How Can I Create My Payroll Form 940: CheckMark Payroll

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How Can I Create My Payroll Form 940: A Step-by-Step Guide

Managing payroll taxes can feel overwhelming, especially when it comes to filing Form 940, the Employers Annual Federal Unemployment (FUTA) Tax Return. Many small business owners often ask, “How can I create my Payroll Form 940?” This guide will walk you through the process using QuickBooks and CheckMark Payroll, highlight common issues, and provide solutions for related tasks like printing or fixing W-3 forms.

Whether you use QuickBooks Desktop, QuickBooks Online, or CheckMark Payroll, following these steps ensures your FUTA taxes are accurately reported to the IRS.

What is Form 940?

Form 940 is an annual tax form used to report your FUTA liability. FUTA provides funding for unemployment compensation to workers who have lost their jobs. Employers must file this form to report the total wages paid, calculate FUTA tax, and report any adjustments.

Incorrect or late filings can lead to penalties, so it’s essential to handle this process carefully.

How Can I Create My Payroll Form 940 in QuickBooks

QuickBooks makes it relatively simple to generate Form 940, but it’s important to ensure all payroll data is accurate before filing. Here’s a step-by-step guide:

QuickBooks Desktop

Open QuickBooks Desktop and go to the Employees menu.
Select Payroll Tax Forms & W-2s > Process Payroll Forms.
Choose Form 940 – Employer’s Annual Federal Unemployment (FUTA) Tax Return.
Enter your payroll information, including wages subject to FUTA tax.
QuickBooks will calculate the FUTA liability and generate Form 940.
Click Print or E-file your form.

Tip: Double-check that your state unemployment (SUTA) payments are accurate to avoid discrepancies.

QuickBooks Online

Navigate to Taxes > Payroll Tax.
Select Form 940 from the list of federal tax forms.
Fill in the required payroll and tax information.
Preview and submit the form electronically.

How Can I Create My Payroll Form 940 in CheckMark Payroll

If you use CheckMark Payroll, the process is straightforward:

Open CheckMark Payroll and go to the Command Center.
Click on 940 FUTA Tax.
Select Form 940 Report Option.
Complete the fields in the 940 FUTA Tax Window:
- Indicate if you pay unemployment in one state or multiple states.
- Enter amounts for credit reduction states if applicable.
- Add FUTA exempt payments and third-party designee details.
Click Print. The form opens in Acrobat Reader, where you can save or print it.

Note: Changes made in Adobe Reader will not reflect in CheckMark Payroll, so ensure your initial data entry is accurate.

For assistance, you can call QuickBooks support at 866-498-7204.

Common Issues When Creating Form 940

Even with software guidance, errors can occur. Here’s how to resolve the most frequent problems:

Incorrect Wage Amounts
Verify your payroll entries. FUTA applies only to wages up to a specific limit per employee.
Multiple States SUTA Payments
If you pay unemployment in more than one state, you must complete Schedule A (Form 940) and submit it with your filing.
Credit Reduction States
Certain states require additional FUTA taxes. Check the IRS website for a current list of credit reduction states.
Software Errors
If QuickBooks or CheckMark shows errors during 940 creation, restarting the software and updating payroll data often resolves minor issues. For persistent issues, contact support at 866-498-7204.

How to Print and Fix W-3 Forms in QuickBooks

After filing Form 940, you might also need to handle W-3 forms, which summarize employee W-2s.

How to Print W-3 in QuickBooks Desktop

Go to Employees > Payroll Tax Forms & W-2s.
Select Annual Form W-3.
Choose the correct tax year.
Click Preview and Print.

How to Print W-3 in QuickBooks Online

Navigate to Taxes > Payroll Tax Forms & W-2s.
Select Annual Form W-3.
Preview, save, or print the form as needed.

How to Fix an Incorrect W-3 in QuickBooks

Open Payroll Tax Forms & W-2s.
Select W-2/W-3 Forms > Correct a Previously Filed Form.
Make necessary adjustments and reprint.

QuickBooks may require you to re-submit corrections to the IRS. For help, you can call 866-498-7204.

Tips for Accurate Payroll Reporting

Reconcile Payroll Data: Always ensure payroll records match your QuickBooks or CheckMark data before creating Form 940.
Keep Track of Deposits: FUTA payments must be reported accurately, including any overpayments or credit adjustments.
Schedule Reviews: Verify each year’s data before finalizing forms to avoid penalties.
Use Software Updates: Ensure your QuickBooks or CheckMark Payroll software is up to date.

FAQs About Payroll Form 940

Q1: Who needs to file Form 940?
A1: Employers who pay wages subject to FUTA tax must file Form 940 annually.

Q2: Can I e-file Form 940?
A2: Yes, both QuickBooks and CheckMark Payroll support e-filing for Form 940.

Q3: What if I made a mistake on Form 940?
A3: You can file Form 940-X, the corrected FUTA return, or edit your data in QuickBooks/CheckMark Payroll and re-submit.

Q4: How do I handle multiple state unemployment taxes?
A4: You must fill out Schedule A (Form 940) and attach it to your federal Form 940.

Q5: How do I print or fix W-3 forms?
A5: QuickBooks Desktop and Online allow you to print W-3 forms directly. Corrections are made through the “Correct a Previously Filed Form” option.

Conclusion

Filing your payroll taxes correctly is essential to keeping your business compliant. Knowing how to create my Payroll Form 940, print W-3 forms, and fix errors ensures you stay ahead of tax deadlines. Using QuickBooks or CheckMark Payroll simplifies the process, but careful data verification is key.

For personalized guidance, especially if you encounter software errors or complex multi-state issues, call support at 866-498-7204 for expert help.

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