Payroll-941 Report

[coadydome]

I ran a 941 report in Version 11. It does not match my manually created 941 for the first quarter. What is not working is the Housing Allowance. Housing Allowance is NOT subject to SS or Medicare tax and therefore should not be included in that calculation on lines 5a and 5c. I changed the Payroll Item to Non-taxable instead of Housing Allowance and re-ran the 941 report. That did not change the amount either. It appears as though the 941 report is not checking to see if the payroll item is marked non-taxable before using it in the calculations on lines 5a and 5c.

Has anyone else run into this problem?

[coadydome]

It would also be helpful to have the information print out for the 941b report. Without that, I still need to print out payroll reports, add up the liabilities by pay period and then fill in the report manually. On a positive note, I REALLY appreciate the Tax Deposit report available by month. That saves my a great deal of time. I just thought of something....I can run that report after each payrun with a custom date and have the information to enter into my 941b. A round-about way to get the info, but do-able.

[tborgal]

I believe the housing allowance is subject to SS and Medicare tax. It is only exempt from Federal and State income tax.

[NeilZ]

I believe the housing allowance is subject to SS and Medicare tax. It is only exempt from Federal and State income tax.

True, if the minister is listed as an employee, or its subject to Self-Employment tax if that is the way the minister is setup.