LA Payroll - 941 or W2 Verification (1-35)

The Payroll Quarterly 941 report assumes that some information is true. You need to verify that before
printing and sending in your 941 and at year-end, this report must be compared with W2s.

 

1. Verify 941 Data.

 

1. Print the Payroll Summary report’s Tax and Deduction Summary for All States and Employees.
Set the Date Range to match the quarter for which you are printing the 941 report.

2. Select Payroll > Reports > Taxes > IRS Form 941.

3. Select the Quarter which you are verifying.

4. # Employees Paid as of a set date must be verified.

5. Total Liability for quarter should equal the information on the Payroll Summary report. If it
does not match, you may have some employees that are marked as Self Employed 1099. (The
Payroll Summary routine has the option to exclude those employees). Verify that the reports
now balance and that you have correctly marked the employees.

6. Total Deposit for quarter assumes that you paid any taxes owed; the routine does not have a
way to check that for sure. YOU MUST VERIFY THIS AMOUNT!

1. Open AP > Define Vendors and find the vendor to whom federal taxes are paid.

2. At the bottom of the Check History tab, set the date range to display the quarter in question.
Press the Tab key after entering the dates to update the Date Range Total amount. If this
matches the 941 total, then your information is correct and you are ready to print it.

7. While you have the Preview of the 941 on the screen, look at line 7 (fraction of cents). This
should be less than $1.00; if it is not, please contact the Support Department for assistance.

8. Be sure to save a copy of each 941 that you send to the government. While you can print them
again, if you have voided a payroll check (which you should not do), the 941 will differ from what
was submitted.

 

2. End-of-Year — Compare 941 Data with W2/W3.

 

1. At the end of the year, when printing W2s, they should be compared to the 941s to be sure they
are correct before the final 941 is sent to the government and/or W2s are provided to
employees.

2. To compare the W2s to the 941s, use the W3 report, which is a summary of the W2s:

a. Compare Box 1 on the W3 to the total of Line 2 on each quarter’s 941.

b. Compare Box 2 on the W3 to the total of Line 3 on each quarter’s 941.

c. Compare Box 3 on the W3 to the total of Line 5a, Column 1 on each quarter’s 941.

d. Compare Box 5 on the W3 to the total of Line 5c, Column 1 on each quarter’s 941.

Column 2 of lines 5a and 5c cannot be compared as the total on the 941 combines the
employee and employer share and the total on the W3 is only the employee portion.

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