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Subject Author Date
Quickbooks and payroll processing Kevin 07-05-2008
Posted by aps on July 8, 2008, 2:26 am
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>
>>
>>
>>>I'm using QB Pro 2003 and DO NOT have a subscription to their payroll
>>>service. I do, however, use the payroll feature to create checks. So I've
>>>filled out my federal return form 941 and I owe 100.63 (fictional
>>>numbers...) except QB says I owe 100.62 - rounding issue. I used the QB
>>>feature to fill out the 941 form, despite the fact that I can't actually
>>>send that in. And at the end of the interview, it tells me that the two
>>>figures do not equal and gives me the option to adjust, which I do by one
>>>penny. Now the interview is balanced, I save it and to "Pay payroll
>>>liabilities". From the window I select all of the federal items and guess
>>>how much QB says I owe? You guessed it...$100.62! What gives? What
>>>happened
>>>to that adjustment I put in during the interview?
>>>
>>
>> Why not update to QB Pro 2008? I know gas is high but if you are using it
>> for payroll it
>> is certainly worth $149, isn't it?
>>
>It probably would be, except from my understanding, I'd have to upgrade to
>Pro 2008 ($199) AND purchase their payroll service for another $199! So
>basically paying $400 just to do payroll on one employee since my current
>version of QB is perfectly adequate for every thing else I do.
>
Suit yourself, but there is a reason QB sunsets previous versions every 3rd year
and
drops support on them. Secondly, QB basic payroll subscription is now $239(US)
and
not $199 per year. That is a cost of $60 per quarter and that my friend, ain't
much for
full payroll current updates and support. I am not at all familiar with the UK
version for
payroll, so commenting further is useless.


Posted by irvlair on July 8, 2008, 12:22 pm
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> I'm using QB Pro 2003 and DO NOT have a subscription to their payroll
> service. I do, however, use the payroll feature to create checks. So I've
> filled out my federal return form 941 and I owe 100.63 (fictional
> numbers...) except QB says I owe 100.62 - rounding issue. I used the QB
> feature to fill out the 941 form, despite the fact that I can't actually
> send that in. And at the end of the interview, it tells me that the two
> figures do not equal and gives me the option to adjust, which I do by one
> penny. Now the interview is balanced, I save it and to "Pay payroll
> liabilities". From the window I select all of the federal items and guess
> how much QB says I owe? You guessed it...$100.62! What gives? What happen=
ed
> to that adjustment I put in during the interview?

You will have this issue regardless of version of QB so I don't think
upgrading to QB2008 would resolve this particular issue. I do manual
payroll with QB Pro 2004 and here is the way I handle the fraction of
cents difference:
While processing the quarterly 941 you will com to a screen called
"Summary for line 6 to 10". Click "yes" for need to adjust. Click
"next" to the "line 9" screen. Insert the Fraction of cents
adjustment. In your example this would be -0.01 or 0.01 whichever is
needed to come out right.

I process the 941 in QB to the point where it tells me that the
figures do not equal as you have mentioned. I make no changes but
just click "previous" until I get back to the "Summary for line 6 to
10" screen and make the adjustment there.

By the way, since I get no support or payroll updates on my version I
use this just to get the correct amounts and use this info to fill out
the current 941 form manually. Hope this helps. Irv

Posted by Kevin on July 15, 2008, 4:14 pm
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You will have this issue regardless of version of QB so I don't think
upgrading to QB2008 would resolve this particular issue. I do manual
payroll with QB Pro 2004 and here is the way I handle the fraction of
cents difference:
While processing the quarterly 941 you will com to a screen called
"Summary for line 6 to 10". Click "yes" for need to adjust. Click
"next" to the "line 9" screen. Insert the Fraction of cents
adjustment. In your example this would be -0.01 or 0.01 whichever is
needed to come out right.

I process the 941 in QB to the point where it tells me that the
figures do not equal as you have mentioned. I make no changes but
just click "previous" until I get back to the "Summary for line 6 to
10" screen and make the adjustment there.

By the way, since I get no support or payroll updates on my version I
use this just to get the correct amounts and use this info to fill out
the current 941 form manually. Hope this helps. Irv

Well, it sort of helps except that IRS form 941 was considerably different
in '03 as opposed to '04 and thus QB's handling was quite different, so...I
have upgraded to QB Pro 2008 without the payroll service and they have made
the situation worse. They no longer let you create, manually, the 941 form.
So I revert back to my original problem...

QB tallies up my payroll liabilities according to what I entered on the
paychecks and come up with the figure $100.62 but because of rounding, the
IRS is expecting 100.63. I guess the easiest option would be to simply make
an adjustment. I click the option to "Pay Liabilities" and select the
federal items which comes up .01 short. I cannot change any of these numbers
because they are what I actually held back from the paychecks so I hit the
"Create" button at which point the check appears. I have the option to
adjust the check amount here but my question is, how? Should I enter an
expense of .01 and put payroll liabilities for the account?



Posted by kk on July 15, 2008, 10:03 pm
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>
>
> You will have this issue regardless of version of QB so I don't think
> upgrading to QB2008 would resolve this particular issue. =A0I do manual
> payroll with QB Pro 2004 and here is the way I handle the fraction of
> cents difference:
> While processing the quarterly 941 you will com to a screen called
> "Summary for line 6 to 10". =A0Click "yes" for need to adjust. =A0Click
> "next" to the "line 9" screen. Insert the Fraction of cents
> adjustment. =A0In your example this would be -0.01 or 0.01 whichever is
> needed to come out right.
>
> I process the 941 in QB to the point where it tells me that the
> figures do not equal as you have mentioned. =A0I make no changes but
> just click "previous" until I get back to the "Summary for line 6 to
> 10" screen and make the adjustment there.
>
> By the way, since I get no support or payroll updates on my version I
> use this just to get the correct amounts and use this info to fill out
> the current 941 form manually. =A0Hope this helps. =A0Irv
>
> Well, it sort of helps except that IRS form 941 was considerably differen=
t
> in '03 as opposed to '04 and thus QB's handling was quite different, so..=
.I
> have upgraded to QB Pro 2008 without the payroll service and they have ma=
de
> the situation worse. They no longer let you create, manually, the 941 for=
m.
> So I revert back to my original problem...

************ That's really a bummer that you can no longer create the
941 manually! **********
************ Study up a little and you will find that it is easy to
get the info from QB ************
************ to manually do your 941 form.************
>
> QB tallies up my payroll liabilities according to what I entered on the
> paychecks and come up with the figure $100.62 but because of rounding, th=
e
> IRS is expecting 100.63. I guess the easiest option would be to simply ma=
ke
> an adjustment. I click the option to "Pay Liabilities" and select the
> federal items which comes up .01 short. I cannot change any of these numb=
ers
> because they are what I actually held back from the paychecks so I hit th=
e
> "Create" button at which point the check appears. I have the option to
> adjust the check amount here but my question is, how? Should I enter an
> expense of .01 and put payroll liabilities for the account?

************ I suggest that you forget about ANY adjustments except
the "fractions of cents" adjustment. You can see this on the 941
instructions from the IRS online. You will see this on your current
blank form. The IRS allows you to enter the correction to make the
amount owed match the QB amounts from the paychecks, therefore the
numbers in QB do not need to be changed. It is only intended to
adjust rounding differences. You are correct that the amounts of
payroll withholding must not be changed in QB.

************ We do payroll checks manually for 6 people in a non-
profit business and it is really no problem that I would pay for and
still have to keep up with the local tax tables that are not included
in the payroll subscription.

Hope this is somewhat helpful but I'm only familiar with QB Pro 2004.

Irv

Posted by Kevin on July 16, 2008, 6:50 am
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>
>
>
> Well, it sort of helps except that IRS form 941 was considerably different
> in '03 as opposed to '04 and thus QB's handling was quite different,
> so...I
> have upgraded to QB Pro 2008 without the payroll service and they have
> made
> the situation worse. They no longer let you create, manually, the 941
> form.
> So I revert back to my original problem...

************ That's really a bummer that you can no longer create the
941 manually! **********
************ Study up a little and you will find that it is easy to
get the info from QB ************
************ to manually do your 941 form.************
>

Sorry, that was a faux pas. I was referring to the fact that you could do
the little QB interview and they would fill out the form for you. But
anyway...

> QB tallies up my payroll liabilities according to what I entered on the
> paychecks and come up with the figure $100.62 but because of rounding, the
> IRS is expecting 100.63. I guess the easiest option would be to simply
> make
> an adjustment. I click the option to "Pay Liabilities" and select the
> federal items which comes up .01 short. I cannot change any of these
> numbers
> because they are what I actually held back from the paychecks so I hit the
> "Create" button at which point the check appears. I have the option to
> adjust the check amount here but my question is, how? Should I enter an
> expense of .01 and put payroll liabilities for the account?

************ I suggest that you forget about ANY adjustments except
the "fractions of cents" adjustment. You can see this on the 941
instructions from the IRS online. You will see this on your current
blank form. The IRS allows you to enter the correction to make the
amount owed match the QB amounts from the paychecks, therefore the
numbers in QB do not need to be changed. It is only intended to
adjust rounding differences. You are correct that the amounts of
payroll withholding must not be changed in QB.

This "fractions of cents" adjustment was what I am/was referring to. I
suppose that I did not fully understand what the IRS form was doing with
that line on the form. My gut reaction was that they were making it more
difficult, when in fact, they were helping to make it easier to used
computerized accounting systems. This line allows me to adjust what I pay to
the IRS to match my accounting records, rather than the other way around.
You can surely understand why I was confused!

************ We do payroll checks manually for 6 people in a non-
profit business and it is really no problem that I would pay for and
still have to keep up with the local tax tables that are not included
in the payroll subscription.

Hope this is somewhat helpful but I'm only familiar with QB Pro 2004.

This has been very helpful, thank you.

Kevin



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