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Like the subject, my quarterly tax return doesn't match the reports. My reports say $295.08 and the return says 295.02.

Why the discrepancy?

I'm confused!

Just re-read the return and balance due under totals says 295.02 but the tax liability says 295.08.

Not only am I confused, I am befuddled!

Can someone explain? This is the first time I have done the quarterly return with more than just the Pastor's income to report.

The number that is off is Medicare tax. Manually calculating the tax I come up with 2.61 tax for the quarter. My reports say 2.64. When you multiply by 2 to get employer and employee total, that accounts for the 6 cents discrepancy.

Medicare tax table is 1.45%.

I'm digging as I write this.

As each check is created each share of Medicare should be $.435. Twice per month for three months totals 2.61.The tax is rounded up for each check to $.44. Twice per month for three months totals 2.64.

I conclude it's a rounding issue and the 941 assistant pulls the "correct" numbers instead of the numbers from the check amounts.

What does anyone else think?

Do you have 'round tax to the nearest whole dollar' checked on the Medicate tax table?

NeilZ wrote: ↑

Mon Oct 09, 2023 11:05 am

Do you have 'round tax to the nearest whole dollar' checked on the Medicate tax table?

I do not.

Upon further review, the 941 assistant actually calculates the medicare tax on the total income for the quarter. This is done in line 5c on form 941. Line 7 then asks for adjustments for fractions of cents. I put the 6 cents difference there and called it good.