Using the 941 Report to Figure Tax Liability

1. Create a new Vendor to use when remitting your 941 payment. If you use EFTPS when remitting your payments the Vendor should be EFTPS.
2. Create a new Vendor Type called 941 Vendor.
3. Process payroll following the Payroll processing doc.
4. Run the Tax Liability Report entering dates of the last check date plus one day to the current check date.
5. Run the Employee W-2 report for the same time frame and verify the Taxable wages for FICA and Medicare are correct.
6. Multiply the FICA taxable x .1240 = tax due.
7. Multiply the Medicare taxable x .0290 = tax due.
8. 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.
9. 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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