Before generating W-2s in Payroll, reconcile the fourth quarter 941 tax report to ensure error-free processing. The table below displays how to run reports to verify 941 amounts.

The most recent Form 941, Employer's Quarterly Federal Tax Return (PDF), is available on the IRS website.

941 Line Number Report NameReport OptionsReconciliation Process
Line 1Payroll Register
  • On the General tab, select to include paid calculations
  • Select <Specific date> for Payment date and enter the date range used on the 941 report
  • Mark the Create an output query of checkbox and select Employees
  • The 941 report will calculate the number of employees based on those employees that had calculations where the period start and end dates include the 12th day of the 3rd month of the quarter.  
  1. In Query, open the query created from the Payroll Register
  2. Select the Results tab to view the number of employees
Line 2Adjusted Gross Wage Report
  • On the General tab, select to include paid calculations
  • Select <Specific date> for Payment date and enter the date range used on the 941 report
Verify the Federal Withholding (Federal W/H) Grand Total
Line 3Payroll Register
  • On the General tab, select to include paid calculations
  • Select <Specific date> for Payment date and enter the date range used on the 941 report
  • Under Include calculation detail for, unmark all checkboxes except Taxes
  • In the Print a field, select Summary
  • Mark the Summarize activity by: checkbox and select Pay stub ID
  • On the Filters tab, select to filter Taxes by Federal tax
Verify the Federal amount under Total Deductions/Employee Taxes
Line 5aAdjusted Gross Wage Report
  • On the General tab, select to include paid calculations
  • Select <Specific date> for Payment date and enter the date range used on the 941 report
Verify the Social Security (Soc. Sec.) Grand Total
Line 5cAdjusted Gross Wage Report
  • On the General tab, select to include paid calculations
  • Select <Specific date> for Payment date and enter the date range used on the 941 report
Verify the Medicare Grand Total
Line 10Payroll Register
  • On the General tab, select to include paid calculations
  • Select <Specific date> for Payment date and enter the date range used on the 941 report
  • Under Include calculation detail for, unmark all checkboxes except Taxes
  • In the Print a field, select Summary
  • Mark the Summarize activity by: checkbox and select Pay stub ID
Using the amounts under Total Deductions/Employee Taxes, calculate: Federal W/H column + [(Soc Sec + Medicare columns) * 2]