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I use Accounting>Payroll>Tax Reporting>941 Quarterly Tax Return to generate the 3rd quarter 941, but it lists $21,469.69 for the amount on line 5a column 1. I believe this amount should be $14,969.69, the same amount listed in 5c column 1. If you subtract the $6,500 salary for our associate pastor salary from the $21,469.69 the amount for line 5a would be $14,969.69. All the reports that I ran agree with $14,969.69.

As a result, a handwritten 941 3rd quarter is being sent instead of the computer generated 941. Is it possible that there is an error in the program. In any case, what needs to be done to correct the generated 3rd quarter 941 so something will not come back to bite me at the end of the 4th quarter. BTW, 1st and 2nd quarter 941 computer generated were correct.

This is somewhat difficult to explain. Hope it makes sense.

Thank you.

It sounds like you have the Associate Pastor Pay Item set to taxable. You can find this by going to Accounting>Payroll>Setup>Maintain Item Descriptions, and then Locating the Item. Look for the Tax Options field

Zasalamel wrote: ↑

Mon Oct 31, 2022 9:04 am

It sounds like you have the Senior Pastor Pay Item set to taxable. You can find this by going to Accounting>Payroll>Setup>Maintain Item Descriptions, and then Locating the Item. Look for the Tax Options field

Yep ... I would definitely take a look at how you have the associate pastor's salary setup. If he's not supposed to have Social Security taken out, and most do not, that Tax Options selection needs to be changed. If you're using v12 or higher, you should select 'Clergy Salary', which will make the salary taxable for income tax (both federal and state) and exclude Social Security.

If you're using V11.55, or there are additional payroll taxes that are not applicable and you use v12 or higher, then you need to select the 'More Options' selection and chose which taxes are applicable.

In any case, look at how the Senior Pastor's Pay Item is setup, it should be the same.

Thank you so much. In Maintain Item Description, I had social security with a check mark. When this was changed to NC State Income tax, the 3rd Quarter 941 is correct.
Again, thank you so much.