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941 adjustments +/- Line 10

Posted: Thu Apr 08, 2021 10:27 am
by fbctnc
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.

Re: 941 adjustments +/- Line 10

Posted: Thu Apr 08, 2021 4:49 pm
by NeilZ
fbctnc wrote:
Thu Apr 08, 2021 10:27 am
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.
This is per IRS instructions, and the information can be found in the 941 instructions. I've pasted it here:

"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.

Re: 941 adjustments +/- Line 10

Posted: Thu Apr 08, 2021 6:19 pm
by fbctnc
Thank you so much!