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Video instructions and help with filling out and completing Will 940 Schedule Return

Instructions and Help about Will 940 Schedule Return

In this presentation, we will reconcile our year-end payroll forms and double check that they have been filled out correctly. For more accounting information and accounting courses, visit our website at accountinginstruction.info. We have two forms, Form 941 and Form W-3, that we can use to reconcile each other and ensure they have been filled out correctly. We can also cross-check our quarterly form by comparing it to the W-3 and vice versa. The quarterly forms calculate the three main taxes: federal income tax, social security tax, and Medicare tax for both employees and employers. These calculations are done on a quarterly basis, and we have forms for each quarter (January-March, April-June, etc.). The W-3, on the other hand, is a yearly form that summarizes all the W-2s sent to both employees and the IRS. To double check these forms, we can refer to the totals. We have the total wages, social security wages, Medicare wages, as well as the calculations for federal income tax, social security tax, and Medicare tax that have been withheld. However, we do not show the Form 940, which is the year-end form that reports the FUTA tax. FUTA is an employer-only tax and is not reported on the W-3. We can still compare the FUTA wages, but we need to reconcile to ensure we are picking up the correct wages on the Form 940. It is a common misconception that the quarterly forms and Form 940 report the same information. The quarterly forms report the three main taxes on a quarterly basis, while the Form 940 reports the FUTA tax on a yearly basis. So, they are not the same thing, and we need to reconcile them separately. In this example, we only have two quarters (quarter 3 and 4), but if we had four quarters, we...