Hello,
My client has found an issue with the 941 form not showing retro tax calculation corrections, when a retro is run back to the beginning of the year with a result of either a credit or a debit in the Federal taxes.
I have checked the previous quarter files as well, but the difference in the federal taxes from period 1 2016 is not reflected in the first quarter 941 either.
I am attaching here some of the screen shots of my issue.
The 941 for the EE for Q2, shows 371.40 as the fed liability for check date 6/30/2016, However the payroll recon report shows the same payroll with a liability of 382.72 with the difference being the 11.32 that was the retro tax calculations run in period 26 for an additional $11.32. This additional tax was due to a configuration change on one wage type to make it taxable as it should have been. The EE was retro’d back to period 1 to capture these changes and he was taxed accordingly.
My client is concerned as to why this extra liability is not showing up on the quarterly 941s. They are paying these liabilities on weekly submissions, but the quarterly forms are not reflecting them.
Can you please look into why this might be happening so that I can make sure these show up on the 941 correctly?