Common Reasons 941 Quarterly Report may differ from Tax Responsibility Report

When the 941 report (Accounting>File>Human Resources>Reports>Quarterly Reports>941 Quarterly Report Printed) is printed, it generally matches the Tax Responsibility report (Accounting>File>Human Resources>Reports>Quarterly Reports>Tax Responsibility).  There are, however, circumstances where the two reports will not match.

EXAMPLE #1 - Taxes are edited in the "EDIT TAXES" window within Prepare Pay:

In the example above, the following was changed:

1 - Federal was $83.50, now $100.00
2 - FICA was $49.60, now $100.00
3 - Medicare was $11.60, now $100.00

The snippet from the Tax Responsibility report below reflects the changes made in "Edit Taxes":

The 941 Report for the same period reflects the calculated/original taxes that are due (before the FICA and MEDICARE taxes were edited):

NOTE: The altered Federal taxes applied to the 941 because it is pulled from HR records.  The FICA and Medicare are calculated based on the taxable wages for specified quarter.

EXAMPLE #2 - Voided checks within the period:

The may be cases where a payroll check needs to be voided (lost check, incorrect/reprinted, etc.).  RFMS allows the 941 Report to be printed both including and excluding the voided checks. 

Go to Accounting>File>Human Resources>Reports>Quarterly Reports>941 Quarterly Report to review the following options:

Include Voids

Exclude Voids

EXAMPLE #3 - Rounding/Fractions of Cents

When printing payroll checks, RFMS will calculate taxes based on each pay period.  Those taxes are submitted accordingly by rounding to the nearest cent.

When preparing the 941 Quarterly report, RFMS will calculate taxes for the entire quarter.  There will be occasions where the rounding to the nearest cent will vary when calculating the total taxes for an entire quarter vs calculating taxes per pay period and adding each pay period together.

There are two ways to proceed:

Option 1 - Prepare 941 with an over/underpayment (see below):

Option 2 - Adjust for Fractions of Center while setting the criteria of the report (see below):

Which results in the following for the final report: