940 questions

Forum|Forum|3 years ago
February 11, 2023
2 replies
25 views

Can someone help me understand the 940 and what I can deduct from it or should I look at the 941?

I believe it is SS 6.2% + Medicare 1.45% =7.65%

On the 940 line 3 total payments to all employees $1,408,517.37

940 line 5 $1,226,517.37

940 line 6 $1,226,517.37

940 line 7 FUTA $182,000

940 line 8 $1,092

Does line 3 go on line 26?

Do I find the SS and Medicare tax on the 940 or the 941?

Thank you for your help.

ProSeries Professional

This topic has been closed for replies.

sjrcpa

Level 15

940 is Federal Unemployment Tax (FUTA), filed annually. All paid by the employer. Deductible by the employer.

941 is quarterly federal payroll tax return. It reports employer and employee shares of Social Security and Medicare taxes and federal withholding tax. The Employer share of Social Security and Medicare tax is deductible by the employer.

Medicare tax paid by the employer is 1.45% of Medicare wages. Social Security tax is 6.2% of Social Security wages. Note that Social Security wages and Medicare wages may not be the same as total wages.

The more I know the more I don’t know.

MGC94Author

Level 7

So can I also write off the FUTA?

line 7 940 total taxable futa wages = $182,000

line 8 940 FUTA tax before adjustments = $1,092

which is the deduction?

M

meoleson

Level 6

Easy solution is to ask the client what they paid!!

IRonMaN

Level 15

This is at least the second time recently that you asked about form 941. Sometimes things can stick in a person's brain a little better if they actually look at the form and instructions to see where the numbers are coming from.

Slava Ukraini!

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