ReportsWe recommend that you run the following balancing reports from Reports > Payroll Tax Reports:
- Check for Deduction Pay Masters that haven’t been updated: Pinpoints Pay IDs that have not gone through the Update Payroll History process, which would mean they’d be excluded from 941’s and W-2’s because they haven’t been updated to a Calendar Month or Year
- Federal/State Earnings Comparison: Identifies employees whose Federal wages don’t equal their State wages, which would normally indicate a problem, unless they had a deduction that sheltered Federal, but not State wages
- FICA/Medicare Earnings Comparison: Identifies employees whose FICA wages don’t equal their Medicare wages, either because they were exempt from FICA, met the annual FICA gross limit, or have an issue that needs to be addressed
- FICA Earnings Calculation Report: Determines whether any employees’ FICA is outside the acceptable rounding difference of 6.2% of taxable earnings
- Deduction Pay Masters/Calendar Comparison: Compares employees’ Deduction Pay Masters (which determine tax liability) to Deduction Calendar Summaries (which project 941 and W-2 taxable wage and tax amounts), and distinguishes differences that are valid (because they were the result of adjustments having been made in the Change Deduction Earnings and/or Amounts process), from discrepancies that require further investigation
- 941 Tax Liability Report: Shows employees’ Federal, FICA and Medicare earnings, sheltered amounts and liabilities by Pay ID, month and quarter, as well as a total number of employees that have each deduction
- Consolidated Tax Report: Details employees’ Federal, FICA, Medicare and State earnings, sheltered amounts and taxes for the selected quarter, and provides totals for the year
- Note: The 941 Tax Liability Report and Consolidated Tax Report should match, unless any adjustments have been entered on the Change Payroll Deduction/Earnings Amounts screen, without the indication to Adjust Gross to the Pay Master .
DocumentationWe encourage you to refer to our online document that provides ranging recommendations and review tips to help you balance your tax deductions each payroll, month and quarter. TAX DEDUCTION BALANCING COVID Wages Unfortunately, it’s another year dealing with COVID. Please take a look at our COVID Wiki to get a better understanding of the wages and how they are to be reported on the W-2. W-2 control numbers This is an internal number used to identify the W-2s in our system. Very similar to a personnel ID, it is NOT required with the IRS. We have been informed that Turbo Tax wants a two-digit number and that may not work for those that start their control numbers with the number 1. If you want, you can start your numbers higher or let your employee know they can put any number there to process with filing their taxes. Tax Forms and Supplies – Check your order ASAP Shipments should start heading out in early December. We will send an email to let you know when the packages are on their way. Please be sure to check the contents of your package immediately and report any missing items. If you contact us in January for additional items, we cannot guarantee availability or delivery dates. Please let us know if you have any questions as you prepare for year end. We look forward to helping make your year-end experience a smooth one.
About RDARDA Systems, Inc. is a successful multi-generational software and consulting company that specifically caters to small schools, towns, and counties. Our US-based team focuses on quality, modern and secure cloud-based software, and excellent customer service. Get back to your basics with a full suite of software built on a firm foundation of Fund Accounting using expertly crafted and modern technology, hosted in the stress-free and secure Google Cloud. Learn more about how RDA Systems’ Municipal Suite, School District Suite and Concierge Support can work for you and your team.