Power Church Online
When generating from Power Church the 941 Quarterly Tax Return, Line 7 "Current quarter's adjustment for fraction of cents" lists 0.07. Line 6 "Total taxes before adjustments" lists $8698.19. Line 10 "Total taxes after adjustments" adds the 0.07 for a total of $8698.26. What causes the adjustments? Is this simply a rounding issue that needs to be corrected or could a tax table be wrong?
When should I be concerned with an amount that shows in line 7? What do I do if it is a -0.07? What do I do if it is a +0.07. How much does this line need to show before something has to be done on my part.
Do I need to do anything to correct this adjustment before filing the 941 for the 1st quarter so this will not come back to bite me later?
Thank you.
941 adjustments +/- Line 10
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Re: 941 adjustments +/- Line 10
This is per IRS instructions, and the information can be found in the 941 instructions. I've pasted it here:fbctnc wrote: ↑Thu Apr 08, 2021 10:27 amPower Church Online
When generating from Power Church the 941 Quarterly Tax Return, Line 7 "Current quarter's adjustment for fraction of cents" lists 0.07. Line 6 "Total taxes before adjustments" lists $8698.19. Line 10 "Total taxes after adjustments" adds the 0.07 for a total of $8698.26. What causes the adjustments? Is this simply a rounding issue that needs to be corrected or could a tax table be wrong?
When should I be concerned with an amount that shows in line 7? What do I do if it is a -0.07? What do I do if it is a +0.07. How much does this line need to show before something has to be done on my part.
Do I need to do anything to correct this adjustment before filing the 941 for the 1st quarter so this will not come back to bite me later?
Thank you.
"Current quarter's adjustment for fractions of cents. Enter adjustments for fractions of cents (due to rounding) relating to the employee share of social security and Medicare taxes withheld. The employee share of amounts shown in column 2 of lines 5a–5d may differ slightly from amounts actually withheld from employees' pay due to the rounding of social security and Medicare taxes based on statutory rates. This adjustment may be a positive or a negative adjustment."
You can find this on page 12, under the header 7-9 Tax Adjustments
https://www.irs.gov/pub/irs-pdf/i941.pdf
No need to adjust anything as the system calculates this for you.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: 941 adjustments +/- Line 10
Thank you so much!