that the type is specifically LIAB CHK and not just CHK.

If it is CHK, and it has been reconciled, a liability adjustment will need to be entered for the amount of the check that was entered. Then you will need to edit the amount of line 15.

If the transaction has not been reconciled, you can delete it and record it as a payroll liability check.

IRS directions

If line 10 is more than line 11, enter the difference in line 12. Otherwise, see line 13 instructions.

You do not have to pay if line 12 is under $1. Generally, you should have a balance due only if your total taxes (line 10) for the current quarter or preceding quarter are less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter. However, see section 11 of Pub. 15 (Circular E) for information about payments made under the accuracy of deposits rule.

You may pay the amount shown on line 12 using EFTPS, credit card, debit card, check, money order, or electronic funds withdrawal (EFW). Do not use a credit card, debit card, check, money order, or EFW to pay taxes that were required to be deposited. For more information on electronic payment options, visit the IRS website at www.irs.gov/e-pay.

If you pay by EFTPS, credit card, or debit card, file your return using the "Without a payment" address and do not file Form 941-V, Payment Voucher.

If you pay by check or money order, make it payable to the "United States Treasury." Enter your EIN, Form 941, and the tax period on your check or money order. Complete Form 941-V and enclose it with Form 941.

If line 10 is $2,500 or more and you have deposited all taxes when due, the balance due on line 12 should be zero, unless you have reduced your deposits in anticipation of filing a Form 941-X to claim COBRA premium assistance credits.

Caution: If you are required to make deposits and instead pay the taxes with Form 941, you may be subject to a penalty.

QuickBooks behavior

QuickBooks calculates this number by subtracting line 11 from line 10.

How to verify your QuickBooks result

Be sure that line 10 and line 11 are correct by using the verification steps listed for those lines.

IRS directions

If line 11 is more than line 10, enter the difference in line 13. Never make an entry in both lines 12 and 13.

If you deposited more than the correct amount for the quarter, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check only one box in line 13. If you do not check either box or if you check both boxes, generally we will apply the overpayment to your account. We may apply your overpayment to any past due tax account that is shown in our records under your EIN.

If line 13 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so.

QuickBooks behavior

QuickBooks subtracts line 10 from line 11.

How to verify your QuickBooks result

Be sure that line 10 and line 11 are correct by using the verification steps for those lines.

IRS directions

• De minimus exception. If line 10 is less than $2,500 or line 10 on the preceding quarterly return was less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter, check the appropriate box on line 14 and go to Part 3.
  
  Caution: If you meet the de minimus exception based on the prior quarter and line 10 for the current quarter is $100,000 or more, you must provide a record of your federal tax liability. If you are a monthly schedule depositor, complete the deposit schedule on line 14. If you are a semiweekly schedule depositor, attach Schedule B (Form 941).


• If you reported $50,000 or less in taxes during the lookback period, you are a monthly schedule depositor unless the $100,00 Next-Day Deposit Rule discussed in section 11 of Pub. 15 (Circular E) applies. Check the appropriate box on line 14 and enter your tax liability for each month in the quarter. Add the amounts for each month. Enter the result in the Total liability for quarter box.

  Note that your total tax liability for the quarter must equal your total taxes shown on line 10. If it does not, your tax deposits and payments may not be counted as timely. Do not change your tax liability on line 14 by adjustments reported on any Forms 941-X.

  You are a monthly schedule depositor for the calendar year if the amount of your Form 941 taxes reported for the lookback period is $50,000 or less. The lookback period is the four consecutive quarters ending on June 30 of the prior year. For 2014, the lookback period begins July 1, 2012, and ends June 30, 2013. If you filed Form 944 in either 2012 or 2013, your lookback period is the 2012 calendar year.

  Caution: The amounts reported on line 14 are a summary of your monthly tax liability, not a summary of deposits you made. If you do not properly report your liabilities when required or if you are a semiweekly schedule depositor and report your liabilities on line 14 instead of on Schedule B (Form 941), you may be assessed an "averaged" failure-to-deposit (FTD) penalty.

• If you reported more than $50,000 of taxes for the lookback period, you are a semiweekly schedule depositor. Check the appropriate box on line 14.

  You must complete Schedule B (Form 941) and submit it with your Form 941. Do not use Schedule B (Form 941) if you are a monthly schedule depositor.

  Do not change your tax liability on Schedule B (Form 941) by adjustments reported on any Forms 941-X.

QuickBooks behavior

QuickBooks adds the total taxes accrued each day on paychecks for Federal Withholding, Medicare Employee, Medicare Company, Social Security Employee, and Social Security Company. This is not the amount of the tax deposits you've made.

How to verify your QuickBooks result

1. From the QuickBooks Reports menu, choose Employees & Payroll, and then Payroll Summary.
2. Click the Modify (or Customize) Report button.
3. Click the Display tab and then select Last Calendar Quarter from the Dates drop-down list.
4. In the Display columns by drop-down list, select Month, and clear the Hours and Rate checkboxes.
5. Click the Filters tab.
6. Choose the Payroll Item in the Filter drop-down list, and then choose Selected payroll items in the Payroll Items drop-down list.
7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. Clear any other selected items, and click OK.
8. Click OK to return to the Payroll Summary report.
9. Ignoring any negative signs, add up each column's amounts for Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee taxes. The totals should correspond to the amounts in Month 1, Month 2, Month 3, and "Total liability for quarter" of line 16.

You can double-click any of the numbers on the report to see what transactions contribute to their amounts.

IRS directions

If you go out of business or stop paying wages, you must file a final return. To tell the IRS that a particular Form 941 is your final return, check the box on line 15 and enter the date you last paid wages in the space provided.

QuickBooks behavior

QuickBooks does not check this box for you.

IRS directions

If you hire employees seasonally--such as for summer or winter only--check the box on line 16. Checking the box tells the IRS not to expect four Forms 941 from you throughout the year because you have not paid wages regularly.

Generally, we will not ask about unfiled returns if you file at least one return showing tax due each year. However, you must check the box every time you file a Form 941.

Also, when you fill out Form 941, be sure to check the box on the top of the form that corresponds to the quarter reported.

QuickBooks behavior

QuickBooks does not check this box for you.

IRS directions

If you want to allow an employee, a paid tax preparer, or another person to discuss your Form 941 with the IRS, check the "Yes" box in Part 4. Enter the name, phone number, and the five-digit personal identification number (PIN) of the specific person to speak with--not the name of the firm that prepared your tax return. The designee may choose any five numbers as his or her PIN.

By checking "Yes," you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return. You also authorize your designee to do all of the following.

• Give us any information that is missing from your return.
• Call us for information about processing your return.
• Respond to certain IRS notices that you have shared with your designee about math errors and return preparation. The IRS will not send notices to your designee.

You are not authorizing your designee to bind you to anything (including additional tax liability) or to otherwise represent you before the IRS. If you want to expand your designee's authorization, see Pub. 947, Practice Before the IRS and Power of Attorney.

The authorization will automatically expire 1 year from the due date (without regard to extensions) for filing your Form 941. If you or your designee want to terminate the authorization, write to the IRS office for your locality using the "Without a payment" address.

QuickBooks behavior

QuickBooks does not supply any of this information.

IRS directions

Complete all information in Part 5 and sign Form 941. The following persons are authorized to sign the return for each type of business entity.

• Sole proprietorship — The individual who owns the business.
• Corporation (including a limited liability company (LLC) treated as a corporation) — The president, vice president, or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a partnership) or unincorporated organization — A responsible and duly authorized member, partner, or officer having knowledge of its affairs.
• Single member LLC treated as a disregarded entity for federal income tax purposes — The owner of the LLC or principal officer duly authorized to sign.
• Trust or estate — The fiduciary.

Form 941 may be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.

Alternative signature method. Corporate officers or duly authorized agents may sign Form 941 by rubber stamp, mechanical device, or computer software program. For details and required documentation, see Rev. Proc. 2005-39, 2005-28 I.R.B. 82, at www.irs.gov/irb/2005-28_IRB/ar16.html.

QuickBooks behavior

QuickBooks does not supply any of this information.

IRS directions

A paid preparer must sign Form 941 and provide the information in the "Paid Preparer Use Only" section of Part 5 if the preparer was paid to prepare Form 941 and is not an employee of the filing entity. Paid preparers must sign paper returns with a manual signature. The preparer must give a copy of the return in addition to the copy to be filed with the IRS.

If you are a paid preparer, enter your Preparer Tax Identification Number (PTIN) in the space provided. Include your complete address. If you work for a firm, enter the firm's name and the EIN of the firm. You can apply for a PTIN online or by filing Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal. For more information about applying for a PTIN online, visit the IRS website at www.irs.gov/ptin. You cannot use your PTIN in place of the EIN of the tax preparation firm.

Generally, do not complete this section if you are filing the return as a reporting agent and have a valid Form 8655, Reporting Agent Authorization, on file with the IRS. However, a reporting agent must complete this section if the reporting agent offered legal advice, for example, advising the client on determining whether its workers are employees or independent contractors for federal tax purposes.

QuickBooks behavior

QuickBooks does not supply any of this information.