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Prepare forms 940, 941, 943, 944, and 945

Form 940 data entry guide

During Form 940 data entry, you can refer to the following table, which lists each field on Form 940 and then specifies where that data can be found or entered in Accounting CS. Use this table to help you troubleshoot each form line.
note
The taxpayer and preparer signature dates always default to the current system date unless the
Suppress date
 checkbox is marked in the Federal 94X Additional Information dialog. To use a different signature date, go to
Actions
, then
Edit Payroll Tax Forms
.
Form 940 fields handling by Accounting CS
Form 940 field
Calculated by Accounting CS
Data location in Accounting CS
Field in Accounting CS
Notes
Employer identification number EIN)
No
Setup > Clients > Main tab
EIN/SSN
Name (not your trade name)
No
Setup > Clients > Main tab
Payroll name
Trade name (if any)
No
Setup > Clients > Main tab
DBA name
Address
No
Setup > Clients > Main tab
Business address line 1
If the client has separate mailing and taxing addresses, be sure that the address that should appear on this form is entered as the Business address.
Address
No
Setup > Clients > Main tab
Business address line 2
Address
No
Setup > Clients > Main tab
Business address City, State, ZIP
Address, Foreign country name
No
Setup > Clients > Main tab > Business address State
Country
If a foreign state or unavailable in the dropdown list, go to Edit Payroll Tax Forms to override this.
Address, Foreign province/county
No
Setup > Clients > Main tab > Business address State S
City
If a foreign state or unavailable in the dropdown list, go to Edit Payroll Tax Forms to override this.
Address, Foreign postal code
No
Setup > Clients > Main tab > Business address State
ZIP
If a foreign state or unavailable in the dropdown list, go to Edit Payroll Tax Forms to override this.
Type of Return
No
Actions > Edit Payroll Tax Forms
Boxes a and b are user entered fields. Click in the appropriate box and type X. You can use Right-click and select
clear field override
 to remove the X. If there were no payments to employees in the filing year, Box c will automatically be selected. If this is a final return, enter the
Inactive Date
 and
Reason
 in the Main Tab of Setup Clients to select Box d.
Line 1a. If you had to pay state unemployment tax in one state only, enter the state abbreviation.
Yes
Automatically populated based on payroll checks when unemployment tax is paid to only one state.
Line 1b. If you had to pay state unemployment tax in more than one state, you are a multi-state employer
Yes
Automatically populated based on payroll checks when unemployment tax is paid to more than one state.
Line 2. If you paid wages in a state that is subject to CREDIT REDUCTION
Yes
Automatically populated based on payroll checks when you pay wages to a state that is subject to CREDIT REDUCTION. Schedule A (Form 940) will be automatically complete when applicable. For more information about reduction states, review FUTA Credit Reduction.
Line 3. Total payments to all employees
Yes
Calculates the total payments to all employees based on the payroll year, including any payroll items with FUTA exempt payments selected.
Line 4. Payments exempt from FUTA tax
Yes
Reflects all payments that were exempt from FUTA tax and were also included in Line 3.
Line 4a. Fringe benefits
Yes
Setup > Payroll Items
Pay Item, when FUTA exempt payments: Fringe benefits is selected.
Line 4b. Group-Term life insurance
Yes
Setup > Payroll Items
Pay Item, when FUTA exempt payments: Group term life insurance is selected.
Line 4c. Retirement/Pension
Yes
Setup > Payroll Items
Pay Item, when FUTA exempt payments: Retirement/Pension is selected.
Line 4d. Dependent care
Yes
Setup > Payroll Items
Pay Item, when FUTA exempt payments: Retirement/Pension is selected.
Line 4e. Other
Yes
Setup > Payroll Items
Pay Item, when FUTA exempt payments: Retirement/Pension is selected.
Line 5. Total of payments made to each employee in excess of $7,000
Yes
Calculates the total of the payments over the FUTA wage base you paid to each employee during the filing year after subtracting any payments exempt from FUTA tax shown on line 4.
Line 6. Subtotal
Yes
Combines Line 4 and Line 5.
Line 7. Total taxable FUTA wages
Yes
Subtracts Line 3 from Line 6.
Line 8. FUTA tax before adjustments
Yes
Calculates FUTA tax before any adjustments, multiplying Line 7 by 0.006.
Line 9. If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax, multiply line 7 by 0.054
Yes
Determines if all the taxable FUTA wages you paid were excluded from state unemployment tax, then multiples that amount by 0.054.
Line 10. If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax, OR you paid ANY state unemployment tax late
Yes
Automatically calculates the adjustment when some of the taxable FUTA wages you paid were excluded from state.
You'll need to manually enter the adjustments for any late payments made to state unemployment.
Line 11. If credit reduction applies
Yes
Reflects the total Credit Reduction amount from 940-Schedule A.
Line 12. Total FUTA tax after adjustments
Yes
Combines line 8 through 11.
Line 13. FUTA tax deposited for the year, including any overpayment applied from a prior year
Yes
Reflects all payments made for the  year by the printing of payroll liabilities / impound payments, and liabilities generated as “closed” for historical payroll checks via the Generate Liabilities dialog.
Line 14. Balance due
Yes
Displays the difference when Line 12 is greater than Line 13.
Line 15. Overpayment
Yes
Federal 94X Additional Information dialog (via the Setup > Clients > Payroll Taxes tab)
Displays the difference when Line 13 is more than Line 12. The
Apply to next return
 or
Send a refund
 checkbox is marked automatically based on the selection made in the Federal 94X Additional Information dialog.
Line 16. Report the amount of your FUTA tax liability for each quarter.
Yes
Determines the amount of FUTA tax liability for each quarter. If Line 12. (Total FUTA Tax after adjustments) is $500 or less, Line 16 will not populate. This is noted in Part 5 of the 940 form.
Line 17. Total tax liability for the year
Yes
Setup > Clients > Main tab
Combines line 16a through 16d. This must equal line 12.
Part 6 May we speak with your third-party designee?
No
Federal 94X Additional Information dialog (via the Setup > Clients > Payroll Taxes tab)
Third party designee
If yes, select the third-party designee from the drop-down list in the Federal 94X Additional Information dialog. (The list contains staff members who are specified as a payroll form preparer and who have a third party designee PIN entered in the Staff screen).
If no, Third party designee should be None (default).
Part 6 May we speak with your third-party designee?
No
Setup > Firm Information > Staff
Business phone number
The application uses the business phone number and third-party designee PIN entered in the Staff screen for the staff member selected as the third-party designee in the Federal 94X Additional Information dialog. 
If no, Third party designee should be None (default).
Part 6 May we speak with your third-party designee?
No
Setup > Firm Information > Staff
Third party designee PIN
The application uses the business phone number and third-party designee PIN entered in the Staff screen for the staff member selected as the third-party designee in the Federal 94X Additional Information dialog. 
If no, Third party designee should be None (default).
Part 7 Sign here, image
No
Federal 94X Additional Information dialog (via the Setup > Clients > Payroll Taxes tab)
Taxpayer signature image
Part 7 Sign here, image
No
Current System Date
The taxpayer and preparer signature dates always default to the current system date unless the
Suppress date
 checkbox is marked in the Federal 94X Additional Information dialog. To use a different signature date, enter it in the Actions > Edit Payroll Tax Forms screen.
Part 7 Sign here, date
No
Federal 94X Additional Information dialog (via the Setup > Clients > Payroll Taxes tab)
Taxpayer
The names available in the
Taxpayer
 drop-down list in the Federal 94X Additional Information dialog are client additional contacts specified as a 
Payroll form signer
 in the Main tab of the Setup > Clients screen and firm additional contacts specified as a Reporting Agent in the Main tab of the Setup > Firm Information > Firm screen.
Part 7 Sign here, Print your name here
No
Federal 94X Additional Information dialog (via the Setup > Clients > Payroll Taxes tab)
Taxpayer
The names available in the
Taxpayer
 drop-down list in the Federal 94X Additional Information dialog are client additional contacts specified as a 
Payroll form signer
 in the Main tab of the Setup > Clients screen and firm additional contacts specified as a Reporting Agent in the Main tab of the Setup > Firm Information > Firm screen.
Part 7 Sign here, Print your title here
No
Setup > Clients > Main tab > Additional Contacts or from Setup > Firm Information > Firm > Main tab
Title
Part 7 Sign here, Best daytime phone
No
Setup > Clients > Main tab > Additional Contacts or from Setup > Firm Information > Firm > Main tab > Additional Contacts
Business phone number
Paid Preparer Use only, Check if you are self-employed
No
Setup > Firm Information > Firm
Social Security number
The
Self-employed
 checkbox is not marked when an EIN is entered in the Main tab of the Setup > Firm screen.
Paid Preparer Use only, Preparer's name
No
Federal 94X Additional Information dialog (via the Setup > Clients > Payroll Taxes tab)
Preparer
The names available in the
Preparer
drop-down list in the Federal 94X Additional Information dialog are staff members that have the
Payroll form preparer
 checkbox marked in the Main tab of the Setup > Firm Information > Staff screen.
Paid Preparer Use only, Preparer's signature
N/A
This field cannot be populated by the application per IRS specifications.
Paid Preparer Use only, Firm's name (or yours if self-employed)
No
Setup > Firm Information > Firm
The application uses the alternate firm name if the firm is using the Alternative Preparer Block license and the client is set up for live payroll processing. It uses the primary firm name if the firm is using the Alternate Preparer Block license and the client is set up for after-the-fact payroll.
Paid Preparer Use only, EIN
No
Setup > Firm Information > Firm
EIN/SSN
The EIN field is blank if a Social Security number is entered.
Paid Preparer Use only, Address, City, State, ZIP
No
Setup > Firm Information > Firm > Address
Business, City, State, ZIP
The application uses the alternate firm address if the firm is using the Alternative Preparer Block license and the client is set up for live payroll processing. It uses the primary firm address if the firm is using the Alternate Preparer Block license and the client is set up for after-the-fact payroll.
Paid Preparer Use only, PTIN
No
Setup > Firm Information > Staff
PTIN
The application uses the PTIN from the staff member selected as preparer for the client.
Paid Preparer Use only, Phone
No
Setup > Firm Information > Staff
Business phone number
The application uses the business phone number for the staff member selected as preparer for the client.
Paid Preparer Use only, Date
No
Current System Date
The taxpayer and preparer signature dates always default to the current system date unless the Suppress date checkbox is marked in the Federal 94X Additional Information dialog. To use a different signature date, enter it in the Edit Payroll Tax Forms screen.

This article applies to:

  • Product: Accounting CS
  • Subject: Payroll tax forms

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