Using the 941 Report to Figure Tax Liability
- Create a new Vendor to use when remitting your 941 payment. If you use EFTPS when remitting your payments the Vendor should be EFTPS.
- Create a new Vendor Type called 941 Vendor.
- Process payroll following the Payroll processing doc.
- Run the Tax Liability Report entering dates of the last check date plus one day to the current check date.
- Run the Employee W-2 report for the same time frame and verify the Taxable wages for FICA and Medicare are correct.
- Multiply the FICA taxable x .1240 = tax due.
- Multiply the Medicare taxable x .0290 = tax due.
- There will most likely be a difference between the Tax on the report and the calculated tax due. This is because the tax on the report is a sum of all payroll checks and the calculated tax is taking the total x the rate. Remit the tax based on the total tax x the rate.
- Add the FICA Tax due, Medicare Tax due and Federal Withholding together and this is the amount to remit for your tax liability.
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