Year-End Balancing
Here are a few basic tips to follow in order to confirm that your quarterly reports are in balance with your annual reports.
Wages, Tips, and other Compensation
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Quarter-to-date amounts appear on line 2 of Form 941.
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Employee-level year-to-date amounts appear in Box 1 of Form W-2.
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The total year-to-date amount for the company (Federal Employer Identification Number) will appear in Box 1 of Form W-3.
Balancing Tip: The sum of line 2 for the four quarters on Form 941 should balance to the amount appearing in Box 1 of Form W-3.
Social Security Wages
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Quarter-to-date amounts appear on line 6a of Form 941.
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Employee-level year-to-date amounts appear in Box 3 of Form W-2.
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The total year-to-date amount for the company (Federal Employer Identification Number) will appear in Box 3 of Form W-3.
Balancing Tip: The sum of line 6a for the four quarters on Form 941 should balance to the amount appearing in Box 3 of Form W-3
Social Security Tips
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Quarter-to-date amounts appear on line 6c of Form 941.
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Employee-level year-to-date amounts appear in Box 7 of Form W-2.
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The total year-to-date amount for the company (Federal Employer Identification Number) will appear in Box 7 of Form W-3.
Balancing Tip: The sum of line 6c for the four quarters on Form 941 should balance to the amount appearing in Box 7 of Form W-3.
Medicare Wages and Tips
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Quarter-to-date amounts appear on line 7a of Form 941.
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Employee-level year-to-date amounts appear in Box 5 of Form W-2.
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The total year-to-date amount for the company (Federal Employer Identification Number) will appear in Box 5 of Form W-3.
Balancing Tip: The sum of line 7a for the four quarters on Form 941 should balance to the amount appearing in Box 5 of Form W-3.
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