How do I read the 941 Report?
- Gross Wages will be greater than FWT Wages, SS Wages, and Med Wages if you have pre-tax deductions of any kind
- Withheld is employee only Federal Withholding deduction
- SS Cost and Med Cost are both Employer and Employee portions of the tax
- Employee and Owner represent the total for all tax items for each party.
- Total Liability is the sum of each column. Tax percentages are applied on each individual paycheck then summed up.
- Period Total provides a double check of the tax rates applied to the total taxable wages. The taxes calculated may be different than the Total Liability line amounts due to the percentage being applied to the total taxable wages instead of each paycheck individually.
- Rounding Error represents the difference between the Total Liability line and the Period Total line. IRS Form 941 has a field to add in the Rounding Error amount.
The Total Cost in the far right column on the Total Liability line will be your AP amount and should reflect the tax amount paid via EFTPS
Congratulations, you are done!