QuickBooks

QuickBooks Total FUTA Wages Error

Written by Charlie Russell

QuickBooks Total FUTA Wages ErrorHere’s a quick note about a QuickBooks total FUTA wages error. If you’re using an Intuit payroll product and QuickBooks desktop product from 2014 through 2011, you should compare the Schedule A FUTA taxable wages with the Total taxable FUTA wages in line 7 of Form 940. There may be a rounding error that results in these two values not matching.

I’m not 100% sure that this shows in all of these releases of QuickBooks. I’ve seen multiple reports that it shows in the 2014 and 2013 products, and at least one report for each of the 2012 and 2011 products.

Intuit says that this is a small rounding error, but in the example that a ProAdvisor provided to me, it was not just a few pennies difference.

Look at the value in line 7 (page 1, Form 940), in Figure 1:

Form 940, Page 1, Line 7
Figure 1: Form 940, Page 1, Line 7

Now, compare this to the value for FUTA taxable wages in the Schedule A worksheet, Form 940, page 3 (Figure 2):

Form 940, Page 3, FUTA Taxable Wages
Figure 2: Form 940, Page 3, FUTA Taxable Wages

The figure in line 7 should be correct. You can confirm  that the value in line 7 of the Form 940 is correct by using the information at Intuit payroll KB article 2000212. If it is, then you can correct the Schedule A value to match that amount by right-clicking on that incorrect figure and choosing to override the amount. 

Intuit is working on patches for this, but I’m not sure when these will be available.

Update 1/17/2014, 5:00 p.m.: Intuit announced this issue to ProAdvisors today as well, shortly after we published this article. Intuit explains the issue at http://payroll.intuit.com/support/kb/1003125.html – but it doesn’t talk about any updates that would resolve the issue. Intuit’s fix is essentially the same as I list here. In its article, Intuit refers to QuickBooks 2014, 2013, and 2012 only. In the notice that went out to ProAdvisors, the 2011 product was included as well.

Editor’s Note: This error was fixed in QuickBooks 2013 R12.

Editor’s Note: The fix is described in “QuickBooks 2014 FUTA Correction.”

About the author

Charlie Russell

Charlie Russell has been involved with the small business software industry since the mid 70's, and remembers releasing his first commercial accounting software product when you had an 8-bit microcomputer with one 8 inch floppy disk drive. He has a special interest in inventory and manufacturing software for small businesses. Charlie is a Certified Advanced QuickBooks ProAdvisor with additional certifications for QuickBooks Online and QuickBooks Enterprise, as well as being a Xero Certified Partner. Charlie started blogging about QuickBooks in 2008 (Practical QuickBooks) and has been writing for the Accountex Report (formerly the Sleeter Report) since 2011. He retired from accounting and QuickBooks activities in early 2018.

Visit his CCRSoftware web site for information about his QuickBooks add-on products. He is also the author of the California Wildflower Hikes blog.

12 Comments

  • Thanks Charlie. I find it interesting that we can not find any pattern to it. It isn’t “rounding.”
    Most of our clients are on 2011 but many in 2012/13. Many were perfectly fine, my own company was out exactly $1, one was out $18.44. No sense at all. It was a real chore calling and assisting clients after their last December payroll in calculating their additional accrual and paying the additional tax.
    So glad to hear that GA will not have this mess in 2014.

    • “Rounding” is what Intuit says – and I can see that it is a rounding issue, possibly, back a few calculations as it is accumulating different figures. Not just saying that the two values are off by one rounding calculation.

  • Found a nastier bug in tax table 21402. The table did not respect the $7000.00 wage limit for FUTA tax and generated FUTA liability in excess of the $7000.00 limit on the last payroll of the year. In CA so I have the credit reduction issue as well. So both box 5 and schedule A have to be corrected.

    Tell me again why I pay Intuit for a payroll subscription?

  • I have had differences from 2c to almost $200 in QB 2012 and 2013; none of the ones I prepared were correct. Even a client with one employee did not have the correct $7000 taxable wage on Schedule A. 2012 was fine so what did they change to cause this? Funny thing is that the 940 worksheet has the correct taxable wage but this number doesn’t transfer over to the 940.

  • Sorry, put my comment in wrong place. QB 2012 version had schedule A FUTA Taxable wages $7008 less than Line 7 total Form 940. California filer?!?!

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