FAQs – Form 940 and 941 Reports

This article includes information on how to validate your 940 and 941 data.

OVERVIEW

Once forms 940 or 941 are released, verify that the data reported is accurate. Refer to the information below for validation purposes. If anything reported is inaccurate, submit a case in the Help Community.
 

GENERAL

Which reports can I use to validate my 940 and 941 forms?
Use the Quarterly Tax Reconciliation (Company) Report, Quarterly Tax Reconciliation (Employee by Quarter) Report, and Quarterly Tax Reconciliation (Employee by Check Date) Report to validate the forms.
 

FORM 940

How can I reconcile Line 3?

Line 3 includes all taxable earnings paid to an employee in addition to the following:

  • Pre-Tax Retirement Employer match

  • Group Term Life

  • Fringe Benefits

  • Dependent Care

How can I reconcile Line 4?

Line 4 includes the totals of the employee pre-tax deductions and employer pre-tax retirement deductions. Use the annual payroll register to validate this data. Refer to Payroll Report Guidance (Date Range, Standard, Quarterly and Year End) for more information regarding Date Range Reports.

How can I reconcile Line 5?

Use the Quarterly Tax Reconciliation (Employee by Quarter) Report to deduct $7,000 from each employee's Employer FUTA Taxable Wages. In Line 5, the number that appears includes the aggregate of all employee wages over $7,000 and the aggregate amount for all employees. 

How can I reconcile Line 8?

The amount entered in Line 8 is the amount from Line 7 multiplied by .006. Line 7 is determined by Lines 3 to 6.

What does Namely consider "fringe benefits"?

Examples of fringe benefits include subsidized meals (imputed under either PayTypeRuleID 11 or 85), healthcare (Pre-Tax EE Deductions), personal use of company care (imputed under either PayTypeRuleID 11 or 85), etc.
 

FORM 941

How can I validate the wages reported in box 2?

Use the Quarterly Tax Reconciliation (Company) Report to validate these wages.

How can I reconcile Line 5d?

Use the Quarterly Tax Reconciliation (Employee by Quarter) Report and deduct $200,000 from each employee's Employee Medicare Additional Taxable total. Add all amounts in excess of $200,000 to get the total reported in Line 5d.