941 Calculation Issue

[Zorak]

Send us a backup of your Accounting data and we will have a developer take a look to see what is actually causing the problem.

Make a backup in PowerChurch by going to Utilities > Backup & Restore. Choose Backup Files and on the next screen, choose Accounting Files. When it prompts for the location to save the backup zip file, click the Change Folder button and browse to a location on your computer that will be easy for you to find, such as Desktop or Documents. When the process is complete, there will be a file in that location called PCBACKUP...ZIP with the date and time coded into the file name.

Visit https://www.powerchurch.com/data, fill out the form. At the bottom of the form is a Select Files button. Click that and browse to the backup zip file. When it has finished uploading, the page will refresh and let you know the process is complete.

We'll have a look and see what's going on.

[ngaham]

Ok. I’ll get this uploaded tomorrow. Thanks.

[ngaham]

I've got the backup uploaded for you to review.

[Zlatan]

The short answer is that PowerChurch is calculating the Box 1 number based on what the IRS requires. Here are the instructions posted by the IRS:

"Federal Form 941 Line 1 doesn't necessarily show the total number of employees who were paid during the quarter. Instead, it shows the number who were paid wage items for the specific pay period that includes the 12th day of the 3rd month of the quarter. These dates are March 12, June 12, September 12, and December 12."

In the case of your data, one of the employees had income items for pay periods including 06/02-06/08, and subsequently 06/16-06/22. As this does not include June 12 (the 12th day of the 3rd month of the quarter), this employee is not included in the Box 1 count.

This is indeed very confusing and took us a while to discern what was actually occurring in this scenario. We are sorry for the confusion, but after much deliberation, we have determined that everything is as expected.

[ngaham]

Couple follow up questions:

1. Is it recommended that I change the box 1 number prior to submitting my 941 to the IRS to accurately reflect the number of employees during the reported quarter?

2. Are their plans in the future to change PowerChurch to include employees paid during the reporting quarter and not just those paid on the 12th?

Also, thank you for checking this out. I really appreciate it.

[NeilZ]

Couple follow up questions:

1. Is it recommended that I change the box 1 number prior to submitting my 941 to the IRS to accurately reflect the number of employees during the reported quarter?

2. Are their plans in the future to change PowerChurch to include employees paid during the reporting quarter and not just those paid on the 12th?

Also, thank you for checking this out. I really appreciate it.

These are the IRS requirements that were quoted there. The program is working as designed and reports properly per the IRS instructions. Your employee did not get paid during the week of June 9th thru 14th which contains that June 12th date. You can add the employee, but the program does not need to be changed.

I suspect that the week the employee did not get a check, was due to absence of some type.

[ngaham]

Ok. Thanks Neil