You always file all of your payroll reports when they are due, and you know they’re right because you always send in what QuickBooks generates for you, right? So why are you receiving love letters from the IRS?
In this technological day and age, tax agencies have the ability to “talk to each other,” and they make good use of it. If your 941s and your quarterly state reports don’t exactly match your W-2s and other yearend reports, you can expect to find love letters in the mail.
An easy way to avoid this hassle is to do a quick comparison report at the end of the year, before you run your W-2s. Don’t assume your QuickBooks generated payroll reports are always correct, since any little “adjustment” or “incorrect item setting” can lead to incorrect reporting.
Simply run a payroll summary for the year, gather copies of the 941s and state reports you’ve filed for the year, and print a draft of your W-3. Compare the reports and make the necessary adjustments BEFORE you file the W-2s.
If you need help with your comparison or figuring and making the changes, feel free to give me a call. I can ensure your QuickBooks items are set up correctly and help you file matching reports so you can stay out of the IRS’s “little black book.”
Sarah Wadick, Accountant