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

Form 945: Annual Return of Withheld Federal Income Tax

You can use Form 945 to report withholding amounts from Forms 1099 and W-2G. The application provides:
  • Form 945 - Annual Return of Withheld Federal Income Tax
  • Form 945-V - Form 945 Payment Voucher
  • Form 945-A - Annual Record of Federal Tax Liability

Important considerations

  • Form 945 is available for processing only when the
    Do Not File
     checkbox is unmarked in the Forms section of the
    Payroll Taxes
     tab of the
    Clients
     screen. By default, this checkbox is marked for all clients.
  • Form 945-V - Payment Voucher is available only when there's an amount due for Form 945.
  • Form 945-A is available only when the deposit schedule for the client is set up as
    Semiweekly
     for the 945 tax agent in the
    Agent
     tab of the
    Vendors
     screen, and when line 3 on Form 945 is greater than $2,500.
  • Form 945 includes only payroll check amounts for independent contractor employee. The amounts display either on line 13 or line 14, depending on whether or not the employee is set up for backup withholding. Choose this option on the
    Payroll Taxes
     tab of the
    Employees
     screen.
  • An informational diagnostic will display if there's an overpayment carried from Form 945-X.

Prepare other 1099s and complete Form 945

According to the IRS instructions, Form 945 should be used to reconcile withholding from 1099s. However, the application will only prepare Form 945 automatically from independent contractor employees. 1099s that aren't an NEC won't flow to Form 945. Do the following if you're preparing other types of 1099s that aren't for independent contractors:
  1. Select
    Setup
    ,
    Clients
    , then
    Payroll Taxes
    .
  2. Unmark the
    Do Not File
     checkbox for Form 945.
  3. Prepare your 1099s as normal.
  4. Select
    Actions
     then
    Edit Payroll Tax forms
    .
  5. Choose
    Reconciliation
    ,
    Annual
    ,
    Federal
    , and
    945
     for the form type and jurisdiction.
  6. Manually complete Form 945.

This article applies to:

  • Product: Accounting CS
  • Subject: Payroll tax forms

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