W-3 numbers not matching Quarterly reports
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KathyR2020
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W-3 numbers not matching Quarterly reports
I don't understand why my numbers from the 4 quarterly reports don't add up to what is on the W-3. the numbers are pulled from the save data and should mirror those figures on the W3. Can you help me with something to research?
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Zorak
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Re: W-3 numbers not matching Quarterly reports
We have recently seen this happen with an organization who had an employee that was receiving negative income amounts throughout the year, where more money was being deducted by a pre-tax deduction than was available in income on the checks.
In researching this, we found that the 941 process is capping that taxable income amount to zero for the affected quarters, rather than processing the employee's taxable income amount as a negative. The W2/W3 process, which deals with the whole year's totals, rather than breaking it down into quarterly totals, was processing the employee's total income, which came out to a positive amount by year end after the problem with the pre-tax deduction was discovered and resolved.
Take a look at the 941 Calculation report for each of the quarters of the year and verify that you don't have a similar problem employee setup causing the discrepancy.
In researching this, we found that the 941 process is capping that taxable income amount to zero for the affected quarters, rather than processing the employee's taxable income amount as a negative. The W2/W3 process, which deals with the whole year's totals, rather than breaking it down into quarterly totals, was processing the employee's total income, which came out to a positive amount by year end after the problem with the pre-tax deduction was discovered and resolved.
Take a look at the 941 Calculation report for each of the quarters of the year and verify that you don't have a similar problem employee setup causing the discrepancy.