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QuickBooks Form 941 Error

QuickBooks Form 941 Error

What is Error Code 941 in QuickBooks

Quickbooks-error-code-941-message-screenshot
Error Code:Error 941
Error Description:[Error 941]. Quickbooks has encountered a problem and needs to close. We are sorry for the inconvenience.
Developer:Intuit Inc.
Software:QuickBooks
Applies to:Windows XP, Vista, 7, 8
Cause:Credits to COBRA premium assistance payments, Wages, tips, and other compensation.
Solution:Update QuickBooks Payroll with the latest release version, Try again to print the Tax Forms.

QuickBooks Form 941 Error: The balance due is over $2,500 error message is displayed when the taxes exceed $2500. Let’s quickly get an overview of Form 941. It is a form that is based on the Quarterly Federal Tax return of an employer and is filed every quarter.

As per the instructions given by the Internal Revenue Service, if your taxes for a quarter are more than $2,500 then you have to submit the tax liabilities and the dues at an authorized financial institution. If your taxes are less than $2,500 then you can easily pay them with Form 941 rather than depositing the money.

Form 941 is a document that comprises three things:

  • The net amount restrained from the employee pay for Federal Income Tax of the preceding quarter.
  • The amount that should be paid by the employer for his FICA tax share.
  • The amount that has been already submitted for the payroll from the preceding quarter.
Note: The form 941 should be capitulated to the Internal Revenue Service at the end of each quarter within 30 days. Customers who have the subscription of QuickBooks Desktop Payroll Standard or is enhanced with e-file and e-pay services, they can submit their tax liabilities electronically.

Causes Of Form 941 Error

Here are some of the usual errors that you do while finalizing Form 941, these errors can result in the wrong reporting to IRS like over-reporting and under-reporting.

For example, if by mistake you fill in the wrong values in the fields mentioned below:

  • Credits to COBRA premium assistance payments
  • Wages, tips, and other compensation
  • Taxable Medicare wages and tips
  • Income tax withheld from wages, tips, and other compensation

System Requirements to avoid QuickBooks Form 941 Error

To avoid the QuickBooks form 941 error, your computer must meet these system requirements:

  • Windows Vista or Windows 7
  • Microsoft Office 2010 or 2013
  • Microsoft Word 2010 or 2013

Precautions to take before Resolutions QuickBooks Form 941 Error

Before resolving any QuickBooks form error, it is important to take some precautions. For example, if an error message indicates that a file is missing, make sure that you have backed up your data regularly and have a copy of the file available. Additionally, if you are experiencing errors when trying to submit your taxes online, try resetting your password first. Finally, if you are still having trouble resolving the issue, please contact QuickBooks customer service for assistance.

How To Fix The Form 941 Error?

For this, we need to use the Form 941-X, Form 941-X is divided into five sections and these sections lets you solve the Form 941 Error:

  • The first Section includes the information related to Employer’s Quarterly Federal Tax Return or Claim for Refund.
  • The second section comprises questions to find out the details of why you want to fill out this form.
  • The third Section copies the original 941 forms and prompts you to correct the fields that were earlier filled incorrectly.
  • In the fourth section, you are asked a comprehensive explanation of why you are doing these corrections.
  • In the last section, you need to sign the document that you used.

You can prepare Form 941-X in the QuickBooks Desktop.

Few basic troubleshooting to recognize QuickBooks Form 941 Error:

Troubleshooting Steps to Identify QuickBooks Form 941 Error:

  • Check your payroll subscription details.
  • Check to see if QuickBooks is up and working
  • Check the internet connectivity
  • Please ensure QuickBooks and payroll is up to date
  • Check your security software is not conflicting with QuickBooks
  • Firewall setting needs to be checked, ports are configured.
  • Check your filling method (E-filing)
  • Check if you are enrolled in the IRS (E-file).

After done with the above-discussed options, you need to follow the below steps:

  • Go to the Payroll center >>> Payroll forms 
  • From the list, choose the form that your need to file (like 940, 941, and 944)
  • Next, click on the File Form and then select the form filing period followed by hitting Ok
  • Review the forms after updating the details and then check for any errors 
  • If you find any error then make sure you fix it before submitting 
  • Finally, submit the form and then click on the “E-file” tab.

When Should one File Form 941?

Form 941 is to be filed on a quarterly basis like:

  • For the first quarter that ends on 31st March, you should submit the Form 941 by the end of April.
  • For the second quarter, ending on 30th June, submit the form by July end.
  • For the third quarter that ends on 30th September, submit the form by October end.
  • And for the fourth quarter, that ends on 31st December, submit the form by January end.
Note: Form 941-X is filed when you come to know that while filing the previous form 941, there were some errors.

However, the Form 941 error happened while printing the federal form 941 due to an incorrect filing method setup. Below are a few of the troubleshooting methods you can try while sending the federal payroll liability payments. 

Method 1: Modify the Faulty Filing Method

The methods below will assist you in re-verifying the incorrect filling approach that resulted in an error processing form 941 through QB.

  • Initially, launch the QuickBooks software and then go to the Employees tab 
  • Next, click on the Payroll Tax Forms & W-2s 
  • Now, choose the Process Payroll Forms followed by clicking the File Forms >>> Other Activities >>> Change Filing Method 
  • Perform instructions that appears on your screen carefully and then hit the “Continue” button 
  • After that, select form 941 giving an error in QuickBooks and then select the “Edit” menu 
  • Click on the Print & mail from within Filing Methods 
  • At last, click the “Finish” tab and attempt to send your 941 form once again.  

In case, the above steps still have not resolved the error then you’re required to proceed with the next method.

Method 2: Update QuickBooks Payroll with the latest release version

Installing QuickBooks payroll updates will help you acquire the most up-to-date and accurate rates for federal tax tables, payment options, and e-file. To get the process done in a fail-safe manner, follow the below steps:

  • First, select the Employees tab >>> Get Payroll Updates 
  • Next, select the checkbox named “Download Entire Update” 
  • After that, select the “Download Latest Update” tab
  • In the end, an informational window will appear once the download is successfully done.

Method 3: Try again to print the Tax Forms

Try printing the form once again that is causing you an error while processing form 941 through QuickBooks once the payroll has been updated with the newest release.

To complete the task, follow the procedures given below:

  • Go to the Employees tab within QuickBooks and then select the Payroll Tax Forms and W-2s
  • Next, select the option “Process Payroll Forms” >>>> “Payroll Center” >>>> “File Forms” 
  • Now, choose the form that you need to file 
  • After that, click the File Form option and give the required period for form filing 
  • After done with that, you have to click Ok >>> Check for Errors 
  • Make sure, you review the form once to check if there is any mistakes exits and accordingly you can rectify after getting any mistakes 
  • Click on the “Submit” tab and then click on the “E-File” tab 
  • By performing on-screen instructions, you have carefully submit your 941 form in order to avoid the mistakes
  • Finally, verify once again to check whether the QuickBooks Form 941 Error resolved or not.

How to file a correct Federal QuickBooks Form 941?

Step 1: Identity what form to use

If you are getting an error on a previously filed federal form, then you need to file an amendment form As soon as. you can correct this error by filing these forms:

  • Form 941-X for federal form 941
  • For federal form 940, there’s no “X” form. Use the same federal Form 940 from the year it was originally filed.

Step 2: Get to know your amendment forms

What you can correct:

Form 941-X

Use Form 941-X to correct:

  • labour charges, tips, and other compensation
  • Income tax withheld from labour charges, tips, and other compensation
  • Taxable Social Security labour charges;
  • Taxable Social Security tips;
  • Taxable Medicare labour charges and tips;

Step 3: Prepare and file your amendment forms

While you are trying to file an amendment form, you should use a paper return even if you e-filed the original form. Before creating an amended return ensure to enter the essential liability adjustment.

Form 941-X

Here are some steps to prepare and file form 941-X in QuickBooks Desktop.

  • Select Payroll Tax Forms & W-2s under Employees.
  • Choose Process Payroll Forms.
  • Select Quarterly Form 941-X – Adjusted Employer’s Quarterly Federal Tax Return or Refund Claim from the File Forms section.
  • Create a form by selecting it.
  • Choose the Filing period you want to correct, then click OK.
  • Choose the return you are correcting, then choose the quarter.
  • If you are correcting a calendar year, enter it here.
  • Please enter the date when you discovered the errors. Follow the format specified.
  • You can correct your employment tax by selecting one of the following options:
    • Only underreported amounts
    • Only overreported amounts can be adjusted or claimed.
    • Combining underreported and overreported amounts on one 941-X
  • Enter the date you discovered the errors by selecting Next.
  • Make sure that the process selected under Part 1: Select Only One Process matches the process selected under the Interview section.
  • Check at least one box or select all that apply under Part 2: Complete the certifications.
  • In Part 3, enter the corrections for the quarter. Leave any lines that don’t apply blank.
  • For detailed instructions on how to complete Form 941-X, please refer to the IRS Instructions for Form 941-X.
  • Explain in detail each correction you entered in Part 3. If necessary, attach any IRS notices.
  • Form 941-X should be printed and mailed according to IRS instructions.

Amend Form 940

To amend Form 940 in QuickBooks Desktop:

  • Select Payroll Tax Forms & W-2s from Employees.
  • Choose Process Payroll Forms.
  • Choose Annual Form 940/Sch. A – Employer’s Annual Federal Unemployment Tax Return from the File Forms section.
  • Create a form by selecting it.
  • Select OK after entering the year of the filing period you want to correct.
  • Click Next after selecting Amended Return.
  • Verify that the amounts on page 2 are those that should have appeared on the original form.
  • Please include a detailed explanation of why you are amending your return.
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FAQ

  1. Why did I receive the QuickBooks Form 941 error?

    This error appears when the total sum of your tax amount that you are paying in a quarter exceeds more than the limit, you will receive an error process form 941 via QuickBooks. As per the employer’s guide, go through the terms & conditions first to avoid these errors.

  2. How can I correct form 941 to fix the QuickBooks Form 941 Error?

    Firstly, choose the Payroll process from the tab. Go to the File forms section and click on the Quarterly form 941-X-Adjusted Employer’s quarterly federal tax return or you can also claim a refund. Choose the create Form. Check and verify that an accurate period is entered or not in the filing period section.

  3. Is reconciliation Form 941 helps to get rid of QuickBooks Form 941 Error?

    It might help you, firstly to be sure about the reason behind the error. To do it, go to the drop-down menu bar, choose the Employees section. Then, choose the Payroll Tax forms and W-2s. Hit the next click on the Process payroll forms. Check and verify the file history section to find the saved form. Then, hit the double-click on it. Choose the Quarterly Form 941 from the file menu. After this, select the accurate quarter and click on the OK to end with this process.


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