Where did QuickBooks get the figure it entered on my 940, part 2, line 4.?

Question

It says I paid $7980 in payments exempt from FUTA. I have double checked all my payroll items to be sure that they are all correct. AAAAGGGGHHHHH!!!!!!

Answer 1

QuickBooks calculates the total on this line by adding together payroll items that constitute exempt payments. Exempt payments include QuickBooks payroll items with any of the following tax tracking types:

* Dependent Care FSA, Co. Paid Dep. Care, Qual. Moving Expense, 125 Medicare, Premium Only Plan, Taxable Grp Trm Life, SCorp Pd Med Premium, and Health Savings Acct. and

* Any payroll item you set to calculate before FUTA witholding.

You can tell if a payroll item is set to calculate before FUTA withholding if you checked "Federal Unemployment" on the Taxes screen of the payroll, then you set that payroll item to calculate before FUTA withholding. QuickBoooks includes the amounts for that payroll item in Line 2.

To verfiy your QuickBooks results:

Run a Payroll Item Listing report to see the tax tracking types assigned to your payroll item in QuickBooks.

Run a Payroll Summary report for the Form 940 filing period and note the amounts for the payroll items with the matching tax tracking types.

Here is a link to a clickable Form 940 that may be of some help...
http://quickbooks.com/support/clickableforms/9402005Part1.htm#

Answer 2

Maybe some of your entries went into the wrong payroll column... Wages Exempt from Futa ar very rare... Read on the back of your 940 and double check exempt requirements... I havent done a 940 in so long I am afraid I cant help you much... Research....

Answer 3

Payments Exempt From Futa Tax