cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

How to determied payroll taxes: are the sum of all IRS form of 941 & 940 & EDD for state taxed that report each quarter?

how to determied "payroll taxes": are the sum of all IRS form of 941 & 940 & EDD for state taxed that report each quarter?

1 Best answer

Accepted Solutions
Highlighted
Level 4

How to determied payroll taxes: are the sum of all IRS form of 941 & 940 & EDD for state taxed that report each quarter?

To find the correct numbers from your Payroll Returns to determine payroll taxes paid, please use these figures: 

  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return: Line 12 (Total FUTA tax after adjustments)
  • Form 941: Add boxes 5a and 5c, then divide by 2 to calculate employer's match for Social security and Medicare taxes. 
  • Your State most likely has an Unemployment Tax as well which requires you to file a return, so be sure to include that figure.
  • You do not claim any taxes withheld from your Employee's pay as a payroll expense.  This is because you have already claimed their "gross pay" as a deduction under Wages.

View solution in original post

1 Reply
Highlighted
Level 4

How to determied payroll taxes: are the sum of all IRS form of 941 & 940 & EDD for state taxed that report each quarter?

To find the correct numbers from your Payroll Returns to determine payroll taxes paid, please use these figures: 

  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return: Line 12 (Total FUTA tax after adjustments)
  • Form 941: Add boxes 5a and 5c, then divide by 2 to calculate employer's match for Social security and Medicare taxes. 
  • Your State most likely has an Unemployment Tax as well which requires you to file a return, so be sure to include that figure.
  • You do not claim any taxes withheld from your Employee's pay as a payroll expense.  This is because you have already claimed their "gross pay" as a deduction under Wages.

View solution in original post