Understand Form 941 calculations

Sage BusinessWorks calculates Form 941 amounts using payroll check detail.

Box 2 wages include gross wages adjusted by applicable:

• Tips
• Other Pays
• Deductions

The taxable status assigned to these items determines their effect on taxable wages.

Reconcile Form 941

1. Review the 941 Figures Explained.pdf explaining how Sage BusinessWorks calculates Form 941 amounts.
2. Compare Form 941 amounts with your Sage BusinessWorks payroll reports.
3. Review Box 2 wages for applicable tips, Other Pays, and deductions.
4. Verify the taxable settings for any items causing a difference.
5. Review the Form 941 Figures Explained.pdf document for additional troubleshooting steps.